Locals and Foreigners can Open a Company in Singapore
Singapore has a great atmosphere for business and this country is one of the easiest places in the world to open a business. It has a thriving economy and a government that protects the interests of any entrepreneur, regardless of whether they are citizens or foreigners doing business there.
If you are looking forward to establishing a company in this country Singapore, it is important to learn the basics. For example, the do and don’t each companies should understand, regulatory authorities and yearly company compliance matters etc.
What you need to know about opening a company in Singapore
If you are not from Singapore, before you start any business be it private limited, partnership or any other category of enterprise, securing an EntrePass (also known as Entrepreneur Pass) or even an Employment Pass is important.
Eligibility requirements for Entrepass
- That your business must be a private limited company and completely registered
- Even when it is your business, you cannot own more than 30% of the company shares
- The paid-up capital should be at least 50,000 Singapore dollars
- The business must not be registered for a period of more than 6 months at the time of EntrePass application
Open a Company in Singapore – Something Foreigners must know
The Ministry of Manpower offers you all kinds of work-related passes. This includes Employment Pass, Dependent Pass, and Work Pass etc. You can apply online by yourself, or get a professional accounting firm to help you.
As a foreigner, you must use the services of professional firms to register your company because the laws of Singapore do not allow foreigners to register their companies on their own.
Operating your company in Singapore from overseas is not a problem. You may also choose not to acquire any Singapore work visa. All you need is a local Singapore director (either Singapore permanent residents or citizens) to open a Company in Singapore.
Check for special licensing when starting a company in Singapore
Depending on the nature of business that you intend to start, you may require some special licenses. This mostly applies to banking, insurance, firecracker production, cigars manufacture and stock broking. Thorough research is very important when you are registering a company to know what might be required of you.
After you have the right to start business in Singapore, the next thing will be registering the business. Singapore has different business structures among them sole proprietorship, partnership, limited liability partnership, limited partnership and company.
Each of the aforementioned businesses requires registration prior to its commencement. The Accounting and Corporate Regulatory Authority (ACRA), is the main body that deals with business registration process in the country.
Procedures for Registering and Opening a Company in Singapore
The procedure is not complex and do not take long if you do the following:
- Meet all the eligibility requirements for starting a company in Singapore. For example, if you are registering a company, it must have a minimum of one member. The members may be corporations or individuals. Registering with ACRA should not take all your time unless your firm requires approval from other government agencies.
- The company must be approved by related regulatory boards, which will depend on the kind of business you want to initiate.
- Apply for the permits and licenses required for the proper running of a particular. Note that the licenses depend on the industry you are operating in and the specific business operations. You can apply for a license online, via Online Business Licensing Service (OBLS).
Revealing useful information when Starting a Company
You will benefit by learning the various government grants and programs available that help in your company finances.
At the same time, it will be necessary to familiarize yourself with the secretary, accounting and tax compliance laws in Singapore. This will prevent you from paying high default fines and penalties. If you need assistance, there are certified professional firm offering such services as well. Click here for more information.
Overall process for registering a company in Singapore
- Start with the name of the company. It must be available, not taken or in use.
- One of the directors must be a permanent resident, a citizen or a person with an entrepass or employment pass
- Every company must appoint a company secretary within six months of registration.
- Have the needed paid up capital of $1. It can be increased later when the company starts operating
- Taxation? This is where Singapore beats all other countries. Generally, for the first $100,000 of taxable profit that you make annually for the first 3 years, you will pay tax of not more than 9%. After which, you will pay a flat rate of 17%. Very friendly indeed.
- Get a professional certified accounting firm like J Accounting Services in Singapore to assist you on incorporating and opening your Singapore Company. This is the most ideal solution as these professionals know what is best for you and your newly setup company. Contact J Accounting Services Today!
