Doing business

Singapore

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Company Limited by Guarantee. No minimum capital.	No minimum Liability is limited to the amount of guarantees
Company Limited by Shares and Guarantee. No minimum capital.	No minimum Liability is limited to the amount of guarantees
Private Company or Sendirian Berhad (Sdn Bhd) No minimum imposed by the law, in practice, capital is SGD 25,000	No minimum Maximum: 50 shareholders. Liability is limited to the amount contributed.
Public Company or Berhad (Bhd) No minimum capital.	No minimum Liability is limited to the amount contributed.
General Partnership No minimum capital.	Minimum 2. Maximum 20 Liability is unlimited.
Limited Partnership No minimum capital.	Minimum 2. Maximum 20. At least one person has an unlimited liability. Other partners' liability is limited to the amount they contributed.
Sole Proprietorship No minimum capital.	1 only person. Liability is unlimited.
Unlimited Company No minimum capital.	Minimum 2. Liability is unlimited.

Business setup procedures

Setting up a company	Singapore	East Asia & Pacific
Procedures (number)	3.0	7.8
Time (days)	3.0	39.0

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Singapore.
Accounting and Corporate Regulatory Authority
The competent organization: The Accounting and Corporate Regulatory Authority of Singapore.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	10,912	15,279	38,638
FDI stock (millions USD)	326,789.8	343,598.7	469,871.3
Performance Index*, ranking on 141 economies	50	18	-
Potential Index**, ranking on 141 economies	2	-	-
Number of Greenfield investments***	295	309	-
FDI inwards (in % of GFCF****)	20.8	27.1	-
FDI stock (in % of GDP)	173.6	194.0	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Singapore

Strong points

Singapore is the easiest country in which to do business, according to the Doing Business 2009 World Bank report. Singapore has excellent telecommunication, financial,and transport infrastructures, and its strategic location at the crossroads of maritime routes and proximity to the big markets is an advantage. The country offers tax concessions and easy loan conditions as part of investment incentives.

Weak points

The lack of transparency in administrative incentives and the non-internationalization of the Singaporean dollar are investment hindrances. Despite being a free port, tariff protection for industrial firms is not provided. The dominant role of semi-public companies could hinder investments in some sectors.

Government measures to motivate or restrict FDI

Singapore is open to foreign investment and offers tax incentives to companies after they register with Economic Development Board. However, the country continues to maintain monopolies in certain sectors (financial services, professional services, media and telecommunications). Government linked corporations play a dominant role in the domestic economy and to a large extent, on investment.

Bilateral investment conventions signed by Singapore

Singapore has signed investment promotion and protection agreements with a wide range of countries. These agreements mutually protect nationals or companies of either country against war and non-commercial risks of expropriation and nationalization for an initial period of 15 years and continue thereafter unless otherwise terminated.
Visit: Singapore 's FTA Network

Procedures relative to foreign investment

Freedom of establishment: Guaranteed
Acquisition of holdings: Possible. A majority stake in the capital of a local company is legal in Singapore.
Obligation to declare: It is obligatory to declare if the proposed company name includes a trademark or patent name or the name of another company/business already existing in any other country.
Competent organization for the declaration: Monetary Authority of Singapore (MAS)
Accounting and Corporate Regulatory Authority
Requests for specific authorizations: Though country's legal framework and governmental policies does not require any specific authorization to invest in the country; but certain limits exist in sectors like telecommunications, broadcasting, domestic news media, financial and some professional services. For these sectors, the Articles of Incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. Moreover, Finance Ministry approval is required for acquisition of local bank when exceeding the specified share limit.

Finding assistance for further information

Investment aid agency: Economic Development Board (EDB)
Other useful resources: Singapore Business Federation