Can Foreigners Own 100% of a Business in Singapore?

Can a Foreigner Own 100% of a Business in Singapore?

Key Facts About Foreign Business Ownership in Singapore

1️⃣ 100% Foreign Ownership: No local shareholder or partner is required.
2️⃣ No Special Government Approvals Needed: The process is the same as for local entrepreneurs.
3️⃣ No Minimum Capital Requirement: You can start with as low as SGD 1 in paid-up capital.
4️⃣ Fast Incorporation Process: Company registration takes 1–2 days if all documents are in order.
5️⃣ No Residency Requirement: You can run your business from overseas or apply for an Employment Pass (EP) or EntrePass if relocating to Singapore.

However, while ownership is unrestricted, there are mandatory compliance regulations for foreign entrepreneurs.

Key Requirements for Foreigners Setting Up a Business in Singapore

1. Choose the Right Business Structure

Foreigners can register under three main business structures, but the Private Limited Company (Pte. Ltd.) is the most recommended option due to:

✔ 100% Foreign Ownership Allowed
✔ Limited Liability Protection (Directors are not personally liable for business debts)
✔ Access to Global Investors & Funding
✔ Tax Benefits (Low corporate tax of 17% and zero tax on foreign-sourced income)

💡 Other Options:

• Sole Proprietorship (Not ideal for foreigners due to unlimited liability)
• Limited Liability Partnership (LLP) (Better suited for professionals, not scalable)

At SOAS, we advise foreign entrepreneurs on the best structure for their business.

2. Appoint a Local Director (Mandatory Requirement)

Although you can own 100% of your company, Singapore law requires at least one local resident director who must be:

✅ A Singapore Citizen
✅ A Singapore Permanent Resident
✅ A holder of an Employment Pass (EP) or EntrePass

💡 Solution: If you don’t have a local director, you can use SOAS Nominee Director Services to meet this requirement while you operate from abroad.

3. Register the Company with ACRA (Company Incorporation Process)

To incorporate your business, you must register with the Accounting and Corporate Regulatory Authority (ACRA) via the BizFile+ portal.

Steps to Register a 100% Foreign-Owned Company in Singapore:

🔹 Step 1: Choose a Company Name – The name must be unique and approved by ACRA.
🔹 Step 2: Prepare Required Documents – Business structure details, shareholder and director information, and registered address.
🔹 Step 3: Appoint a Company Secretary – Must be appointed within 6 months of incorporation.
🔹 Step 4: Define Business Activity (SSIC Code) – Select the relevant industry classification.
🔹 Step 5: Pay Government Fees – Incorporation costs SGD 315.
🔹 Step 6: Receive Business Registration Number (UEN) – Once approved, your company receives a Unique Entity Number (UEN) for official transactions.

🚀 Want hassle-free company registration? SOAS offers end-to-end incorporation services for foreign entrepreneurs!

4. Open a Corporate Bank Account

To operate a business in Singapore, you need a corporate bank account. Major banks include:
✅ DBS
✅ OCBC
✅ UOB
✅ HSBC
✅ Citibank

Key Requirements:

• Some banks require physical presence for account opening.
• Documents include ACRA registration details, board resolution, and identification of directors.

At SOAS, we assist foreign business owners with bank account setup.

5. Obtain Business Licenses (If Required)

Certain industries need additional licenses or permits before operation:

• F&B Industry – Food Shop License, Alcohol License
• Finance & Fintech – Monetary Authority of Singapore (MAS) License
• Education & Training – Council for Private Education Approval

💡 Need help with business licensing? Contact SOAS for assistance.

Foreign Business Owners & Work Visa Options

Foreigners who want to relocate and manage their company in Singapore need a work visa:

✅ Employment Pass (EP) – For company directors earning at least SGD 5,000/month.
✅ EntrePass – For innovative startups and entrepreneurs.
✅ Dependant’s Pass (DP) & Long-Term Visit Pass (LTVP) – For family members of work pass holders.

At SOAS, we provide visa application support to ensure smooth approval.

Taxation for 100% Foreign-Owned Businesses in Singapore

Why is Singapore tax-friendly?

• 0% tax on foreign-sourced income
• 17% corporate tax rate (one of the lowest globally)
• Startups enjoy tax exemptions for the first 3 years

💡 Need tax guidance? Our team at SOAS offers corporate tax planning and filing services.

Common Challenges for Foreign Entrepreneurs & How to Overcome Them