The financial industry is one of the most prolific economic sectors of Singapore, especially when considering the latest development in the fintech sectors which has led to the opening of a large number of businesses in this sub-sector.
Those who want to open financial companies in Singapore need to comply with various laws, depending on the field they want to operate in. Below, our Singapore company formation specialists explain how to set up a financial company here. We can also assist those who want to open a company in Singapore and operate in the financial industry.
The Monetary Authority of Singapore or MAS is the main authority providing for the licenses which need to be obtained when opening a financial company, while the Ministry for Finance provides for the legal framework governing the activities of companies operating in this industry.
Depending on the type of financial company one will open in Singapore, the following laws must be respected:
The above-mentioned laws provide for the share capital requirements and other requisites related to starting a Singapore financial business.
If you want to open a company in Singapore and need information on the rules you need to respect, our local consultants can advise you.
Financial companies fall under the regulations of the Finance Companies Act in Singapore. Financial companies provide fixed and savings deposits to Singapore citizens. Financial companies also provide credit facilities to Singapore corporations. Banks and other types of financial companies in Singapore are not allowed to deal in foreign currencies or gold, nor are they allowed to purchase foreign currencies under the forms of stocks, shares or debt securities. Financial institutions may expand their activities only if a request with the Monetary Authority in Singapore (MAS).
There are several types of financial companies which can be established in Singapore, among which banking institutions, insurance companies, brokerage firms, investment funds and fintech companies, among which cryptocurrency businesses are quite popular in Singapore.
When it comes to the licenses for opening financial companies, these can be granted as it follows:
Cryptocurrency and other fintech companies can also obtain various special licenses for operating in the financial industry in Singapore.
The company registration procedure of a financial company in Singapore will follow the requirements of the Company Law which provides for the business to have one or more shareholders, at least one director and a company secretary. Also, the company must be registered with ACRA before starting the licensing procedure.
It is important to know that the share capital requirements when opening a financial company in Singapore are given by the MAS. The requisites depend on the type of financial institutions opened and the services they offer.
With a considerable experience in the company formation field in Singapore, our agents can help both local and foreign investors to set up financial businesses here. We can also assist those who want to set up fintech companies in Singapore.
According to the Finance Companies Act, businesses intending to provide financial services in Singapore are required to apply for a single license:
The activities regulated by the two types of financial services licenses include asset management, investment advisory services and property fund management in Singapore. However, before applying for one of the two types of licenses, one is advised to request the services of company formation consultants in Singapore.
The video below presents the main steps to follow if you want to open a company in Singapore as a financial company in Singapore:
According to the Futures Act in Singapore, the capital markets license is employed when providing the following financial services:
The capital markets services license is only granted to Singapore corporations by the Monetary Authority.
The financial advisers license falls under the regulations of the Financial Advisers Act in Singapore. The following services are covered by the financial advisers license:
The financial advisers license does not cover general insurances, bank deposits and loans or mortgages.
The financial industry is one of the most prolific economic sectors of the city-state. With more than 200 financial institutions under its supervision at the level of 2019, the MAS has launched various programs and schemes which have determined investors to operate in this field.
According to statistics:
Singapore banks, merchant banks and insurance companies are not required to apply for these two types of financial licenses as they fall under different legislations. For complete information about how to open a company in Singapore please contact our specialists.