3 minutes How an Indian Entrepreneur Can Incorporate a Local Company in Singapore
Singapore ranks among the world’s most business-friendly destinations, attracting entrepreneurs from across the globe—including India. Its open economy, robust legal framework, and supportive tax policies make company incorporation accessible even for foreign nationals. Below is a comprehensive, step-by-step guide tailored for Indian entrepreneurs interested in setting up a local company in Singapore.
Why Singapore Attracts Indian Entrepreneurs
- Ease of doing business: Streamlined processes, pro-business government.
- 100% foreign ownership allowed: Indians can fully own a Singaporean company.
- Tax efficiency: Low corporate tax rates and numerous double tax treaties, including one with India.
- World-class infrastructure: Excellent connectivity and financial systems.
- Gateway to Southeast Asia: Strategic hub for regional expansion.
Understanding the Legal Structure
The most popular type of business entity for foreign entrepreneurs is the Private Limited Company (Pte Ltd), offering:
- Limited liability to shareholders.
- Separate legal entity status.
- Tax-efficient structuring and reliable image for investors.
5 Key Requirements for Indian Entrepreneurs
To incorporate in Singapore, Indian entrepreneurs must ensure the following:
- Minimum one shareholder: Can be an individual or a corporate entity.
- At least one local resident director: Can be a Singapore citizen, Permanent Resident, or a holder of certain passes (e.g., EntrePass, Employment Pass).
- Local registered address: A physical, not P.O. Box, address in Singapore.
- At least one company secretary: Must be appointed within six months of incorporation, and must be a natural person residing in Singapore.
- Initial paid-up capital: Minimum SGD1 is sufficient; no maximum limit.
Pre-Incorporation Preparations
- Choose a unique company name: Apply for approval with the Accounting and Corporate Regulatory Authority (ACRA).
- Prepare incorporation documents:
- Company constitution (formerly Memorandum & Articles of Association).
- Passport/scanned copy of NRIC for all directors and shareholders.
- Proof of overseas address.
- Consent to act as director and company Step-by-Step Incorporation Process
3. Step-by-Step Incorporation Process
Step 1: Engage a Corporate Service Provider
Foreigners cannot self-register companies directly; they must use a registered filing agent (law firm, accounting firm, or corporate secretarial service) in Singapore. Choose a provider familiar with the needs of Indian entrepreneurs.
Step 2: Name Reservation
- Submit your desired company name to ACRA for approval.
- Names resembling existing Singaporean companies or containing restricted words may be rejected.
Step 3: Documentation & Application
- Submit all KYC and incorporation documents via your service provider.
- Complete the company registration with ACRA, typically online and processed within a day if documentation is in order.
Step 4: Post-Incorporation Setup
- Open a corporate bank account (major banks in Singapore welcome Indian investors, but may require in-person visits).
- Obtain relevant business licenses/permits if your business falls under regulated sectors like finance, education, or healthcare.
- Register for GST (only if projected annual turnover exceeds SGD1 million).
- Apply for work visas (EntrePass, Employment Pass) if you wish to relocate and manage the company from Singapore.
Relocation: How Indian Entrepreneurs Can Move to Singapore
- EntrePass: For innovative startups—pre-approval required based on business plan.
- Employment Pass: For those hired by the Singapore entity (including directors)—subject to minimum salary and qualifications.
A local nominee director is required until you have a qualifying visa/pass.
Compliance & Ongoing Obligations
- Maintain accounting records and annual financial statements.
- File annual returns with ACRA and tax returns with the Inland Revenue Authority of Singapore (IRAS).
- Hold annual general meetings (AGMs).
Typical Timeline & Costs
- Name approval: 1–3 days.
- Company registration: 1–3 days, or longer if additional approval required.
- Estimated cost: SGD1,000–3,000 for incorporation (excluding visas, bank account setup, and professional fees).
Important Tips for Indian Entrepreneurs
- Use a reputable incorporation service.
- Ensure compliance with Indian regulations regarding offshore investments (especially under RBI’s Liberalised Remittance Scheme).
- Consider Singapore’s tax treaties to optimize global tax exposure.
- Stay updated with Singapore’s compliance deadlines to avoid penalties.
Conclusion
Your Singapore business journey begins with that all-important Certificate of Incorporation — take the first step today! Incorporating a local company in Singapore as an Indian entrepreneur is clear-cut, provided you follow legal procedures and engage suitable professionals. The process offers access to a world-class business environment, ripe for scaling and innovation. With preparation and trusted guidance, your venture in Singapore can be a strategic leap for international growth.
