How an Israeli Citizen Can Start a Singapore Company
Savvy Platform
A one-stop shop for the full support of your business in Singapore - incorporation, office, team and lots more!
In an era of globalization, the prospect of Israeli entrepreneurs venturing into the dynamic market of Singapore presents a unique set of opportunities thanks to Singapore strategic location in the heart of the emerging region of South East Asia, top business reputation and excellent infrastructure for doing business.
Of course, there are some challenges that always go along with opportunities, too.
Understanding the intricacies of Singapore's business environment, from selecting the appropriate business structure to maneuvering the complexities of legal compliance, is paramount to catch the opportunities and address the challenges.
For an Israeli citizen, the journey begins with grappling with the significance of appointing a local director, a statutory requirement that underscores Singapore's commitment to responsible business practices.?
This discussion will unfurl the procedural tapestry involved in establishing a corporate entity in Singapore, inviting a closer examination of the strategic steps that guarantee a smooth shift into this vibrant economy.
In a Nutshell
Understanding Singapore's Business Environment
?For Israeli entrepreneurs looking to expand globally, comprehending Singapore's dynamic and pro-business environment is a critical first step.
Singapore's strategic location at the heart of Southeast Asia offers unparalleled access to the rapidly growing markets of the Asia-Pacific region.
This geographic advantage is complemented by a robust and transparent legal system that protects intellectual property rights, a key concern for innovative businesses.
The Singaporean government is renowned for its efficiency and pro-business stance, offering a variety of incentives designed to attract foreign investment.
These incentives range from tax benefits to grants and schemes aimed at supporting entrepreneurship and research and development activities.
Additionally, Singapore's tax regime is favorable, with one of the lowest corporate tax rates in the world, further enhancing its appeal as a business hub.
Furthermore, Singapore's multicultural workforce is highly educated and proficient in English, facilitating smooth business operations and integration for Israeli companies.
The ease of doing business is evident in the streamlined processes for company registration and the absence of bureaucratic red tape, making it an attractive destination for businesses seeking to establish a presence in Asia.
Choosing a Suitable Entity Type
Understanding the advantages of Singapore's business environment, it becomes imperative for Israeli entrepreneurs to select an appropriate business structure that aligns with their strategic goals and operational needs.
Singapore offers a variety of entity types, including Sole Proprietorship, Private Limited Company, Limited Liability Partnership (LLP), Variable Capital Company (VCC) and Public Limited Company.
Each type has its own set of advantages, tax implications, and regulatory requirements.
A Sole Proprietorship is straightforward to set up and ideal for single-owner businesses, providing simplicity but lacking in liability protection.
A LLP combines the flexibility of a partnership with the benefits of limited liability, which is suitable for professional services rendered by two or more partners.
Variable Capital Company (VCC) is a recently introduced business type which is good for externally managed investment funds.
From our experience, Israeli entrepreneurs aiming for scalability, credibility, and access to capital often prefer a Private Company Limited by Shares.
This entity type offers limited liability, separate legal identity, and tax benefits, making it attractive for businesses with higher risk and growth aspirations.
Choosing the right entity type is critical as it affects your liability, tax obligations, and ability to attract investment.
It's advisable to consider long-term business goals, the nature of your business, and potential risks when deciding on the most suitable business structure for your venture in Singapore.
Initial KYC: both Darkon and “Laissez-Passer”?are welcomed, Teudat Zehut is not.
Setting up a Singapore company starts with the customer identification which means collecting documents that confirm individual’s identity and address.
State of Israel issues two types of travel documents to Israeli citizens:
?-?????? International Passport, also known as “Darkon”; or
-?????? Israeli travel document in lieu of national passport, known as “Laissez-Passer” or “Teudat Ma’avar”.
Both documents grant their holders visa-free entry to Singapore, so they both are acceptable for the purpose of Singapore company incorporation.
Getting proper proof of address is more complicated, as the documents are issued in Hebrew.
Service providers will usually ask you to translate document into English.
At SAVVY PLATFORM, we have Hebrew speakers, so we accept documents from Israeli citizens without translation.
For the citizens of Israel who live outside Israel, the proof of address documents should be originated from the actual country of residence.
It should be pointed out that Israeli National ID, or Teudat Zehut, is never used for KYC purposes in Singapore.
This is an internal document used for identification purposes on the territory of Israel.
The Importance of a Local Director
?Establishing a successful business in Singapore necessitates appointing a local director, a requirement that holds significant implications for Israeli entrepreneurs aiming to operate within the region.
This appointment isn't merely a formality but a strategic decision that can influence the company's compliance, reputation, and operational efficiency.
The local director serves as the company's legal representative in Singapore, ensuring adherence to local laws and regulations.
This role is vital for maintaining the legal standing of the company, as well as for establishing trust with local stakeholders and authorities.
To further understand the role and importance of a local director, consider the following table:
Appointing a local director is not just about fulfilling a legal requirement; it's about strategically positioning the Israeli-owned Singapore company for success in a competitive market.
Young projects that are budget-constrained usually start the company using the service of the local Director.
Once the business matures, it can afford to hire a part-time or full-time local Director.
All these options are available to SAVVY PLATFORM customers.
Company Registration Process
Commencing the journey of registering a company in Singapore requires Israeli entrepreneurs to navigate a series of strategic steps designed to guarantee compliance and operational readiness.
The meticulous planning inherent in the process guarantees a smooth shift from conceptualization to a fully functional enterprise.
Singapore's business-friendly environment, coupled with its robust legal framework, demands thoroughness in the preliminary stages of company formation.
To streamline the registration process for Israeli citizens, the following key steps must be adhered to:
This structured approach, when meticulously followed, paves the way for a successful company registration in Singapore.
Opening a Corporate Bank Account
Following the successful registration of a company in Singapore, the next imperative step for Israeli entrepreneurs is to open a corporate bank account to facilitate financial transactions and manage business finances efficiently.
Singapore's banking system is renowned for its robustness, offering a wide array of services tailored to corporate needs, including multi-currency accounts, online banking, and trade financing options.
However, the process can be intricate, requiring thorough preparation and understanding of the requirements.
To start, entrepreneurs must choose a bank that aligns with their business needs.
Major banks in Singapore such as DBS, OCBC, and UOB are popular choices due to their detailed services and international networking capabilities.
Nonetheless, smaller banks and international banks with branches in Singapore might offer more tailored services for specific industries.
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On top of that, a number of non-banking institutions emerged to cater needs of small and medium businesses to receive money from their customers and pay to their suppliers.
Banks and payment service providers outside Singapore also welcome Singapore-registered companies as their customers.
The documentation required typically includes the company's business profile, a resolution from the board of directors authorizing the opening of the account, identification and proof of address for all directors and signatories, and a detailed business plan.
Banks in Singapore require application to be made in-person, while non-banking institutions allow remote account opening.
Some banks may also request additional documents to better understand the business and its needs.
As Singapore has a well-established track record of fruitful economic cooperation with Israel, Israeli entrepreneurs are respected by the banks in Singapore.
However, it is always to consult with your chosen bank early in the incorporation process for a smooth and efficient account opening.
Understanding Tax Obligations
Understanding the intricacies of tax obligations is an important step for Israeli entrepreneurs establishing a business in Singapore, ensuring compliance and financial health.
Exploring the tax landscape in Singapore is essential for the smooth operation and sustainability of your business.
Here, we break down the key components of tax obligations that Israeli citizens need to be aware of when setting up a company in Singapore.
Obtaining Necessary Licenses and Permits
After covering the tax obligations for Israeli entrepreneurs in Singapore, the next step involves the process of obtaining the necessary licenses and permits for your business.
Singapore's regulatory environment is renowned for its efficiency, but it does require careful attention to detail and adherence to specific procedures to guarantee your business operations are fully compliant from the outset.
The type of licenses and permits required can vary greatly depending on the nature of your business.
For instance, sectors such as food and beverage, education, and financial services are subject to more stringent regulatory scrutiny and thus require specific permits that demonstrate compliance with health, safety, and educational standards.
To begin this process, Israeli entrepreneurs should first visit the GoBusiness Licensing portal, a one-stop solution provided by the Singapore government.
This platform simplifies the application process for business licenses, permits, and approvals.
By inputting information related to your business activity, the portal guides you through the necessary steps and identifies the specific licenses required for your business operations.
It's key to factor in the processing time for these applications, as delays in obtaining the necessary licenses can impact your business launch timeline.
Thorough research and early application submission are advisable to navigate this phase successfully.
Maintaining Compliance and Good Standing
Maintaining compliance and good standing is essential for Israeli entrepreneurs in Singapore, ensuring that their business operations continue to adhere to local regulations and standards. Singapore's reputation as a global business hub is partly due to its stringent regulatory environment, which demands high compliance standards from companies.
For entrepreneurs from Israel, managing these requirements can be challenging but is vital for the longevity and success of their enterprise in the region.
To maintain compliance and good standing, Israeli entrepreneurs should focus on several critical areas:
Conclusion
As this exploration of the journey for Israeli citizens to establish a business in Singapore concludes, it's evident that while the path is laden with opportunities, it demands precision, awareness, and adherence to the locale's stringent regulatory landscape.
Central to navigating these waters successfully is the partnership with a knowledgeable and experienced firm that can provide the necessary guidance and support.
This is where the Savvy Platform distinguishes itself as an indispensable ally.
Savvy Platform, with its deep expertise and rooted presence in Singapore, emerges not just as a service provider but as a strategic partner for Israeli entrepreneurs eyeing the vibrant Singapore market.
?The platform's comprehensive suite of services — from Savvy Start, which assists the fast and affordable company incorporation, to Savvy Secretary, which ensures ongoing compliance and administrative support — is designed to cater to the multifaceted needs of new entrants in the Singapore business landscape.
For Israeli entrepreneurs, the journey of setting up a venture in Singapore is fraught with challenges such as choosing the right business structure, understanding and adhering to tax obligations, navigating the necessity of obtaining various licenses and permits, and, not least, the crucial appointment of a local Director.
Here, the Savvy Platform 's role transcends the conventional, offering not merely a transactional service but a partnership that ensures these entrepreneurs can focus on their core business objectives without being encumbered by the administrative, legal, and regulatory complexities inherent in such a venture.
In essence, Savvy Platform functions as the beacon that guides Israeli businesses through the intricacies of establishing and operating in Singapore's dynamic and competitive environment.
By leveraging the platform's resources, expertise, and local knowledge, Israeli entrepreneurs can mitigate risks, ensure compliance, and position themselves advantageously in the Asian market.
Thus, in the grand tapestry of global entrepreneurship, Savvy Platform stands out as the thread that weaves success stories for Israeli businesses in Singapore, enabling them to navigate the complexities with ease and confidence and forge a path of growth, innovation, and prosperity in the heart of Asia.
Frequently Asked Questions
Can an Israeli citizen register a company in Singapore??
Yes, an Israeli citizen can register a company in Singapore.
The process is straightforward and can be done remotely.
Do I need to be a resident of Singapore to start a company there??
No, you do not need to be a resident of Singapore to start a company.?
However, Singapore law requires that every company must have at least one director who is ordinarily resident in Singapore.?
What are the main types of companies that can be formed in Singapore??
The most common type of company formed in Singapore is a private limited company.?
Other forms include sole proprietorships, partnerships, variable capital companies (VCCs) and limited liability partnerships (LLPs).
What is required to register a company in Singapore?
To register a company, you need a company name, at least one shareholder, one resident director, a company secretary, a local registered office address, and a description of business activities.
Can an Israeli citizen be the sole director and shareholder of a Singapore company??
An Israeli citizen can be the sole shareholder of a Singapore company but cannot be the sole director unless they are a resident of Singapore.
You would need to appoint at least one resident director.
How do I appoint a resident director??
You can appoint a resident director either by engaging a professional services firm in Singapore that provides nominee director services or by appointing an individual who is a Singapore Citizen or Permanent Resident.
How long does it take to register a company in Singapore??
If all documents are in order, the company registration process can be completed within 1-2 days.
What is the minimum paid-up capital required for starting a company in Singapore??
The minimum paid-up capital for starting a company in Singapore is SGD 1.
There is no maximum limit, and the paid-up capital can be increased at any time after incorporation.
Do I need a local bank account for my Singapore company??
While it is not a legal requirement, it is highly recommended to open a corporate bank account in Singapore to facilitate business transactions.
Is my presence required in Singapore to incorporate a company or open a bank account??
Generally, your presence is not required for incorporation, as this can be done remotely with the help of a corporate services provider.
However, most banks require the presence of company directors and signatories for account opening, although some banks may offer remote account opening solutions.
Remote account opening is also available with payment service providers, like Airwallex