Singapore is a popular destination for entrepreneurs and business owners, offering a business-friendly environment, low taxes, and a highly skilled workforce. However, setting up a business in Singapore can be a complex and time-consuming process, especially for foreigners. In this article, we will provide a step-by-step guide on how to obtain a business visa and set up shop in Singapore.
Step 1: Choose a Business Structure
The first step in setting up a business in Singapore is to choose a business structure. The most common business structures in Singapore are:
- Private Limited Company (Pte Ltd): This is the most popular business structure in Singapore, and it offers limited liability protection for the shareholders.
- Sole Proprietorship: This is a simple business structure that is owned and managed by one individual. However, it does not offer limited liability protection.
- Partnership: This is a business structure that is owned and managed by two or more individuals. It offers limited liability protection for the partners.
- Limited Liability Partnership (LLP): This is a business structure that combines the benefits of a private limited company and a partnership. It offers limited liability protection for the partners.
It is essential to choose a business structure that suits your business needs and goals. You should also consider factors such as the number of shareholders, the level of liability protection, and the tax implications of each structure.
Step 2: Register Your Business
Once you have chosen a business structure, you need to register your business with the Accounting and Corporate Regulatory Authority (ACRA). You can register your business online or through a registered filing agent.
To register your business, you will need to provide the following documents:
- Business name and address
- Business description and objectives
- Shareholders’ details
- Directors’ details
- Business owner’s identification documents (e.g. passport, ID card)
ACRA will review your application and issue a business registration certificate once it is approved. This certificate is valid for one year and must be renewed annually.
Step 3: Obtain a Business Visa
A business visa is required for foreigners who want to set up a business in Singapore. The business visa is also known as an Employment Pass (EP) or an EntrePass. The EntrePass is a type of visa that is specifically designed for entrepreneurs who want to start a business in Singapore.
To obtain an EntrePass, you will need to meet the following eligibility criteria:
- You must be a foreigner who is not a Singapore citizen or permanent resident.
- You must have a business idea that is innovative and scalable.
- You must have a minimum of S$50,000 in share capital.
- You must have a minimum of two shareholders.
- You must have a minimum of one director who is a Singapore citizen or permanent resident.
To apply for an EntrePass, you will need to submit the following documents:
- A completed EntrePass application form
- A business plan that outlines your business idea, objectives, and financial projections
- A copy of your passport
- A copy of your identification documents (e.g. ID card, driver’s license)
- A copy of your degree certificate (if applicable)
- A copy of your proof of funds (e.g. bank statement, investment portfolio)
The EntrePass application process typically takes around 3-6 weeks to complete. Once your application is approved, you will receive an EntrePass that is valid for one year. You can renew your EntrePass annually for up to three years.
Step 4: Open a Business Bank Account
Opening a business bank account is an essential step in setting up a business in Singapore. A business bank account allows you to manage your business finances, pay bills, and receive payments from customers.
To open a business bank account, you will need to provide the following documents:
- A completed business bank account application form
- A copy of your business registration certificate
- A copy of your EntrePass
- A copy of your identification documents (e.g. passport, ID card)
- A copy of your proof of address (e.g. utility bill, lease agreement)
The business bank account application process typically takes around 1-2 weeks to complete. Once your application is approved, you will receive a business bank account that is linked to your business registration.
Conclusion
Setting up a business in Singapore can be a complex and time-consuming process, especially for foreigners. However, with the right guidance and support, it is possible to navigate the process and establish a successful business in Singapore. In this article, we have provided a step-by-step guide on how to obtain a business visa and set up shop in Singapore. We hope that this guide has been helpful in providing you with the information and resources you need to start your business in Singapore.
FAQs
Q: What is the difference between an Employment Pass and an EntrePass?
A: An Employment Pass is a type of visa that is designed for foreigners who want to work in Singapore. An EntrePass is a type of visa that is specifically designed for entrepreneurs who want to start a business in Singapore.
Q: How long does it take to process an EntrePass application?
A: The EntrePass application process typically takes around 3-6 weeks to complete.
Q: What is the minimum share capital required for an EntrePass application?
A: The minimum share capital required for an EntrePass application is S$50,000.
Q: Can I apply for an EntrePass if I am a Singapore citizen or permanent resident?
A: No, the EntrePass is only available to foreigners who are not Singapore citizens or permanent residents.
Q: How do I renew my EntrePass?
A: You can renew your EntrePass annually for up to three years. To renew your EntrePass, you will need to submit a completed EntrePass renewal application form and pay the renewal fee.
Q: What are the benefits of setting up a business in Singapore?
A: Singapore offers a business-friendly environment, low taxes, and a highly skilled workforce. It is also a strategic location for businesses that want to expand into the Asian market.
Q: How do I open a business bank account in Singapore?
A: To open a business bank account in Singapore, you will need to provide the following documents: a completed business bank account application form, a copy of your business registration certificate, a copy of your EntrePass, a copy of your identification documents, and a copy of your proof of address.
Q: What are the taxes in Singapore?
A: Singapore has a low-tax environment, with a corporate tax rate of 8.5%. There are also no taxes on dividends, interest, and capital gains.
Q: How do I get a business registration certificate in Singapore?
A: To get a business registration certificate in Singapore, you will need to register your business with the Accounting and Corporate Regulatory Authority (ACRA). You can register your business online or through a registered filing agent.
Q: What are the benefits of registering a business in Singapore?
A: Registering a business in Singapore offers a range of benefits, including access to a skilled workforce, a business-friendly environment, and a strategic location for businesses that want to expand into the Asian market.
