A company is an entity with its own legal status that can incur debt and be sued. Its owners are called shareholders.
Choosing a suitable business structure will help you gain access to government grants and separate your personal liabilities. This is especially important for foreigners looking to start a company in Singapore.
- Decide on your business model
Singapore offers a number of benefits to foreign entrepreneurs, including a world-class business environment, low taxes and a stable economy. It also offers access to international talent, government funding and a network of advisory services. The country is also a regional finance hub and offers entrepreneurs an array of banking options, from large legacy banks to new innovative players.
The country also offers many flexible options for company structures, including private limited companies and sole proprietorships. A limited liability company separates shareholders’ personal assets from the business, protecting them from debts beyond their initial paid-up capital contribution.
Incorporating a business in Singapore is easy for foreigners with the help of a local business registration service provider. This firm will handle the registration process and fulfil added compliance requirements like appointing a company secretary, an auditor and a director (not to be the same person) for the company. For foreigners relocating to Singapore for work, the business registration service provider will also manage an EntrePass application on your behalf.
- Choose a business structure
Choosing the right corporate structure jumpstarts your company’s registration process as you move to Singapore. The structure you choose will determine the limits of your business, its risk factors, and how it is organised internally.
Most entrepreneurs opt for a private limited company, which imposes minimal ownership restrictions and allows owners to shield themselves from personal liabilities. It is also easy to raise capital by transferring shares or bringing in new shareholders, compared to other structures.
In addition, it is a great option for companies that plan to hire foreign workers in the long run. To register a private limited company, you must be at least 18 years old and either a Singapore citizen, Permanent Resident, or EntrePass/Employment Pass holder with valid LOC. You must also have a Singapore-registered address for your company and have at least one resident director or secretary. If you require assistance in obtaining these, a Singapore-based firm like Timcole can provide nominee directors and secretaries for reasonable costs.
- Register your company
Once you’ve settled on the type of company you wish to start and have finalized your business structure, it’s time to prepare the relevant documentation for registering your company. This includes the company constitution, which outlines the in-house regulations, shares, and relationships between shareholders. It also spells out the company’s objectives, and provides information on how to manage the company.
Aside from these, there are some other things to keep in mind when preparing your company’s documents. For example, your chosen name cannot conflict with existing businesses and must be unique in Singapore. Also, certain terms like “legal”, “school”, or “bank” may require additional vetting by corresponding government agencies and could delay the process.
You will also need to provide a local registered office address, which is used by ACRA and other governmental authorities for official correspondence. If you’re a foreigner, you can avoid this expense by engaging a nominee director who has a permanent address in Singapore and is contracted to your company (and thus takes on full compliance responsibilities). This is a common service offered by professional corporate services firms at reasonable costs.
- Apply for a work permit
If you want to see kangaroos, then Australia is your destination; and if you’re looking for the best sushi in the world, you can head over to Japan. But when it comes to business, Singapore is the place to be. It tops many reputable corporate rankings, such as the Ease of Doing Business Index.
The country’s strategic location, stable economy, wide range of government grants, strong infrastructure ecosystem and network of advisory services are all great reasons why you should start a business here.
However, before you can open your doors, you need to make sure that you have a valid work permit. Fortunately, your company registration agent can help you with this. They’re familiar with the rules and regulations around foreign worker quotas, possible levies and sources of employment for skilled and semi-skilled workers, so they can unpick the complexity and ensure that your application is successful. This saves you time and money as it streamlines the process of obtaining your work permit.how to start a company in Singapore