Foreigners Registering a Business in Singapore - ACRA

Foreigners Registering a Business in Singapore - ACRA | Bestar

Foreigner Business Registration in Singapore

This page provides a comprehensive overview of business registration in Singapore, covering requirements for all entities, including foreigners, and local residency considerations.

Foreigners Registering a Business in Singapore - ACRA

Registering a business in Singapore as a foreigner involves several key steps and requirements. Here's a breakdown of the essential information:   

Key Requirements:

• Engaging a Registered Filing Agent (RFA):

  • Foreigners cannot directly register a company with the Accounting and Corporate Regulatory Authority (ACRA). You must engage an RFA to handle the registration process.   

• Local Director:

  • A company must have at least one director who is a Singapore Citizen, Permanent Resident (PR), or an Employment Pass/EntrePass holder.   

  • If you are a foreigner residing overseas, you will need to engage a local nominee director if you do not hold one of those passes.

• Registered Address:

  • A valid physical registered address in Singapore is required. P.O. boxes are not accepted.   

• Company Secretary:

  • A company secretary must be appointed within six months of incorporation.   

• Necessary Documentation:

  • This includes your passport, proof of overseas residential address, and other Know-Your-Client (KYC) documentation.   

Steps Involved:

• Company Name Approval:

  • Obtain approval for your company name from ACRA.

• Company Incorporation:

  • Your RFA will submit the necessary documents to ACRA for incorporation.   

• Post-Incorporation:

  • This includes appointing a company secretary, opening a corporate bank account, and obtaining any necessary business licenses.   

Important Considerations:

• Work Passes:

  • If you plan to relocate to Singapore to manage your business, you'll need to obtain a relevant work pass, such as an EntrePass or Employment Pass.   

• Business Structure:

  • Decide on the appropriate business structure (e.g., Private Limited Company).   

• Taxation:

  • Understand Singapore's tax regulations, including corporate tax and Goods and Services Tax (GST).   

It's highly recommended to consult with a professional RFA or corporate services provider to ensure a smooth and compliant business registration process.

Who Needs to Register

In Singapore, the requirement to register a business primarily hinges on whether you're conducting activities for profit on an ongoing basis. Here's a breakdown:   

• General Requirement:

  • Anyone carrying out a business activity for profit on a continuous basis generally needs to register with the Accounting and Corporate Regulatory Authority (ACRA). This applies to various business structures.   

• Key Points:

  • This includes both traditional brick-and-mortar businesses and online ventures.

  • The minimum age for business registration is 18 years old.   

• Exemptions:

  • There are certain exemptions, and these are defined within the Business Names Registration Act.   

  • For example, if you conduct business using your full name as it appears on your National Registration Identity Card (NRIC), and nothing else, you might be exempt. However, if you add descriptive words to that name, registration is typically required.   

• Foreigners:

  • Foreigners conducting business in Singapore are also subject to registration requirements.   

  • Although, Foreigners must use a Registered Filing Agent to register a business.   

In essence, if you're engaging in activities with the intention of generating profit, you'll most likely need to register your business.

Foreigners Operating a Business in Singapore

Operating a business in Singapore as a foreigner involves navigating a well-defined regulatory landscape. Here's a breakdown of key aspects:

Key Considerations:

• Business Structure:

  • Foreigners can choose various business structures, with the Private Limited Company (Pte Ltd) being a popular choice due to its limited liability and credibility.

• Work Passes:

  • If you intend to actively manage your business from within Singapore, you'll likely need a relevant work pass. Options include:

    • Employment Pass (EP): For professionals and executives.

    • EntrePass: For foreign entrepreneurs with innovative business ideas.

    • It is very important to insure that the work pass being applied for, matches the type of work that will be done.

• Local Requirements:

  • Companies must have a local registered address and, in most cases, a local director.

  • Engaging a Registered Filing Agent (RFA) is mandatory for foreign business registration.

• Regulatory Compliance:

  • Adhering to Singapore's laws and regulations is crucial, including those related to taxation, employment, and industry-specific licensing.

• Taxation:

  • Singapore has a favorable tax regime, with competitive corporate tax rates. Understanding your tax obligations is essential.

• Banking:

  • Opening a corporate bank account is a necessary step, and banks may have specific requirements for foreign business owners.

Important points:

• 100% Foreign Ownership:

  • Singapore generally allows 100% foreign ownership of companies.

By understanding and fulfilling these requirements, foreigners can successfully establish and operate businesses in Singapore.

Requirements for Local Residency

When discussing "local residency" in the context of Singapore businesses, it's essential to distinguish between general residency and the specific requirements for business registration. Here's a breakdown:

For Business Registration:

• Local Director/Authorized Representative:

  • For company registration, there's a requirement to have at least one "local resident" director or authorized representative. This means the individual must be:

    • A Singapore Citizen.

    • A Singapore Permanent Resident (PR).

    • A holder of a valid Employment Pass (EP) or EntrePass.

• Key Points:

  • This requirement is primarily to ensure that there's someone legally accountable within Singapore.

  • The Ministry of Manpower (MOM) governs the work pass requirements, so their guidelines are crucial.

General Residency:

• Singapore Citizenship:

  • This is the highest level of residency, granting full rights and privileges.

• Singapore Permanent Residency (PR):

  • PR status allows individuals to live, work, and study in Singapore on a long-term basis.

  • Obtaining PR status involves meeting specific criteria set by the Immigration & Checkpoints Authority (ICA).

• Work Passes:

  • Various work passes, such as the EP and EntrePass, allow foreigners to reside and work in Singapore for a defined period.

In summary, "local residency" in a business context often refers to fulfilling the requirement of having a locally based individual responsible for the company. General residency encompasses various statuses, from work pass holders to citizens.

Submitting your Application via Bizfile

Bizfile+ (Bizfile) is the online platform provided by the Accounting and Corporate Regulatory Authority (ACRA) of Singapore, and it's essential for anyone looking to register or manage a business in the country. Here's a breakdown of submitting applications through Bizfile:

Key Functions of Bizfile:

• Business Registration:

  • Bizfile allows you to register various business entities, including sole proprietorships, partnerships, and companies.

• Filing and Updates:

  • You can file necessary documents, update business information, and comply with regulatory requirements through the platform.

• Accessing Information:

  • Bizfile provides access to business information and allows you to purchase business profiles.

Submitting Applications:

• Online Process:

  • Bizfile is an online platform, so applications are submitted electronically.

• Essential Steps:

  • Name Application:

    • Before registering a business entity, you'll typically need to apply for and reserve a business name through Bizfile.

  • Entity Registration:

    • Once the name is approved, you can proceed with the business entity registration. This involves providing necessary information about the business, its owners, and its activities.

  • Document Submission:

    • Depending on the type of business, you may need to submit supporting documents through Bizfile.

• Important Notes:

  • Singpass/Corppass:

    • Accessing Bizfile typically requires a Singpass for individuals or a Corppass for businesses.

  • Registered Filing Agents (RFAs):

    • Foreigners, in many cases, are required to engage RFAs to handle their submissions through Bizfile.

  • Accurate Information:

    • It's crucial to provide accurate and complete information when submitting applications through Bizfile.

In essence, Bizfile streamlines the process of business registration and compliance in Singapore, making it an essential tool for entrepreneurs and business owners.

Engaging a Registered Filing Agent

Engaging a Registered Filing Agent (RFA) in Singapore is a crucial step, especially for foreigners looking to establish a business. Here's a breakdown of what RFAs are and why they're important:

What is a Registered Filing Agent (RFA)?

• An RFA is an individual or business entity authorized by the Accounting and Corporate Regulatory Authority (ACRA) to conduct transactions on behalf of clients.

• These transactions include:

  • Filing and lodging documents with ACRA.

  • Making applications and submissions.

  • Accessing information maintained by ACRA.

Why Engage an RFA?

• Compliance:

  • RFAs are well-versed in Singapore's regulatory requirements, ensuring that your business complies with all necessary laws and regulations.

  • This helps to avoid penalties and legal issues.

• Efficiency:

  • RFAs can streamline the business registration process, saving you time and effort.

  • They are familiar with the ACRA's online platform, Bizfile+, and can handle the necessary paperwork efficiently.

• Foreigner Requirements:

  • Foreigners often must engage an RFA to register a company in Singapore. They can not directly do so themselves.

• Expertise:

  • RFAs possess the expertise to handle complex business registration and compliance matters.

  • They can provide valuable guidance on various aspects of business operations in Singapore.

• Up to date information:

  • RFA's are required to keep their knowledge of the laws and regulations up to date.

Key Considerations When Choosing an RFA:

• Reputation:

  • Choose an RFA with a proven track record and positive client reviews.

• Experience:

  • Ensure that the RFA has experience in handling businesses similar to yours.

• Range of Services:

  • Consider whether the RFA offers a comprehensive range of services, including company incorporation, compliance, and corporate secretarial services.

• Qualifications:

  • Ensure that the RFA is properly registered with ACRA, and that they have the necessary qualifications.

In essence, engaging a reputable RFA can significantly simplify the process of establishing and operating a business in Singapore, ensuring compliance and peace of mind.

Where to Find More Information:

• Accounting and Corporate Regulatory Authority (ACRA): The Accounting and Corporate Regulatory Authority (ACRA) website is the official source for all business registration, regulatory information, and Bizfile+ user guides.

• Ministry of Manpower (MOM): The Ministry of Manpower (MOM) provides information on all work pass requirements and employment regulations in Singapore.

• Immigration & Checkpoints Authority (ICA): For information regarding Permanent Residency and Citizenship.

• Bestar Professional Services: Bestar specializes in assisting foreigners with business registration in Singapore.

How Bestar can Help

Foreigners Registering a Business in Singapore - ACRA

Bestar offers a wide range of assistance, especially crucial for foreigners navigating Singapore's business landscape. Here's a breakdown of how we can help:

Core Services and Assistance:

• Company Incorporation:

  • We handle the entire process of registering your company with ACRA, ensuring compliance with all regulations.

  • This includes name application, document preparation, and submission through Bizfile+.

• Registered Filing Agent (RFA) Services:

  • Acting as your authorized representative, we manage all necessary filings and submissions to ACRA.

• Corporate Secretarial Services:

  • We ensure your company meets all ongoing compliance requirements, such as filing annual returns and maintaining statutory records.

  • This includes acting as the company secretary, a mandatory requirement.

• Local Director Services:

  • If you're a foreigner without a local director, we can provide nominee director services to fulfill this requirement.

• Work Pass Applications:

  • We can assist with the application process for relevant work passes, such as Employment Passes or EntrePasses, ensuring compliance with Ministry of Manpower (MOM) regulations.

• Business Licensing and Permits:

  • We help identify and obtain necessary licenses and permits for your specific business activities.

• Tax Advisory and Compliance:

  • We provide guidance on Singapore's tax regulations, helping you understand your obligations and optimize your tax strategy.

  • We can also help with GST registration.

• Accounting and Bookkeeping:

  • Bestar can provide accounting services, which is very helpful for new businesses.

• Opening Corporate Bank Accounts:

  • We can help to navigate the process of opening a corporate bank account.

• Regulatory Compliance:

  • We keep you updated on changes in regulations and ensure your business remains compliant.

• Providing Registered Address:

  • Bestar will provide a registered address service.

Benefits of Engaging Bestar:

• Expertise and Knowledge:

  • We possess in-depth knowledge of Singapore's business regulations and procedures.

• Time and Cost Savings:

  • We streamline the process, preventing costly errors and delays.

• Reduced Risk:

  • We minimize the risk of non-compliance and legal issues.

• Peace of Mind:

  • We allow you to focus on your core business activities, knowing that compliance matters are handled professionally.

In essence, engaging Bestar can significantly simplify the process of establishing and operating a business in Singapore, especially for foreign entrepreneurs.

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