Company formation in Singapore is quick, but banking and compliance reviews are separate, layered, and can be lengthy, especially for high-risk sectors, requiring thorough documentation and adherence to due diligence processes.
Company Formation and Processing Duration
In Singapore, establishing a company involves separate stages of formation and operation. Simple incorporations can typically be completed within one to three business days once all necessary documents are submitted. However, if the application requires verification by additional authorities, the process can extend from 14 days up to two months.
Assessments for Foreign Shareholders and Account Opening
Foreign shareholders are subject to independent reviews by a corporate service provider during incorporation and separately by banks during account setup. Clearance from the corporate registry does not guarantee approval from financial institutions, so investors should anticipate multiple assessment stages, rather than a single approval.
Documentation and Due Diligence
Individuals must present identity verification, proof of residence, professional background, and detailed explanations of their source of wealth and funds. Banks conduct layered compliance reviews, with more in-depth assessments for higher risks. The process may take several weeks, especially for complex business models or sectors like digital assets or cross-border transactions, impacting the timeline for capital deployment.
| This article was first published by ASEAN Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the original article : Singapore AML and KYC Rules for Foreign Shareholders
