Starting a business in Singapore as a foreigner offers many opportunities thanks to the country’s pro-business policies, low taxes, and strategic location. This guide will outline the basic requirements, registration options, and step-by-step process to help you navigate business registration successfully.

Basic Requirements for Foreigners

Foreigners looking to register a business in Singapore must meet a few essential requirements:

Local Director: At least one director must be a Singapore Citizen, Permanent Resident, or a valid pass holder, such as an Employment Pass (EP) or EntrePass holder.
Shareholder: A minimum of one shareholder is required, which can be an individual or corporate entity.
Paid-Up Capital: A minimum paid-up capital of S$1 in any currency.
Registered Business Address: A local business address in Singapore.
Company Secretary: A Singapore-resident company secretary must be appointed.

Company Registration Options for Foreigners

Foreigners have three main options to register a business in Singapore. Each option is suited to different needs, depending on whether you plan to reside in Singapore or manage the business remotely.

Option 1: Relocate to Singapore

Requirements: Apply for an Employment Pass (EP) or EntrePass and incorporate the business through a registered filing agent.
Process: Once your pass is approved, you can assume the role of the director.

Option 2: Remain Overseas

Requirements: Appoint a local nominee director and hire a registered filing agent to handle the registration.
Process: This option allows you to manage the business remotely without relocating.

Option 3: ONE Pass Route

Eligibility: If eligible, apply for the ONE Pass, allowing you to incorporate and manage the company directly without a local nominee.

Steps to Register a Business in Singapore

Step 1: Choose Your Business Structure

Your business structure impacts tax rates, liability, and operational flexibility. Common structures include:

Private Limited Company (Pte Ltd): Most popular structure, offering limited liability and tax benefits.
Sole Proprietorship: Simplified option, but with unlimited liability and fewer benefits.
Limited Liability Partnership (LLP): Suitable for professional services firms.

Step 2: Reserve Your Company Name

Submit your preferred company name for reservation through the Accounting and Corporate Regulatory Authority (ACRA).
Validity: Reserved names are valid for 120 days.
Approval: Typically processed within one day if the name meets ACRA’s guidelines.

Step 3: Prepare Required Documents

You’ll need to submit several documents, including:

Passport copies and proof of residential address.
A constitution for the company.
A description of your business activities, including the Standard Industrial Classification (SSIC) code.
Details of directors and shareholders.

Step 4: Register the Company

Submit your application via a registered filing agent in Singapore. Here’s a quick overview of the process:

Processing Time: Typically takes 1-3 days for straightforward applications.
Referral Cases: For more complex cases, processing may extend to 14-60 days.

Post-Registration Essentials

Once registered, complete the following steps to set up your business operations:

Open a Corporate Bank Account

Traditional Banks: DBS, OCBC, and UOB offer extensive banking services and support for startups.
Digital Banks: ANEXT and Green Link provide easy online account management.
Neobanks: Aspire, Wise, and Revolut offer lower fees and simpler application processes.

Apply for Business Licenses

Certain industries require business licenses, such as food & beverage, finance, and healthcare. Apply before starting operations to avoid penalties.

Register for Goods and Services Tax (GST)

Businesses with an annual turnover exceeding S$1 million must register for GST. Smaller businesses can register voluntarily if they benefit from GST input claims.

Comparison of Business Structures: Private Limited Company vs. Sole Proprietorship

Choosing the right business structure is critical for long-term growth. Here’s a quick comparison of the Private Limited Company (Pte Ltd) and Sole Proprietorship options in Singapore.

Feature	Private Limited Company	Sole Proprietorship
Legal Status	Separate legal entity	Not a separate legal entity
Liability	Limited liability for shareholders	Unlimited personal liability
Ownership Transfer	Possible via share transfers	Requires new registration
Tax Rate	Corporate tax rate of 17%	Personal income tax rates
Compliance Requirements	Annual returns and meetings required	Annual renewal only

FAQs for Foreigners Registering a Business in Singapore

1. Can a foreigner be a sole proprietor in Singapore? Yes, foreigners can own a sole proprietorship but must appoint a local manager if they are not based in Singapore.

2. Do I need a registered filing agent to incorporate my business? Yes, foreigners must use a registered filing agent to handle the incorporation process.

3. How long does it take to incorporate a business? For standard applications, the process typically takes 1-3 days. Complex cases may take longer.

Final Thoughts

Singapore provides a conducive environment for foreign entrepreneurs, offering clear regulatory guidelines, flexible business structures, and extensive banking options. With proper planning and the right approach, establishing a business in Singapore can be a smooth and profitable venture.