According to the data from Worldbank.org, in 2019, Singapore is ranked world No. 2 behind New Zealand for the Ease of doing business. The Institute for Economics & Peace ranked Singapore at the eleven place in the 2021 Global Peace Index. There is much interest in coming to Singapore to setting up private limited company in Singapore. What are the things you should note when start a company in Singapore as a foreigner? In this post, we will look through the procedure of setting up business in Singapore for foreigner and also other considerations.
1. Is it possible to setting up business in Singapore for foreigner?
Foreigners are allowed to own 100% of the shareholding, but the company must have at least one director who is locally resident in Singapore. This local company director must be:
• At least 18 years old
• Of full legal capacity
• A Singaporean citizen, permanent resident, EntrePass, or employment pass (EP) holder.
2. Steps to setting up a private limited company in Singapore and forms to be filed for incorporation of company?
Decide on the Company Name, type of business, financial year period, directors and shareholder choices and corporate secretary service Singapore.
Next step towards start a company in Singapore as a foreigner is applying for and receiving approval for a company name from the Accounting and Corporate Regulatory Authority (ACRA).
What are the forms to be filed for incorporation of company? The Constitution of the company has to be submitted in the incorporation process. There are also company forms under the Companies (Filing of Documents) Regulations 2003 (“C(FOD)R”) & The Companies Regulations (“CR”) that are company documents and need not be lodged with ACRA.
3. Business activities and the accounting year-end
Your company’s business principal activities are determined by the primary and secondary activities you have listed during the application process.
A company’s financial year-end stands for the last day of its reporting period. It usually is on the twelve (12) month period. The accounting period is the time taken to complete a business cycle, and its periodicity provides insight into the viability of the business on an ongoing basis.
4. What documents are required to set up a private limited company in Singapore?
• A copy of each appointed official, for example, the director, company secretary, shareholder’s passport or NRIC (front and back), or other proof of identity.
• Proof of their current residential address, a bank statement, utility bill, mobile phone bill, etc. (issued within the last three months).
5. Directors, manager, or secretary requirements
Every private limited company needs at least one local director who is a Singapore resident. This local director can be a Singapore citizen, Singapore permanent resident, or an individual with an employment pass or Entrepass. For those holding FIN, approval has to be obtained from the relevant issuing authority before registering or accepting the role of a company director of another company and setting up business in Singapore for foreigner.
It is mandatory to appoint company secretary Singapore within six months of its incorporation. The company secretary is responsible for administration, such as filing regulatory filings and updating the register of Members, Directors, Controllers and others. You can look at appoint company secretary Singapore as your company secretary to ensure that a professional will handle your regulatory affairs professionally.
6. Shareholder or member requirements
There must be at least one shareholder of the company may be an individual or corporate entity, for example, another private limited company or limited liability partnership (LLP). Shareholders are only risking the money they have invested in the private limited company. Depending on the share class they invested in, the shareholder has certain rights and obligations.
7. Minimum Capital requirement
Minimum or lowest paid-up share capital for a pte ltd company in Singapore is SG$1. These paid-up capital can be in cash, assets, or both. Shares can also be issued with or without full payment from the shareholder.
8. Registered address
The address of your new limited company must be a physical, registered Singapore address. This address is where all official communication will be sent. It can be a residential or commercial address. If the residential address is to be used as the company registered address, approval has to be obtained from the relevant authority, for example, Housing and Development Board (HDB) or Urban Redevelopment Authority (URA). Certain corporate secretary service Singapore firms offer registered address services.
Once ACRA has approved your incorporation application, an email will be sent to the appointed officials or the directors, the company secretary, and the shareholders to request their endorsement. The endorsement must be made within 60 days from the date of the email, after which the business incorporation is deemed to have lapsed. Upon ACRA approval, you can proceed to open bank accounts and complete the procedure of setting up private limited company in Singapore.