Have you ever dreamt of expanding your entrepreneurial journey beyond borders? Imagine launching a business in one of the world’s most competitive and innovation-driven economies — Singapore. Often called the “Gateway to Asia,” Singapore is a strategic hub for businesses looking to tap into the booming Southeast Asian market. But how do you, as an entrepreneur from India, make this dream a reality? Don’t worry, you’ve come to the right place.
In this guide, we’ll walk you through everything you need to know about starting a business in Singapore from India, from understanding the legal requirements to the step-by-step process. By the end, you’ll not only be prepared but eager to make Singapore the next big move for your business.
How to Start a Business in Singapore from India?
Starting a business in Singapore as an Indian entrepreneur is simpler than you might think. Singapore’s business-friendly regulations make it an attractive destination for Indian companies seeking global expansion.
Here’s a step-by-step guide on how to establish your company in Singapore:
Choose Your Business Structure: The first step is deciding the type of business entity you want to set up. The most common options are:
- Private Limited Company (Pte Ltd)
- Limited Liability Partnership (LLP)
- Sole Proprietorship
For most foreign entrepreneurs, a Private Limited Company is the preferred choice due to its favorable tax rates and liability protection.
Appoint a Company Director and Secretary: Singapore law mandates that your company must have at least one resident director who is either a Singaporean citizen, Permanent Resident (PR), or a holder of an EntrePass or Employment Pass. Additionally, within six months of incorporation, a company secretary must be appointed.
Register Your Business Name: The next step is to choose a unique business name and ensure it complies with Singapore’s naming guidelines. You can reserve the name via the Accounting and Corporate Regulatory Authority (ACRA) portal.
File for Company Incorporation: Once your business structure and name are in place, file your incorporation request with ACRA. You can do this entirely online, and approval generally takes one to three days, provided all documents are in order.
Open a Corporate Bank Account: After successful incorporation, you’ll need to open a corporate bank account in Singapore. Most major banks, including DBS, OCBC, and UOB, offer tailored accounts for foreign business owners.
Apply for the Necessary Licenses: Depending on your industry, you may need specific licenses to operate legally in Singapore. Research the licenses required for your business type and ensure compliance.
Documents Required to Register a Business in Singapore from India
The following documents required to register a business in Singapore from India are:
- Passport Copy: A copy of the passports of all company shareholders and directors.
- Proof of Residential Address: Utility bills or bank statements to verify the residential address of directors and shareholders.
- Company Constitution: A legal document that defines the scope and regulations governing your company.
- Incorporation Forms: Forms related to business name registration, shareholder details, and corporate structure.
- KYC Documents: “Know Your Customer” documents to satisfy banking and government regulations.
Requirements to Establish a Business in Singapore from India
To establish your business in Singapore from India, you need the following requirements:
- Shareholder: Your business must have between 1 to 50 shareholders, which can be a person or another legal entity (company). Foreign shareholders, including Indians, are fully allowed to own 100% of the company.
- Paid-Up Capital: The minimum paid-up capital to register a company is SGD 1. However, depending on your industry, you may be required to inject more capital.
- Registered Office Address: Every Singaporean company must have a local registered office address. This is where official documents and correspondences will be sent.
- Resident Director: As mentioned, at least one director must be a Singaporean resident.
- Company Secretary: A qualified company secretary must be appointed within six months of incorporation.
- Accounting and Tax Filing: All companies in Singapore are required to file annual financial statements and maintain proper accounting records. A Chartered Accountant is often appointed to ensure compliance.
Benefits of Setting up a Business in Singapore from India
Advantages for setting up a business in Singapore from India are:
- Tax Advantages: Singapore boasts one of the most competitive tax regimes in the world. The corporate tax rate is capped at 17%, with various tax incentives and exemptions available for startups.
- Ease of Doing Business: Ranked consistently at the top for ease of doing business, Singapore offers a transparent regulatory environment with minimal bureaucracy.
- Strategic Location: Singapore’s strategic location at the crossroads of major global trade routes makes it an ideal hub for companies seeking to expand into Asia and beyond.
- World-Class Infrastructure: The city-state’s infrastructure, from its banking system to transport and telecommunications, is world-class, providing a solid foundation for businesses to grow.
- Strong IP Protection: Singapore has robust intellectual property laws, making it a safe place to safeguard your innovations and brand.
- Access to Global Talent: Singapore attracts top talent from around the world, ensuring that you have access to a highly skilled and educated workforce.
Conclusion
Starting a business in Singapore from India can be your gateway to global success, but navigating the setup process can be daunting. That’s where OnDemand International comes in. Our team of experts specializes in helping Indian entrepreneurs set up their businesses in Singapore, from document preparation to legal compliance. Let us handle the complexities so you can focus on growing your business.
Ready to take the next step? Contact OnDemand International today for a consultation, and start your journey to global business expansion!
Frequently Asked Questions
Do I need to be physically present in Singapore to start a business?
No, you don’t need to be physically present. However, a Singapore-based director is required.
Can I own 100% of my business as a foreigner?
Yes, Singapore allows 100% foreign ownership of companies.
What is the minimum capital requirement for starting a business?
The minimum paid-up capital is SGD 1.
How long does the incorporation process take?
Typically, it takes 1-3 business days to incorporate a company once all documents are submitted.
What are the tax benefits for new companies?
New companies can enjoy tax exemptions on the first SGD 100,000 of chargeable income for the first three years.
