Singapore has become one of the most desirable destinations for any business willing to start its activities in Asia. Favorable regulation, together with a strategic location, enables Singapore to be among the attractive options for foreign companies. Here’s what you need to know about the foreign company registration in Singapore and doing business there.
Foreign Company Registration in Singapore
Registering a foreign company in Singapore requires various steps
Foreign company registration in Singapore involves several key steps. The Accounting and Corporate Regulatory Authority (ACRA) is the governing body responsible for company registration. Doing business in Singapore for foreign participants means being bound by its regulatory requirements.
- Business Structure: Foreign companies would also want to be registered as a branch office, subsidiary, or representative office. Each of these structures has different implications for liability and operations.
- Branch Office: This is an extension of the parent company in that it is not considered a separate legal entity. In other words, the parent company is liable for all branch activities.
- Subsidiary: This will be a separate legal entity from the parent company. It is incorporated as a private limited company in Singapore and provides limited liability protection.
- Representative Office: Suitable for companies wishing to investigate the availability of business opportunities without actually carrying out direct commercial activities.
- Requirements for Registration:
- Company Name: The proposed name must be unique and not infringe on any trademarks.
- Business Activities: The nature of business activities to be undertaken shall be clearly stated.
- Directors and Shareholders: A foreign company must have at least one local director who shall be resident in Singapore, permanent resident, or holder of an Employment Pass. One to 50 shareholders are allowed and no restriction on their nationality; it can be individuals or corporations.
- Company Secretary: A qualified company secretary shall be appointed within six months from the date of incorporation.
- Registered Address: The company shall have its registered address in a locality in Singapore.
- Documents Required:
- Certificate of Incorporation: From the foreign company’s home jurisdiction.
- Memorandum and Articles of Association: Governing documents of the parent company.
- Passport Copies: Of the directors and shareholders.
- Proof of Address: For the foreign company’s directors and shareholders.
- Registration Process:
- Submission: All documents are submitted to ACRA via the online portal.
- Approval: ACRA reviews the application and may request additional information or clarification.
- Certificate of Incorporation: Upon approval, ACRA issues a Certificate of Incorporation, confirming the company’s registration.
Foreign Companies Doing Business in Singapore
Foreign Companies Doing Business in Singapore need to follow the local laws and rules
Foreign companies can immediately start carrying on business upon registration. However, to make it easy and smooth, operation has to abide by the local laws and rules. Foreign company registration in Singapore includes the following points:
- Taxation: The tax system in Singapore is competitive, with many incentives attracting foreign investment. All the companies are liable to a corporate tax on the income derived in Singapore. For qualified activities, like research and development, tax incentives may be awarded for the activities conducted.
- Licensing and Permits: Licenses or permits, depending on the type of industry, are needed. For example, financial service or health companies need to have the proper licenses and approval from the concerned government authorities.
- Employment Regulations: Foreign companies are encouraged to further comply with Singapore’s employment law by giving staff a conducive work environment, complying with the system of salaries, and ownership of staff welfare.
- Compliance: Further compliance with the reporting requirements of ACRA. Examples include annual returns, financial statements, and notices relating to changes in company particulars.
Foreign Companies Doing business in Singapore
Foreign Companies expanding their business to Singapore
It is vital to understand the regulatory landscape for foreign business desiring to enter the market in Singapore. In addition, Singapore is a very attractive option for international expansion, considering ease of doing business, strategic location, and strong rule of law.
- Market Access: It provides an easy access route to the wider Southeast Asian market. Its well-developed infrastructure and connectivity provide excellent avenues for trade and investment.
- Business Environment: Its supportive legal system, efficient bureaucracy, and other economic policies crown the business-friendly atmosphere of this city-state.
- Support Services: Other supporting services for foreign firms are provided by various government agencies and private sector firms: legal, accounting, consulting services.
Conclusion
The setup and operation of foreign company registration in Singapore follows a sequential mechanism, well-regulated by the ACRA. Compliance with local laws, as well as gaining strategic advantages of Singapore, will enable any foreign company to establish its business successfully in this vibrant economy. With One IBC Singapore, we offer various services to support foreign companies to start their business in this country.
