Singapore is renowned for its robust economy, strategic location, and business-friendly environment.
It’s no wonder that entrepreneurs from around the world are eager to establish their businesses in this thriving Southeast Asian city-state. If you’re a foreigner considering setting up a business in Singapore, you’re in the right place.
This is your guide through the key steps and considerations to make your entrepreneurial dreams a reality in the Lion City.
Choose the Right Business Structure
Before you can start a business in Singapore, you must decide on the most suitable business structure for your needs. Singapore offers several options, including:
Sole Proprietorship: Ideal for small businesses and solo entrepreneurs, this structure involves complete ownership and control of the business. However, it also means unlimited personal liability.
Partnership: This structure is suitable for businesses with two or more partners. Partnerships can be general (unlimited liability) or limited (liability limited to the partner’s capital contribution).
Private Limited Company: The most popular choice among foreign entrepreneurs, a private limited company offers limited liability and is a separate legal entity from its owners. This structure allows for easier access to funding and scalability.
Register Your Business
Once you’ve chosen a business structure, you need to register your business with the Accounting and Corporate Regulatory Authority (ACRA).
The registration process is straightforward and can often be completed online. You’ll need to provide information such as your business name, registered office address, and details of directors and shareholders.
Appoint a Local Director
If you’re a foreigner and plan to operate a private limited company in Singapore, you must appoint at least one local director.
This director should be a Singapore citizen, Permanent Resident, or an Employment Pass holder. However, if you meet certain criteria, you can apply for an exemption.
Obtain the Necessary Permits and Licenses
Depending on your business activities, you may need specific permits or licenses to operate legally in Singapore. It’s essential to research and identify any industry-specific regulations that may apply to your business.
Open a Corporate Bank Account
To facilitate your business transactions and manage your finances effectively, you’ll need to open a corporate bank account in Singapore. Be prepared to provide your business registration documents and meet the bank’s requirements.
Secure Funding and Investment
Singapore offers a range of funding options for startups and entrepreneurs. Consider seeking investment from venture capitalists, angel investors, or government grants and schemes designed to support local and foreign businesses.
Comply with Tax Regulations
Singapore has a competitive tax regime that encourages foreign investment. Be sure to understand the tax obligations for your business structure and comply with all tax regulations. Singapore’s low corporate tax rates and absence of capital gains tax make it an attractive destination for businesses.
Immigration and Work Passes
If you plan to live and work in Singapore, you will need an appropriate work pass. Options include the Employment Pass for professionals, the EntrePass for entrepreneurs, and the S Pass for mid-skilled workers. Ensure you meet the eligibility criteria and apply for the appropriate pass.
Seek Professional Assistance
Navigating the process of setting up a business in Singapore can be complex, especially for foreigners. Consider hiring local professionals, such as lawyers, accountants, or corporate service providers, to assist you with legal and administrative matters.
Work with Murdoch Corporate Services on Setting Up Your Business in Singapore
Setting up a business in Singapore as a foreigner can be a rewarding venture due to its dynamic business environment and strategic location in Asia though the administrative process may be a challenge to some.
At Murdoch Corporate Services, we’ll smoothen your process and aid you in starting up a business here in Singapore in no time. Just drop us a note and we’ll be in touch on assisting you with incorporating your business in Singapore.
