A foreigner can start a business in Singapore—and then some. After all, our country has a business-friendly environment characterised by low taxes, a strategic location, and robust infrastructure. 

Some successful foreign-owned businesses in Singapore include tech giant Google, which established its Asia-Pacific headquarters here, and Dyson, which moved its global headquarters to Singapore in 2019. 

If you’re eager to launch your startup in the vibrant Lion City, this guide will walk you through everything you need to know about foreign business ownership in Singapore.

Can a foreigner own 100% of a business in Singapore?

Foreign entrepreneurs in Singapore can own 100% of their businesses, regardless of the entity type, without needing a local partner. 

This full ownership allows complete control over operations and decision-making, making it ideal for startups and small businesses seeking independence.

Singapore’s business landscape is very welcoming to foreign investors, allowing non-residents to set up and fully own their companies without needing a local partner. The government imposes no restrictions on foreign ownership, facilitating ease of doing business.

Types of Business Entities Available to Foreigners

In Singapore, foreigners have several options when it comes to choosing the type of business entity that best suits their needs. The most common types include:

• Private Limited Company (Pte Ltd): This is the most popular and flexible type of business entity in Singapore. It allows for limited liability protection, and the company is considered a separate legal entity from its owners.
• Sole Proprietorship: This is the simplest form of business structure, ideal for small-scale operations. However, it does not provide limited liability protection, meaning the owner is personally liable for all debts and obligations of the business.
• Partnership: This structure is suitable for businesses run by two or more individuals. It can be further categorised into General Partnership, Limited Partnership, and Limited Liability Partnership, each with different levels of liability and regulatory requirements.

Advantages of Starting a Business in Singapore for Foreigners

Strategic Location and Connectivity

Singapore’s strategic location at the global trade crossroads makes it an ideal hub for business expansion in Asia and beyond, with world-class port and airport facilities connecting to over 600 ports in 120 countries and 400 cities through Changi Airport.

This connectivity ensures efficient and cost-effective logistics and transportation, facilitating smooth business operations.

Business-Friendly Policies and Low Taxes

The country’s pro-business policies feature simple regulations, minimal bureaucracy, and incentives for startups and foreign investors. With a low corporate tax rate of 17% and various tax reliefs for new businesses, these policies reduce costs and boost profitability.

High-Quality Infrastructure and Skilled Workforce

Our nation offers top-notch infrastructure, including modern office spaces, reliable public transport, and state-of-the-art telecommunications networks. The country’s commitment to continuous development ensures businesses have access to the best facilities and services. 

Additionally, Singapore has a highly skilled and educated workforce, with a strong emphasis on continuous learning and professional development, making it easier for businesses to find qualified talent.

Strong Legal Framework and Intellectual Property Protection

Singapore’s robust legal framework provides a stable and transparent environment for businesses. The country is known for its stringent enforcement of contracts and property rights, ensuring businesses can operate with confidence. 

Moreover, our government offers comprehensive intellectual property (IP) protection, ranking highly in global IP indices, making it a safe place for innovation and creativity.

How to Register a Business in Singapore for Foreigners

Here’s a thorough step-by-step guide for foreigners thinking of starting a business in Singapore.

Step 1: Decide on the business structure

When starting a business in Singapore, choosing the most suitable business entity is crucial. Options include the Private Limited Company (Pte Ltd), which offers limited liability protection and is the most common choice for foreign entrepreneurs due to its flexibility and separate legal status. 

Alternatively, a Sole Proprietorship is the simplest structure, ideal for small businesses, but it does not provide any separation between personal and business liabilities, meaning the owner is personally responsible for all business debts.

Lastly, a Partnership is suitable for businesses run by two or more individuals and comes in different forms: General Partnership, Limited Partnership, and Limited Liability Partnership, each offering varying levels of liability and regulatory requirements. 

Step 2: Choose your business name

A unique and memorable business name not only sets you apart from competitors but also plays a crucial role in your branding and marketing efforts, making it easier for customers to identify and remember your business.

Selecting a unique and appropriate business name is a vital step in establishing your business in Singapore. The name you choose should not be identical or too similar to existing business names, as this can cause confusion and potential legal issues. 

To ensure the name you have in mind is available, you can use the Accounting and Corporate Regulatory Authority’s (ACRA) online tool, BizFile+. This tool allows you to check for name availability and ensures that your chosen name complies with ACRA’s guidelines and regulations.

Step 3: Appoint a local director

Under Singapore law, every company must have at least one director who is a local resident. This means the director must be a Singaporean citizen, a Permanent Resident, or an EntrePass holder.

The requirement ensures that a local point of contact is responsible for the company’s compliance with local laws and regulations. 

If you, as a foreign entrepreneur, do not have a local contact who can serve as a director, you can consider utilising nominee director services. These services provide a local resident who will act as the director of your company, fulfilling the legal requirements while allowing you to maintain control over your business operations. 

Step 4: Register your business with ACRA

This is a critical step in formalising your operations in Singapore. The process is conducted online via the BizFile+ portal, which streamlines the registration process. 

To complete your application, you will need to prepare several essential documents, including a copy of the foreign entrepreneur’s passport, proof of residential address, and detailed information about the shareholders and directors of the company.

Once submitted, ACRA will review your application, and upon approval, your business will be officially registered, allowing you to commence operations in compliance with Singaporean regulations. 

Step 5: Open a corporate bank account

For your business finances, choose a reputable local bank that suits your business needs and preferences. Gather the necessary documents, which typically include your business profile from ACRA, a board resolution authorising the opening of the account, your passport, and proof of residential address.

Once you have all the required paperwork, schedule an appointment with the bank to finalise the process. During the appointment, a bank representative will guide you through the account opening procedure, ensuring all compliance requirements are met. 

Step 6: Apply for relevant licences and permits

Once your business is registered, the next step is to ensure you have all the necessary licences and permits to operate legally in Singapore. Start by identifying any industry-specific licences or permits that may be required for your business activities. 

Different industries have varying regulatory requirements, and it’s crucial to be aware of these to avoid any legal issues. You can apply for the relevant licences through the respective government agencies responsible for overseeing your industry. 

The GoBusiness Licensing portal is an excellent resource for finding detailed information about the specific licences you may need and the application process. 

Step 7: If applicable, register for Goods and Services Tax (GST) 

If your business’s taxable turnover exceeds SGD 1 million in a calendar year, it is mandatory to register for Goods and Services Tax (GST) in Singapore. GST is a consumption tax levied on the supply of goods and services, as well as on the import of goods. 

To ensure compliance with tax regulations, you must keep accurate records of your turnover and promptly register for GST once the threshold is reached. 

The registration process is straightforward and can be completed online via the Inland Revenue Authority of Singapore (IRAS) website. By registering for GST, your business can charge and collect GST from your customers, which you will then remit to the tax authorities.

Step 8: Comply with ongoing regulatory requirements

After your business is up and running, it is crucial to stay compliant with Singapore’s ongoing regulatory requirements to ensure smooth operations and avoid legal penalties. Regularly reviewing and updating your compliance practices can help mitigate risks and maintain your business’s good standing in Singapore. 

One key aspect is to keep up with annual filing obligations, such as holding an Annual General Meeting (AGM) and submitting annual returns and financial statements to the Accounting and Corporate Regulatory Authority (ACRA). These filings provide transparency about your business’s financial health and operations.

Additionally, you must ensure that your business adheres to all relevant local laws and regulations, which may include tax filings, employment laws, and industry-specific regulations.

Agencies That Can Help Foreigners Start Their Business in Singapore

These agencies provide valuable resources and support to foreign entrepreneurs, ensuring a smooth and successful business setup in Singapore.

Enterprise Singapore (ESG)

Website

Enterprise Singapore focuses on supporting the growth of Singaporean enterprises and helping businesses improve their productivity and innovation. It offers various grants, advisory services, and market insights to help startups and SMEs succeed.

Economic Development Board (EDB)

Website

The EDB is responsible for strategies that enhance Singapore’s position as a global centre for business and innovation. It provides comprehensive support for foreign businesses looking to invest and establish operations in Singapore, including incentives and assistance programs.

Accounting and Corporate Regulatory Authority (ACRA)

Website

ACRA oversees the registration and regulation of business entities, public accountants, and corporate service providers in Singapore. It provides essential resources and services for registering and maintaining businesses in compliance with local laws.

Singapore Economic Development Board (SEDB)

Website

The SEDB plays a critical role in promoting and facilitating investments in Singapore. It offers investment facilitation services, business support, and connections to relevant stakeholders to help foreign businesses navigate the local landscape.