How To Register A Singapore Company: A Guide For Foreign Entrepreneurs

With Singapores open immigration policy and corporate laws

, it is easy for foreign entrepreneurs and investors to register a new company.

For foreign entrepreneurs, they should apply for a Singapore Employment Pass (if they have a college diploma) or a Singapore EntrePass (if they lack college education but has entrepreneurial skills) in order to start a new company in Singapore.

In case that foreign entrepreneurs do not want to relocate to Singapore and plan to manage the business overseas, they are not required to apply for any visa. However, they should designate at least one director who is a local resident in their company.

While such arrangement is possible, most banks and financial institutions in Singapore require the physical presence of foreign entrepreneurs when opening an account.

Generally, the most viable business formation is the private limited company because of the tax benefits and bankruptcy protection. With this, it has become the most preferred business arrangement by most foreign businessmen.

Meanwhile, the Accounting and Corporate Regulator Authority (ACRA) recommends foreign entrepreneurs to hire professional firms (must be accredited by the agency) that can help them in meeting the conditions and requirements in private limited company.

It is important to note that under the Singapore law, foreign individuals or entities are not allowed to self-register a company which means that they are required to hire an ACRA-accredited business solutions provider.

These are some of the requirements in this type of business formation:

* Company name

ACRA approves a company name as long as it has not been used in Singapore.

* Designate at least one director who is a local resident

Under the Singapore Companies Act, foreign companies should designate at least one board of director who is a local resident or holder of Singapore EntrePass or Singapore Employment Pass. However, there is no limit on the number of board of directors regardless if they are foreigners or local residents.

* Appoint at least one company secretary

It is a legal requirement to appoint a company secretary who is a local resident and has knowledge and professional skills in handling the compliance matters associated in a private limited company.

* One to 50 shareholders

A private limited company should have at least one shareholder or a maximum of 50. Meanwhile, Singapore allows 100 percent foreign ownership which makes this favorable to foreign entrepreneurs and investors.

* Paid-up capital

For Employment Pass holders, the paid-up capital requirement is only S$1, but for EntrePass holders, this should be at least S$50,000.

Source:

http://www.business.gov.sg/EN/BusinessTopic/HiringNTraining/EmployersResponsibilities/WorkPassesforForeigners/hiring_passes_entrepreneur.htm

by: danielyio

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