January 3, 2025
18
min read
Singapore is an attractive destination for people looking to live, work, and raise a family in a safe and prosperous environment. The country offers several benefits for foreigners who want to relocate there, such as:
Consequently, starting a business in Singapore has become a popular choice among entrepreneurs worldwide, thanks to its strategic location, favorable business environment, and ease of company registration. If you're considering starting a business in Singapore, this article will guide you through the process of company registration, residency options, opening a bank account, business licensing, and taxation in Singapore.
One of the first steps in starting a business in Singapore is company registration. Singapore offers various types of business structures, but the most common and preferred option is private limited company incorporation. A private limited company is a separate legal entity from its shareholders and directors, which means that they are not personally liable for the company's debts and losses. To register a private limited company in Singapore, you need to have at least one shareholder, one director, and a company secretary.
The process of company registration in Singapore is straightforward and can be completed online within a week if all the necessary documents are in order. The incorporation process in Singapore will be as follows:
It is recommended that you engage the services of a professional service firm or a corporate services provider such as Golden Harbors to assist you with the company registration process, as it can be complex and time-consuming. We can help you navigate the regulatory requirements and ensure that your company is set up correctly.
As a business owner in Singapore, you have various residency options to choose from, depending on your business needs and personal circumstances. The most common residency options for business owners in Singapore are the Employment Pass, the Entrepreneur Pass (EntrePass), and residency by investment.
Singapore passes are frequently issued to foreign talents who are highly skilled in their field, have certain qualifications, and earn a minimum of S$5,000 per year, whereas work permits are issued to semi-skilled migrant workers from approved source countries and regions to work in specific sectors. To be eligible for the work permit, you need to have a job offer from a Singapore-based company and meet the specific requirements for your industry.
In Singapore, there are various passes available for foreigners who want to live and work in the country. The most common passes and work permits are the S Pass, Tech Pass, Personalized Employment Pass (PEP), and ONE Pass:
The applicant's previous outstanding achievements can also be used to apply for the Overseas Networks and Expertise Pass Singapore. Candidates may apply even if they do not meet the above salary criteria if they have outstanding achievements in their areas of expertise. Before being considered for the outstanding achievement track for academia and research, they must submit a detailed CV (including their academic qualifications, professional experiences, and accomplishments), as well as a letter of endorsement from a local host research institution (i.e., autonomous universities or A*STAR).
If you have family members who want to join you in Singapore, they can apply for Dependent Passes or Long-Term Visit Passes.
1. Dependent Pass (DP) is designed for the immediate family members of eligible work permit holders, including Employment Pass (EP), S Pass, and PEP holders. The DP allows the holder to live and work in Singapore without the need for a separate work visa. The validity of the DP is tied to the validity of the sponsoring work pass and is typically valid for up to two or three years, depending on the sponsoring pass.
To be eligible for a DP, the applicant must be the spouse or unmarried child under the age of 21 of the eligible work permit holder. The applicant must also meet certain criteria, including:
Once issued, the DP holder is allowed to study and work in Singapore, subject to obtaining the necessary permits and approvals. The DP holder is also eligible to apply for a Letter of Consent (LOC) to work without the need for a separate work visa if the employer is willing to sponsor the application.
2. The Long-Term Visit Pass (LTVP) is a permit issued by the Singapore government that allows foreigners to stay in Singapore for extended periods of time to visit or stay with their family members who are Singapore citizens or permanent residents. LTVPs can also be issued to the foreign spouses of Employment Pass or S Pass holders.
With a Long-Term Visit Pass, the following family members may enter Singapore:
To be eligible for an LTVP, the applicant must have a family member who is a Singapore citizen or permanent resident sponsoring their application. The sponsor must also meet certain criteria, such as having a certain level of income and being able to provide adequate accommodation for the applicant. Additionally, applicants for LTVPs may be subject to other eligibility criteria, such as a minimum age requirement or a requirement to provide proof of their relationship with the sponsor. LTVPs are typically valid for a period of 2 years and can be renewed for up to 3 years at a time. LTVP holders are allowed to work in Singapore, but they must obtain a Letter of Consent (LOC) from the Ministry of Manpower before they can start work.
Singapore has a robust banking system, and there are various banks to choose from, including OCBC, DBS, UOB, Citibank, HSBC, and Aspire. The process of opening a bank account in Singapore is straightforward and can be completed within several weeks if all the necessary documents are in order.
Here are the general steps to open a corporate bank account in Singapore:
1. Choose a bank: Research and choose a bank that suits your business needs.
2. Prepare documentation: Prepare the necessary documents, including:
3. Schedule an appointment: Contact the bank to schedule an appointment to open the account. It is possible to make online appointments.
4. Attend the appointment: Attend the appointment with the bank representative and bring all the required documents with you.
5. Complete the application: Fill out the application form and provide all necessary information to the bank representative.
6. Wait for approval: wait for the bank to review and approve the application. This process can take several days or weeks, depending on the bank and the complexity of your business structure.
7. Activate the account: Once the account is approved, the bank will provide you with the necessary information to activate the account and start using it.
It's important to note that some banks may have specific requirements or additional documents needed for opening a corporate account, so it's advisable to check with the bank beforehand to ensure you have everything you need.
Moreover, some banks may require a minimum initial deposit or ongoing minimum balance to maintain the account. For instance, traditional bank OCBC requires an initial deposit of S$1,000, monthly bank charges of S$10, and a minimum monthly balance of S$1,000, whereas digital bank Aspire requires no initial deposit, no monthly bank charges, and no monthly minimum balance.
Depending on your industry and business activities, you may need to obtain specific licenses and permits to operate your business in Singapore. The most common business licenses and permits in Singapore include the food and beverage license, retail license, and construction permit. To obtain a business license or permit in Singapore, you need to submit the necessary documents and meet the specific requirements set by the Singapore government. The process of obtaining a business license or permit in Singapore can take several weeks, so it's essential to plan accordingly.
In Singapore, the process of applying for a business license depends on the type of business activity and industry you are involved in. Here are the general steps for obtaining a business license in Singapore:
Some businesses may require multiple licenses, and it is important to comply with all regulatory requirements to avoid penalties or fines.
Singapore has a favorable tax system, and the tax rates are relatively low compared to other countries. Taxation in Singapore is governed by the Inland Revenue Authority of Singapore (IRAS). The tax system in Singapore is relatively simple and transparent, with low tax rates and a wide range of tax incentives and exemptions available to businesses.
Here are the main taxes that businesses need to be aware of:
In addition to the above taxes, Singapore offers a range of tax incentives and exemptions to businesses, such as the Productivity and Innovation Credit (PIC) scheme, which provides tax deductions or cash payouts for investments in productivity and innovation activities.
To comply with Singapore's tax laws, you need to keep accurate records of your income and expenses, file your tax returns on time, and pay the necessary taxes. If you're unsure about Singapore's tax laws, it's recommended that you work with a tax professional.
Singapore offers a pro-business environment, low corporate tax rates, strong intellectual property protection, and a strategic location in Asia. Its ease of doing business and access to global markets make it a top choice for entrepreneurs.
You can register several types of companies in Singapore, including Private Limited Companies (Pte Ltd), Sole Proprietorships, Partnerships, and Branch Offices. The Private Limited Company (Pte Ltd) is the most popular choice due to its tax efficiency and limited liability.
To register a company in Singapore, you need at least one local director, a registered office address, a company secretary, and a minimum paid-up capital of SGD 1. Non-residents must work with a registered filing agent to complete the incorporation process.
With proper documentation, company registration in Singapore can be completed within 1 to 3 business days through the Accounting and Corporate Regulatory Authority (ACRA) portal.
Yes, foreigners can register a company in Singapore. However, you must appoint a local resident director or obtain an Employment Pass (EP) to act as the director.
The basic government fee for company incorporation is SGD 315. Additional costs include services like appointing a company secretary, setting up a registered office, and legal documentation.
While a physical office is not mandatory, you need a registered office address in Singapore for legal correspondence. Many businesses opt for virtual offices or coworking spaces to meet this requirement.
Singapore's corporate tax rate is a flat 17%, with various tax incentives and exemptions available for startups and small businesses.
Some industries require specific business licenses to operate in Singapore, such as food services, financial services, and healthcare. Check with the relevant government agencies to ensure compliance.
You can work with professional service providers, such as corporate secretarial firms, that specialize in Singapore company registration. They can assist with legal documentation, compliance, and administrative tasks.
Starting a business in Singapore can be a rewarding experience, but it requires careful planning and preparation. By understanding the processes of company registration, residency options, passes and work permits, opening a bank account, business licensing, and taxation in Singapore, you can make your business dream a reality.
If you are ready to start your business in Singapore, Golden Harbors can help you with company registration and residence permit application. Contact us today to learn more.
One of the key advantages of working with Golden Harbors is our experience and expertise in the field. Our team has helped many individuals successfully relocate to Singapore and register their businesses there. We guide you through the remote process from start to finish. Register your Singapore company and apply for a residence permit with Golden Harbors.
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Victoria
Lead Attorney at Golden Harbors
Victoria
Lead Attorney at Golden Harbors