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With Singapore’s reasonably minimal foreign investment restrictions, foreign investors can focus on growing their businesses across the country. What foreign investors also like about Singapore is that the country does not tolerate red tapes, implements an easy working legislation, and offers attractive tax rebates.
If you are a foreigner trying to find out if you can hold 100% shares in a Singapore company, then this article is for you. We will also tackle if you would need to give any shareholding to a nominee director or hire a local partner to incorporate your company in Singapore.
The Singapore Companies Act does not impose any restrictions on foreign investors taking 100% shareholding. Although proposed companies are required to appoint at least one local resident director upon company incorporation, directors are not required to be the shareholders of the company. This flexibility encourages many foreign investors to set up their companies in Singapore.
A shareholder can be a corporate entity, whose residency or registration took place in another jurisdiction. A shareholder can also be a foreign individual residing abroad. The first thing to note here is that 100% foreign shareholding is allowed in Singapore, which does not require appointing a local partner or giving any shareholding to a nominee director or any local person.
On top of that, there are no restrictions on the kind of business activities a foreigner can operate. There are no special approvals required as well. Suffice to say, being a foreign entrepreneur in Singapore makes no difference from being a local one, especially in terms of running a company.
Some corporate secretarial firms, which have been operating for a very long time, still follow some old rules. These old rules require foreign investors to give some shareholding (e.g., 1% shareholding) to local persons. However, legally speaking, these rules are no longer required.
Singapore’s flexible, cost-efficient, and straightforward company incorporation policies make 100% foreign shareholding possible in the country. No wonder, many foreign investors have been coming to Singapore to manage their businesses. In fact, most of them have already achieved business growth and success.
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