Foreign and national investors generally enjoy the same conditions; however, exceptions exist in sectors deemed to be critical to national security, such as telecommunications, broadcasting, the domestic news media, financial services, legal and accounting services, ports and airports, and property ownership. A foreigner who wants to incorporate a company in Singapore is required to appoint a local resident director.
Acquisition of Holdings
A majority stake in the capital of a local company is legal in Singapore. Nevertheless, articles of incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. As an examle, a broadcasting licence will not be granted if foreign sources hold more than 49% shares or voting power of the Singaporean company. Limitations apply to the following sectors: including telecommunications, broadcasting, the domestic news media, financial services, legal and accounting services, ports and airports, and property ownership.
Although Singapore's legal framework and governmental policies do not require any specific authorisation to invest in the country, certain limits exist in such sectors as telecommunications, broadcasting, domestic news media, financial and some professional services. For these sectors, the Articles of Incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. Moreover, Finance Ministry approval is required for the acquisition of local banks when exceeding the specified share limit.
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