Frequently Asked Questions - Singapore Company Incorporation
Q. What are the basic requirements to incorporate a Singapore company?
A. The basic requirements and facts are as below:
Shareholders
Q. Can a foreign person be 100% shareholder of the Singapore company?
A. Yes. Singapore Companies Act allows 100% foreign shareholding of a Singapore company.
Q. What is the minimum amount of authorized capital for incorporating a Singapore company?
A. The concept of authorized capital has been abolished and no longer applies for companies incorporated in Singapore.
Q. What is the minimum amount of paid-up capital?
A. The minimum amount of paid-up capital to open a Singapore company is S$1.
Q. Can we increase paid-up capital later?
A. Yes, you can increase the paid-up capital anytime later after the company incorporation. We will prepare the necessary paperwork and lodge it with authorities.
Directors
Q. How many directors are required for opening a company in Singapore?
A. With recent changes to Singapore Companies Act, a Singapore company can be incorporated with a single director. Corporate director, however, is not allowed.
Q. Does Singapore company laws allow foreign directors?
A. Yes, foreign directors are allowed as per Singapore company laws. However, please note at least one director must be a local Singapore resident.
Q. Can all directors be foreign directors?
A. No. At least one of the directors has to be a local resident person. A local resident person is defined as a Singapore citizen, permanent resident, employment pass holder, or dependent pass holder. All other directors can be foreign directors.
Q. I am foreign person and would like to start a business in Singapore. Will I be able to relocate to Singapore to manage and run my business?
A. If you are interested in starting a business and relocating to Singapore, you will need to incorporate a Singapore company and apply for Entrepreneur Pass or Employment Pass.
Q. We would like to setup a Singapore company. However, we don’t have a local person in Singapore who can act as the local director. What is your advise on handling the local director requirement?
A. It depends on your plans as follows:
- If you plan to relocate to Singapore as part of incorporating a Singapore company, you can act as the local director once your entrepass/employment pass is approved.
- Alternatively, you can use our nominee director service to satisfy the requirement of a local director. For more details on our nominee director service, please refer to Local Nominee Director FAQs.
- If you know a local person or if you have a local employee who is willing to act as the local director, you can designate him as the local director.
Q. If myself or one of our overseas staff member is applying for an employment pass, can we act as the local resident director?
A. Yes, after the employment pass has been approved, you can act as the local director for your Singapore company.
Procedure, Requirements, Timeline
Q. What is the procedure and timeline to incorporate a Singapore company?
A. The step by step procedure and timeline is as follows:
| # |
Procedure |
Responsibility |
Average Timeline |
| 1 |
Complete Incorporation Details Form |
Client |
20 minutes |
| 2 |
Send us passport copies (or IC for Singaporeans) of proposed directors and shareholders for Singapore company |
Client |
Depends on you |
| 3 |
Make payment arrangements for our fees as per the quote that will be sent to you |
Client |
Depends on you |
|
Upon completion of the above:
|
| 1 |
Reserve company name |
Kaizen |
2-3 hours |
| 2 |
Prepare necessary incorporation documents |
Kaizen |
0.5 day |
| 3 |
Sign incorporation documents |
Client |
Depends on you |
|
Upon completion of the above:
|
| 1 |
Incorporate the company with Accounting & Corporate Regulatory Authority of Singapore |
Kaizen |
0.5 day |
| 2 |
Prepare post-incorporation documents including bank account opening documents |
Kaizen |
2-3 hours |
Q. Can there be any delays in the timeline as mentioned above?
A. Although not the norm but exceptions do exist. On rare occasions, the authorities may take more time to approve the company name or to incorporate the company. These delays can be of two types:
- Delay in the name approval. Sometimes Company Registrar can refer the approval of the name to other government agencies and as such the name approval process can get delayed from normal 2 hours to 2 weeks.
- Delay in the company incorporation. Sometimes Company Registrar can delay the company incorporation based on the particulars of the foreign directors. Under such cases, the incorporation process can get delayed from normal 2 hours to 2 weeks.
Q. What documents do you need from me if I want to incorporate a Singapore company?
A. We will need the following documents from you:
For each non-resident shareholder/director:
- Fax or email us a passport copy (particulars page) and residential address proof (such as recent utility bill, bank statement, or driver license, etc.)
For each Singapore resident shareholder/director:
- Fax or email us a copy of the Singapore ID
If the shareholder is a corporate entity, email us:
- Copy of the Certificate of Incorporation of the parent company
- A copy of the document showing the registered address and directors of the parent company
* Please note that you will need to provide officially translated English versions of any documents that are not in English.
Q. I am a foreigner currently holding an employment pass and working for a company in Singapore. Can I register a company?
A. Yes, you are free to register a company unless your employment agreement with your employer prohibits you from doing so. However, in order to become an employee of your new company you will have to apply for a new employment pass and upon approval cancel your existing employment pass.
Company Secretary
Q. Does a Singapore company need to appoint any other officers besides directors?
A. The only other officer required to be appointed besides company directors is a company secretary. Each Singapore company is required to have a professionally qualified company secretary. The company secretary must be a local person in Singapore. For more details on company secretarial service, refer to Company Secretary FAQ.
Registered Address
Q. Does a Singapore company need to have a registered address in Singapore?
A. All Singapore companies are legally required to have a registered Singapore address.
Other
Q. What is the corporate tax rate for Singapore companies?
A. For details on corporate taxation in Singapore, refer to Singapore Corporate Taxes page.
Q. Do we need to visit Singapore to incorporate a company in Singapore?
A. No, it’s not required. We can send you the incorporation documents overseas for signing. You can sign and courier the documents back to us. Upon receipt of the signed documents, we will be able to proceed with the company incorporation.
However, you may be required by the bank to visit Singapore for the account opening process if you decide to establish a bank account in Singapore.
Q. How do I engage your services for setting up a company in Singapore?
A. Very simple:
- Review and order appropriate package by visiting our Singapore Company Setup Packages page.
- Upon receipt of your order as above, we will work with you to clarify and finalize your requirements and email you a formal quote for our services along with payment instructions.
- Upon receipt of the payment, we will be able to commence our service immediately.
Q. Where can I find more information about Singapore company incorporation?
A. For more details, please visit Singapore Company Registration page.
For further information or assistance, please call us:
Hong Kong Office: +852 2341 1444
Singapore Office: +65 6295 2884
Shenzhen Office: +86 755 8268 4480
Shanghai Office: +86 21 6439 4114
Beijing Office: +86 10 6874 8420
or send email to enquiries@bycpa.com.
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