Investment activities in Singapore

Why Singapore is an attractive place to live and do business

Singapore's location in the heart of Asia makes it an ideal jurisdiction for entrepreneurs looking to expand their operations in the Asia-Pacific region. This island nation has emerged as a global financial center thanks to well-thought-out financial and economic strategies aimed at stimulating foreign direct investment and creating an ideal business environment. Singapore is the top choice for investors seeking a critical economic gateway between East and West, offering proximity to key Asian markets.

Singapore is renowned for its efficient business environment and consistently ranks highly in global ease of doing business indices. It is the fourth-largest financial center in the world and the third wealthiest in the world, with the largest foreign exchange center in the Asia-Pacific region, just behind New York and London.

The diverse economic sectors span finance, energy, biotechnology, logistics, information technology and tourism, offering a wide range of opportunities to set up a company in Singapore.

Singapore's transparent legal system provides a secure and fair environment for resolving disputes and excellent intellectual property protection. In addition, Singapore's tax policy, with low corporate tax rates, no capital gains taxes, and various incentives and grants, is attractive to businesses and entrepreneurs.

In addition to factors directly related to investment, the quality of life in the Republic of Singapore plays a significant role. Singapore boasts a stable and progressive political environment, a multilingual and highly skilled workforce, and a diverse, multicultural society. These attributes have earned Singapore the distinction of being the only Asian country to receive an AAA rating from esteemed credit rating agencies like Moody's, Fitch, and S&P, denoting the highest issuer credit rating awarded to countries.

It's important to emphasize that to ensure the successful implementation of investment projects abroad, transactions involving corporate rights, various types of property, and intellectual assets require a meticulous and qualified approach. Engaging legal support for an investment project serves as a safeguard against various risks, including:

• Counterparty and third-party fraud: protecting investors from deceptive practices by counterparties and external entities.
• Unlawful government actions: mitigating risks associated with improper actions by government agencies.
• Regulatory penalties: avoiding financial penalties imposed by regulatory authorities due to non-compliance with state regulations and laws.
• Asset confiscation: preventing the confiscation of the investment object.
• Invalidation of investment agreements: ensuring the validity and enforceability of investment agreements.
• Financial losses: safeguarding against unforeseen financial setbacks.

Direct foreign investment in Singapore

Singapore boasts a robust legal framework designed to support and protect foreign investments. The key legislation governing foreign investment is the Singapore Companies Act, which provides for various business structures. Additionally, the Singapore Investment Promotion Act is in place to provide incentives aimed at attracting foreign investments. One notable aspect is that foreign investors can enjoy full ownership of their businesses in most sectors, with Singapore permitting 100% foreign ownership in various industries.

The Singapore government takes proactive measures to promote foreign investments, employing various agencies such as EDB and IE Singapore for this purpose. These agencies extend incentives, including tax exemptions, grants, and subsidies, to encourage foreign companies to establish their presence in Singapore.

However, it's important to note that certain industries, such as finance, healthcare, and education, may necessitate specific permits or licenses. Thorough research and compliance with industry-specific regulations, along with obtaining the necessary approvals, are essential before commencing business operations.

In terms of employment, Singapore maintains well-regulated labor laws that offer flexibility for employers. A comprehensive understanding of labor regulations, including aspects such as work permits and employment contracts, is vital when hiring employees in Singapore.

Singapore's Global Investor Program (GIP)

Singapore's Global Investor Program (GIP) is an avenue that provides foreign investors with the opportunity to secure permanent residency in Singapore. In this section, we will delve into the details of Singapore's GIP, including eligibility criteria and important considerations.

To qualify for Singapore's Global Investor Program (GIP), investors must meet specific eligibility criteria, which include:

1. Investment thresholds:
   1. Invest a significant amount in either a new business startup or an existing business in Singapore.
   2. The investment thresholds are as follows:
      1. S$2.5 million for initiating a new business or expanding an existing one.
      2. S$2.5 million for investing in a GIP-approved fund that channels investments into Singapore-based companies.
2. Successful entrepreneurial or business track record:
   1. Applicants must demonstrate a successful entrepreneurial or business track record, which may encompass a history of operating and managing businesses with verifiable business credentials.
3. Minimum personal net worth:
   1. Applicants must exhibit a minimum personal net worth, which varies depending on the type of business or investment. For example, it is S$3 million for those investing in a new business and S$3 million for those investing in a GIP-approved fund.
4. Business operations in growth sectors:
   1. Business operations must be in sectors that contribute to Singapore's economic growth. These sectors may include technology, manufacturing, healthcare, or others.

Meeting these eligibility requirements is crucial for investors seeking to participate in the GIP and obtain permanent residency in Singapore.

Legal support for investment projects in Singapore: Areas of practice

When embarking on an investment project in Singapore, it's crucial to consider several vital legal aspects to prevent costly mistakes or regulatory issues. Professional legal support is essential in this context. Let's explore the main areas of legal practice encompassed in services for supporting investment projects.

Corporate transactions support

Corporate law, especially in the realms of mergers and acquisitions and corporate governance, plays a pivotal role. Legal support during mergers, acquisitions, and corporate restructurings includes the following services:

• Consultation on local and international corporate governance standards.
• Deal structuring.
• Risk analysis.
• Development of a project roadmap.
• Conducting legal due diligence, which entails a comprehensive examination of the investment target.
• Assistance in obtaining regulatory approvals, legal contract review, and the review or drafting of investment agreements.
• Support in registering ownership of company assets.

Comprehensive project/startup/business review

Due diligence involves a meticulous investigation conducted before making an investment decision. It encompasses a thorough audit of a project or business. The goal is to identify potential problems or contingencies, including legal risks related to property ownership, ongoing litigation, intellectual property, and contracts.

Contract conclusion and execution support

Well-drafted contracts form the foundation of business security and risk reduction. Services in this category include:

• Preparation of contracts across various sectors of the economy.
• Contract analysis.
• Participation in negotiations.
• Drafting additional agreements.
• Legal support for the transformation of corporate rights and real estate transactions.
• Preparation of legal opinions and resolution of contractual disputes.

Intellectual property protection

Protecting intellectual property is essential for safeguarding what makes a business unique. Services in this area include:

• Protection of technologies and products.
• Brand protection.
• Patent applications and litigation.
• Technology transfer and licensing.
• Intellectual property audits.
• Due diligence on IP assets.
• Protection of copyrights, trademarks, and trade secrets.

Stages of implementing investment activities

Singapore is an enticing destination for global investors, not only due to its strategic location in Asia but also due to its stable political environment and supportive legal framework. Our specialists offer comprehensive support across all stages of investment activities in Singapore.

1. Pre-investment (development).
   • Assessment of the investment climate in the region.
   • Inspection of facilities and potential investment sites.
   • Development of draft agreements.
2. Investment (start of project implementation, formation of assets).
   • Regulation of issues related to business entity registration.
   • Acquisition of real estate and equipment as required for the project.
3. Post-investment (operational).
   • Project launch and commencement of profit generation.
   • Resolution of certification matters.
   • Ongoing legal support is needed to ensure the continued success of the project.

Key aspects of legal assistance

1. Analysis of the legislative framework governing investment project relations.
2. Consultation on legal entity selection and investment optimization in accordance with Singaporean laws.
3. Comprehensive support for new business projects and registration procedures.
4. Assistance in identifying investment opportunities.
5. Support in establishing a legal entity or acquiring an existing one.
6. Business structuring.
7. Detailed examination of the investment object, assets, and transaction participants, followed by risk assessment (due diligence).
8. Recommendations for addressing identified risks and implementing measures to mitigate or eliminate them.
9. Drafting of investment agreements.
10. Analysis of executed agreements and provision of relevant recommendations.
11. Representation of foreign investors before government authorities, ensuring compliance with current legislation.
12. Protection of investor interests, including legal action if necessary.
13. Support for international investment projects.
14. Maintenance of client information confidentiality within the scope of legal support for investment activities.

Support for investment projects in Singapore by industry

The Singaporean government is actively promoting diversification away from overreliance on manufacturing. To position the country at the forefront of technological innovation and entrepreneurship, the government has introduced a five-year economic transformation program with an investment of S$4.5 billion. This initiative focuses on public infrastructure, technological innovation, and skills development across 23 sectors.

Furthermore, Singapore has launched the SkillsFuture program to drive the nation's economic development towards the digital economy. These efforts create a conducive environment for investment across a broad spectrum of industries, ensuring a bright future for Singapore's economy.

Support services we offer for IT projects

1. Legal entity formation and registration.
   1. We assist in developing statutory documentation and registering legal entities in accordance with Singaporean law, tailored to various business models such as IT outsourcing, e-commerce with Internet acquisition, and software as a service (SaaS).
2. Due diligence.
   1. Our experts conduct comprehensive due diligence for IT projects, ensuring a thorough examination of potential legal risks and obligations.
3. Contract documentation.
   1. We draft and negotiate various contracts, including license agreements, service agreements, website development agreements, software contracts, non-disclosure agreements, terms of use, and public offers.
4. Data protection compliance.
   1. We provide guidance on data protection requirements for IT projects, especially in scenarios involving international data transfers.
5. Intellectual property rights.
   1. We assist in registering trademarks and safeguarding other intellectual property rights.
6. Permits and approvals.
   1. Our support extends to obtaining the necessary permits and approvals to facilitate smooth project execution.

Support services we offer for FinTech projects

1. Licensing consultations.
   1. We provide guidance on licensing requirements for fintech activities in Singapore, helping you navigate the regulatory landscape.
2. Business model and corporate structure.
   1. We assist in defining the business model and choosing the optimal corporate structure for your fintech project.
3. Company registration.
   1. Our team supports you in registering a fintech company in Singapore, ensuring compliance with regulatory requirements.
4. Regulatory compliance.
   1. We offer recommendations for conducting activities in accordance with regulatory requirements, helping you stay on the right side of the law.
5. Internal company regulations.
   1. We assist in developing internal company regulations to ensure smooth operations and compliance with regulatory standards.
6. License applications.
   1. We prepare all necessary documents and applications for licenses, whether you're establishing a payment institution or an electronic money institution.
7. Legal due diligence.
   1. Our experts conduct legal due diligence, analyzing the compliance of new financial products and services with Singaporean legislation before their market launch.
8. Regulatory interaction.
   1. We engage with regulatory authorities throughout the approval process for your project, ensuring a smooth regulatory journey.
9. Contractual support.
   1. We review and prepare legal documents and provide support during negotiations with partners.
10. Blockchain projects.
    1. Our team offers legal support for blockchain projects, a crucial area in the fintech industry.
11. Intellectual property protection.
    1. We assist in protecting your intellectual property rights and safeguarding your fintech innovations.

Support services we offer for IPO projects

1. Listing process guidance.
   1. We advise on the listing process, including the listing rules, ensuring your company meets all listing conditions. This includes addressing issues related to disclosure standards, due diligence defenses, and legal and regulatory matters that affect companies across borders.
2. Due diligence.
   1. We conduct thorough due diligence on a company before entering the IPO market. This typically occurs before the prospectus preparation.
3. Document preparation.
   1. Our team assists in drafting and reviewing the necessary documents, ensuring compliance with regulatory requirements.
4. Transaction structuring.
   1. We help structure the IPO transaction to maximize its success, considering the specific needs of your business.
5. Corporate restructuring.
   1. If necessary for listing, we assist in restructuring either individual companies or the group as a whole.
6. Regulatory approvals.
   1. We guide you through the complex process of obtaining regulatory approvals at every stage of the transaction. This includes preparing financial statements according to ICDR rules, finalizing the business model and prospectus plan, and securing regulatory approval for the IPO in Singapore.

We offer legal support for medical businesses in Singapore

Singapore's healthcare sector is known for its excellence and attracts international investors due to its strong regulatory governance and advanced services. When launching a medical investment project in Singapore, consider the following:

1. Market entry analysis.
   1. We assess the risks associated with market entry, including regulatory and currency considerations.
2. Company registration.
   1. Our team supports you during the preparatory stage of company registration in Singapore.
3. Legal documentation.
   1. We prepare essential legal documents for your medical company and assist in obtaining or renewing a medical license.
4. Legal audit.
   1. We conduct a legal audit of your medical company's documentation to ensure compliance with regulations.
5. Contract structuring.
   1. We help structure contractual relationships between relevant parties to safeguard your interests.
6. Concession agreements.
   1. Our experts assist in developing concession agreements and special investment contracts as needed.
7. Marketing materials.
   1. We create and analyze marketing materials to ensure compliance with specific legal requirements.
8. Government coordination.
   1. We represent your interests when dealing with government agencies.
9. IP rights protection.
   1. We provide support for the protection of trademarks and other intellectual property rights.

Legal support for transactions and investment projects in Singapore's manufacturing sector

If you're planning to establish a manufacturing company in Singapore, consider the following services we provide.

1. Regulatory consultation.
   1. We offer legal guidance on the regulations and compliance requirements specific to the manufacturing industry.
2. License acquisition.
   1. Our team assists in obtaining the necessary licenses for your industrial enterprise.
3. Commercial agreement support.
   1. We provide comprehensive support in the development and finalization of commercial agreements to protect your interests.
4. Corporate restructuring.
   1. If needed, we can help with the restructuring of companies to optimize your business operations.
5. Dispute resolution.
   1. We offer representation and legal support in resolving any business disputes that may arise during large industrial projects.

Legal support for international trade transactions in Singapore

The country has a vast network of free trade agreements worldwide, enhancing trade relations with key partners. If you're considering registering a trading company in Singapore, keep in mind the potential advantages offered by these FTAs, such as lower or zero tariffs.

Our services for international trade transactions include:

1. Legal guidance.
   1. We provide legal advice on trade regulations and international trade agreements to help you make informed decisions.
2. Establishing trading companies.
   1. We assist in the process of registering trading companies in Singapore, ensuring compliance with relevant regulations.
3. Utilizing FTZ.
   1. Singapore's free trade zones offer opportunities for transit trade. We guide you through the benefits and requirements of operating within these zones.

Whether you're a startup in the manufacturing sector or a trading company looking to leverage Singapore's trade agreements, our team of legal experts can provide the support and guidance you need to succeed in these industries.

Legal support for international trade projects

Our company offers comprehensive support for projects in the field of international trade. This includes a range of services tailored to meet the specific needs of businesses engaged in international trade. Here are some of the key services we provide.

1. Regulatory consultation.
   1. We offer expert guidance on the regulation of foreign economic activities in Singapore, ensuring compliance with local laws and international trade agreements.
2. International treaty development.
   1. Our team can help in the development, analysis, and revision of international treaties, ensuring that your international trade agreements are structured to benefit your business.
3. Transaction structuring.
   1. We assist in structuring international trade transactions and optimizing your trade operations for efficiency and profitability.
4. Contract verification.
   1. We conduct comprehensive verifications of foreign economic contracts to protect your interests and ensure contractual compliance.
5. Representation.
   1. Our experts represent your interests in negotiations and agreements with supervisory authorities, making sure your business complies with relevant regulations.
6. Dispute resolution.
   1. In the event of disputes in international trade, we offer legal support to help you resolve issues and protect your business's interests.

Logistics and supply chain management services

Singapore's strategic location and world-class logistics infrastructure make it a prime destination for logistics and supply chain management companies. Whether you're looking to open a logistics business in Singapore, our specialized services include:

1. Regulatory advice.
   1. We provide guidance on the regulatory aspects of operating a logistics company in Singapore, including licensing procedures and compliance.
2. Company registration support.
   1. Our team assists in the registration of logistics companies in Singapore, ensuring a smooth and compliant process.
3. Contractual documentation.
   1. We prepare the necessary contractual documentation for territorial and logistics projects to protect your interests.
4. Expert opinions.
   1. Our experts can provide expert opinions on logistics and supply chain management matters, helping you make informed decisions.
5. Investment support.
   1. If you're looking to invest in the transportation sector, we offer legal support to ensure your investments are sound and secure.
6. Dispute resolution.
   1. In the event of disputes in the field of transport and logistics, our team represents your interests and helps resolve issues through legal means.

Our services are designed to streamline your international trade and logistics operations, ensuring compliance with regulations and the protection of your business interests.

Incorporating a company in Singapore not only provides access to the region's rapidly growing markets but also allows you to leverage Singapore's extensive network of trade agreements, ease of doing business, attractive tax system, and robust intellectual property rights protection.

It's essential to recognize that each investment project is unique and depends on a multitude of factors. To ensure success in the business development process, it's crucial to take an integrated approach, address issues comprehensively, consider international best practices, mitigate potential risks, and leverage the jurisdictional advantages available.