How to create a company in Singapore as a foreigner !?
Singapore is widely known as the world’s fourth leading financial center, so it’s no surprise that foreigners are everyday and more creating or incorporating their businesses in Singapore. In addition, Singapore has the third highest per capital income in the world and it’s considered fairly corruption free as compared to other developed countries.
Owning a company in Singapore, including foreigners, compared to many countries that are considered as business hubs, it’s proven that it is much more easier and quicker process, as it takes only one day to complete given all the proper requirements are completed and the application is duly submitted. An easy and fast procedure availability of an online system is made by the incorporation where you can submit your application forms via the internet online. But, of course that in order to create a company in Singapore, you need to determine your goals and plans to achieve with your business. So, here are some steps to consider about;
1) Business Plan (Mentally and in Papers)
Convert your ideas into a business plan, while having always in mind how these ideas and plans can be capable to generate more dollars than it is going to spend. Research and talk to the people from the niche to find out the situation on the market that you’re thinking to invest, while always questioning and analyzing if your product or service is really needed there? Are there changes to be made? It is essential to also building your team, finding the right people for your staff and investors of the company whom would support you on the way to success.
2) Determining the Business Structure
Singapore offers several legal entity forms available for registration of your company like sole proprietorship, partnership, Limited Liability Company, a subsdiary, branch office, representative office, etc. But, you should choose based on your company ability, for example, Sole Proprietorship works for you if your small business is out of risks and you aren’t likely to be at law with anybody, while, if you are going to share your business with a partner you should register your company as partnership firm. It is likely considered that the best option for a new company in Singapore would be private limited company that limits owner’s liability to the company assets, but one director surely must be a Singaporean or Singaporean permanent resident. It is easier if you contact an agency that provides incorporation services because their incorporation package includes appointing a nominee director to even secretary services, they have the needed expertise to advise on the most winning business entity for your startup and helping you to calculate all prospective expenses and tweak your business plan.
3) Selecting a Business name
Choosing the most appropriate and unique name for your future company that you are creating is a necessary part of registration. It is demanded from the government that the name to represent the philosophy of your business and to not sound similar to the names of other existing companies. Avoiding possible issues and delays regarding to name, it is best to make a name check before the registration.
4) Local Address
When creating your company, in order to have your business registered you must provide the real local Singaporean address where you are going to rent premises. This address is essential as all official documentation will be sent to this address only. Agreeing these premises with the Urban Redevelopment Authority (URA) and getting the approval to use them in a commercial way is another huge and crucial part. Then in depends from your business, the number of employers you need in your company, to choose whether you need to rent an office, flat and so on. After considering all the options and you’re not sure which way to choose, you should consult an incorporation service provider, as most of them offer even free consultations (assessments).
5) Inquiring Business Licenses
Running some businesses requires mandatory licensing in Singapore. You will be allowed to get the necessary license only after your company is incorporated (registered by ACRA), it is best to study the legal field in advance to avoid any problems with the law in the future. You will need probably several licenses from different authorities if your future company is going to operate in the sectors of finance, entertainment, education, cigarettes, and other controlled stuff. So, you may refer to OBLS for specific licenses required for your business.
6) Solving the Visa Situation
You need to think about getting a visa for every member of your team that you want to take along to the country. Professionals, managers and executives (directors) can arrive in Singapore for work under Employment Pass which is issued 1-2 years and then can be renewed multiple times until needed provided that the workers still meets the requirements. While, directors must take into account that they can use Employment Pass only after the business registration process is completed. If the entrepreneur needs to arrive in Singapore before starting the incorporation, the only option is Entre Pass. But, involving one-stop incorporation and migration companies is a great advantage because you don’t have to deal with both, incorporation paperwork and visa issues at once. They can develop a strategy for your company incorporation and employee relocating in accordance with ACRA and the Ministry of manpower.
When everything is ready, from your ideas, plans and paperworks, you can register your business using BizFile or entrust this matter to a professional incorporation company in Singapore.