How to Start a Business in Singapore from Abroad
Singapore, also known as the Lion City, is a beacon of opportunity for global entrepreneurs. Setting up a business in this bustling metropolis is not just hassle-free; it's a strategic move. You don't need to be a resident, and you can do it from anywhere in the world. In 2023, between 1,000 and 6,000 new businesses, both local and foreign, were registered in Singapore every month, according to the Accounting and Corporate Regulatory Authority (ACRA).
Located in the heart of Southeast Asia, Singapore serves as a bridge to free trade areas across the region. It's a global connectivity hub with the Port of Singapore linking to 120 countries and Singapore Changi Airport handling over 31 million passengers annually.
What truly sets Singapore apart is its tax framework. It offers reduced corporate income tax rates, start-up tax exemptions, and double tax deductions for foreign companies. Plus, Singapore has a multitude of free trade agreements with countries worldwide, making it a lucrative choice for entrepreneurs.
So, how can you take advantage of Singapore’s strategic business benefits without relocating there? The answer lies in choosing the right partner. Our Accela Finance and Corporate Secretary teams explain.
The Nominee Director Advantage
When registering your business with ACRA, a Local Director, also known as a Nominee Director, is required. This individual must be a permanent resident or citizen of Singapore. But as a non-resident business owner, you can delegate this role to a service like Accela Finance & Corporate Secretary. While the local Nominee Director holds authority on paper, they cannot make decisions on behalf of the company. This means you, as the Foreign Director, retain full decision-making rights and can maintain 100% shareholding.
If you decide to move to Singapore later, you can apply for an Employment Pass (EP) through your company and become a local director, provided you meet the Ministry of Manpower's (MOM) requirements under the Complementarity Assessment Framework (COMPASS).
A Swift Route to Setup
Starting a business in Singapore is swift and efficient. All the requirements are straightforward, and the document administration is entirely digitalised.
To ensure the fastest turnaround time, ensure you have all the necessary documents required by ACRA ready before registering your company. Accela Finance’s Corporate Secretary team can guide you through this process.
Once all the documents are ready, the incorporation process typically takes only a few hours to approximately five days. However, if you're applying for an EP, it might take slightly longer, ranging from 8 to 10 weeks, depending on your business's complexity.
Navigating the Journey: Important Considerations
While setting up a business in Singapore is relatively fast, there are important considerations to avoid any delays:
Consult the ACRA portal to validate and reserve your company name.
If you're from a lower-taxation country, expect a potential increase in tax residency.
Consider opening a local bank account early, as this can take some time, or opt for a neobank like Wise to get started.
Familiarise yourself with MOM’s COMPASS framework for EP applications. Read Accela’s comprehensive guidance on the new COMPASS framework, or speak to us directly for a consultation.
If your appointed director is salaried, register with the Central Provident Fund (CPF), a process that takes less than a week.
If your company is expanding into Singapore and the home country’s entity is a shareholder, the owner/Foreign Director should also maintain shares at a minimum of 10% to optimise access to tax incentives.
Be aware of specific industry concerns that may trigger ACRA audits during registration.
Your Seamless Journey With Accela
Setting up a company, especially from abroad, can be a daunting task. Accela Finance & Corporate Secretary is your trusted partner on this journey. We support businesses from startup to scale-up, ensuring a smooth and efficient process. Whether you need a Nominee Director, help gathering documents, or even recruiting key leaders and staff through Accela Talent, we have you covered.
So, whether you're a foreign entrepreneur embarking on your first Asian venture or a seasoned business expanding into the Singaporean market, don't hesitate to contact Accela Finance at hello@accela.asia.
Singapore's doors are wide open, and with the right partner, success is within your reach.
