do i need to partner with local Singapore resident to incorporate a company in Singapore?

Answer 1

Company formation in Singapore is a hot topic. And aspiring entrepreneurs who are thinking of company registration in Singapore have many questions to ask.

Especially, they want to know whether they need to partner with a local Singapore resident for company registration.

A few of them know that it is mandatory for foreigners to take on a local resident as their business partner in certain countries before registering a company.

In Singapore, you do not need a local partner to start your company. On the other hand, Singapore allows foreigners to own 100% share capital in their company.

Let us clear the confusion.

First of all, you need to understand the basic requirements for a Singapore company registration. They are as follows:

At least one local or resident director

At least one shareholder

Minimum initial-paid capital of S$1

At least one company secretary

Registered physical office address

As per the above list, you need at least one local or resident director for company formation in Singapore. However, this has nothing to do with having to select a local resident as your business partner.

Many foreign business owners, new to Singapore jurisdiction, stumble on this requirement. They confuse having to appoint a local/ resident director with having to select a local as a business partner.

After the appointment, a local/ resident director in Singapore works as an employee of the company.

If you are Singaporean, you can act in this capacity. However, the foreigners cannot act in this capacity as this appointee needs to be an ordinarily resident of Singapore.

The way out of the foreigners is to hire a Singaporean, Permanent Resident, an Employment pass holder to act in this capacity. Or, they can hire a nominee local director from one of the corporate services providers in Singapore.

A nominee director is hired under an elaborate contract. You can mention their duties, responsibilities and scope in the contract. They do not play any part in the management of the company.

To reiterate, you do not need to take a Singapore resident as your business partner for a company registration Singapore. The nominee or local/resident director you must appoint is the company's employee. And as per company Law, you can own 100% shares of your Singapore company.

@sbsgroupsingapore