If you’re considering starting a business in Singapore from abroad, there’s a clear process, favorable conditions, and some requirements to know first — see can a foreigner start a business in Singapore for the full guide. Singapore is popular with foreign entrepreneurs because it allows full foreign ownership, offers a competitive corporate tax regime (17%), strong legal protection, excellent stability, and a business-friendly regulatory environment.
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Choosing the Right Business Structure
Foreigners have several business entity options in Singapore:
- Private Limited Company (Pte Ltd): The most common for entrepreneurs. It’s a separate legal entity, limits liability to shareholders, allows up to 50 shareholders, and can operate with paid-up capital as low as S$1.
- Sole Proprietorship: Owned by one person; simpler and cheaper, but no distinction between you and the business legally, which means unlimited liability.
- Limited Liability Partnership (LLP): Combines flexibility of partnership with some protection via limited liability. Suitable for professional services or joint ventures.
Key Legal Requirements & Regulatory Steps
To legally register and operate:
- Local Director Requirement: You must have at least one director who is resident in Singapore (citizen, permanent resident, or holder of certain work passes). If not, you may use a nominee director service.
- Company Secretary: Every company must appoint a company secretary (a permanent resident) within 6 months of incorporation.
- Registered Address: You need a physical registered address in Singapore (not a P.O. box).
- Paid-up Capital: Minimum requirement is low (often S$1), and can be increased later.
Work Passes & Visas
If you plan to manage the business in Singapore, you’ll need the right visa or pass:
- Employment Pass (EP): For professionals or founders with qualifications and minimum salary requirements.
- EntrePass: Designed for foreign entrepreneurs with innovative business ideas. Requires a business plan and meeting scheme criteria.
- Tech.Pass: For highly qualified leaders and experts in the technology sector.
Banking, Licenses & Compliance
- Corporate Bank Account: Essential for business operations. Requires incorporation documents, proof of identity, and company constitution. Some banks need in-person verification, while others allow remote onboarding.
- Licenses & Permissions: Certain industries (F&B, education, finance) require specific licenses.
- Annual Filing & Reporting: Companies must file annual returns with ACRA, maintain accounting records, and submit corporate tax returns within set deadlines.
Government Incentives & Hiring Locals
- Singapore offers grants, tax breaks, and startup schemes such as Startup SG and productivity grants.
- When hiring employees, companies must comply with local labor laws, contribute to statutory schemes like CPF for local staff, and follow fair hiring practices.
How Osome Can Help
Osome acts as a registered filing agent and can assist with every stage of the process. Their services include incorporation, nominee director arrangements, registered address, company secretary support, and help with opening bank accounts. They also provide accounting, bookkeeping, and tax services, allowing entrepreneurs to stay compliant from the start.
Bottom Line
Starting a business in Singapore as a foreigner is highly achievable thanks to favorable laws, low setup costs, and full foreign ownership rights. Success comes down to choosing the right structure, appointing a resident director and company secretary, obtaining the right work pass, and keeping on top of compliance requirements. With professional support, you can incorporate smoothly and focus on growing your company in one of the world’s most dynamic markets.
