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Why do I Need to SG$50,000 to Register My Business in Singapore?

Whether this a paid up capital for a new Singapore company incorporation for foreigners or whether it is meant for all Entrepreneur Pass scheme applications, the amount of SG$50,000 paid-up capital is not applicable any longer.

With the new regulation, all new business owners under the Entrepass Visa may note that the previously established requirement of a minimum SG$50,000 paid-up capital in a Singapore based company has been abolished.

Why? This is because the Singapore government aims to enhance the start-up environment in the republic by making the EntrePass available to a much larger pool of entrepreneurs and investors.

Let us reiterate, you do not need SG$50,000 to register your business in Singapore.

 

What is a Singapore Entrepass

EntrePass is meant for foreign business professionals and entrepreneurs who’d wish to initiate their own career and business in Singapore, and if differs from an Employment Pass, which is needed if a foreign individual wants to work in Singapore or be a director of a Singapore company.

Under the EntrePass  holder can stay in Singapore for a validity of two years and candidates are encouraged to apply for it themselves.

EntrePass is renewable as long as the criteria are satisfied. Ministry of Manpower (MoM) stated in its eligibility criteria, applicant’s business or incorporation must:

  • Obtain funding or income from an recognized source
  • Have an existing intellectual property with their product
  • Conduct research collaboration with a valid source
  • Be an incubate at a Singapore government initiated incubator

 

Documents required for EntrePass are:

  • Copy of the personal particulars of the applicant’s ID/ passport;
  • Past employment testimonials
  • A business plan
  • Registering Your Company in Singapore’s Free Trade Zones

 

Singapore Free Trade Zone

Both local and foreign companies who want to incorporate a company complying to the Free Trade Zones Act, must have a paid up share capital of SG$100,000 if they require a warehouse.

Companies who only require an office space on the other hand, would need a paid up share capital of SG$50,000. Hence, this is where the amount of SGD 50,000 appears.

As it is already known, Singapore makes an excellent FTZ port and an ideal storage solution for many companies both locally and internationally. Singapore also has simplified their customs procedures to make the FTZ ports and areas even more ideal and conducive to businesses.

Companies registered in Singapore stand to benefit from the numerous advantages which are offered by the FTZ. Those benefits include:

  • Goods and Services Tax is not imposed on products which are imported into the FTZ as long as these products are thereafter exported and not sold locally within Singapore
  • Permits are not required for the transshipment of non-controlled goods
  • No customs duties imposed on companies conducting business in the FTZ

 

Raising Capital for Your Company

Now let’s say you still want to open up a company with a paid up capital of SGD50,000, and  you do not have the capital on you, you can do so via:

  1. Crowdfunding
  2. Bank Loan
  3. Personal Financing
  4. Loan from Family and Friends
  5. Investment from venture capitalists
  6. Launch a crowdfunding campaign

With that being said, it is definitely better to have a strong paid up capital rather than being financial strapped.

 

Paul Hype Page & Co – Acra service provider and Asean Chartered Accountant.

Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia

Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.

How we can help you:

Step 1- Listen to your Business plan and Relocation needs.

Step 2- Analysis your Singapore Tax Planning

Step 3- Recommend the most suited type of Company Incorporation , Open Bank account  and

Work Visa

Step 4- Arrange for your Spouse and Children Visa

Step 5- Assist as your company to hire staffs and handle all HR matters

Step 6-  Every financial year end, we assist you with your yearly Acra Financial and Tax Compliance

Step 7- Assist you to expand business to Malaysia, Indonesia , Vietnam and Thailand.

Get in Touch with Us Today.

Paul Hype Page

Website: www.paulhypepage.com

 

Posted on February 11, 2019 at 2:10 am
Categories: FAQ

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