Singapore offshore company formation

Are there any restrictions on company name in Singapore?

While you can easily register for a new business in Singapore, you should be careful when choosing your company name. It is advisable to perform a name check to make sure that your company name can be approved for registration by the Singapore Accounting and Corporate Regulatory Authority (ACRA) in the first place. Here are the applicable restrictions for a new company name in Singapore.

• Undesirable. Your company name will be rejected if it contains offensive or vulgar words;
• Identical to an already available company name in Singapore
• Identical to an already reserved company name. There are companies in Singapore that have not been incorporated but have already registered their business name as a reservation to ACRA. Business names are reserved for at least 60 days, and up to 120 days. This is why anyone who plans to set up a new business in Singapore must perform a proper company name check.
• Prohibited by order of the Minister for Finance. The word "Temasek" is prohibited to be used as a company name. Currently, this is the only word which the Minister has directed the Registrar not to accept for registration..
• Certain words such as “bank”, “insurance”, “university”, and “education” are not in the criteria for Singapore company name restrictions, but are strictly used under Government authorities and will require permission before you can set up a new business.

The Accounting and Corporate Regulatory Authority (ACRA) is the regulator of business registration, financial reporting, public accountants, and corporate service providers; it also facilitates enterprise.

ACRA document in Singapore provides a reliable and vibrant business environment in the country. ACRA’s role is to achieve synergies between monitoring of corporate compliance with disclosure requirements and regulation of public accountants performing statutory audits.

ACRA’s function is to establish and manage a repository of the document and information related to the business entities that are registered there, and to provide access to the public to those documents and information.

See more: Company formation in Singapore

You can check if a company is registered in Singapore by visiting the Accounting and Corporate Regulatory Authority (ACRA) website and conducting a due diligence check. Follow these steps:

1. Visit ACRA Register

2. Enter company name and UEN, then click “Search”

3. If a company is already registered in Singapore, you should see its information below.

See more: Company formation in Singapore

It is mandatory for foreign workers to have a valid work permit (commonly called a work permit) before they start working in Singapore. As an employer, you need to be sure your employees have the right pass and are eligible for it.

The duration of the Work Permit (WP) in Singapore is typically 2 years, depending on the worker's working time, security bond, and passport validity, whichever is shorter.

As long as the Work Permit is valid, the holders can stay in Singapore to work in the occupation and for the employer specified in their Work Permit card.

Work Permit holders cannot register a company in Singapore. It means that they are not permitted to serve as sole proprietors, partners, or directors of any Singapore-registered companies.

They will have violated the terms of the work pass if doing so, and their work passes will be revoked. They will also have to serve an employment ban.

For work permit holders to register a company in Singapore, they can apply for a Singapore Employment Pass (EP) or Entrepreneur Pass (EntrePass) from the Ministry of Manpower (MOM).

The EP is a type of work visa issued to non-Singaporean professional employees, managers and owners/directors of Singapore companies. EP holders are permitted to own shares in Singapore companies, but cannot be the director in such companies if they are working for another employer.

The EntrePass is also a type of work visa for foreigners who wish to register a company in Singapore. EntrePass holders must present a minimum of $50,000 in paid-up capital. It is helpful for foreign business owners who lack formal credentials but have a proven successful track record.

Companies in Singapore are required to have at least one director. A director is a person who is appointed by the shareholders to be in charge of managing the company’s daily affairs. The person must make the strategic and operational decisions of the company and is responsible for ensuring that the company meets its statutory obligations.

Every company in Singapore must have at least 1 director. Here are the basic requirements for a company director in Singapore:

• At least 18 years old;
• Of full legal capacity;
• Can be of any nationality;
• Ordinarily resident in Singapore: A Singapore Citizen, Singapore Permanent Resident or EntrePass/ Employment Pass (EP) holder.
• An EP holder wishing to become the director of a local company must first get a Letter of Consent (LOC) from the Ministry of Manpower (MOM).
• People with Foreign Identification Number (FIN) are advised to check with the relevant authorities (e.g. MOM/ ICA) on their eligibility before registering or designating (e.g. Director, Secretary).

Singapore is often referred to as an offshore financial centre (OFC). That means Singapore provides corporate and financial services to foreign investors on a scale that is out of proportion with the size of its domestic economy. The country is in the category of offshore financial centre because it offers attractive tax incentives. Along with low tax rates, there are also tax exemptions offered for businesses in certain industries, especially in offshore and global trading.

Banking secrecy is also another reason that put Singapore in the list of offshore financial centres. The country is in the top 5 of the 2020 Financial Secrecy Index. Its secrecy score is 65 and contributes over 5% share of the global market for offshore financial services.

Banking in Singapore is under the contractual duty of confidentiality imposed by section 47 of the Banking Act, which states that customer details shall not, by any means, be disclosed by a bank or its officers in Singapore, to any other entity except as mentioned in the Act.

By that definition, Singapore can also be classified as a tax haven. It has low "effective" tax rates and offers financial secrecy. It is also in the tax haven lists conducted by reputable international organizations.

Being listed as a tax haven does not mean Singapore is a bad choice for investment. In fact, despite the tax haven status, Singapore has proven itself as an international business center and a global commerce hub, continuing to be the ideal destination for business owners and investors around the world.