How to Start a Business in Singapore as a Foreign Entrepreneur

Singapore is one of the simplest places to start a business, and it frequently ranks high in the World Bank’s Ease of Doing Business surveys. With its business-friendly regulatory framework, competitive tax structure, and stable political environment, it’s no surprise that Singapore has become a magnet for overseas entrepreneurs looking to launch their businesses. Foreign entrepreneurs can easily register their businesses in Singapore, particularly if they’re aware of the whole process and have accurate and relevant information.

Setting up a business in Singapore requires numerous important processes, particularly for international entrepreneurs. So, join us as we discuss how to start a business in Singapore as a foreigner, the best business structure, the legal procedures, and licensing process, and ensure that your trip is easy and successful. So, let us get started!

Why is Singapore an Excellent Option for Foreign Entrepreneurs

Singapore is a prime destination for overseas business owners for several reasons. It offers a stable political and social environment, making it an appealing site for foreign enterprises. Furthermore, foreigners are permitted to own 100% of a company’s shareholding, with varied company registration fees depending on the business type chosen. The country’s corporate tax rate is only 17%, while single proprietors are only required to pay personal income tax on business profits.

Singapore’s stable political system and robust economic outlook make it a desirable business destination. The incorporation process includes filing incorporation documents with the ACRA and following statutory requirements governing taxation, employment law, and intellectual property.

How to Start a Business in Singapore as a Foreigner?

A foreigner, like a Singaporean, can easily form a corporation. In fact, anyone over the age of 18 can establish a company in Singapore. Provided he has not been convicted of a crime or declared bankrupt.

In addition to Singaporeans, Permanent Residents (PR) and holders of Employment Passes, EntrePasses, and Dependents Passes can form a company and become shareholders.

However, note that when establishing your firm, you must be physically present in Singapore.

Business Setup and Registration

The initial stage is to register your business with the 会计与企业监管局（ACRA） and, if necessary, apply for a relevant work or employment pass.

If you are a foreign entrepreneur resident in Singapore, you can apply for an Entrepreneur Pass (EntrePass) through the Ministry of Manpower.

As a non-resident foreigner, you must register with an official registered filing agent; nonetheless, you must understand the entire process. Here is a step-by-step guide to registering a corporation in Singapore for foreigners.

Select the type of your business entity

Before you can start and register your Singapore business, you must first determine which business entity type will best meet your needs. ACRA licenses and regulates Singapore’s business entities. Singapore allows for the formation of a variety of corporate forms. The ACRA website will give you further information about which business structure is best suited to your needs.

There are four types of business entities:

• 独资企业

A sole proprietorship is popular because it is simple to start up; nevertheless, because your personal and business money are not legally separate, you may be personally accountable for any debts or legal troubles your company incurs.

• Limited Partnership (LP)

A limited partnership must have at least one general partner who is entirely accountable for the company; however, limited partners may not be personally liable beyond their investment in the business.

• Limited Liability Partnership

A limited liability partnership is a separate entity from the individual partners, limiting the partners’ liability except in cases when they are personally at fault.

• 私营有限公司

A private limited corporation has limited liability and must have at least one registered director and shareholder. This company type requires 50 or fewer members, and while it is more complex in terms of record keeping, accounting, and taxation than the other entity kinds, its flexibility and restricted liability make it a popular choice for both domestic and foreign entrepreneurs.

As a foreigner, you can operate as the local director of a private limited company, but you must first get an EntrePass visa from the Ministry of Manpower. Fees may apply to own a business bank account, and transaction fees can be significant. Before you begin, make sure to review the pricing structure for the given account.

Appoint a Local or Resident Director

Locals can function as resident directors while self-registering their businesses on the BizFile+ site. The company’s shareholders must approve a resolution to designate the local director. Choose someone who is at least 18 years old and has full legal capacity. An individual having an undischarged bankruptcy cannot hold this position.

Nonetheless, foreigners must:

• Appoint a local director.
• Foreigners cannot self-register their companies in Singapore, thus, they must use a registered authorized agent to do so.

You have the following options for appointing a Local Director:

• Either hire a Singaporean, Permanent Resident, or EntrePass holder as the local director.
• Option 2: Designate a nominee director for your new firm.
• Option 3: Form a corporation first by applying for and obtaining an EntrePass.

Sign a contract with the appointee to keep them out of your business operations. The appointee will not be a bank signatory. Furthermore, you alone will have complete control over the company and its corporate bank account.

Singapore Business Visa for Entrepreneurs

Various visas can permit you to start a business in Singapore as a foreigner, either automatically or with additional application. Common choices include:

• 就业准证（EP）
• Entrepreneur Pass.
• Tech.Pass Overseas Networks
• Expertise Pass (One Pass)

Employment and dependent pass holders may be eligible to start a business, but they will most likely need permission from the Ministry of Manpower to do so. Other visa kinds are specifically designed for entrepreneurs, and if granted, you can automatically start a firm.

How to Register a Business Name in Singapore

1.    Choose a Business Name

Select a unique name that isn’t too similar to existing businesses and doesn’t include restricted or banned words. Use the ACRA Free Company Name Check Tool to confirm availability.

2.    Define Business Activities with an SSIC Code

When registering, specify your business activities using the Singapore Standard Industrial Classification (SSIC) code. You can search for the right code using the SSIC Search Tool, which helps match keywords to suitable codes. If unsure, consult ACRA or a company formation agent.

3.    Submit Name Application via BizFile+

Apply for your business name through ACRA’s BizFile+ platform. Once approved, you have 120 days to complete the incorporation.

4.    Receive Your Unique Entity Number (UEN)

After incorporation, you’ll be issued a UEN—a unique number used for all official dealings with Singapore government agencies. Include your UEN on invoices and communications. You can also link it to payment systems like PayNow for receiving SGD payments.

5.    Obtain a registered business address

Companies must establish a local registered office that acts as the designated place for receiving official mail and documents, and will be listed on the necessary registers in compliance with the law.

Your registered business address should be a physical office address. It cannot be a post office box or something similar.

Financial Considerations

Now that you’re well on your way to setting up a business in Singapore, the next step is to go over some of the major financial processes that must be completed before you can begin operations.

Open a corporate bank account

You’ll need clever money management strategies now that you have a Singapore firm. Singaporeans and residents may be able to create a business account with a bank such as DBS without having to furnish many documents. However, as a foreigner, your chances of being required to supply further documentation are significantly higher. You may also need to visit a branch to open your account, rather than doing it online.

The records that are most frequently requested include things like

• The company’s incorporation certificate, constitution, and director and signatory identity documents.
• Fees may apply to own a business bank account, and transaction fees can be significant. Before you begin, make sure to review the pricing structure for the given account.

Government Support for Foreign Businesses

Singapore offers various support programs for foreign-owned businesses, including grants, loans, and tax incentives. Enterprise Singapore (Enterprise SG) is a great place to explore available grants. Additionally, all taxpaying businesses—foreign and local—can benefit from a Corporate Income Tax (CIT) rebate of 50%.

Tax Filing & Deadlines

Stay informed about tax obligations and filing deadlines to avoid penalties. For instance, failing to submit annual returns to ACRA could result in a SGD 600 fine. A company secretary can assist, but staying proactive is key.

Hiring Employees

Understanding Singapore’s employment laws is essential, especially if hiring locals or foreigners.

• For local hires, you’ll need a CPF Submission Number via BizFile.

• For foreign hires, follow regulations under the Employment of Foreign Manpower Act and Fair Consideration Framework (FCF), which include business quotas and advertising requirements.

结论

To sum up, setting up a business in Singapore as a foreign entrepreneur presents significant potential for growth and success due to the nation’s pro-business policies, favorable tax system, and strong government backing for foreign-owned enterprises. By choosing the appropriate business structure, securing the required work permits, and complying with all local laws and regulations, international entrepreneurs can establish a successful and sustainable presence in Singapore’s dynamic market.