If you are in Singapore, hold a DP, and want to register a company in Singapore, congratulations! Here are the things you need to know.
Can I register a company with DP?
Yes, there are two ways: to become a regular employee or director of the company. The first way is simpler: just register the company, obtain the consent, and continue to retain the DP. If you want to become a director, please apply for the EP of the new company after incorporation. This requires more time and effort, but you can have autonomy and save some costs.
How to obtain consent?
The Letter of Consent is a work permit granted by the Ministry of Manpower and it takes about 3 weeks to obtain it after application. Three requirements must be met to obtain a consent form:
- The application must be submitted by your employer-your new company.
- The remaining validity period of your DP is not less than 3 months.
- Your DP must be sponsored by an Employment Pass (EP), Entrepreneur Pass (EntrePass) or Advanced Employment Pass (PEP) holder. If your spouse holds an SP, then you cannot apply for LOC.
What are the restrictions for DP holders?
Your DP status is linked to your spouse's EP. If the original EP expires, your DP and LOC will also expire. Therefore, whether you can stay in Singapore depends entirely on your spouse.
Another issue that needs attention is local directors. Singapore law requires every company to have a local director. DP holders cannot become local directors, so you need to hire a local person you know to serve as a local director, or hire a local director. The cost of hiring a local director is S$1800 to S$2500 per year, and many agents also charge a deposit of S$2,000.
It takes 3-6 months to apply for an EP. During this waiting period, the cost of hiring a local director is about 500-1000 SGD. Once your EP is ready, you can fire the acting local director and then become the local director yourself.
What is a local director?
Local directors formally hold the positions of directors, but they do not have any actual decision-making power or company management power. A local director is a nominee director to meet legal requirements.
What do I need to register a company?
To register a company in Singapore, you need to have a local registered address, a company secretary, a local director and 1 SGD registered capital.
What is the process of registering a company?
Company registration is usually represented by an agency, which will also provide other necessary services, such as company secretary, local director or company registered address. They will fill out the application form and submit it to the Accounting and Corporate Authority of Singapore (ACRA). The application contains your passport details, company name, local directors, company secretary details, all shareholders and local registered addresses. Generally speaking, it only takes a few minutes to confirm the application.
How much does it cost to start a company in Singapore?
The cost of starting a company includes company registration fees, government fees, and necessary service fees for the first year (company secretary, local registered address and local director service fees). The total cost may vary, depending on whether you want to apply for a new EP. There are two specific situations: