Opening a Company in Singapore and Getting a Work Visa: What Foreigners Need to Know

Creating a new business in Singapore is an excellent idea. The country has opened up quite a bit to foreign investors and entrepreneurs that want to create/be a part of a flourishing company. Plus, Singapore offers you a very good way of helping you create a large business and push it to the next level. However, there are some considerations you have to focus on.

In order to operate as a company and also work in Singapore, you need a valid work visa, along with adequate company registration. That’s why you need to learn how to apply for the work visa, as well as some tips to help make things smoother and easier. It’s totally a thing you need to keep in mind, but we are here to assist.

Why Set Up in Singapore?

Singapore is considered to be one of the prime spots where you can open a business in Asia. There are also other inherent business benefits, which you can see below:

Singapore has great IP protection and a very powerful legal framework
It’s also known as one of the easiest places from where you can do business anywhere in the world
Corporate tax rates are known for being on the low side, and that’s something to keep in mind
Additionally, you get access to funding and global markets
The political environment is stable, and the overall infrastructure within the country is solid, something to keep in mind

Singapore can be an excellent spot for creating a new company, as you can see. However, it’s important to see what entry requirements and visa guidelines are necessary. Once you know that, you can narrow down how simple or challenging it can be to start a company here.

What’s the Step-by-Step Company Incorporation Process?

Incorporating a business is not very simple, but if you follow the right steps, the entire process can be streamlined. And that’s why it’s inherently important to take your time and ensure that you’re implementing every step properly. That will help enhance the process and streamline things in a cohesive manner.

The first thing you need to do is to select the business structure, which tends to be Private Limited for most foreigners.
After that, you will have to reserve the company name via BizFile+.
Once you do that, you must appoint a local director, at least one. There’s also the option to have a nominee service handle that.
Prepare all the incorporation documents, from shareholder details to constitution and so on.
Register the company and then you will get the エーシーエル BizFile.
Next, open a corporate bank account for your business, it can be digital or physical, depending on the situation.
Registering for GST is also necessary, if that’s applicable.

Work Visa Options for Foreign Directors or Employees

Whether you are a director or employee, it doesn’t matter if you’re a foreigner. You need to have a valid work pass in order to work/operate in Singapore, within that company. Thankfully, there are multiple visa options to consider, depending on the situation at hand.

The Employment Pass is suitable for any foreign professionals that have a job offer from a company in Singapore. The salary tends to be 5000 SGD a month as the starting point.
EntrePass is, as the name says, made specifically for startup founders and entrepreneurs. Generally, it’s suitable for any business that has either incubator support or funding acquired from external sources.
The Personalized Employment Pass is meant for higher-earning professionals. Another thing to note is that it’s not tied to an employer, which is a thing to consider.
Long term visit passes or dependent passes are suitable for the family members of the aforementioned pass holders.

Key Considerations for Approval

There’s always going to be a challenge as you apply for a visa or any other similar things. That’s why you have to be very careful when it comes to the stuff you need and what can help you get approved faster.

A business plan is necessary, especially for the EntrePass
The company activity also matters, based on the criteria at hand
You must have a local director, although it is possible to use a nominee
EP applicant educational qualifications and salary are also considered
You also need to use the right documents along with detailed justification letters

Recommended Pathways Based on Your Profile

It’s important to note that based on your profile, you may want to go a specific route, and that’s certainly something you have to think about. Not everyone will need to use the same path. You have to be very careful when it comes to the pathway at hand, as it might differentiate things more than expected.

For example, if you are a tech or startup founder, you need the EntrePass
Investors or owners that don’t relocate yet can choose the company setup and nominee along with remote operations
For a large team relocation, you have multiple EPs as well as a corporate structure support or assistance
Foreign professionals that want to relocate for their own company can go the EP and company setup route.

Remember, every pathway has its differences and challenges, so you have to think about all the pros and cons beforehand. Plus, since it’s difficult to choose the right pathway at first, it’s crucial to work with industry experts and get the necessary guidance and help as quickly as possible.

Common Mistakes to Avoid

The problem with moving to another country to work there or create your own business is that you will have all kinds of challenges to avoid. And naturally, it becomes very easy to make mistakes. That’s why you really have to be very careful when it comes to the steps you take, and the possible issues that can arise. Here are some of the known mistakes that you need to avoid.

Always avoid to not name a local director before incorporating your business. It’s necessary, and if you don’t, that can lead to all kinds of problems you really want to avoid.
Picking the wrong visa type is also a problem. You need to justify why you need a specific type of visa, as that will help a lot more than you might expect.
It’s also not ok to lack business activity info or documentation. Lacking those can be a problem, and it’s extremely important to take it all into account.
Budgeting for the full relocation doesn’t just take into consideration 1-2 things. You also have to consider the office space, CPF, tax and so on.

How Can One Visa Help You?

There are always going to be challenges when it comes to opening a new company in Singapore. Here at One Visa, we understand the situation, and we offer professional services that can assist you with this matter. We will help you set up and also relocate to Singapore. Moreover, you’re getting incorporation with address and nominee director, a visa strategy, along with ICA filings, justification letters, employment contracts, as well as accounting/secretarial and tax support, all of which is ongoing.

If you’re serious about incorporating a company in Singapore, all you need is to book your free consultation with our immigration and corporate experts today, we are always here to assist!