Economists from across the world attribute much of the current global economic growth to happenings in the ASEAN region. Since the turn of the century, many multinational businesses have set out to establish a foothold in the region in a bid to have a share of the profits.
Due to its strategic location, advanced infrastructure, and business-friendly regime, Singapore is a popular destination for entrepreneurs. The country was recently rated as the leading destination for direct foreign investments from the U.S.
If you are considering to incorporate your business as a Private Limited Company, it would be beneficial to know that it has several features such as eligibility for tax exemptions and incentives, and operates as an independent legal entity separate from its owners.
But, what does it take to incorporate?
Here are the requirements of incorporating a Private Limited Company in Singapore
For starters, unlike many jurisdictions where a fraction of the company must be owned by the country’s nationals, Singapore allows 100% foreign-based ownership. This means that the parent company can still maintain control of the board and secure its interests. Although it is not mandatory, you may choose an incorporation services firm in Singapore to be your nominated shareholder.
The Company Must Have One Local Director
According to the ACRA rules, the ownership of a company can be 100% foreign-based; however, the company require at least one local director. The director can be a citizen of Singapore, a permanent resident or an Entry Pass holder. The director can also be an Employment Pass holder, which is approved by the Ministry of Manpower.
The Company Secretary Must Be a Resident of Singapore
ACRA rules further stipulate that the company must appoint a secretary within six months of incorporation. The company director cannot act as the company secretary, and he or she must be a resident of Singapore.
You are also required to appoint an auditor within three months of incorporation. However, this requirement varies with your tax status.
It is not mandatory to register other key personnel such as the CEO with ACRA, and you can nominate a person of your choice. However, if you settle on a non-Singaporean, you are obligated to seek approval from the Ministry of Manpower.
Minimum Share Capital
The minimum share capital is set at $1. However, this may change in line with the sector, and there are no restrictions on how much you can put in as minimum paid-up capital.
Registered Company Address
The company’s registered address can be at a separate location from the operating address. However, it must be a physical location that is within Singapore and should be accessible to the public. Also, it should fulfil the minimum operating hours on each business day.
The process of incorporating a foreign company in Singapore is simple and affordable. However, you can get professional help from firms that provide company incorporation services. They will manage all the legal aspects and registration fees as well as other requirements for the incorporation process. They will also act as the primary contact when handling other important information regarding the process.