Yes, foreigners are allowed to set up a company in Singapore. Singapore has a business-friendly environment and actively encourages foreign investment and entrepreneurship. The process of setting up a company in Singapore is relatively straightforward and can be completed efficiently.
Here are the general steps involved in setting up a company in Singapore as a foreigner:
1. Company Registration: Choose a suitable company name and register your company with the Accounting and Corporate Regulatory Authority (ACRA). You will need to appoint a resident director who is a Singaporean citizen, permanent resident, or an Employment Pass holder. If you don’t have a local resident director, you can appoint a nominee director through professional service providers.
2. Shareholders: Determine the shareholding structure of your company. A Singapore private limited company can have a maximum of 50 shareholders, and they can be individuals or corporate entities. Shareholders can be both local and foreign.
3. Paid-up Capital: Decide on the amount of paid-up capital for your company. Singapore does not have a minimum requirement for paid-up capital, but a recommended amount is SGD 1.
4. Registered Address: Provide a local address as the registered address for your company. This can be a residential or commercial address, but a P.O. Box is not acceptable.
5. Company Constitution: Prepare a Memorandum and Articles of Association (M&AA) that outline the company’s activities, rules, and regulations.
6. Licenses and Permits: Some businesses may require specific licenses or permits to operate in Singapore. Check if your business falls into any regulated industries or activities and apply for the necessary licenses.
7. Taxation and Banking: Understand Singapore’s tax requirements and register for taxes, such as Goods and Services Tax (GST) and Corporate Income Tax. Open a corporate bank account in Singapore.
8. Work Passes: If you plan to relocate to Singapore and work in your company, you may need to apply for an appropriate work pass, such as an Employment Pass or EntrePass. The specific requirements depend on factors such as your qualifications, work experience, and business track record.
9. Compliance and Reporting: Familiarize yourself with Singapore’s legal and compliance obligations, such as filing annual returns, holding annual general meetings, and maintaining proper accounting records.