Singapore is consistently ranked as one of the best places in the world to start a business. With its ease of doing business, lower corporate tax, and pro-business policies, it has become a preferred destination for entrepreneurs and corporations alike.
Registering a business in Singapore is fast for both locals and foreigners, often completed within a day. With that being said, there are several important aspects that require careful planning and consideration.
This guide will walk you through the essentials of starting a business in Singapore including key requirements and step-by-step process.
Step 1: Choosing the Right Business Structure
Before starting your business in Singapore, you need to choose an appropriate business entity. The structure you choose will determine your liability, tax obligations, and operational flexibility.
Here’s an overview of the most common legal entities in Singapore:
Private Limited Company (Pte. Ltd.) – The Most Popular Option
For most businesses in Singapore, a Private Limited Company (Pte. Ltd.) is the most appropriate structure. It is a separate legal entity, meaning your personal assets are protected if the business incurs debt or legal issues.
- It requires at least one director and one shareholder (who can be the same person).
- At least one director must be a Singapore citizen, PR, or work visa holder.
- Allows 100% foreign ownership.
- Minimum paid-up capital of SGD 1 (though most businesses opt for a higher amount for credibility).
- Must appoint a company secretary within six months of incorporation.
Sole Proprietorship – Simpler, But Riskier
A Sole Proprietorship is the simplest structure, requiring minimal paperwork. However, the business and owner are legally the same entity, meaning you are personally liable for any debts. This is generally recommended for small, low-risk businesses or freelancers.
Branch Office - For Foreign Companies
A branch office is an extension of a foreign parent company. The parent company must own 100% of the branch office and is responsible for the liabilities of the branch office.
For tax purposes, a branch office is considered nonresident and tax exemptions do not apply. Moreover, a branch office in Singapore usually has higher operating costs, as there are audit requirements.
Therefore, to benefit from local tax exemptions and keep operating costs lower, most foreign companies prefer to set up a Pte. Ltd. company as a subsidiary rather than a branch office structure.
If you are not sure which business entity in Singapore might be the best choice for your business, you can book a free consultation with one of our business advisors.
Step 2: Company Registration with ACRA
In Singapore, all businesses must be registered with the Accounting and Corporate Regulatory Authority (ACRA) through the online portal or by engaging a registered filing agent.
For Local Entrepreneurs
If you are a Singapore citizen or resident with SingPass access, you can register your business yourself using the BizFile+ portal. However, many locals opt for corporate service providers to prepare all the necessary incorporation documents to ensure accuracy and timely approvals.
For Foreigners
If you are a foreigner planning to register a business in Singapore, you will need to engage an ACRA Registered Filing Agent such as Emerhub to lodge the application on your behalf.
Foreigners cannot register a company directly via ACRA’s BizFile+ portal as it requires SingPass access.
Emerhub's local experts help prepare these documents and handle submissions on your behalf.
Key Requirements to Register a Business in Singapore
Regardless of whether you are a resident or non-resident, you’ll need to provide the following information to your filing agent:
- Proposed business name (must be unique and approved by ACRA).
- Business activities
- Details of directors and shareholders (including their passports and proof of address for foreign individuals).
- Details of the share capital
Once the information is received, Emerhub's local experts will prepare the necessary documents for the directors and shareholders to sign electronically.
After application submission, the ACRA generally approves the company registration within 24 hours. However, the process can take longer depending on your planned activities and whether your business requires additional approvals.
It is also important to note that the entire company incorporation process can be completed remotely without needing to visit Singapore.
Step 3: Opening a Corporate Bank Account
After registration, the next step is to set up a corporate bank account. This is essential for business transactions, payroll, and regulatory compliance. You will need to deposit the share capital of the company into the bank account.
You can opt to open an account with a traditional or digital bank.
Popular traditional banks include DBS, OCBC, UOB, and Standard Chartered Bank. Digital bank options include Aspire, Airwallex, and Wise.
Digital banks often allow you to open an account without visiting Singapore. However, unlike traditional banks, there is limited support for GIRO payments. Additionally, there is no cheque or cash deposit functionality.
Step 4: Understanding Tax and Compliance Requirements
Singapore offers a low-tax environment with corporate tax rates capped at 17%. However, businesses must comply with tax filing and payroll obligations to avoid penalties.
A. Corporate Income Tax & Exemptions
Newly registered companies benefit from the Startup Tax Exemption (SUTE) for the first three years:
- 75% exemption on the first SGD 100,000 of chargeable income.
- 50% exemption on the next SGD 100,000.
- After three years, the Partial Tax Exemption (PTE) applies, reducing tax rates on the first SGD 200,000 of taxable income.
B. GST Registration
Businesses with annual revenue exceeding SGD 1 million must register for Goods & Services Tax (GST) at 9%. Voluntary registration is possible for businesses looking to claim input tax credits.
C. Employer CPF Contributions & Payroll Taxes
Employers hiring Singaporean citizens or PRs must contribute 17% of their salary to the Central Provident Fund (CPF).
D. Annual Filing Obligations
Businesses must comply with strict ACRA and IRAS filing deadlines:
- Corporate Tax Returns: Due by 30 November (paper) or 15 December (e-filing).
- Annual Returns: Must be filed within 7 months after the financial year-end.
- GST Returns: Filed quarterly if registered.
Failure to meet compliance requirements can result in penalties of up to SGD 5,000 or legal action.
Step 5: Hiring Employees and Work Visas for Foreigners
If you plan to hire employees, you must comply with Singapore’s labor laws, including fair employment practices, contract terms, and CPF contributions.
For foreign hires, you’ll need to apply for a work visa through the Ministry of Manpower (MOM). The most common options are:
- Employment Pass (EP): For professionals earning SGD 5,600 or more per month.
- S Pass: For mid-skilled workers with a minimum salary of SGD 3,000 per month.
- Work Permit: For lower-skilled employees in construction, manufacturing, or service industries.
Work visa approvals depend on qualifications, salary, and employer credentials. For more details, refer to our article on working in Singapore.
How Emerhub Can Help
Emerhub is an ACRA registered corporate service provider, helping investors setup and manage their business in Singapore. If you are planning to start a business, our on the ground business incorporation experts will handle the entire registration process on your behalf.
From preparing the necessary documents to registering your company with ACRA and securing essential licenses and permits, we ensure a smooth and hassle-free setup. So, you can start your business operations in Singapore in compliance with local laws and regulations.
Fill out the form below to discuss your planned business activities and how we can support your setup.
Frequently asked questions
Can a foreigner register a business in Singapore?
Yes, foreigners can start a business in Singapore, but they cannot register a company directly unless they have a SingPass account (e.g., EntrePass holders). If you don’t have SingPass, you must engage a registered filing agent (corporate services provider) to complete the incorporation process. Additionally, you must have at least one director who is a Singapore resident (Citizen, PR, or EP holder) to set up your business in Singapore.
How long does it take to register a business in Singapore?
Singapore company registration can be completed within 24 hours if all required documents are in order. However, foreign-owned companies may take longer due to compliance checks or nominee director arrangements.
Can I register a business in Singapore remotely?
Yes, it is possible to register a company remotely in Singapore without visiting, but you must appoint a resident director and engage a corporate services provider to handle incorporation, compliance, and bank account setup.
Do I need a physical office address in Singapore when starting my business?
Yes, all companies must have a registered business address in Singapore. Singapore does not allow P.O. boxes for business registration. As an alternative, you can use a virtual office address as your registered business address when setting up your company.