Offshore Company Formation in Singapore | The Definitive 2023 Guide
Are you wondering whether to set up an offshore private limited company in Singapore or not? Is it easy?
Yes, registering an offshore company in Singapore is easy.
A large number of individual entrepreneurs and corporations, including multinationals and SMEs, have already done their offshore company formation to achieve their corporate goals. There are as many as 17,000 foreign companies in Singapore.
As a leading business hub, Singapore provides them with financial, legal, and tax benefits to entice them to their shores. Why? It is a very straightforward way for it to attract foreign investment and remain competitive.
Why Register Your Offshore Company in Singapore?
Singapore is the best destination for your new company. The World Bank report 2020 places it at the 2nd spot for the “Ease of Doing Business Indicator.” It is a renowned financial and business hub in Asia. It is a transparent jurisdiction you can trust for your offshore company registration.
How to create an offshore company? Is the process too bureaucratic? Is it lengthy and involves bribes? How many licenses or permits it needs?
Take a break.
If you are new to Singapore, your mind must be abuzz with such questions. Well, it is normal. And, rest assured.
Setting up a private limited company in Singapore is a straightforward process. Normally, it takes only about 1-3 days.
Types of Business Entities You Can Use in Singapore
If you are an individual entrepreneur, you can register your business using one of the following legal entities in Singapore:
If you are a corporate looking for a foothold in Singapore, your options are as follows:
Steps for Setting Up a Company in Singapore
The process to open an singapore offshore company has only two procedures in it;
- Register company name with ACRA
- Register company with ACRA
Many of the aspiring entrepreneurs hire one of the reputed registered filing agents in Singapore. These firms assign an offshore company formation agent to assist you. These professionals advise you on completing the pre and post company registration requirements put out by Singaporean Company Registrar (i.e., ACRA).
Pre Company Registration Requirements
Your Singapore company incorporation agent will inform you about the documents, processes, and the steps involved. Generally, business owners prefer to incorporate private limited companies. The following are the requirements for setting up a private limited company in Singapore.
- At least one shareholder
- At least one ordinarily resident director
- At least one company secretary
- Minimum of $1 as initial paid-up share capital
- A registered office address. P.O. Box address is not valid
Incorporation Documents For Foreign Individuals
For your speedy and prompt offshore company registration, you will need to submit the following documents to the ACRA:
- Brief description of business activity
- Memorandum and Articles of Association (M&AA)
- Copy of passport
- KYC documents- Overseas residential address proof, Bank reference letter, Personal and business profile, Particulars of directors, company secretary, and shareholders
For Singaporean Individual Entrepreneurs
Copy of Singapore Identity Card
Copy of their Certificate of Incorporation and Company Constitution
Get Company Name Approved by ACRA
When you hire one of the offshore company formation agents, they expect a list of 5-6 names from you. They search these names on the ACRA’s website for availability. They pay S$15 in fees to reserve the available one for your use for 60 days. The duration can be extended by another 60 days.
ACRA, the company registrar of Singapore, has laid down a few rules regarding the name of the proposed company.
- ACRA wants to keep the company names unique, meaningful, and decent.
- Your agent will advise you to avoid those from the black-list.
- Take care that it is not identical to that of any existing companies.
- It should not violate any copyright or trademark laws.
- So, choose the company name carefully.
Applying to ACRA for Offshore Company Formation
After registering a company name with ACRA, your offshore company formation agent can then apply to ACRA for the registration of your Singapore company. In most cases, the process takes a very short time.
If your application gets passed on to an external authority, then it may require up to 2 months to get approved. You may come across such a situation if your businesses fall under niches like Education, Finance, and Casino, which are highly regulated by the government authorities. Otherwise, your offshore company will get registered in 1-3 working days.
See, “How to Setup an offshore company in Singapore?” is not at all a difficult question. You could simplify it by hiring one of the offshore company formation agents to assist you with it. Singapore company registration process is the same for both the foreigners and locals. It is also without any bureaucratic hurdles.
The agents also assist and advise you after opening an offshore company in Singapore. You may still need help to open a corporate bank account, obtain business licenses and permits, get it registered for GST, open CPF account, etc.
If you are thinking of setting up an offshore company in Singapore, email us at firstname.lastname@example.org or contact us using +65 6536 0036.