Singapore has a wonderful reputation globally because of the ease of doing business. A great place to do business for locals and foreigners alike, everyone with the necessary mindset, knowledge and funds may incorporate a company in Singapore. There are just some rules you need to read up on first.
Rules on How Foreigners Can Incorporate Company in Singapore
The Singaporean government has made company incorporation quite easy for foreigners. First of all, a foreigner can own all the shares in the company they incorporate. This means that the foreigner may be listed as the sole shareholder of the new company. You may do this even before the company has been registered. This helps foreign business people (who would otherwise have to look for citizens to partner with in the same company). It also means that the foreigner who is the sole shareholder can claim all profits (and liabilities) of the new company in his name.
Second, there is only one rule preventing foreigners from company registration in Singapore. This rule bars them from setting up a company should he previously be convicted of a crime. The same rule includes foreigners who underwent bankruptcy proceedings. Otherwise, people from all around the world are free to set up a company in Singapore.
Third, company incorporation is open to foreigners who are already residents of Singapore during the incorporation period. Once the incorporation is done, the foreigner may leave Singapore and go to another country. The new company will be operating in Singapore even in their absence. However, they may need to designate an authorized representative for their company. This applies if they won’t be residing in Singapore after incorporation.
Can Foreigners Register a Company Themselves?
Foreigners have to look for a filing agent to do the incorporation for them. This does not mean that foreigners are taken out of the loop completely. This rule actually prevents foreigners from getting confused in the incorporation process, as the filing agent makes it easier for them. So, a foreigner may sign all the necessary documents and pay the necessary fees. Then he hands over the documents and payments to the filing agent for processing.
International investors need to designate a local resident as the Director of the company. This means tagging either a Singaporean citizen, a Permanent Resident, or a resident who has a valid EntrePass as that Director.
Finally, you should be over 18 years of age at the time of incorporation of the Singapore company. You can name minors as shareholders of this company.
If you intend to incorporate a company in Singapore, study your options well. This means going to the Accounting and Corporate Regulatory Authority (or ACRA) website to research on the current rules governing company incorporation. It also means selecting the right people to advise you in Singapore.
