Singapore is one of the best places to start a business, as it has a stable government and economy, as well as excellent trade agreements with many countries around the world. Find out how a foreigner can open a business here in 2024

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A high standard of living, a developed economy and high-quality social security attract expats from different parts of the world to Singapore. In recent years, more and more foreigners are coming here to study, look for work and start their own business.

Opening a business in Singapore is one of the best decisions a foreigner can make. How to do it? A detailed guide for expats follows.

Advantages of setting up a business in Singapore for foreigners in 2024

For many years in a row, Singapore has been a leader in numerous rankings that assess the ease of doing business in various countries around the world. That is why Singapore attracts a large number of foreign entrepreneurs, companies and investors, because it can offer:

1. Ease of starting a business

Opening your company in Singapore is very easy, you can do it entirely online. The whole process usually takes about 24 hours.

2. Favorable taxation system

Singapore not only has low tax rates, but also approved many beneficial support schemes for entrepreneurs, which are aimed at reducing the level of taxes payable.

3. Strategic location of Singapore

Singapore boasts a prime location in the heart of Southeast Asia, providing seamless access to transport and trade links throughout the region.

4. Modern infrastructure

Singapore is well connected to the world through a high-class airport, port and telecommunications infrastructure.

5. Highly qualified workforce

Singapore's workforce is considered one of the most competitive in the world, as it is highly educated and skilled. More than 30% of people have higher education, and another 15% have professional qualifications.

6. High standard of living

Singapore can boast of a well-developed infrastructure, a reliable system of health care, education and a high level of security.

7. Singapore's open migration policy

There are 1,427,500 migrant workers in Singapore, which is 38% of the country's total workforce.

8. Excellent regime of intellectual property

Since 2014, Singapore has been ranked among the top five in the world on the World Economic Forum's Global Competitiveness Index for the strength of intellectual property protection.

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How can a foreigner set up a business in Singapore?

The procedure for starting a business in Singapore has several stages:

Step 1. Select the type of business entity

Singapore law provides for many types of legal entities, but the most common are:

- Sole proprietorship

- Limited liability company

- General partnership

- Limited partnership

- Limited liability partnership

Foreigners have the right to open any type of company. Of course, the final form of management will depend on the activity you plan to conduct. However, most companies in Singapore are private limited companies that can have a maximum of 50 shareholders.

In general, this type of company can bring you more benefits than other types of business:

- It is considered a separate legal entity.

- Shareholders bear only limited liability. This means that you, as a shareholder, have no liability other than your share.

- Eligibility for 75% tax exemption and other exceptional tax schemes and grants.

- You will not be taxed on dividends paid by the company.

Step 2. Choose a company name

At the second stage, come up with a name for your business. When choosing a name for your company, please note that:

- The name must be unique, i.e. not the same or too identical to another valid one.

- The name should not contain offensive content or sensitive words.

- The name should not imply any connection with state institutions.

Step 3. Choose the management for the company

According to the Accounting and Corporate Regulatory Authority of Singapore (ACRA), the government body that oversees all business registrations in Singapore, to register a company in Singapore, foreigners must complete the following:

- Find a director who remains in Singapore.

- Have a local legal address in Singapore.

- Have a secretary within 6 months after registration.

- Have an auditor within 3 months after registration.

Step 4: Go through the KYC process

For foreigners who want to register a company in Singapore, compliance with the KYC procedure is mandatory.

KYC is a necessary process aimed at verifying and understanding the identity and background of individuals or organizations involved in the establishment of a company.

To pass KYC, you will need to provide the following information:

- The proposed name of your company.

- A complete description of your company's activities.

- Certified copies of documents of all participants and shareholders of the company.

Step 5. Get your registration results

In general, foreigners receive a digital certificate of company registration within 24 hours. However, the processing time may be extended up to several days if the government needs more time to process your application. All this time, we advise you to monitor the application processing status in order to provide additional information if necessary.

After successfully setting up your new company in Singapore, you will receive an email with your registration certificate and business profile attached. The profile will contain all the important information about your company.

In 2024, Singapore updated the procedure for obtaining a work permit and simplified the rules for obtaining a residence permit based on a student visa.

How can a foreigner open a bank account in Singapore?

To start a business in Singapore, you will need to open a bank account to transact with customers, partners and even the government.

Singapore has one of the best banking systems in the world with many large and reputable banks. Each bank may have certain requirements for foreigners, but in general, opening an account requires:

- Corporate documents (for example, registration certificate).

- Address confirmation and passports of all company members.

- Bank certificate and statements (if available).

- Business evidence, such as business contracts, agreements, invoices, etc. (if available).

As data on foreign nationals is not available to Singapore banks in the Singapore Government Information System, banks must collect more detailed information from foreign customers about their identification, professional education and proposed business. It may take some time for banks to collect and verify this information. Therefore, opening a bank account can take several weeks if the company is owned by foreign nationals.

To start your business in Singapore, it is enough to register your company and open a bank account. If your company is engaged in certain activities that require additional licenses, you must apply for and obtain them before starting business.

We will remind you! Singapore is a great place to live and work, with a thriving economy, friendly culture, and second-to-none childcare and education systems. We talked about which foreigners have the right to work in Singapore and which specialists the local labor market lacks.