Foreign Incorporation in Singapore
You may have heard about the perks of starting a business in Singapore as a foreigner, such as the attractive tax system and the many government support and incentives available to encourage foreign entrepreneurship.
The incorporation process for both foreigners and locals is efficient and straightforward. Read on to find out the requirements, steps and cost of starting a business in Singapore as a foreigner.
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.Â
A great tip to have is to make sure all these requirements are discussed and sorted out before the incorporation of your company.
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.
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.
Fortunately for our foreign entrepreneurs, Singapore has no restriction on foreign shareholders. This means your company in Singapore can be 100% foreign-owned. There must be at least one shareholder in the company.
A company secretary is crucial for ensuring compliance and must be appointed within 6 months of incorporation.
A convenient option is to engage in a secretarial service provider, such as Lionsworld.
(Tip: start sourcing for a secretary before incorporation)
Companies in Singapore must have a registered business address. This address must be in Singapore and must be a physical address, where your company’s correspondence can be sent to. Fortunately, there are many business address service providers in Singapore, like Lionsworld.
You may already have a company name in mind, but before using the name, you will have to check if the proposed name is not taken by an existing company. This can be easily verified by checking the availability of the name on ACRA name checker.
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
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All ready to officially start your company’s incorporation process? Here’s a guide on the steps to incorporate a company in Singapore.Â
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.
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.Â
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.
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. Â
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 can begin your business journey in Singapore now!
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.
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.Â
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The following list shows possible services you may require and the cost, based on Lionsworld’s pricing:
- Registered Business Address: S$25 per monthÂ
- Secretarial Fees: S$600 per yearÂ
- Incorporation fees: S$395 (including ACRA fees)Â
- Co-working Space: S$95 per month
- Serviced Office: From S$900 per monthÂ
Other services that may be applicable for your business includes accounting services, auditing services and tax advisory services.Â
In conclusion, starting a business in Singapore has become a more streamlined process in the recent years, however there are still requirements and regulations imposed by ACRA that needs to be adhered to. Hence, it’s best advice to seek for professional advice on how to proceed to avoid any hiccups along the way.Â
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Start your business journey in Singapore with Lionsworld  we have over 40 years of experience as a corporate secretary.Â
Feel free to send us an enquiry here!Â
