How Can a Foreigner Start a Business in Singapore?

With Singapore’s position as the global business capital, it’s understandable why many entrepreneurs across the world would want to start up a company in one of Singapore's numerous, buzzing business districts. But can a foreigner start a business in Singapore?

The good news is that foreign individuals can indeed register a company in Singapore. As a matter of fact, thousands from various countries have already set up different types of companies, which continue to enjoy all the business benefits the city-state offers!

How Can Foreigners Register a Company in Singapore?

Starting a business in Singapore can be challenging for foreigners due to stricter regulations enforced by the Accounting and Corporate Regulatory Authority (ACRA) and other government bodies. But worry not, because there’s a way to ensure you can incorporate your company smoothly in Singapore.

Singapore offers different business structures for foreigners, but your options will highly depend on how you register your business. The business entity you select will determine the required documents and operating limitations. Generally, there are two main ways for foreigners to start a business in Singapore –either through corporate structures for individuals or for foreign companies.

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Corporate Structures for Foreigners	Corporate Structures for Foreign Companies
Sole Proprietorship - The business is not recognized as a separate legal entity from its owner. - The business is managed and administered directly by a single proprietor. - The proprietor is entirely responsible for all the liabilities, losses, and debts that arise from the business. - Revenue is considered part of the owner’s personal income. - The Singapore business doesn’t pay corporate income tax. Instead, it will charge as its owner personal income tax. - The personal income tax rate after starting such a business in Singapore for foreign nationals ranges between 0% and 22%.	Branch Office - A branch office does not exist as a separate entity from its parent foreign company. Instead, it’s treated as a local extension of the parent foreign company. - It comes with unlimited liabilities; meaning the parent company assumes full responsibility for all the losses, debts, and liabilities. - Creditors can go ahead and legally recover any unpaid debts from the parent company’s assets. - A branch office is required to hire at least one local Singapore resident.
Private Limited Company (Pte Ld) - The business is recognized as a distinct entity that exists separately from its owners. - The business equity is divided into shares, with 1-50 shareholders getting their rightful ownership stakes. - Requires a paid-up capital of at least S$1. - The business assumes the rights of a natural person, meaning it can acquire, sell, and register property in its name. - The owners’ personal assets are protected from the losses, debts, and liabilities arising from the business. - The company must have a local director that is a Singapore citizen. - The net business revenue is charged a corporate income tax rate of 0%-17%. - The business is required to file its taxes, financial statements, and AGM reports every year. - The Singapore company is free to set up and run a corporate bank account.	Subsidiary Company - The subsidiary Singapore company is incorporated as a limited liability entity that exists and runs separately from the parent foreign company. - While the business is allowed to have multiple shareholders, its parent foreign company can choose to proceed as a sole shareholder, with 100% of the shares. - The Singapore company can acquire, sell, and register property in its name. - Revenue from the business is charged a corporate income tax rate of between 0% and 17%. - Losses, debts, and liabilities arising from the subsidiary Singapore company cannot be extended to the foreign parent company’s assets. - To register such a company in Singapore, a foreign company requires a minimum paid-up capital of S$1. - The parent foreign company is required to relocate one of its employees to Singapore to manage the subsidiary company.
Limited Liability Partnership (LLP) - Can be registered in Singapore by two or more foreign nationals, with the maximum number being 20. - The Singapore business is more of a partnership that happens to exist and run as a separate entity from its owners. - Allows foreign nationals to keep their personal assets safe from any business debts, losses, or risks. - IRAS considers revenue made from the business revenue as part of its owners’ personal incomes. - The partners need to pay personal income tax on the business revenue at a rate of 0%-22%. - LLPs are particularly preferred by professional agencies.	Representative Office - A representative office is only a temporary establishment for conducting market research and feasibility studies in Singapore. - The Singapore company is not recognized as a separate legal entity from its parent foreign company. - Can’t engage in any profit-making activities. - Comes with unlimited liabilities. - Can only hire a maximum of 5 employees. - The parent foreign company should have a company history that spans more than 3 years, along with a corresponding annual turnover of at least S$250,000.

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Let us help you with the process of starting a business in Singapore as foreign entrepreneurs.

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What Are the Key Requirements for Foreigners to Register a Company in Singapore?

Appointing Resident Director

Foreigners must appoint a local or resident director as part of the company registration process to comply with Singapore's regulations and laws. The resident director must be at least 18 years old and legally capable of holding the position.

The director’s role includes ensuring the company operates within the legal framework and acts in the company’s best interest. They may also be given limited powers to perform additional duties.

Options for appointing a resident director:

Hire a Singaporean, Permanent Resident, or EntrePass holder as your company’s local director.
Appoint a nominee director to fulfill the local directorship requirement. A nominee director is a resident who serves in this role without direct involvement in the company's day-to-day management but ensures compliance with the legal requirements.

Hiring a Corporate Secretary

A corporate secretary must be a permanent resident of Singapore and act as a liaison between the company and relevant authorities. They are responsible for ensuring the company complies with Singapore’s corporate laws and regulations. If you can't find one, you can try using corporate secretary services.

Have At least 1 Shareholder

A company must have at least one shareholder, who can be either an individual or a corporate entity. Foreigners can be shareholders, and full foreign ownership of companies is permitted in Singapore.

Initial Paid-Up Capital At Least S$1

The minimum paid-up capital required to register a company in Singapore is S$1, which must be deposited into the company’s corporate bank account after incorporation.

Acquiring Work Visas

Foreign entrepreneurs must obtain a work visa to operate their company legally in Singapore. Several visa options are available depending on your role and business type, such as:

Employment Pass (EP): For skilled professionals and executives.
EntrePass: For foreign entrepreneurs wanting to start innovative businesses.
Tech.Pass: Targeted at highly skilled technology professionals.

Have a Physical Office Address in Singapore

Your company must have a registered physical office address in Singapore. This cannot be a P.O. Box; it must be a legitimate location where company correspondence can be sent and stored.

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Next Steps After Setting Up a Business in Singapore

Once you register a company in Singapore as a foreign national, you should proceed to:

Open a corporate bank account with one of the local or international banks in Singapore.
Apply for relevant business licenses from Singapore’s GoBusiness platform.
Apply for Employment Passes to manage your business from Singapore.
File your taxes before the 15th of December every year.
Enroll with relevant government business schemes for foreigners.
Hold your company’s Annual General Meetings along with other shareholders and directors every year, within 6 months from the close of the financial year.
File your company’s annual returns within 30 days after the AGM.

Where To Start - Singapore Company Incorporation

We know what you might be thinking at this point. While it’s a relief that foreigners can indeed start fully-fledged companies in Singapore, this whole process can be a bit technical and cumbersome.

We understand. That’s why our corporate experts are willing to make everything easier and much cheaper for you. So, go ahead and talk to us today about essential corporate services in Singapore such ascompany incorporation, incorporation filing, compliance filing, payroll management, and accounting.

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Frequently Ask Questions

How long does it take to register a company in Singapore?

Typically, registering a company in Singapore can be completed within 1 to 3 business days, provided all documents and requirements are in order. But if your application needs to be referred to another government agency, then it may take up to 2 months for approval.

How much does it cost to incorporate a company in Singapore?

For locals, the total cost starts at S$315, which includes S$15 for reserving a business name and S$300 for company registration. However, for foreigners, the cost is significantly higher. In addition to higher registration fees, additional expenses include applying for a work pass and covering costs related to renting business premises, hiring local representatives, and obtaining necessary business licenses.

Can a foreigner own 100% of a business in Singapore?

Yes, foreigners can own 100% of a company in Singapore. Singapore allows complete foreign ownership of shares, meaning foreigners can fully own their companies. They must register their business with the Accounting and Corporate Regulatory Authority (ACRA) and appoint a resident director.

What are the different types of work passes in Singapore?

As mentioned in the list of requirements above, work visas are vital before you can start a business in SG as a foreigner. Some work visas available to foreigners starting businesses in Singapore are Employment Pass (EP), EntrePass, Tech.Pass.

Can I run a company in Singapore without relocating?

Yes, you can run a company in Singapore without relocating by appointing a nominee director Singapore. This person will fulfill the legal requirement of having a local director, while you manage the company remotely.