Singapore Country Profile business trade issues

Singapore

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Founders of a new business in Singapore can request assistance from certain institutions or national organisations. Generally, aids or incentives are negotiated before the company's registration. Investors can contact the Singapore Trade Development Board (STDB) which mainly aims at promoting foreign investments and exports. Moreover, the Economic Development Board (EDB) is in charge of increasing foreign setting ups in Singapore by granting different forms of subsidies.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
Company Limited by Guarantee.	Minimum 2.	No minimum capital.	Liability is limited to the amount of guarantees	They vary according to the capital amount . About SING$ 600	No
Company Limited by Shares and Guarantee.	Minimum 2.	No minimum capital.	Liability is limited to the amount of guarantees	About at least SING$ 1,200. Maximum SING$ 35,000.	No
Private Company or Sendirian Berhad (Sdn Bhd)	Minimum 2. Maximum 50 shareholders.	No minimum imposed by the law, in practice, capital is SING$ 25,000	Liability is limited to the amount contributed.	About at least SING$ 1,200. Maximum SING$ 35,000.	No
Public Company or Berhad (Bhd)	No minimum	No minimum capital.	Liability is limited to the amount contributed.	About at least SING$ 1,200. Maximum SING$ 35,000.	Yes, if the company is quoted on the stock exchange.
General Partnership	Minimum 2. Maximum 20	No minimum capital.	Liability is unlimited.	About SING$ 600.	No
Limited Partnership	Minimum 2. Maximum 20.	No minimum capital.	At least one person has an unlimited liability. Other partners' liability is limited to the amount they contributed.	About SING$ 600.	No
Sole Proprietorship	1 only person.	No minimum capital.	Liability is unlimited.	About SING$ 600.	No
Unlimited Company	Minimum 2.	No minimum capital.	Liability is unlimited.	About SING$ 600.	No

Registration and licensing procedures
The company's founders in Singapore have to register the company's name and pay registration fees. Investors have then to register their company with the Registry of Companies and Businesses (RCB) which delivers a registration certificate.

Legal framework
There are no specific legislations regulating foreign investments in Singapore.

Foreign exchange control
Currency exchange control has been suppressed in 1978 and allows free repatriation of profits and capital.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Singapore.

Foreign Direct Investment inflows in Singapore

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	10 376	14 820	20 083	5/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update