Singapore, an island in Southeast Asia between Malaysia and Indonesia, is one of the world’s most economically advanced countries. Singapore has very strong trade links and a seaport that is one of the busiest ports in terms of tonnage handled.
Singapore’s successful free-market economy depends heavily on the financial services sector and on exports of Information Technology and pharmaceutical products. Whilst maintaining itself as a financial and technology centre in South East Asia it also has the direction to focus on innovation.
Some other advantages of Singapore:-
- Gateway to ASEAN (Association of South-East Asian Nations)
- Extensive Double Tax treaties and attractive tax law
- Multilingual and Skilled workforce
- Immigration policies that welcome qualified professionals and entrepreneurs
- Attractive IP regime
- Efficient legal system originating and evolved out of British statute.
All the above could not go unnoticed by Indian businessmen who continuously explore new markets and opportunities to expand their business abroad.
In this insight we discuss how the Indian Businessmen living in India can form a Singapore Company.
Company Registration with Resident Director
A foreign individual or Company wishing to register a company in Singapore but has no plans to move to Singapore would opt to go for this solution. A Singapore resident director will have to be appointed. The appointed director may act under the instructions of the investor.
The registered Singapore Company would need to have:-
- At least one Shareholder (physical person or company).
- Resident Director as mentioned above. A resident of Singapore or foreigner with permanent residency in Singapore, or a holder of an employment pass or dependent pass.
- Company Secretary (Singapore Resident) The secretary is responsible for compliance with all regulatory matters. It is common in Singapore to utilize Company incorporation specialists for this role.
- Paid-up capital of at least S$1.
- Singapore registered physical office address (All official correspondence is sent to this address which cannot be a PO Box).
The procedure for Company Registration with Resident director includes:-
1) Choose a company name.
2) Select the business activities, by reference to the Singapore Standard Industrial Classification Code (SSIC).
3) Decide on who will be the shareholders, the shareholding structure and draft the shareholding agreement.
4) Stipulate the names of directors and determine the company’s office address.
5) Appoint Company Secretary by completing and submitting the relevant application form.
6) Preparation of Memorandum and Articles (There is a standard MAA document suitable for most businesses and is issued by the Singapore Company Registrar).
7) Appoint company auditors.
8) Obtain business profile, certificate of incorporation and share certificates, first board resolution and bank account opening resolution.
9) Open Bank Account.
10) Obtain company seal/stamp.
Other options for foreign investors to set up a company in Singapore include
1) Relocating to Singapore and Incorporating Singapore Company with Employment Pass which requires:-
- Minimum S$8,000 fixed monthly salary
- University degree from a reputed University or
- Specialised skills which are high in demand in Singapore
- Be CEO, CFO or MD
2) Incorporating a Singapore Company with Entrepreneur Pass.
