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Setup new Company, Bank Account Matters

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
afham07
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Setup new Company, Bank Account Matters

Postby afham07 » Sat, 01 Apr 2017 3:55 pm

Dear Sir,

I am Malaysian, running a company in Malaysia. With recent changes, we have decided that opening a company in Singapore would benefit us all. However, there are a few concerns such as:

1. Setup a new company is easy in Singapore, some claim can be done in an hour but opening company bank account is tricky part. What do I need to provide to ensure banks have no issue to open a company account? There is no reason to open a company in Singapore without bank account.

2. Setup a new company requires local nominee directors. According to company secretary, this director has no right on company share, management, bank account, etc. It is just purely their name in company registration form. How true is this?

3. Some company secretary offered us SGD1000-3500 per year for nominee director. what is reasonable rate?

4. If I am the director of the company, how easy for me as Malaysian to open a personal bank account in Singapore for salary purpose? Company secretary can't offer me this service.

5. If I am the director of the company, run the SG company from Malaysia/abroad, do I really need EntrePass? and Why? For your information, we are setup a company in Singapore as our Sales office but all operations and productions still in Malaysia. Only invoices, contracts to/from clients/suppliers will be from our Singapore company. So, most of the time we will be in Malaysia/abroad.

6. If I myself have EntrePass, can I be director for the company to replace the current nominee director? So, we can save some dollars annually. I read in the other post in this forum, sounds like it is possible.

7. In Malaysia, we do need to hire(or use) and pay for auditor service from other company to prepare for annual Financial Report but I read somewhere there is not compulsory in Singapore. How true is this?

8. Which are reputable banks in Singapore and easy to get approved for company account? I currenly asking our company secretary to set appointment with OCBC and UOB bankers.

9. What are the cost I have to aware to avoid hidden fee, misleading information, etc?

We will be in Singapore coming Friday with Singapore company secretary and bankers to incorporate new company in Singapore.

Looking forward for your responds. Thank you.

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Strong Eagle
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Re: Setup new Company, Bank Account Matters

Postby Strong Eagle » Mon, 03 Apr 2017 6:13 am

afham07 wrote:Dear Sir,

I am Malaysian, running a company in Malaysia. With recent changes, we have decided that opening a company in Singapore would benefit us all. However, there are a few concerns such as:

1. Setup a new company is easy in Singapore, some claim can be done in an hour but opening company bank account is tricky part. What do I need to provide to ensure banks have no issue to open a company account? There is no reason to open a company in Singapore without bank account.


It is easy to open a bank account in Singapore. You'll need to pick up the standard boilerplate directors resolution from your bank, have your own directors resolution authorizing the opening of accounts, and a BizFile printout showing the directors of the bank. You need to be present in person to sign the signature cards and show proof of who you are.

2. Setup a new company requires local nominee directors. According to company secretary, this director has no right on company share, management, bank account, etc. It is just purely their name in company registration form. How true is this?


This is mostly false. There is no such thing as a "nominee director". There are only directors under the companies act. The director is the management of the company by law and you cannot restrict the duties of a director in any way. Therefore, your nominee director could f*ck you in many ways, and you would always want to pre-signed, undated letter of resignation.

You don't have to give shares to a director and you certainly wouldn't give shares to a rented director.

But the real problem is the reverse. Your director is responsible for all your acts and if you do anything illegal, or cause the company to get sued, it is the director who gets in trouble.

Therefore, any company that rents you a director will generally insist on the following:
  1. You must have your accounting services with the company so they can see all your transactions.
  2. You must have all bank statements forwarded to the company so they can see your banking activity.
  3. You must have all EP's and other work passes approved by the accounting services company.
  4. The accounting services company must approve all of your legal contracts.

In other words, they want to keep close tabs on you to make sure you're not doing anything illegal.

3. Some company secretary offered us SGD1000-3500 per year for nominee director. what is reasonable rate?


I would be very surprised in you could rent a director for $1000 per year... I'd guess more like $3000 to $6000 per year because of all the risks they are taking.

4. If I am the director of the company, how easy for me as Malaysian to open a personal bank account in Singapore for salary purpose? Company secretary can't offer me this service.


I know CitiBank will open accounts for non-residents but they have expensive fees. I know UOB will open a personal account for non-residents if you get a letter of recommendation from an existing UOB account holder. I don't know about the others... you will need to ask about their policies.

5. If I am the director of the company, run the SG company from Malaysia/abroad, do I really need EntrePass? and Why? For your information, we are setup a company in Singapore as our Sales office but all operations and productions still in Malaysia. Only invoices, contracts to/from clients/suppliers will be from our Singapore company. So, most of the time we will be in Malaysia/abroad.


You don't want and would never qualify for an Entrepass. You must be referring to an Employment Pass (EP). You do not need an EP if you are not resident and working in Singapore. Note however, that if you are a foreign director, any money paid to you, regardless of where you bank account is located, may be subject to withholding tax of 22 percent. You pay yourself $1000, you withhold $220 and send to IRAS, and send yourself $780. The rules are more complicated and you will want to contact IRAS to get it right.

6. If I myself have EntrePass, can I be director for the company to replace the current nominee director? So, we can save some dollars annually. I read in the other post in this forum, sounds like it is possible.


At least one director must be physically resident in Singapore, so unless you or someone else intends to take up residency and get an EP, you must keep your rented director.

7. In Malaysia, we do need to hire(or use) and pay for auditor service from other company to prepare for annual Financial Report but I read somewhere there is not compulsory in Singapore. How true is this?


In general, you will not need audited accounts by law. However, banks may require it as a condition of keeping a bank account.

8. Which are reputable banks in Singapore and easy to get approved for company account? I currenly asking our company secretary to set appointment with OCBC and UOB bankers.

9. What are the cost I have to aware to avoid hidden fee, misleading information, etc?

We will be in Singapore coming Friday with Singapore company secretary and bankers to incorporate new company in Singapore.

Looking forward for your responds. Thank you.


Here is the big deal for you. Singapore monetary authority has fined DBS, UBS, and StanChart for violating money laundering regulations. They have closed two more banks for laundering money in the 1MDB scandal.

While you may be able to open an account, the banks will be very cautious about the nature of your transactions. They will probably not be very willing to enable electronic banking like funds transfer until they know you are a trustworthy company. This is going to be your biggest issue... proving up that you are not creating a Singapore entity and bank account to launder money illegally gained in Malaysia.

parolant
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Re: Setup new Company, Bank Account Matters

Postby parolant » Wed, 12 Apr 2017 8:31 pm

how about the foreign workers quota? 1:7 for construction?

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Strong Eagle
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Re: Setup new Company, Bank Account Matters

Postby Strong Eagle » Thu, 13 Apr 2017 5:21 am

parolant wrote:how about the foreign workers quota? 1:7 for construction?


Why do you keep posting your irrelevant questions in this thread?

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Re: Setup new Company, Bank Account Matters

Postby PNGMK » Thu, 13 Apr 2017 6:44 am

Strong Eagle wrote:
parolant wrote:how about the foreign workers quota? 1:7 for construction?


Why do you keep posting your irrelevant questions in this thread?


He's a moron.
I have gay, black, Asian friends and then JR8.


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