subject: Singapore Company Incorporation: Basic Things Foreign Entrepreneurs Should Know [print this page] The international community has considered Singapore as one of the most ideal business centers in the Asia Pacific region due to its proximity in major markets including Taiwan, Malaysia, Australia, China, and India.
Aside from the country's strategic location, it also boasts corporate and tax laws favorable to foreign companies, pragmatic government, attractive immigration policies, and world-class infrastructure.
But before a foreign entrepreneur or business entity setup a Singapore company, they should consider the following requirements and information stated below:
1. Under the Singapore Companies Act, foreign entrepreneurs and companies are not allowed to self-register a business in the country and are required to hire a professional firm to do the processes involved in the Singapore company incorporation.
2. Foreign companies and entrepreneurs can incorporate their company in Singapore without physically handling the process. However, most banks in the country require the physical presence of the company principals before opening their bank accounts.
3. It is possible to incorporate a private limited company even if a foreign businessman does not want to relocate in the country. However, he is required to hire at least one local resident director (most professional registration firms can provide a local resident nominee).
4. For foreign companies and businessmen planning to relocate in Singapore to personally operate their business, they should apply for Employment Pass or EntrePass permit. And if a businessman has been issued with any of these permits, he can act as a local resident director.
5. There are three business arrangements available to foreign entrepreneurs and companies: 1.) Representative office which is only allowed to conduct market research and is prohibited to engage in revenue-generating activities. 2.) Subsidiary company which is treated as a separate entity from its parent company and enjoys tax benefits typically provided to local businesses since it is also incorporated in Singapore. 3.) Branch office which is treated as a legal extension of its parent company which means that it is taxed as a non-resident business.
6. Most corporate lawyers and experts believe that the most ideal business entity for foreign companies planning to expand in Singapore is the subsidiary company due to several advantages such as: limited liability of a parent company; can be 100 percent foreign-owned; and tax incentives provided to local businesses.
7. Foreign companies can relocate their workers in Singapore but should apply for their work visa. Meanwhile, documented foreign employees may bring their direct family members in the country as long as there is a referral from their companies.
Singapore Company Incorporation: Basic Things Foreign Entrepreneurs Should Know
