Singapore is an active corporate center with a promising economy. Currently, it is ranked the 2nd greatest country in the world for doing business. That is the reason why BMW, Facebook, Apple, and Dyson have global or regional head offices in Singapore.
Growing companies with global aspirations look for attractive tax systems, intellectual property laws, and efficient infrastructure, that is what Singapore offers to foreign businesses. While economies in North America, Europe, and parts of Asia struggle, Singapore’s proactive policies and resilience make it a smart choice for businesses looking for global expansion.
Why Singapore is the Right Move for Global Growth
Today businesses are looking to maintain stability and growth in this volatile economy. Much of the world is struggling with political instability, inflation, and slow growth. Singapore stands out by maintaining positive GDP growth and low unemployment rates, an ideal environment to set up your foreign company in Singapore.
If you are looking to expand, Singapore should be your top choice, and it starts with the process of registering a company in Singapore for foreign entrepreneurs.
Economic Factors That Make Singapore Global Expansion Hub
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Economic Growth: Economies around the world have struggled to recover or thrive lately, making them not a suitable option for global expansion. Singapore’s business-friendly policies, low taxes, and openness to innovation create a welcoming environment for foreign companies to expand.
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Tax System: Singapore’s tax system is one of the most competitive when compared with the USA, Canada, and the UK. A corporate tax of only 17% for certain industries and tax treaties with over 80 countries helps in reducing tax burdens.
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Strategic Location: Singapore location is a gateway to Southeast Asia and access to a rapidly growing market of over 600 million consumers.
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Political Environment: The government of Singapore is known for its transparency and predictable regulatory landscape. With a solid business framework, companies can operate without fear of sudden regulatory changes.
How to Register a Company in Singapore for Foreigner Entrepreneurs?
Just like a local Singaporean, a foreigner can register his company in Singapore and own its 100% shareholding.
The process is straightforward which makes it easier than ever for businesses to establish a presence. Here is the step-by-step process:
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You need to have at least one shareholder, who can either be a corporate entity or an individual.
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One local resident director. The person can be a Singapore citizen, permanent resident, or holder of an Employment Pass or Dependant Pass.
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A company secretary who is a resident of Singapore.
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Paid-up capital of a minimum of $1, can be in any major international currency.
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Physical address in Singapore. (P.O. Boxes not accepted)
Foreign entrepreneurs have 2 options for registering a company in Singapore:
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Relocate to Singapore: Apply for an Employment Pass (EP), ONE Pass work visa, or EntrePass.
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Remain overseas: Nominate resident directors fulfill local director requirements.
Types of Registration for Foreign Individuals
Choosing the type of business structure for company registration can affect the taxation of your business. The most common options are:
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Sole Proprietorship: Advised for business structures if it is risk-free.
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Branch Office: Suitable for foreign companies looking to expand their operations into Singapore without creating separate legal entities.
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Subsidiary Company: Suitable for foreign businesses that want to protect their assets from potential risks associated with new markets.
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Limited Liability Partnership (LLP): Hybrid structure between partnership and company, combining the flexibility of a partnership with the limited liability of a company.
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Private Limited Company (Pte Ltd): This is the most popular choice for foreign investors due to its limited liability and flexible ownership structure.
Key Considerations for Foreigners Starting a Business in Singapore
Even after deciding, there are many considerations for business owners to take before expanding their business to Singapore.
Starting a business in Singapore is comparatively easier than in other countries, and the rules and regulations can be different from your current operations location. Here are some rules you should know:
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It is mandatory to pay the Central Provident Fund (CPF) if you have employees who are permanent residents in Singapore.
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If hiring from overseas, employers are required to pay the Monthly Foreign Workers Levy (FWL) and Skill Development Levy (SKL) in some cases.
Costs of Registering a Company in Singapore as a Foreigner
To register your company in Singapore you have to appoint a registered filing agent for it. The ACRA fees are the following:
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Company name application: S$15 ( For 60 days, pay extra for extension).
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Company registration fee: S$300.
After registration, the ACRA will send you an Incorporation Email. The email serves as an Incorporation certificate. You can get it’s hard copy by paying the appropriate fees.
Conclusion
Expanding your business to Singapore can be a strategic move if you are looking for better tax systems and better economic growth. It is considered an ideal hub for international companies looking to establish their global presence.
Singapore’s transparent environment for international companies, thriving markets, and pro-innovation policies are all that you need for your first step to going global.
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