Singapore

Incorporating a company in Singapore is a straightforward and uncomplicated process. Assuming all necessary requirements are fulfilled, the entire application usually takes an average of two to four days. Applications are completed online and submitted through the electronic portal of the Accounting and Corporate Regulatory Authority (ACRA).

Company names typically receive approval or rejection within an hour, with additional requirements possibly requested based on the chosen industry.

Foreign investors have the option to establish any of the following business entities:

1. Private Limited Liability (LLC)
2. Limited Liability Partnership (LLP)
3. Sole Proprietorship
4. Partnership
5. Limited Partnership

To successfully incorporate a company in Singapore, the following prerequisites must be met:

1. Approval of the company name by ACRA
2. Appointing a Resident Director (a Singaporean citizen, permanent resident, or someone holding an EntrePass/Dependent’s Pass)
3. Having at least one shareholder
4. Employing a Resident Company Secretary
5. Providing a registered address
6. A paid-up capital of at least S$1

Singapore operates under a single-tier territorial-based flat-rate corporate income tax system, boasting the lowest corporate income tax rate (17%) in the ASEAN region. Additionally, its personal tax structure is highly competitive, featuring a top marginal resident tax rate of 22%.

The country offers significant tax incentives and exemptions to small and medium enterprises. With these exemptions applied to taxable income, their effective tax rate is substantially reduced.

Starting from 2020, newly incorporated companies can benefit from the following tax exemptions for three consecutive years:

– A 75% exemption on the first S$100,000 of normal chargeable income for each of the first three tax filing years, provided they meet specific criteria:

  – Being incorporated in Singapore

  – Being a tax resident in Singapore

  – Having no more than 20 shareholders, with at least one individual shareholder holding at least 10% of shares

– An additional 50% tax exemption applies to taxable income up to S$100,000, with the taxable income exceeding this threshold being subject to the regular headline corporate tax rate of 17%.

Broadly, there are three primary work visa options available for foreign employees:

1. Employment Pass (EP) – designed for foreign professionals, C-level executives (CEOs, managing directors, and general managers), or specialists sponsored by a Singapore-based company.
2. Work Permit – intended for foreign laborers and basic-skilled workers seeking employment in Singapore’s high-demand industries, subject to approval from specific source countries.
3. S Pass – tailored for foreign mid-level skilled workers sponsored by a Singapore-based company.

Singapore maintains its reputation as the world’s easiest place to do business, according to the 2017 Doing Business report by the World Bank. This ranking is a result of the country’s business-friendly environment, including a straightforward company incorporation process, pro-business government policies, attractive tax incentives, a corporate tax rate range of 0% to 17%, state financial grants, incentives for headquarters establishment, and robust intellectual property (IP) protection laws. As a result, Singapore stands out as the most attractive business hub in Asia, attracting both startups and multinational corporations looking to expand into the Asia-Pacific region.

For foreign investors looking to start a business in Singapore, it’s essential to engage the services of a professional corporate services provider to facilitate the incorporation process and successfully register the company. This is mandatory because non-residents are not allowed to self-register a business entity under Singaporean law.

It’s worth noting that both the incorporation process and the associated work permit procedures can be managed without requiring a physical presence in Singapore. You can incorporate a private limited company without the need for a Singapore work visa, especially if you plan to run your company from abroad. In such cases, you only need to appoint a nominee resident director to fulfill the minimum requirement of having one resident director. A corporate solutions provider can assist in appointing a suitable nominee on your behalf.

However, if you intend to relocate to Singapore to oversee your business operations and serve as the resident director, you will need to obtain an Employment Pass or Entrepreneur Pass (EntrePass). You can apply for these passes within six months of your company’s incorporation. To meet the statutory requirement of having at least one resident director before incorporation, you can choose a nominee resident director while awaiting the approval of your Employment or EntrePass.

Singapore’s business incorporation process is known for its speed and accessibility, typically taking about two and a half days when all requirements are met. The application for incorporation is completed online through the Accounting and Corporate Regulatory Authority’s (ACRA) electronic portal.

1. Company Name

Before you can proceed with incorporation in Singapore, your company name must be approved by ACRA. Typically, company names are approved or rejected within an hour. However, ACRA may choose to delay the reservation for names that reference regulated industries (e.g., schools, banks, finance, law, or media), requiring approval from external government authorities. This external approval can take between 7 days to 2 months. ACRA may also reject proposed company names that are undesirable or closely resemble existing ones.

2. Resident Director

You must appoint at least one Resident Director, who must be an “ordinarily” resident in Singapore, which can include:

– A Singaporean citizen

– A Singaporean permanent resident

– A person with an Employment Pass/EntrePass or a Dependent’s Pass

The director must also have a valid residential address in Singapore. While there’s no specified limit on the number of additional local or foreign directors that can be appointed, all directors must be at least 18 years old and free from bankruptcy or criminal convictions. Directors can also become shareholders.

3. Shareholder

At least one Shareholder is required by law. A shareholder can also serve as a company director. Singapore’s Companies Act allows for a maximum of 50 shareholders for a private limited company. The country permits 100% foreign shareholding, and after successful incorporation, shares can be freely transferred at any time.

4. Resident Company Secretary

All companies are mandated to appoint a qualified Resident Company Secretary within six months of incorporation. The company secretary is responsible for ensuring compliance with government-imposed regulatory requirements. The secretary must be an “ordinarily” Singaporean resident with a valid residential address. Sole directors and shareholders cannot act as the company secretary.

5. Registered Address

Your company must have a physical Singaporean address as its registered address. This address can be residential or commercial but not a P.O. box. All government agencies and entities will send official notices and documents to this registered office address, so it’s important to regularly check incoming mail. If you prefer not to invest in renting a physical office space, virtual office services are available. These services can include mail notification, mail forwarding, a dedicated phone line, and flexible meeting room facilities.

6. Paid-Up Capital

The minimum paid-up capital for company incorporation in Singapore is S$1. This amount is notably low compared to the capital requirements of other countries. It doesn’t need to be proven with a bank statement but can be increased at any time following incorporation.

How to Confirm Successful Company Incorporation

Upon successfully incorporating your company, ACRA will send an email notification containing details of the incorporation, including the company registration number and issuance date. This email notification serves as the Official Certificate of Incorporation in Singapore. You can obtain a hard copy of this certificate from ACRA for a fee of S$50 per copy. A PDF version of your company’s business profile can also be requested online for a small fee.

Next Steps After Incorporation

Once your company is incorporated, you can proceed to open a corporate bank account with local or international banks in Singapore. Most banks require account signatories and directors to be physically present during the account opening process. If you are unable to visit Singapore, your corporate services provider can advise on alternative ways to meet the account opening requirements.

It’s crucial to be aware of the business licenses and permits that may be required for your specific business activities. Some business activities may require approval from relevant government agencies, particularly if they are subject to government regulation. Examples of such businesses include educational institutions, video companies, travel agencies, moneylenders, financial advisers, banks, and import/export-related industries, among others.

Additionally, strict compliance with the statutory requirements set by ACRA and the Inland Revenue Authority of Singapore (IRAS) is essential. The Singapore Companies Act imposes specific annual filing requirements that must be met. Failure to comply with these mandatory requirements or submitting them late can result in penalties or legal action.

How Can We Assist You

For a more comprehensive guide on establishing your business or corporate headquarters in Singapore, you can rely on our company, our parent company. Our Company is the leading provider of professional corporate solutions for businesses in Southeast Asia. They offer comprehensive services for those looking to set up their first office or expand existing operations in Singapore. Their expertise spans company incorporation, corporate compliance, accounting, taxation, advisory services for expansion, and ongoing support for your business. From initial planning in Southeast Asia to corporate growth and regional expansion throughout the Asia-Pacific region, Our Company is dedicated to guiding your business every step of the way.

Our services encompass Singapore Work Visa Processing, assisting foreign individuals in securing legal employment within Singapore. We also extend our visa processing services to recently established Singaporean companies, ensuring the successful application of work visas for their foreign employees.

Our Range of Singapore Work Visa Processing Services:

1. Preliminary assessment and compilation of requisite documents
2. Submission and application for work visas/permits
3. Continuous tracking of application status
4. Facilitation of communication with the Ministry of Manpower (MOM) officer-in-charge for expedited processing when necessary
5. Prompt response to MOM’s requests for additional information when required
6. Coordination of the issuance of work visas/permits upon in-principle approval (IPA)
7. Submission of unlimited appeals in the event of a work visa/permit application rejection

In Singapore, there are three primary work visa options available for foreign employees:

1. Employment Pass (EP) – designed for foreign professionals, C-level executives (such as CEOs, managing directors, and general managers), or specialists sponsored by Singapore-based companies.
2. Work Permit – granted to foreign laborers and entry-level workers who seek employment in Singapore’s high-demand industries and originate from approved source countries.
3. S Pass – intended for foreign mid-level skilled workers sponsored by Singapore-based companies.

Employment Pass (EP):

Who Is Eligible?

The Employment Pass (EP) is intended for foreign professionals, C-level executives (CEOs, managing directors, general managers), or specialists sponsored by Singapore-based companies.

Eligibility Criteria:

Applicants must meet at least one of the following criteria:

– Possess skills relevant to the sponsored position

– Hold relevant educational qualifications

– Possess a professional background aligned with the sponsored role

– Young professionals need a minimum monthly salary of S$4,500, while the financial sector requires S$5,000 per month.

– EP holders with a salary threshold of at least S$6,000 per month have the option to bring their families to Singapore, either via a Dependant Pass or a Long-Term Visit Pass.

Additional Factors for EP Approval:

The MOM assesses the following factors that may influence visa approval:

– Appropriate job designation

– Relevant work experience

– Appropriate salary

– Nationality

– Company structure

– Niche industry

EP Visa Validity:

EPs are generally valid for the following durations:

– First-time applicants: Up to 2 years

– EP renewals: Up to 3 years

Work Permit (WP):

Who Is Eligible?

A Work Permit (WP) is issued to basic-skilled foreign workers seeking employment in Singapore’s high-demand industries, provided they hail from approved source countries.

Eligibility Criteria:

Prospective applicants must meet these prerequisites:

– Age between 18 and 50 years old (up to 58 for Malaysian citizens) during application

– A confirmed job offer from a prospective Singapore-based employer

Work Permit Validity:

The typical Work Permit is valid for 2 years, subject to the validity of the employee’s passport, the Banker’s/Insurance Guarantee, or employment period, depending on which is shorter.

S Pass:

Who Is Eligible?

The Singaporean S Pass is designated for foreign mid-level skilled workers sponsored by Singapore-based companies. The application is evaluated using a point-based system, considering salary, educational qualifications, skills, job type, and work experience.

Eligibility Criteria:

To qualify for an S Pass visa, foreign workers must meet these conditions:

– A monthly salary of at least S$2,500 for young, entry-level applicants, with a higher threshold for experienced applicants

– Requisite educational qualifications

– A professional background relevant to the sponsored position.