Singapore is bustling these days as one of the recommended business destinations in Asia Pacific and diverts attention of many foreign business tycoons and small to mid-size companies to setup their new ventures. Do you know why foreign businessmen are seeking for setting up their new businesses in Singapore? If no, there are several significant facts, which make the Singapore as a perfect business destination in the world such as amazing infrastructure, growing corporate industry, economical stability, political support, low corporate and business taxes, easy process of business setup, ease in getting business passes, work passes, etc. Hence, these are some prime reasons, which have made the country an ideal place to work and do business for foreign entrepreneurs and investors in the world.
So, if you are a foreigner and want to setting up a company in Singapore, there are some valid things that you need to acknowledge as follows:
A foreigner can have three options to setup a company in Singapore such as:
[A] Private Limited Company with Employment Pass
[B] Private Limited Company with EntrePass
[C] Private Limited Company with Resident Director
Let’s take a more brief about above three options for foreigners to setting up a company in Singapore:
[A] Private Limited Company Formation with Employment Pass
In this option, a foreigner can setup a private limited company or relocate the existing business in Singapore by following legal requirements as follows:
- The applicant will be applicable for Incorporation of company in Singapore.
- Applicant also has to obtain Employment Pass or Work Visa to stay in the country for business incorporation.
Singapore Private Limited Company Setup Requirements
- Make sure the company has minimum 1 shareholder and 1 director at least.
- It is also important to appoint a company secretary in-house for managing company’s operations, legal matters, administration works, and assistance of directors of the firm.
- The company should have minimum paid-up capital up to S$1
- The company should have a local registered address proof.
Documents Required for Private Limited Company Setup with Employment Pass:
Documents of Singapore Resident and Director:
- A copy of Singapore IC
- A copy of Employment Pass or Dependent Pass
Documents for Non-Resident Shareholder and Director:
- A copy of passport, and
- A copy of residential address proof like telephone bill, electricity bill, phone bill, or bank statements, etc.
Documents Required for Employment Pass (EP) Application
- A copy of passport that must be valid for more than 6 months.
- A copy of all educational certificate like academic mark sheets, degree or diploma, etc.
- A copy of professional education or proof of specialization done in any stream.
[B] Private Limited Company Formation with Entrepreneur Pass
Singapore always welcomes the experienced tycoons and entrepreneurs, who have creative ideas of business and help the country growing foreign investments. By taking this fact into the account, Singapore government has been permitted foreign entrepreneurs and business freaks to setup their ventures in the country and serve the country with their innovative business ideas to grow economy of the nation. However, the global entrepreneurs and businessmen having valid entrepreneur pass, they are eligible for setting up a company in Singapore through legal process.
Conditions for Company Setup Upon Approval of EntrePass in Singapore
- Firstly, applicant needs to apply for Entrepreneur pass through Ministry of Manpower (MOM) in Singapore.
- After getting your pass approved by the MOM, you will be issued an Approval-In- Principle Letter (AIP) that will be valid for 6 months to relocate to Singapore to collect your EntrePass.
- Also, you will be provided with a limited time frame in AIP for setting up a company in Singapore.
- Transfer the minimum paid-capital into your genuine bank account in Singapore to manage your expenses of company setup process.
Documents Required for Applying EntrePass Application
- Fill up the EntrePass application with required details.
- Submit a 10-pages drafted business plan
- A copy of the passport personal particulars page
- Additional business ideas or innovative criteria of business in Singapore
[C] Private Limited Company Formation with Resident Nominee Director
This option lets the foreigners, who are looking for setting up a company in Singapore without moving themselves to the country. They can opt this option that allows them to appoint a resident nominee director on their behalf to handle the company setup process in Singapore. The appointed nominee director can be your friend or local Singaporean or resident in the country, whom you trust to manage company setup procedure on your behalf.
Requirements of a Nominee Resident Director as Per Singapore Company’s Act:
- The nominee company director or local resident should have completed 18 years of age.
- He or she should have clear background and is free from any bankruptcy issue or other corporate fraud allegations in Singapore.
- The director should not be involved in any government affairs, dishonesty charges and offensive matters.
- The resident director should be experienced and aware of ACRA and IRAS rules in Singapore for company setup and its operations.
- Should have valid proofs of its qualification and work experiences.
So, if you are a foreigner and wish to setting up a company in Singapore, you can opt any of above three options and follow up its legal requirements and get the job done legally.