Want to Set Up a Company in Singapore? Here Are the Essential Requirements and Detailed Information You Need to Know!

Thinking of starting a company in Singapore? Here’s everything you need to know!

Singapore is renowned for its efficient business environment, strong infrastructure, and friendly policies towards international enterprises, making it a top choice for many entrepreneurs and investors. If you’re considering setting up a company in Singapore, the following information is crucial for you.

Firstly, you need to clarify the type of company you wish to establish. Singapore allows the establishment of various types of companies, with the two most common being Private Limited Company and Limited Liability Partnership. The Private Limited Company is one of the most popular choices due to its independent legal personality, where shareholders' liability is limited to their investment amount, providing higher legal protection for individuals or enterprises. A Private Limited Company can also apply to be recognized as a locally resident company, enjoying a lower corporate tax rate.

To register a Private Limited Company, certain conditions must be met. First, the company must have at least one director, and at least one of them must be a Singapore citizen, permanent resident, or holder of an Employment Pass EP. Second, the company needs at least one shareholder, which can be either an individual or a corporate entity, but still requires that at least one director meets the aforementioned requirements. Lastly, the company name must be reviewed by the Accounting and Corporate Regulatory Authority ACRA to ensure its uniqueness and compliance.

In addition to basic registration conditions, you will also need sufficient funds to start your business. According to Singaporean law, the minimum statutory capital for a Private Limited Company is 1 Singapore dollar, but most startups choose a higher capital amount to boost investor confidence. You will also need to hire a registered secretary, who can be either an individual or a company, and must reside in Singapore.

For foreigners hoping to conduct business in Singapore, visa issues are another important consideration. If you plan to manage the company personally, you will need to apply for an Employment Pass EP, a long-term residency permit that typically requires applicants to meet certain salary standards. Once you obtain the Employment Pass, you can apply for a Dependent's Pass to allow your family members to accompany you in living and working.

It should be noted that Singapore has recently introduced a series of policies to attract foreign investment. For example, the Global Trader Programme GTP offers tax incentives to eligible international trade companies; the Headquarters Programme HQP aims to support multinational corporations in establishing regional headquarters in Singapore. These programs not only reduce operational costs for businesses but also enhance their competitiveness in the international market.

In practical terms, it is recommended to seek professional service agencies to assist with the registration process. These agencies are familiar with local laws and regulations and can provide additional services such as tax planning and financial advisory. For instance, a well-known accounting firm recently helped a Chinese enterprise successfully register its branch in Singapore and customized a comprehensive financial management plan for it.

Despite its attractiveness as an investment destination, Singapore is not without challenges. High living costs and strict regulatory environments may pose certain pressures on first-time entrepreneurs. Before making a final decision, it is essential to fully evaluate the alignment between your resources and target markets.

In conclusion, starting a company in Singapore is not complicated, but adequate preparation is required. From choosing the right type of company to meeting various legal requirements, every step is critical. By thoroughly understanding relevant policies and leveraging professional support, you will be able to smoothly embark on this international journey.