Singapore has become a hub for business activity in Asia, attracting foreign investors worldwide. If you are a foreigner looking to register a business in Singapore, there are some specific steps you need to follow. This article will explore the various options and restrictions for foreign companies looking to set up a business in Singapore in 2023.
Table of Contents
1. Options for registering a foreign company in Singapore
Singapore is a thriving business hub in Asia, attracting foreign investors from all over the world. With its strategic location, robust infrastructure, favorable tax regime, and business-friendly environment, Singapore is a top choice for entrepreneurs and businesses looking to expand their regional operations. However, foreign companies that want to set up a business in Singapore must follow the country’s rules and regulations.
There are two main options for foreign companies looking to register in Singapore. The first option is to register a local company, and the second is to open a representative office. Let’s take a closer look at each opportunity.
- Register a local company
The most common way foreign companies can set up a business in Singapore is to register a local company. This involves incorporating a new entity with the Accounting and Corporate Regulatory Authority (ACRA). The company must have at least one shareholder, one director, and a company secretary who is a resident of Singapore.
- Open a corporate bank account
Once the company is registered, the next step is to open a corporate bank account. Singapore has a robust banking system, and many banks offer businesses a wide range of services. To open a corporate bank account, the company must provide the bank with its registration documents, the identification documents of its directors and shareholders, and proof of its business.
2. How can a foreigner open a company in Singapore?
Here are the steps involved in setting up a business in Singapore
- Get a Business License
Certain business activities require a license in Singapore. For example, a company must obtain a liquor license to sell liquor. Similarly, the company must obtain a food establishment license to operate a restaurant. The type of license required depends on the nature of the business. Foreigners can apply for a permit through the relevant government agency.
- Obtaining a Work Visa or EntrePass
Foreigners who want to work in Singapore must obtain a work visa for foreign professionals, managers, and executives who have a job offer in Singapore. EntrePass is for foreign entrepreneurs who want to start a business in Singapore. To obtain an EntrePass, the company must be registered with ACRA and meet specific requirements.
- Appoint a local candidate or authorized representative as director
Singapore law requires that at least one director of the company must be a resident of Singapore. A foreigner can appoint a local candidate or authorized representative as a director to comply with this requirement.
- Use the company registration service in Singapore
Foreigners who need to become more familiar with the Singapore business registration process can use a company registration service in Singapore. These services can help with company incorporation, work visas, and other regulatory requirements.
3. What are the restrictions for foreigners?
While Singapore welcomes foreign investment, there are certain restrictions that foreign entrepreneurs must be aware of. These restrictions include regulations on retail trade, hawking, and food stalls. Essentially, foreigners are not allowed to engage in businesses that are considered small-scale, which are reserved for Singaporean citizens and permanent residents.
Conclusion
As a foreigner, establishing a business in Singapore can be challenging but rewarding. Companies can successfully register in Singapore and operate their business under Singapore’s laws by adhering to the procedures outlined above. Foreign companies expanding operations in Asia will find Singapore’s business climate favorable. Entrepreneurs can successfully establish their businesses in Singapore in 2023 if they take the appropriate steps.
