Company Registration for Foreign Entrepreneurs
Foreign company registration in Singapore offers a great opportunity for the entrepreneurs from all over the globe to establish their business in Singapore. Depending on the needs of their business, they can form a Subsidiary Company, a Branch Office or a Representative Office in Singapore.
Singapore’s economical climate and the governmental policies are very conducive for the growth of a business. Ease of Doing Business (EDBI) index – the international ranking system for measuring business viability in any country, has rated Singapore as the easiest place to do business. It actually is very easy to do business in Singapore, as the company registration process only takes 1-2 days. In addition, the registration process can be completed without having the foreigner visit Singapore.
It is SBS Consulting, who has made the whole process fuss-free for you. With us, you can be sure of availing the best in town services. To get the ball rolling, check out the different types of companies that a foreigner can incorporate in Singapore. Before starting a business or incorporating a company, learn which type of company structure will work most efficiently for your business. The following section gives information about the types of businesses a foreign company can look forward to incorporate in Singapore.
Foreign Company Registration Options in Singapore
Incorporating a subsidiary company is the most viable type of business structure for foreigners. A subsidiary company is a private limited company that can have the parent foreign company as its 100% shareholder. Even a local company can become the shareholder of a subsidiary company. The main advantage of a subsidiary company is that, it is separate entity from the parent foreign company. In addition, the parent company will only be eligible for liabilities until the extent of the share capital invested. All other assets of the parent company will be safely curtailed from the debts and liabilities of the subsidiary company.
This is the second option for foreigners who wish to incorporate in Singapore. Mostly SMEs can and prefer to register a branch office in Singapore. A branch office becomes a proper legal entity after registration. It is an extension of its parent foreign company. Unlike a subsidiary company, the parent foreign company is responsible for all the debts and liabilities incurred by the branch office in Singapore. The name of the branch office should correspond to the name of its parent foreign company. A branch office will be considered as non-resident company for tax purposes.
A foreign company can setup a representative office in Singapore for testing the business potential. This office is setup only for the purpose of market research and feasibility studies, and in no case should indulge in any profit-making activities. This type of entity does not have a legal identity. In case the parent company gets dissolved, the representative office in Singapore gets de-registered. The foreign parent company must be an established company for more than 3 years, and should be having an annual turnover of more than S$250,000, in order to be eligible to set up a representative office in Singapore.