Can an ex-pat incorporate a company in Singapore?
Singapore remains one of the best places to conduct a business as it is still stable over the years. It has been known as the best country to set up or expand a venture in. Last year, it was dubbed as the most pro-business country in the world for having the most relaxed and business-friendly policies. It is also named as the third most corrupt-free country in the world making it more attractive for business owners.
In any country, building a business takes time and many other resources. For an ex-pat to build a business anywhere but their home country, it takes double the time and money compared to natural citizens. That is why there are many things that an ex-pat should consider before starting a business elsewhere.
However, for anyone, company incorporation Singapore procedure possesses a lot of benefits that is why there are still many individuals that take the risk. To answer the question, ex-pats can process the company incorporation Singapore procedure but with a little extra step. This extra step is also taken in other countries to make sure that businesses are run by legally residing individuals. To know more here are the company formation steps that an ex-pat should go through.
How an ex-pat can incorporate company in Singapore
Hire a third-party firm or secure a Work Visa Employment Pass or EntrePass
When you want to get the company formation Singapore procedure done, you can hire a third-party firm to do the job for you. They can arrange the needed requirements and document s for you to be able to set up a company. However, this may be more costly as you would have to pay a professional for a smooth company formation Singapore procedure. There are many packages that a third-party firm offers when it comes to the company incorporation Singapore process to ensure that all requirements are met.
However, if you want to do the company incorporation Singapore process yourself, you can obtain an EntrePass to be an eligible individual. This is a temporary entry and working pass for foreign individuals to take care of their business transactions. This requires a 10-page business plan to be submitted and approved by the Singaporean government.
Applicants must also hold at least 30% of the shares in the company they are proposing to be eligible for an EntrePass. This pass should be applied for before the company incorporation Singapore procedure to make sure that they are qualified to process the documents. However, EntrePass holders may only register a private limited company during the company formation Singapore process.
Determine your business type
When you are already eligible to take over the company formation Singapore process, you now have to decide which type of company is applicable to your business. This would determine the next steps you have to take in the company incorporation Singapore process. The different types of company are the following:
Sole Proprietorship – it is a business run by a single owner that has complete control of the business itself. With this, the owner takes all the responsibility and liability of the business
Partnership – this company can be owned by up to 20 partners that share the responsibility of the company.
Limited liability company (LLC) – this exists as a separate legal entity to the owners, This means that the personal assets of the owner are not at risk with this type of business. This is where the private limited company falls under.
Check for name availability
After this, one of the most important things during a company formation Singapore procedure is to check the availability of the company name that you want. There are hundreds of other companies that offer similar products to you which is why it may be harder to choose a name. ACRA allows you to check the name availability online.
Prepare necessary documents
Preparing necessary documents may take more time than expected. One of the new things that must be prepared first after choosing the name is the company address. Every company in Singapore is required to have a company address and location that is open for 6 hours during the regular office hours.
After that, documents pertaining to the directors and shareholders must be settled as well. There should be at least one company director for every company. If there is only one director, this person should not be the same person as the company secretary. When it comes to the shareholders, there should be a written document that details the shares of each individual. After the company incorporation Singapore process, they will also be awarded the certificate or proof of shares.
When all of these steps are done, the company formation Singapore process can now take place smoothly. After this, there would be minimal requirements to be settled to be able to operate fully and legally.
For ex-pats, hiring a third-party firm is more advisable to be more cost-efficient. WLP Group is a trusted firm that offers these kinds of services at a practical rate.