Introduction
Foreigners looking to open a company in Singapore should know that the process is relatively easy compared to other countries. With the right guidance, the setup for a company in Singapore can take as little as one week. As an international business hub, Singapore offers expatriates a favorable climate that allows entrepreneurs from diverse backgrounds to set up shop, become self-employed, and start a business. This article provides an overview of the requirements and procedures that foreign entrepreneurs need to apply for in order to open a firm in Singapore.
Requirements, Cost and Timeline
The procedure for registering a company in Singapore for foreigners is the same as for Singaporeans. For a company to be incorporated, at least one shareholder, one local director and a minimum capital of SGD$1 must be present. The capital can be in cash or assets such as furniture, office supplies, etc. The entire incorporation process, including issuance of the business registration certificate, is usually completed in 7-10 days. The process usually costs between S$600 and S$1000.
Work Visas and Employees
The Ministry of Manpower issues the EntrePass, which is a special pass for entrepreneurs who want to start their own business or open a company in Singapore. This pass allows foreign entrepreneurs to live and work in Singapore. In order to qualify for this pass, the foreign entrepreneur must have a minimum of SGD$50,000 in paid-up capital and must demonstrate relevant experience in their business field.
It is also important to note that, after the company is registered, employers will need to register the employee under the Employment Pass system. This will grant the employee the right to work legally in Singapore. Depending on their salary and skillset, the employee may qualify for either the S Pass, the Employment Pass or the Work Permit.
Taxes and Bank Accounts
It is important for foreign entrepreneurs to consider Singapore’s tax system when registering their company. Singapore has a progressive tax system and the standard corporate tax rate is 17%. However, it may be lowered to 8.5% if the profits fall below S$300,000. Additionally, the company may be subject to a Goods and Services Tax (GST) depending on the nature of the business. Businesses with a turnover of over S$1 million are required to register for GST, and the rate is currently set at 7%.
In order to open a bank account, it is essential to have the necessary documents, which include a valid government ID, proof of address, a business plan and the company’s Certificate of Incorporation. Some banks may also require additional documents, such as the articles of association or memorandum of association.
Foreign Exchange and Foreign Workforce
Setting up a company in Singapore also requires an understanding of the foreign exchange regulations in the country. Companies that import or export goods, services and capital must register with the Ministry of Manpower’s Accounting and Corporate Regulatory Authority (ACRA). It is also important to be aware of the procedures for employing foreign workers. Expatriates are required to apply for employment passes from the Ministry of Manpower. These passes will depend on the salary, qualifications and expertise of the applicant.
Legal Needs and Regulations
When setting up a company in Singapore, it is important to make sure that the business is compliant with all the laws and regulations of the country. Businesses need to adhere to the Companies Act and need to file documents in the registry boards. This includes the incorporation of the company, filing of financial statements, and the appointment of directors and auditors.
When it comes to registering a business in Singapore, it is essential to have legal representation. This is necessary in order to understand the local regulations and ensure there are no legal repercussions. A lawyer can help guide foreign entrepreneurs through the process and ensure that all documents and procedures are in order.
Conclusion
Overall, setting up a company in Singapore is relatively easy. It is important to have the right documentation and knowledge of the country’s laws and regulations. Moreover, businesses need to familiarize themselves with the foreign exchange and the legal requirements, as well as the procedures for employing foreign workers. Having the right guidance can make the process of registering a company in Singapore much simpler.
