Mention the name Singapore, and most businessmen have a sense of trust and peace about the place. Singapore is well-known as an international financial centre with a pro-business environment, excellent infrastructure, cost-competitive and a highly skilled work force.

Singapore ranks #1 and #2 on many global surveys including:

• #1 Most Competitive Economy – IMD World Competitiveness Ranking 2019;
• #2 in the world for Ease of Doing Business – World Bank’s Doing Business Survey 2019;
• #2 in the world for Talent Competitiveness – INSEAD’s Global Talent Competitiveness Index 2019; and
• #2 in the world for Digital Competitiveness – IMD World Digital Competitiveness Ranking 2019.

Foreigners can own 100% of the company shares with no ownership restrictions.  To start a Singapore company, foreigners should observe that:

• Their physical presence is not required in Singapore at the time of setting up the company. However, their physical presence is required when the bank account is being opened.
• The director and shareholder records are publicly accessible.
• Foreigners can run the Singapore company without having to live in Singapore. However, Singapore companies must have a local resident director living in Singapore.
• On the other hand, if the foreigner wishes to run the business locally in Singapore, the foreigner would need an Employment Pass or Entrepreneur Pass. With this local presence, the foreigner can be the company’s local resident director.

Here are some popular uses whether or not the person is a Singaporean or foreigner:

• Launching a startup business – As mentioned, there are tax incentives and Singapore is one of the world’s most business-friendly places. As an example, a 2017 Startup Genome’s report places Singapore as the world’s number 1 for startup talent. In fact, Singapore has overtaken Silicon Valley as the world’s number 1 for startup talent.
• International expansion – Foreign businesses that wish to expand internationally can use Singapore as a launchpad to expand organically or through acquisitions.
• Holding company – To create a holding company to hold the shares of its subsidiaries. The holding company’s main purpose is to provide the financial structure for the business and to ringfence the risks of each subsidiary from one another.
• Trading from Singapore – A foreign business that is serving foreign clients can use a Singapore company to distribute products of the foreign company. International customer transactions can be handled by the Singapore company.