Singapore is one of the most important business and financial centers in Southeastern Asia which is why starting a company in the financial sector can be quite profitable. Forex trading is well regulated in the city-state, so if you want to set up a business, you first need to register a legal entity and then apply for the necessary license.
Below, we invite you to read about the steps you need to go through if you want to open a Forex company in Singapore. Setting up a company in Singapore is easy with the help of our specialists, so do not hesitate to ask for our support.
Options to open a Forex company in Singapore
Foreign investors who choose Singapore for the creation of a Forex company have two choices:
- – the first one implies the purchase of a local company that has traded before;
- – the incorporation of a new entity with ACRA.
No matter the choice, a Forex trading license is necessary.
If you decide to set up a company in Singapore, our company formation consultants can help you with the purchase of an aged business or registration of a new legal form. From this second point of view, the private limited liability company is the preferred option of foreign entrepreneurs.
What to consider when buying a company in Singapore
Even if it may seem appealing to open a Forex company in Singapore through the acquisition of an existing business, here are some important aspects to consider:
- the business to be purchased needs to have a track record of at least 5 years in the Forex trading sector;
- this may lead to a valuation of the company of SGD 5 million or even SGD 10 million;
- by comparison, to start a new Forex company requires a minimum share capital of SGD 100,000.
When choosing to open a company in Singapore for Forex trading activities, such aspects should be well considered.
Requirements to launch a Forex company from scratch
The alternative to buying an existing company is to open a Forex company in Singapore by registering a new enterprise. With an incorporation procedure that takes approximately one week, it is quite easy to incorporate it. However, there are a few important things to consider. Among these, the fact that the majority of the shareholders must be Singapore residents. For this purpose, foreign entrepreneurs can obtain residence permits.
Our Singapore company formation experts are at the service of foreign investors who want to set up Forex businesses here.
How to obtain a Forex license in Singapore
One of the most important steps when looking to open a Forex company in Singapore is to obtain the trading license. For this purpose, one must respect the provisions of the Capital Markets Act and the rules imposed by the Monetary Authority in Singapore (MAS) which is the body issuing the license.
For this purpose, one must file several documents with the MAS, among which:
- – the company’s statutory documents;
- – the internal and external procedure related to the trading procedures;
- – a business plan for a period of 3 to 5 years.
Based on these papers, the company must pass the fit and proper test and obtain a Singapore Forex trading license.
If you want to set up a company in Singapore in another industry, do not hesitate to get in touch with us.
The Forex market in Singapore
Singapore hosts USD300 million worth of Forex transactions every day, which makes it one of the most important players in Southeast Asia from this point of view. The city-state is also the 5th largest Forex trading center in the world, with more than 50 financial operators approved by the MAS.
If you want to open a Forex company in Singapore as a foreigner, our company registration agents can help you, so do not hesitate to contact us.