The Chamber
Entrepreneurship and Starting a Business in Singapore, the Practical Guide
Singapore, nicknamed the “Lion City”, imposed itself as a leading business hub for worldwide entrepreneurs. Its dynamic economic environment, advanced infrastructure and entrepreneurship policies make it an ideal place for innovation and development.
Launching a company in Singapore opens many opportunities thanks to its strategic location, solid economic framework and incentives for businesses.
Economic Context of Singapore
Singapore’s economy is prosperous and diversified, supported by key sectors like finance, technology, health and logistics. The City-State has cutting-edge infrastructure, stable legal and political frameworks and a business environment among the best in the world. Furthermore, the French community is significant with around one thousand French companies established in Singapore.
This dynamism is based on transparent governance and an attractive economic environment. Ideally located in the heart of South-East Asia, Singapore constitute an open door to the fast-growing regional markets. Thanks to one of the world’s most robust economies, the City-State captivate foreign investors by its advantageous taxation and favourable conditions for company development.
Work Passes in Singapore
For entrepreneurship in Singapore, without permanent residency, a work visa is necessary among the different types available. The principal visas are: EntrePass, Tech.Pass, ONE Pass, Employment Pass or LOC for specific cases (spouses living in Singapore).
Employment Pass (EP) allows foreign professionals, managers and executives to work in Singapore. Candidates must receive a minimum annual salary of SGD 5.600 for people of more than 23 and from different sectors (except finance). This base salary progressively increases with the candidate’s age. Employers must also demonstrate that they have fairly considered all job applicants. In addition to the salary criterion, candidates must comply to the COMPASS System, point-based, both applicant and company profiles are analysed and must collect enough points to be eligible for an EP. The duration of an EP may vary between 1 and 3 years, even 5 years for treasured tech professionals.
Letter Of Consent (LOC): Holders of Dependant’s Pass (DP) or Long-Term Visit Pass (LTVP), residence visas obtained with spouses’ work pass, willing to set up a company in Singapore can apply for a Letter of Consent.
Regarding eligibility, the applicant needs to be one of those entrepreneur types:
- Self-entrepreneur/owner of an individual company registered at ACRA
- Associate partner registered at ACRA
- Company director holding at least 30% of its company’s share, registered at ACRA.
L’Overseas Network & Expertise Pass (ONE Pass) is a visa for foreign talents from different sectors: business, art, culture, sports, academic and research. The requirements to be eligible for this visa include a fixed monthly salary of SGD 30.000 paid by an employer, either in the last 12 months preceding the pass application or when taking up employment within an established company in Singapore (according to specific capitalization or stock market valuation criteria).
Few foreign talents do not meet those salary criteria but can still be eligible if the candidates distinguish themselves with their research, academic accomplishments and athletic achievements. These requests are handled on a case-by-case basis by the authorities, which do not communicate eligibility criteria for these profiles. ONE Pass can be delivered for 5 years and renewed for another 5 years.
The EntrePass visa is popular among foreign entrepreneurs. It is designed for founders of tech and innovative startups. The eligibility requirements include a solid business plan (including forecasts of local recruitment and upcoming operational expenses), an experienced candidate in developing startups, innovations or technologies and, in some cases, local partnerships. The initial duration is 1 year, then renewable for another 1 year subject to the company’s performance.
Another option is the Tech.Pass for entrepreneurs, leaders or tech experts. To be eligible, candidates must comply to at least two of the following conditions:
- Have received a fixed monthly salary of at least SGD 22,500 (or equivalent in foreign currency) during the last year.
- Have at least five years of cumulative experience in a major/decision-making role with a tech company with a valuation or market capitalization of at least $500 million or having raised at least $30 million.
- Have at least five years of cumulative experience in a major/decision-making role in the development of a technology product with at least 100,000 active users per month or generating annual revenue of at least USD 100 million.
When approved, the Tech.Pass is delivered for 2 years and renewable for 2 additional years.
The French Chamber of Commerce in Singapore is accredited by the Mininstry of Manpower (MOM0 since 2010 (EA Licence – 10C4756). Thanks to its many years of experience with various companies and entrepreneur profiles, we are able to support you in a personalized way and with proven expertise.
Registering an Entity in Singapore
It is relatively simple and rapid to register a company in Singapore. You will need to provide various information regarding the activity, ownership, etc. Since the Singaporean administration has digitized its services, the registration procedure for a company is quick and efficient.
It is important to note that some commercial activities, such as financial or medical services, require additional licenses or permits issued by regulatory bodies. Depending on your industry, you may need specific permissions or a certain amount of capital before starting operations.
Obligations of Entrepreneurs in Singapore
Compliance with legal and regulatory requirements is essential for operating a business in Singapore. The city-state is known for its strict enforcement of laws and regulations, ensuring a fair business environment and protecting consumers.
Once the company is registered, several legal and tax obligations must be met and again vary depending on the chosen structure.
Under Private Limited, accounting must be kept in accordance with local standards, and tax returns must be submitted annually. Three pillars must also be respected, namely the appointment of a resident Director in Singapore, a Company Secretary (responsible for ensuring that the company’s obligations are met and their deadlines) and a data protection officer.
Companies must also comply with employment regulations, including work visa requirements, when recruiting foreign workers.
Singapore has a resource-rich ecosystem for entrepreneurs, notably the French Chamber of Commerce in Singapore offers valuable networking and mentoring support. It also plays a key role in facilitating trade and providing services to French companies as part of their installation and development in Singapore. The French Chamber is a non-profit association governed by Singaporean law, fully self-funded and dynamic, which supports French companies in their discovery and development in Singapore and the region. Our services include prospection missions, market studies, business trade promotion, networking events organisation and the provision of advisory and support services to businesses (company set up, work and family pass, recruitment, Business Center) and workshops to help entrepreneurs navigate the Singapore business environment.
For more information, you can contact us: bizsupport(@)fccsingapore.com
SOURCE: Le Petit Journal
