Singapore's parliament made some critical changes to their companies Act back in 2017. One key amendment was inward re-domiciliation regime which was implemented on October 11, 2017. This amendment gives foreign companies the chance to relocate their business entities to Singapore instead of starting subsidiaries without losing their brand identity or corporate history.
This amendment has favored foreigners greatly. You can set up or move your business to this country. Foreigners should have proper documentation to set up business in Singapore. One Visa Singapore can help you get your visa, which is among some of the important documents. Foreign companies situated outside
Singapore can be registered as a private company in Singapore and operate under the laws of the country. There is no need to close all your business activities so that you may set up a company in Singapore. Re-domiciliation in this country does not give room for the creation of a new legal entity.
It also does not affect the obligations or property rights of foreign entities. Some of the reasons why companies may choose to re-domicile include economic resilience, political stability, access to capital markets or finances, proximity to markets and pro-business legislation.
Singapore Re-Domiciliation Procedure and Requirements
Transferring the registration of a foreign company to Singapore is somehow similar to starting a subsidiary in the same country. Foreign companies must ensure they meet the set requirements before registration. Companies are required to be of a specific minimum size for their continuation in Singapore.
To meet the right size requirements, the revenue of a particular company should not exceed 7.4 million USD which is an equivalent of S$10 million. The value of the total assets of a specific company at the end of each financial year should not exceed 7.4 million USD. They should also have not more than 50 employees at the end of each fiscal year.
Foreign entities are also needed to submit a certified copy of their corporate charter. Other requirements include a statute, constitution or a memorandum with its original area of incorporation and the rules by which the specific entity wants to be registered. A company is required to update all the registration details once it has been re-domiciled to Singapore.
They can do this by de-registering their previous details. Everything is subject to approval by the registrar’s office. One can appeal to the finance ministry in case of registration annulment. This should happen within 30 days after the annulment date.
What You Should Understand Before Re-Domiciling to Singapore
You must set your goals right before deciding to re-domicile to Singapore. Companies should also familiarize themselves with the re-domiciliation process and understand all the legal consequences involved. You should also realize that companies in areas that don't have company relocation policies cannot re-domiciliate to Singapore.
Companies in nations that do not have a re-domiciliation regime cannot register their entities in Singapore. You cannot re-domicile to another country once you have done so in Singapore. After registration, you have no option of undoing it. You should also understand that this process has stamp duty and tax implications. One should be familiar all this to find out if they are ready for the whole process.