Yes, you can start a company in Singapore as a foreigner living overseas. Singapore’s business environment is very welcoming to foreign entrepreneurs, and the law allows for 100% foreign ownership of a company.
However, there are specific requirements you must meet, which are primarily related to legal and administrative representation in Singapore.
Key Requirement One: Appoint A Resident Director
One of the most crucial requirements is to have at least one director who is a “resident” of Singapore. This person can be:
- A Singapore citizen
- A Singapore Permanent Resident (PR)
- A person who holds a valid Employment Pass (EP) or EntrePass
For founders who wish to establish a Singaporean company while remaining in their home country, the system provides a clear mechanism: the appointment of a Nominee Director. This is a professional service offered by corporate service providers, not an informal arrangement.
The nominee director acts as the local representative for compliance purposes, but you, as the foreign director, retain full ownership and control of the company.
The role of a nominee director is distinct from a company director, as they fulfill the legal residency requirement and does not participate in daily business operations.
As a foreigner, you cannot be the only director unless you relocate to Singapore and get the proper work pass.
Pros & Cons Of Using A Nominee Director
Pros
The primary advantage of this path is the speed of incorporation. Without the need to wait for visa processing, a company can be registered very quickly. It allows an entrepreneur to test the market, establish a legal presence, and secure contracts without the personal disruption of relocation.
Cons
The ongoing annual cost of the nominee director service can be significant. Furthermore, managing the business remotely can present practical challenges, particularly when it comes to opening a corporate bank account, as many traditional banks require an in-person visit from the company’s principals.
An unreliable nominee could also expose the company to compliance failures or, in rare cases, abuse of their position.
Key Requirement Two: Engage a Registered Filing Agent
As a foreigner not residing in Singapore, you cannot register a company on your own. You must appoint a registered filing agent, such as a corporate secretarial firm or law firm, to handle the incorporation process on your behalf.
Other Requirements
- Company Secretary. You must appoint a company secretary who is a natural person and a resident of Singapore.
- Registered Address: The company must have a registered physical office address in Singapore. A P.O. Box is not allowed. Many corporate service providers offer virtual office services to fulfill this requirement.
- Shareholder(s): You can be the sole shareholder, and there are no restrictions on foreign shareholding.
- Minimum Paid-Up Capital: The minimum paid-up capital required to start a company is just S$1.
Next, remember to read our comprehensive guide on how to incorporate a Singapore company as a foreigner.
