Are you a foreigner looking to start a business in Singapore? Look no further!

We will discuss why Singapore is the perfect location for foreign entrepreneurs, from its strategic location to its attractive tax system.

Find a step-by-step guide on how to register a company in Singapore, choose a business entity, register with the ACRA, obtain necessary licenses, and more.

Learn how you can kickstart your business journey in Singapore with ease!

Key Takeaways:

• Singapore offers a strategic location, ease of doing business, stable political and economic environment, and an attractive tax system, making it a top choice for foreigners looking to start a business.
• The step-by-step guide to starting a business in Singapore includes deciding on business type, choosing a name, registering with ACRA, obtaining necessary licenses, opening a bank account, hiring employees, and complying with tax and legal requirements.
• Bestar offers expert foreign company registration services in Singapore, with extensive industry experience. Contact us for assistance with starting your business in Singapore.

Why Start a Business in Singapore as a Foreigner?

Singapore is a highly attractive destination for foreigners looking to start a business due to its strategic location, favourable business environment, and supportive government policies from entities like the Economic Development Board and International Enterprise Singapore.

Strategic Location

Located in the heart of Southeast Asia, Singapore’s strategic location makes it a prime hub for international trade and business activities.

Being in close proximity to major markets in Asia, Singapore benefits from easy access to key economic regions such as China, India, and Southeast Asia, enhancing its position as a global trading centre. With its excellent port facilities, Singapore serves as a crucial transshipment point for goods moving through the region, further solidifying its status as a major maritime hub. The city-state’s seamless connectivity to global trade routes ensures efficient movement of goods, attracting businesses looking to capitalise on its strategic location.

Ease of Doing Business

Singapore is renowned for its ease of doing business, supported by efficient regulatory authorities like the Accounting and Corporate Regulatory Authority (ACRA) that streamline the incorporation process and documentation.

The streamlined procedures for company registration in Singapore for foreigners make it an attractive destination for entrepreneurs looking to start or expand their businesses. Entrepreneurs can easily access online services such as SingPass, which simplifies the application process and allows for seamless communication with government agencies. ACRA plays a pivotal role in simplifying business operations by ensuring compliance with regulatory requirements and providing guidance on financial reporting and corporate governance. This proactive approach contributes to creating a conducive environment for business growth and innovation in Singapore.

Stable Political and Economic Environment

Singapore’s stable political and economic environment provides a secure foundation for business growth, with strong support from regulatory authorities to ensure a fair and transparent business landscape.

Under the robust legal framework of Singapore, regulatory bodies such as the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) play a crucial role in maintaining financial stability and regulatory compliance.

The effective governance in Singapore ensures that businesses operate in an ethical and efficient manner, promoting overall economic sustainability and investor confidence.

The clear and well-defined regulatory processes streamline business operations, fostering a conducive environment for both local enterprises and international corporations to thrive.

Attractive Tax System

Singapore offers a competitive and attractive tax system, managed by the Inland Revenue Authority of Singapore (IRAS), which includes benefits like low corporate tax rates and favourable tax policies for limited liability and private limited companies.

One of the most appealing aspects of Singapore’s tax system is the wide range of tax incentives available to businesses. These incentives are designed to encourage investment and growth in key sectors of the economy. For example, companies engaging in research and development activities can benefit from the Productivity and Innovation Credit scheme, which provides tax deductions or cash payouts.

Along with tax incentives, Singapore’s low corporate tax rates are a major draw for businesses looking to establish a presence in the region. With a headline corporate tax rate of 17%, which can be further reduced through various schemes and incentives, Singapore offers one of the most competitive tax environments in the world.

The benefits of setting up a limited liability or private limited company in Singapore extend beyond tax considerations. These business structures offer protection to shareholders by limiting their liability to the amount of their investment, providing a level of security and peace of mind for entrepreneurs and investors alike.

Step-by-Step Guide to Starting a Business in Singapore

Starting a business in Singapore involves several key steps, including:

1. Deciding on the type of business entity
2. Choosing a name
3. Registering with the Accounting and Corporate Regulatory Authority (ACRA), among other crucial tasks

Step 1: Decide on the Type of Business Entity

1. The first step in starting a business in Singapore is to decide on the type of business entity, such as a private limited company, branch office, or subsidiary company.

Private limited companies in Singapore are popular due to their separate legal existence from their owners, limited liability protection, and ease of transfer of ownership. They offer flexibility in terms of structuring ownership, raising capital, and attracting investors. Read the complete guide to know more about how to register a private limited company in Singapore.

On the other hand, branch offices are suitable for foreign companies looking to establish a presence in Singapore without incorporating a separate legal entity. They benefit from being an extension of the parent company, sharing the same brand and expertise.

Step 2: Choose a Business Name

Choosing a business name is a crucial step in the registration process, and it must be approved by ACRA to ensure it meets compliance requirements.

When selecting a business name, it is important to consider various criteria. The name should be unique, not misleading, and relevant to your industry. Avoid using terms that are trademarked or too generic, as this may lead to rejection during the approval process by ACRA.

Once you have a few options in mind, you can check the availability of the names through ACRA’s online database. Remember that a memorable name can help with branding and marketing efforts, so aim for one that stands out while still being professional and compliant.

Step 3: Register Your Company in Singapore with the Accounting and Corporate Regulatory Authority (ACRA)

Registering a company with ACRA is a critical step in establishing a Singapore company, requiring the submission of several incorporation documents.

When you decide to take the plunge and start your own business in Singapore, understanding the registration process is key. The first step typically involves preparing and submitting the necessary incorporation documents, which may include details about the company’s directors, shareholders, and registered address.

• One of the essential documents required for company registration is the Memorandum and Articles of Association, outlining the company’s structure and rules.
• A registration fee must be paid to ACRA to process the application. The fee amount varies depending on the type of business entity being registered.
• Once all the necessary documents are submitted and the fees paid, the approval process begins. ACRA plays a vital role in the regulatory framework by ensuring that companies comply with legal requirements and maintain accurate records.

For more information read our A Comprehensive Guide to Company Registration & Incorporation in Singapore

Step 4: Obtain Necessary Business Licenses and Permits

Depending on your business activities, you may need to obtain specific licences and permits from various regulatory authorities in Singapore.

• For instance, businesses dealing with the sale of alcohol would require a Liquor Licence, while those involved in food services must obtain a Food Shop Licence.
• Companies that handle hazardous substances need to secure a Hazardous Substances Licence.

The application process typically involves submitting the necessary paperwork, such as business details, operational plans, and safety measures, to the appropriate government agencies. These authorities carefully review the submissions to ensure compliance with regulations before granting the licences. It is crucial to understand the specific requirements for your industry and engage with the authorities proactively to smooth the licensing process.

Step 5: Open a Corporate Bank Account

Opening a corporate bank account in Singapore is an essential step in managing your business finances and requires submission of incorporation documents and other relevant information to financial institutions.

When choosing a bank for your corporate account, it is vital to consider factors such as the bank’s reputation, service offerings, fees, and accessibility. Opting for a bank with a strong presence in Singapore can provide you with a network of ATMs and branches for convenient transactions. You should prepare the necessary documents like the Certificate of Incorporation, Business Profile, and identification papers of company directors and shareholders.

A corporate account in Singapore can offer various benefits including access to online banking services, multi-currency accounts, and personalised financial solutions tailored to your business needs. It also enhances your credibility with clients and suppliers, showcasing your commitment to professionalism and compliance.

Step 6: Hire Employees (if applicable)

If your business requires hiring employees, you will need to comply with Singapore’s regulations, including obtaining the necessary work passes from the Ministry of Manpower (MOM), such as the Employment Pass.

There are several types of work passes available in Singapore to cater to various employment scenarios. Apart from the Employment Pass, which is commonly used for skilled professionals, there are also options like the S Pass for mid-level skilled staff and the Work Permit for semi-skilled workers. To apply for these passes, employers need to submit the necessary documents and meet specific criteria set by MOM.

The application process through MOM involves filling out the relevant forms online, providing details about the company and the prospective employee, along with essential supporting documents. MOM assesses each application carefully to ensure compliance with Singapore’s labour laws and regulations. It’s crucial for employers to adhere to the requirements set by MOM to avoid any delays or rejections in the work pass application process.

Step 7: Comply with Tax and Legal Requirements

Ensuring compliance with tax and legal requirements is crucial for operating a business in Singapore, with guidelines provided by the Inland Revenue Authority of Singapore (IRAS).

Businesses in Singapore are required to register for Goods and Services Tax (GST) if their annual taxable turnover exceeds S$1 million. For corporate income tax, Singapore follows a tiered tax system, where profits up to S$100,000 are taxed at 4.25%, and above that, the rate is 17%. Companies must file their Estimated Chargeable Income (ECI) within three months of their financial year end, along with their annual tax return. Missing deadlines or providing inaccurate information can lead to penalties or legal repercussions, highlighting the importance of meticulous record-keeping and compliance.

Conclusion

Starting a business in Singapore offers numerous advantages for foreigners, ranging from its strategic location and ease of doing business to a stable economic environment and attractive tax system.

One of the key benefits of starting a business in Singapore is its location in the heart of Southeast Asia, providing easy access to regional markets. The city-state boasts a highly developed infrastructure and efficient regulatory framework, making it an ideal hub for international business activities.

The Singaporean government also offers various incentives and grants to support new businesses, fostering innovation and entrepreneurship. In terms of the registration process, entrepreneurs can choose from different business structures such as sole proprietorship, partnership, or incorporation.

Register a company in Singapore involves several steps, including choosing a unique business name, appointing directors, and preparing the necessary documents. The process is streamlined and can typically be completed within a few days, making it an attractive option for those looking to establish a presence in Asia.

Contact Bestar for Foreign Company Registration Services in Singapore

Bestar is one of the leading service providers for foreign company registration in Singapore, offering extensive industry experience and a comprehensive range of services to help you set up your business efficiently.

With a team of seasoned professionals, Bestar guides clients through the entire process, from initial consultation to final registration, ensuring a smooth and hassle-free experience. Whether you need assistance with company incorporation, compliance matters, or corporate secretarial services, Bestar has the expertise to address all your needs. Their dedication to client satisfaction and attention to detail set them apart as a trusted partner for businesses looking to establish a presence in Singapore.

Frequently Asked Questions

Can foreigners easily start a business in Singapore?

Yes, foreigners can easily start a business in Singapore with the right knowledge and guidance. Singapore has a business-friendly environment and offers various options for foreigners to register their businesses.

What are the different types of business structures available for foreigners in Singapore?

Foreigners can choose from the following business structures in Singapore: Private Limited Company, Limited Liability Partnership, Sole Proprietorship, and Limited Partnership. Each structure has its own advantages and requirements, so it is important to do research and choose the most suitable one for your business.

What are the steps involved in Register a company in Singapore as a foreigner?

The steps involved in register a company in Singapore are: obtaining an EntrePass or Employment Pass, choosing a business structure, registering the company with the Accounting and Corporate Regulatory Authority (ACRA), and obtaining necessary licenses and permits. It is advisable to seek professional help from a company registration service provider for a smooth registration process.

What is an EntrePass and who is eligible for it?

An EntrePass is a type of work visa for foreign entrepreneurs who wish to start a business in Singapore. It is available for foreigners who have an innovative business idea, are willing to relocate to Singapore, and fulfill the eligibility criteria set by the Ministry of Manpower.

Can a foreigner be the sole shareholder and director of a company in Singapore?

Yes, a foreigner can be the sole shareholder and director of a company in Singapore. However, at least one director must be a resident of Singapore, and the company must have a registered office address in Singapore.

Are there any requirements for hiring local staff in a Singapore company owned by foreigners?

Yes, there are certain requirements for hiring local staff in a Singapore company owned by foreigners. The company must first advertise the job position on the Jobs Bank for at least 14 days before hiring a foreigner. The job must also pay a minimum salary of S$3,600 for Employment Pass holders.