Registering a Company in Singapore For Foreign Entrepreneurs

Registering a Company in Singapore For Foreign Entrepreneurs

Considered as the most ideal business hub in the Asia Pacific region, Singapore is attracting thousands of foreign companies and individuals every year. For this reason, Singapore government has been initiating several ways like supporting sensible immigration laws to be able to further encourage eligible businessmen worldwide to set up business in the country.

For foreign individuals who want to relocate in the country to personally manage their companies, the most important thing they have to do is apply for a work pass visa such as the Employment Pass and EntrePass.

For a foreign individual to obtain an Employment Pass one must have a degree in college from a prestigious institution and possessed a comprehensive skills in business. EP is a special pass given only to high-ranking individuals in the company such as managing directors and other foreign professionals.

Contrary to Employment Pass, an EntrePass is a pass given to employees who have no degree in college but compensate the absence of such through acquiring business background and skills that is useful to make them become successful in their business endeavor in Singapore.

But between these two visas, most experts agree that the Employment Pass is better since it has no requirement in the number of hired local employees and total business spending, and only requires a paid-up capital of $1 unlike the EntrePass which entails businessmen to spend at least $50,000 in paid-up capital.

In the mean time, foreign businessmen can operate a business in Singapore even if he is not a permanent resident of the country. However, this kind of arrangement legally requires them to appoint a resident director who may be a local resident or a foreigner who holds Employment Pass, EntrePass, or Dependant Pass.

If for some reasons foreign businessmen don't have a reliable contact person to appoint as a resident director, he/she can request the company's registration firm to provide him/her a nominee director.

It is important to note that hiring a business registration firm is a legal requirement for foreign individuals and companies because they are prohibited to self-register their business under the Singapore Companies Act.

A nominee director will not be involved in the management, operational, and financial matters of the company but are expected to perform the statutory requirements such as the submission of the income tax returns of the company; ensuring the accuracy of the company's declaration; and giving an accurate declaration of income.

Meanwhile, foreign businessmen should appoint one or more individuals (preferably a shareholder) to be a director who will be responsible for managing the company and making decisions for the business.

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