Setting up a local company in Singapore as a foreigner is easy and can be done in a day should all the requirements are fulfilled. Singapore offers a variety of entities that foreigners can choose to set up their business. Local company setup entities applicable to foreigners include sole proprietorship, partnership, limited liability partnership, company, subsidiary, branch office etc.
For more information on each type of entities, you may read more on our article on deciding your new company’s entity structure. Alternatively, you can consult a professional firm that provides Singapore company registration services on the entity that best suits your business.
While setting up a local company, a Company is the most common form of entity that foreigners would choose to set up in Singapore when going through the process of foreign company setup. A Company can be set up by one or more individuals and up to a maximum of 20 members for Exempt Private Company, 50 members or less for a Private Company and more than 50 members for a Public Company. Company has a separate legal entity from its members and shareholders and can also be sued in its own name. All members have limited liability and are not personally liable for debts and losses incurred in the course of business by the Company.
Here are three main points to note when setting up a local Company in Singapore as a foreigner.
A foreigner who intends to set up his/her company in Singapore is required to at least one Director who is at least 18 years of age and a Singapore ordinary resident, alternatively he/she can appoint a nominee director if there is no local director in the Company. The foreigner can own 100% of the shareholding.
However, as foreigners are unable to self-register their Company in Singapore, foreign company setup in Singapore requires foreigners to engage a registered filing agent, that provides Singapore company registration services, in order to set up the Company in ACRA. For self-registration, only Singapore Citizen, Singapore Permanent Resident and EntrePass holder are able to apply.
The Company also has to appoint a Corporate Secretary who will act as the nature person within 6 months of company registration. The Secretary has to be also at last 18 years of age and a Singapore ordinary resident.
It is also important to note during the process of foreign company setup in Singapore, that undischarged bankrupts are not qualified to manage or set up the business unless they have the approval from the Court or the Official Assignee. This will be asked and ensured by the consultants at the firm, providing Singapore company registration services, during the free Singapore company registration consultation.
After setting up a local Company in Singapore as a foreigner, a foreigner who wish to re-locate to Singapore to run the operations of the company have to obtain a work pass. The most common and known work passes applied by foreign entrepreneurs are the Employment Pass and EntrePass. The foreigner will have to apply for the pass through the Ministry of Manpower (MOM) and it will be subjected to approval. However, if the foreigner has no intention of working physically in Singapore, there is no need to apply and acquire a work pass.
Corporate bank account opening for foreigners during the process of foreign company setup in Singapore usually takes weeks and most banks usually require a face-to-face meeting which meant that opening your account remotely may not be feasible for foreigners who have set up their Company in Singapore but does not live there. However, some banks which overseas presence may allow the foreigner to sign the documents at one of their overseas branches. Hence, it is important to take note of banks that allows such arrangement if it is inconvenient to visit Singapore for the bank opening procedures.
Depending on the selected bank requirements, the applicant who wishes to open a corporate bank account will have to produce the following information certified true:
Are you a foreigner looking for a free Singapore company registration consultation? Contact WLP Group and our consultants for any enquiries regarding foreign company setup in Singapore.