Singapore is known for its lush greenery and being one of the cleanest cities in the world. But there are lots of rules and regulations in Singapore. This includes the process of setting up a local company for foreigners. Despite the Covid-19 pandemic, many foreigners are attracted to Singapore’s attractive business environment with a skilled labour force and lots of great infrastructure. We’ll be going over the process of setting up a local company in Singapore as a foreigner.
Foreign company setup in Singapore for foreigners
There are processing requirements and restrictions that need to be considered before going through the process most especially for foreigners.
It is a great move to set up a company in Singapore, and it is most helpful to course it through a third-party agency to make the process smoother and faster. Be it a food establishment or a retail store, there are both advantages and disadvantages to consider before going through with the foreign company setup.
Disadvantages of establishing a company in Singapore for foreigners
As there are advantages to setting up a local company in Singapore. But there are also disadvantages, especially during these trying times.
#1 More Uncertainty given Stricter Rules imposed by MOM
The option to apply for permanent residency has been negated by the Ministry of Manpower effective October 2020. Thus, this would be more difficult for foreigners to set up a company in Singapore for the long haul given the restrictions imposed by the government. Perhaps partnering with a local resident would be a better option in the event that they need to go back to their home country. When it comes to employment passes, there have been limitations imposed such as the inability to bring in your dependents as well as the restrictions applied to the employment passes.
#2 High Operating Costs Compared to other Countries
Operating a business in Singapore compared to other Southeast Asian countries is relatively higher and costlier. Since Singapore is known for its high cost of living, it might prove to be a challenge to establish a business if your funds are limited. Better to be employed under a company or partner with a local.
Need help with foreign company setup in Singapore?
Given the pros and cons of foreign company setup in Singaproe, you may still be confused. But if you do decide to do so, going through a third-party agency would save you the hassles and challenges of setting up a local company on your own.
From establishing the company name to complying with the Ministry of Finance requirements in Singapore, to setting up a bank account for the business to processing company certificates and creating your business profile, the WLP Group would be of great help to you. Known for the extensive accounting and financial services the company has to offer its clients, it will bring satisfaction to you knowing that you have professional help right at your fingertips.
Curious about how to avail of their foreign company setup service and what other benefits they offer their local and foreign clients? Looking for a reputable and professional company that offers great accounting and financial services? Take a look at WLP Group’s website and give them a call to get more information.