1.Singapore is undoubtedly one of the best places to start a business and has consistently been ranked highly in many surveys. One particular feature that stand out Singapore from the rest of the world is that foreigners can register a company and own 100% of its shareholding. For that reason, many foreign businesses are encouraged to register their companies in Singapore, as a springboard to the ASEAN region.
2. Foreigners who wish to set up a business entity in Singapore must engage an ACRA Registered Filing Agent (RFA) to submit the application for company registration on their behalf. A RFA will first conduct Customer Due Diligence check according to Singapore’s Anti-Money Laundering and Countering Terrorism Financing laws. Among others, foreigners need to provide government issued identification papers in order for the RFA to properly verify their identities.
3. One of the requirements for setting up a business in Singapore is that at least one of the directors, authorised representatives, general partners, or managers must be a local resident. So if a foreigner plan to set up a business entity in Singapore whilst continuing to manage it from his country, it is required to appoint a locally resident directors, authorised representatives, general partners or managers to comply with ACRA’s requirement.
A locally resident is usually a Singapore Citizen, Singapore Permanent Resident, or an EntrePass/Employment Pass holder currently residing in Singapore.
4. On the other hand, there are foreigners who want to start and manage a business here in Singapore. In this case, it is usually recommended for the foreigner to apply for an Employment Pass from the Ministry of Manpower (MOM). With is Employment Pass, the foreigner can reside and manage the business in Singapore, and at the same also comply with the ACRA’s requirement of at least a locally resident directors, authorised representatives, general partners or managers.
5. As mentioned, foreigners can have 100% shareholding in the company that they have set up in Singapore. But it is worth to point out that to allocate at least 30% of the shareholding to a locally resident Singapore citizen or Singapore Permanent Resident. The reason being there are some Singapore Government’s incentive that are granted only to companies which have 30% local shareholding.
6. Singapore has long attracted many foreigners to set up their business in this island nation, due to its strategic location in the heart of South East Asia. It is a perfect springboard to the other neighbouring countries, with Changi Airport providing seamless connection with it many flights. There are also plenty of success stories of foreigners making it big in Singapore and continuing to stay on to contribute to the wider community.
7. PL Biz Consulting Pte Ltd is an ACRA Registered Filing Agent and Registered Qualified Individual since 2016. Please come and talk to us if you are a foreigner needing advice on setting up business in Singapore. We at PL Biz Consulting Pte Ltd have been helping many foreign business owners to register their businesses since 2007.
