Can foreigners own 100% of a company in Singapore?

Singapore has long been regarded as one of the most business-friendly countries in the world, attracting entrepreneurs and investors from around the globe. One of the key questions that often comes up for foreigners looking to set up a business in Singapore is whether they can own 100% of the company.

The short answer is yes! Foreigners can indeed own 100% of a company in Singapore. The government of Singapore has created an environment that encourages foreign investment and entrepreneurship, which is one of the reasons why Singapore consistently ranks as a top destination for setting up businesses.

However, there are a few important things to consider for company registration in Singapore for foreigners.

1. Choosing the Right Type of Company

In Singapore, the most common structure for foreigners to set up is a Private Limited Company (Pte Ltd). This structure provides several advantages, including limited liability for shareholders, which means personal assets are protected in case of financial failure.

A Private Limited Company can be 100% foreign-owned, but there are specific requirements regarding the company structure.

2. Director Requirements

While foreigners can own 100% of the shares in a Singaporean company, at least one director must be a resident of Singapore. This means the director can be a Singaporean citizen, a permanent resident, or a person holding an Employment Pass, EntrePass, or Dependant Pass.

This requirement ensures that companies have local representation and aligns with Singapore’s commitment to fostering a stable business environment.

3. Local Registered Address

A Singapore company must have a local registered office address. This means the business must operate out of a physical address in Singapore, which cannot be a P.O. Box. Many foreign entrepreneurs opt to use office space or a virtual office service to meet this requirement.

4. Minimum Share Capital

Singapore has a relatively low minimum share capital requirement. The minimum paid-up capital for a Private Limited Company is SGD 1 (Singapore Dollar). This low entry barrier makes it an attractive place for foreign investors to establish a business.

However, depending on the type of business you plan to operate, you may need to increase the capital to meet regulatory or operational needs.

5. Visa and Employment Pass

If you're a foreigner planning to work in your own company in Singapore, you will need to apply for an Employment Pass. The Employment Pass is issued to foreign professionals who earn a minimum monthly salary and meet other eligibility criteria. If you're looking to run your business, you might also consider the EntrePass, which is designed specifically for entrepreneurs who want to start and operate a business in Singapore.

6. Tax Benefits

Singapore is known for its attractive tax system. Corporate tax rates are relatively low, with a standard rate of 17%. In addition, the country offers various tax exemptions and incentives for new businesses, such as the Startup Tax Exemption Scheme for qualifying startups. This makes it an appealing choice for foreigners looking to establish a business with favorable tax policies.

7. Ongoing Compliance and Regulations

Once your company is established, you will need to comply with certain regulations, including submitting annual returns, holding regular board meetings, and maintaining proper accounting records. You will also need to appoint a company secretary within six months of incorporation.

While these requirements ensure good governance, they are relatively simple to meet with the help of a professional service provider. Many foreign entrepreneurs choose to hire a local corporate secretary to assist with these administrative tasks.

Conclusion:

Yes, foreigners can own 100% of a company in Singapore. The country’s pro-business policies, ease of setup, and tax advantages make it a top destination for global entrepreneurs. While there are certain requirements, such as having a local director and a registered address, Singapore remains one of the most attractive places in Asia for foreigners to establish and grow their business.