In Singapore, a foreign company refers to a company that is incorporated outside of Singapore but conducts business activities or has a presence in the country. The exact definition and criteria for determining foreign companies may vary depending on the specific laws and regulations applicable in Singapore.
The Singapore Companies Act provides guidelines for determining the residency of a company. According to the Act, a company is considered a foreign company in Singapore if:
- It is incorporated outside of Singapore, or its parent company is incorporated outside of Singapore.
- Its central management and control (i.e., the highest level of decision-making) is located outside of Singapore.
- Its executive directors or managers who make key decisions on the company’s operations are not ordinarily resident in Singapore.
It’s important to note that foreign companies conducting business in Singapore are typically required to register with the Accounting and Corporate Regulatory Authority (ACRA) and comply with various legal and regulatory requirements, including taxation, employment laws, and company registration procedures.