Singapore has long been recognized as one of the best places in the world to start and run a business. Its strategic location, business-friendly regulations, low tax rates, and efficient infrastructure make it a preferred destination for entrepreneurs worldwide — including Indonesian citizens looking to expand their ventures internationally. If you’re an Indonesian citizen considering starting a company in Singapore, this guide will help you understand the steps involved and how to navigate the process effectively.
Why Choose Singapore to Start Your Company?
Singapore offers numerous advantages for foreign entrepreneurs:
- Ease of Doing Business: Singapore ranks consistently among the top countries globally for ease of business incorporation and operation.
- Tax Benefits: Competitive corporate tax rates, with several incentives designed to support startups and SMEs.
- Access to Southeast Asian Markets: Singapore serves as a gateway to the fast-growing ASEAN region.
- Robust Legal Framework: Transparent laws protect investors and intellectual property.
- Strong Financial Services Sector: Wide availability of banking and funding options.
- Double Taxation Avoidance Agreement: Singapore and Indonesia have agreements to prevent double taxation on income.
Step 1: Choose Your Business Structure
The most popular structure for foreign entrepreneurs is a Private Limited Company (Pte Ltd). It offers limited liability protection, credibility with clients and investors, and easy transferability of shares.
Step 2: Appoint a Local Director
Singapore requires that every company has at least one director who is a resident of Singapore. This means the director must be a Singapore citizen, permanent resident, or hold an appropriate work pass (EntrePass, Employment Pass, or Dependant Pass).
As an Indonesian entrepreneur, you have two main options:
- Apply for an EntrePass or Employment Pass to act as the local director yourself.
- Appoint a nominee local director through a professional corporate service provider.
Step 3: Decide on Your Company Name and Register It
Register your company name with the Accounting and Corporate Regulatory Authority (ACRA). The name must be unique, not infringe on trademarks, and meet ACRA’s guidelines. Usually, the approval process is quick, sometimes within a few hours.
Step 4: Prepare Incorporation Documents
You’ll need to prepare and submit the following documents to ACRA:
- Company constitution (previously known as Memorandum and Articles of Association)
- Consent forms signed by directors and shareholders
- Identification details and residential addresses of shareholders and directors
- Registered Singapore office address
- Appointment of a company secretary within six months of incorporation (a mandatory requirement)
Step 5: Complete Company Incorporation
Submit all documents online to ACRA. The approval and issuance of your company’s Certificate of Incorporation usually happen within 1–2 business days.
Step 6: Open a Corporate Bank Account
Opening a corporate bank account is essential for your Singapore company’s operations. Banks like DBS, OCBC, and UOB typically require company documents, identification of directors and shareholders, and sometimes a business plan. Some banks may ask for physical presence during account opening.
Step 7: Apply for Business Licenses (if Required)
Certain business activities require special licenses or permits. Make sure you check if your intended business falls under these categories and apply accordingly to avoid penalties.
Step 8: Maintain Compliance
After incorporation, your company must comply with ongoing regulatory requirements such as:
- Filing annual returns with ACRA
- Maintaining proper accounting records
- Filing taxes with the Inland Revenue Authority of Singapore (IRAS)
- Conducting annual general meetings (AGMs)
Helpful Tips for Indonesian Entrepreneurs
- Utilize the Double Taxation Agreement: It helps reduce tax burdens on income earned between Indonesia and Singapore.
- Consider Visa Options: If you want to work in your company, secure the right employment pass.
- Seek Professional Assistance: Hiring a corporate service provider can simplify the entire process and ensure compliance.
- Network Locally: Building relationships with local partners can ease your market entry.
Final Thoughts
Starting a Singapore company as an Indonesian citizen is a smart move to leverage Singapore’s favorable business environment and access the broader Southeast Asian market. While the process is straightforward, having expert guidance can save you time and hassle.
If you want to learn more → click here to explore how Savvy Platform can help you set up your Singapore company efficiently and successfully. Savvy offers tailored services designed to assist entrepreneurs from Indonesia and beyond with hassle-free business incorporation and ongoing support.
Begin your Singapore business journey today and unlock new growth opportunities!
