FAQs

What is the difference between a shareholder and a Director?

• A shareholder owns the company.

• A shareholder can be an individual or more than one individual.

• A shareholder can also be another company or more than one company.

• A shareholder can be a Director of a company, but it is not required.

• A Director does not necessarily have to be a shareholder.

In Singapore, a company owned by foreigners is required to have a Local Director (LD). An LD is defined as an individual who resides in Singapore. They must be a Singaporean citizen, a permanent resident (PR). 

A person w/ an employment pass (M-Pass) can also be a LD but needs to go through an approval process. 

In Singapore, some industries require Directors with relevant experience in the industry. It cannot be just any individual.

An independent Director (ID) is an individual with no conflict of interest with the Company. That ID’s role is meant to provide impartial, fair and objective decisions to protect the Company’s stakeholders - customers, the government, the shareholders, etc. It is not required for most companies unless required by the government or the company voluntary elects for an ID.

 Why do you need a Local Director in Singapore if you are foreign owned?

Because that is the law and the spirit of the law is to prevent any individuals with criminal intent by simply opening a company. The LD can be  liable for the wrongdoings of the company.

Why does a company need a Company Secretary (CoSec)? What is the role of the CoSec?

Company secretaries are required for all local registered companies. The appointment must be done within 6 months of their incorporation. Co Secs are responsible for making sure that the organization complies with the standard financial requirements and given by the government. Must be well educated about all the compliance the government expects.

Why does a company need a tax accountant to file tax returns in Singapore?

Because all businesses that profit and make money in Singapore (even just invoices) taxes from these profits must be paid and filed in Singapore.

Requirements for Singapore Company Registration

• At least one local or foreign shareholder

• Paid up capital of at least S$1

• At least one director who is resident of Singapore

• A registered address in Singapore

• Business name approved by ACRA

• A company Secretary who resides in Singapore