Singapore is one of the world’s top destinations for entrepreneurs due to its strong economy, strategic location, and pro-business policies. However, as a foreign entrepreneur, there are some key factors you need to keep in mind before launching your venture.
1️⃣ Business Structure Options
- Private Limited Company (most popular and recommended for foreigners).
- Sole Proprietorship or Partnership (requires a local resident).
- Subsidiary or Branch Office for established overseas companies.
✅ Tip: A Private Limited Company offers tax benefits, credibility, and allows 100% foreign ownership.
2️⃣ Local Director Requirement
- At least one director must be a Singapore resident (citizen, permanent resident, or someone with an Employment Pass/EntrePass/Dependant Pass).
- You can appoint a nominee director if you don’t have a local partner.
3️⃣ Business Registration with ACRA
- Register through the Accounting and Corporate Regulatory Authority (ACRA).
- Requirements:
- Company name approval.
- At least one shareholder.
- Minimum paid-up capital of SGD 1.
- Registered local office address.
4️⃣ Employment Pass or EntrePass
- Foreign entrepreneurs need a valid work visa to run their business.
- EntrePass: Designed for innovative entrepreneurs starting a new business.
- Employment Pass: For company directors or professionals employed by the business.
5️⃣ Corporate Bank Account
- Mandatory to open a local corporate bank account for operations.
- Popular options: DBS, OCBC, UOB, and international banks with Singapore presence.
6️⃣ Tax Advantages & Compliance
- Corporate tax rate capped at 17%, with attractive tax exemptions for new start-ups.
- GST registration required if annual revenue exceeds SGD 1 million.
- Annual filing and compliance with ACRA and IRAS is mandatory.
7️⃣ Business Licenses & Permits
- Some industries (like finance, education, food & beverage, healthcare) require special licenses.
- Check industry-specific requirements before starting operations.
8️⃣ Support Schemes for Foreign Entrepreneurs
- Government grants and programs like:
- Startup SG schemes.
- Enterprise Singapore support.
- Access to coworking spaces and innovation hubs.
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