Can Companies Own Land in Singapore
Companies can own land in Singapore, with some exceptions for residential properties. There are two main categories of land ownership in Singapore:
State ownership: The majority of land in Singapore is owned by the state, managed by statutory agencies like the Singapore Land Authority (SLA) or Housing Development Board (HDB). These agencies then lease the land to companies or individuals for various uses.
Private ownership: Companies can own land freehold (permanent ownership) or leasehold (ownership for a specific period). There are no restrictions for companies to purchase commercial or industrial land. However, for residential properties, there are some limitations:
Companies cannot directly own landed houses (bungalows or terrace houses).
There might be restrictions on the purchase of apartments in certain developments.
Overall, companies have a lot of freedom to acquire land for commercial purposes in Singapore. There are even some options for companies to own residential properties, though with some limitations.
Companies Cannot Directly Own Landed Houses
In Singapore, companies incorporated in the country cannot directly own landed houses such as bungalows or terrace houses. This restriction is due to the Residential Property Act, which aims to prioritize Singaporean citizenship for ownership of this type of property.
There are exceptions, however. Companies with a substantial connection to Singapore can apply for special permission from the Singapore Land Authority (SLA) to purchase landed houses. To qualify for substantial connection, a company needs to meet certain criteria, including:
A majority of Singaporean citizens on the board of directors
Significant Singaporean shareholding interest
A track record of operating in Singapore
Another exception is for landed properties located in Sentosa Cove. Companies are allowed to own landed houses there without needing special permission.
Restrictions on the Purchase of Apartments in Certain Developments
There aren't widespread restrictions on companies buying apartments in Singapore. However, there are a couple of scenarios where limitations might apply:
Government Land Sales (GLS) Executive Condominiums (ECs): The government sometimes releases land for development through GLS programs. Some of these projects might be designated Executive Condominiums (ECs), a type of subsidized housing with some ownership restrictions. For ECs, companies generally cannot be buyers.
Restrictions based on specific development's conditions: In rare cases, the developer of a condominium project might impose its own restrictions on ownership. These could limit ownership to individuals or certain categories of buyers, potentially excluding companies. This wouldn't be a widespread practice, but it's a possibility to consider.
For most private apartment developments, companies should be able to purchase units freely. However, it's always best to check with the developer or a property agent to confirm any specific restrictions on ownership for a particular project you're interested in.
How Bestar can Help
Bestar offers a variety of services that can help companies in Singapore, especially those looking to set up or expand their business operations. Here's a breakdown of some of our key offerings:
Company Formation and Registration:
Bestar can guide companies through the entire process of incorporating a business in Singapore, including:
Choosing the right business structure (sole proprietorship, partnership, limited liability company, etc.)
Preparing and submitting necessary paperwork
Obtaining licenses and permits
Corporate Secretarial Services:
We can handle ongoing secretarial tasks to ensure a company complies with Singapore's corporate governance regulations. This includes:
Maintaining the company's statutory records
Convening and minuting meetings of directors and shareholders
Filing annual returns with the Accounting and Corporate Regulatory Authority (ACRA)
Accounting and Bookkeeping:
Bestar can provide bookkeeping and accounting services, such as:
Recording financial transactions
Preparing financial statements
Managing payroll
Tax Advisory and Compliance:
We can advise companies on Singapore's tax regulations and help them ensure they comply with all tax filing requirements.
Other Services:
Bestar also offers additional services relevant to businesses in Singapore, such as:
Human resource (HR) and payroll outsourcing
IT consulting
Risk management
Overall, Bestar acts as a one-stop shop for companies in Singapore, particularly those new to the market. We can streamline the business setup process, handle ongoing compliance tasks, and provide guidance on various matters to help companies operate smoothly.
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