Foreign-Owned Company Incorporation
Are you ready to tap into Singapore’s business potential? Entrepreneurs from around the globe are discovering what makes this city-state so appealing: a favorable tax system that promotes growth, generous government incentives designed for foreign innovators, and a straightforward incorporation process.
The incorporation process for both foreigners and locals is efficient and straightforward. Learn about the specific requirements, the step-by-step process, and the actual costs involved in launching your venture in Singapore.
1. Key Requirements to Incorporate A Company in Singapore As A Foreigner
Although incorporating a company in Singapore is fuss-free, there are still some requirements you will have to fulfil.
It’s crucial to discuss and finalise all these requirements before you proceed with incorporating your company.Don’t overlook this step!
Local Director
To ensure compliance with Singapore’s regulatory framework, every company incorporated in Singapore requires a local director. This director must be either a Singapore citizen, a permanent resident of Singapore or an Employment Pass/Entrepass holder.
If you do not have a local director in mind, fret not! You can engage the services of a nominee director to fulfil this requirement.
Minimum Initial Paid-up Capital
In Singapore, the minimum initial paid-up capital is a stress-free amount of S$1. You’re free to kick-start your business here with any amount of capital you’re comfortable with.
Shareholders
Fortunately for foreign entrepreneurs, Singapore imposes no restrictions on foreign ownership. This means your company in Singapore can be wholly foreign-owned, requiring at least one shareholder.
Corporate Secretary
A corporate secretary is essential for ensuring compliance and must be appointed within six months of incorporation. A convenient option is to hire a secretarial service provider, such as Lionsworld.
(Tip: start sourcing for a secretary before incorporation)
Registered Business Address
In Singapore, companies are required to have a registered business address. This address must be a physical location within Singapore where your company can receive correspondence. Fortunately, there are many service providers, such as Lionsworld, that offer business address services in Singapore.
Company Name
Once all the key requirements are discussed and made feasible for incorporation, you can now look into the steps to incorporate your company in Singapore as a foreigner.
Once all the key requirements are discussed and made fulfillable for incorporation, you can now look into the steps to incorporate your company in Singapore as a foreigner.
2. Steps To Incorporate a Company in Singapore As A Foreigner
All ready to officially start your company’s incorporation process? Here’s a guide on the steps to incorporate a company in Singapore.
Engage In A Professional Firm
It is highly encouraged to engage in a professional firm – such as a corporate service provider or law firm. The incorporation process is not complicated, but it does involve a lot of legal documents. With a professional firm like Lionsworld, you will be guided throughout the process and have documents handled on your behalf, fuss-free.
Company Name Reservation
To make sure that the unique name belongs exclusively to your company, after checking the availability of your proposed company name, you can proceed to reserve the name on ACRA and wait for their approval. Tip: have a backup company name in case the proposed name gets disapproved by ACRA.
Documents Preparation
There is a lot of information required and documents involved in the incorporation process. Some such documents include incorporation forms, your company’s constitution, identification and details of shareholders and directors (do note to appoint a local director during this step). At ACRA’s request, you may need to provide other supporting documents.
Filing Incorporation Documents
Once all necessary documents are signed, they can be submitted and filed onto ACRA. Now, all that’s left is to wait for ACRA to approve your company’s incorporation.
Post-Incorporation
Upon receiving the Certificate of Incorporation by ACRA, you can proceed to open a business bank account in Singapore to start business transactions. There are some businesses that may require licenses or permits to operate in Singapore, such as medical services, educational institutions or travel agencies, which will need to be applied for separately.
Congratulations on your new company, you have now begun your business journey in Singapore!
3. The Cost of Incorporating A Company In Singapore As A Foreigner
ACRA filling fees
ACRA charges a base amount of $15 to register a company name, and an additional $300 for the incorporation procedure proper which would cost you a total of $315 amount payable.
Professional Service Fees
If you choose to engage in a corporate service provider, do note that the service cost may vary based on the scope of services they provide.
The following list shows possible services you may require and the cost, based on Lionsworld’s pricing:
- Registered Business Address: S$25 per month
- Secretarial Fees: S$600 per year
- Incorporation fees: S$395 (including ACRA fees)
- Co-working Space: S$95 per month
- Serviced Office: From S$900 per month
Other services that may be applicable for your business includes accounting services, auditing services and tax advisory services.
Conclusion
In conclusion, starting a business in Singapore has become a more streamlined process in recent years. However, there are still requirements and regulations imposed by ACRA that need to be adhered to. Hence, it’s the best advice to seek professional advice on how to proceed to avoid any hiccups along the way.
Start your business journey in Singapore with Lionsworld – we have over 40 years of experience as a corporate secretary.
Feel free to send us an inquiry here!
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