Singapore is a land of opportunities. People from across the borders flock to Singapore to do business, seek employment, or simply appreciate her beauty.
Singapore’s entrepreneurial landscape is attractive. Its taxation is among Asia Pacific’s friendliest by awarding tax exemption, incentives, and reliefs to qualified companies.
Its physical environment is conducive to healthy living as in February 2011, Siemens Green City Index, a collaborative study with Siemens, Economist Intelligence Unit and Centre for Liveable Cities awarded Singapore as Asia’s greenest city.
Singapore laws let foreign entrepreneurs take over a company in its entirety, in the sense of ownership and management.
There are three ways to start a Singapore company for foreign entrepreneurs. Two of these offer relocation.
A company in Singapore requires three individuals in its formation:
- Resident director
- Company Secretary
Company Setup with Employment Pass
The minimum capital requirement for this setup is S$1. It can be raised at anytime during the operations of the company.
Foreign investors can register a company (by channeling the procedure through Rikvin) and thereafter apply for an Employment pass, which shall grant them eligibility to earn the position of a resident director, the highest position to be occupied by an individual.
Before an Employment pass is applied however, a company must first be registered. To solve the problem of a resident director, a nominee director is necessary.
Under the nominee director service of Rikvin, there shall be a nominee name and address indicated on the Memorandum and Articles of Association. It does not grant the nominee individual any corporate powers and responsibility as he remains to be a dummy.
After the registration, Rikvin shall process the Employment pass so foreign investors can earn the title. After which, the directorship is transferred.
Company Setup with Entrepreneur Pass
Unlike in the Employment Pass Company Setup, an Entrepreneur pass is first sought before the company is registered.
Also, unlike the Employment Pass, the Entrepreneur Pass is exclusive for foreign nationals who are professionals by experience. It does not require a tertiary degree of education. To qualify for an Entrepreneur pass, a foreign investor should prepare the following:
- Capital Investment valuing a minimum of S$50,000
- 10-page business proposal highlighting business objectives, goals, products and services, and marketing strategies.
- Entrepreneurial skills indicating success. This can be showcased in curriculum vitae.
After the Entrepreneur Pass is approved and released, Rikvin will proceed with the company incorporation.
Company Setup With Nominee Director Service
Despite the business-friendly policy, not all investors are ready to relocate to Singapore and run their company. Thus, many of them choose to employ the nominee director service for a long-term basis.
As mentioned earlier, the nominee director does not function like a real resident director. The investor himself maintains authority and control. He may stay offshore, but he can run the company from there.
Upon compliance of requirements such as holding a board meeting or Annual General Meeting, he can simply use his passport or Long-Term Visit pass (for countries requiring a visa upon entry) and stay in Singapore for a month to tend to his business.