Registration Process and Key Points of Trading Companies in Singapore

Setting up a trading company in Singapore is a promising choice due to its advantageous geographical location, stable business environment, and robust legal framework. In recent years, with the global economic recovery and the booming development of e-commerce, an increasing number of businesses have chosen to establish branches in Singapore to explore the Asian market. This article will provide a detailed introduction to the specific procedures and key points for registering a trading company in Singapore, while offering comprehensive guidance by combining recent news updates.

Preparations Before Registration

Before starting the registration process, you need to clarify your company's scope of business, registered capital, and shareholder structure. According to the latest statistics, in the first quarter of 2025, Singapore attracted more than 5,000 new company registrations, with trade-related industries accounting for a significant proportion. To ensure that your company stands out in fierce market competition, it is recommended to conduct thorough market research in advance, identify target customer groups, and define service characteristics.

Considering Singapore’s stringent financial regulatory policies, it is advisable to hire professional accounting firms or law firms to provide consulting services. For example, a local accounting firm recently launched a specialized financial planning service package aimed at start-ups, helping businesses better understand and comply with local tax regulations.

Detailed Registration Process

1. Company Name Approval First, you need to submit a company name application through the website of the Accounting and Corporate Regulatory Authority ACRA of Singapore. The system will automatically check whether the name has been used or violates relevant regulations. It is worth noting that since the beginning of this year, ACRA has strengthened its review of company names containing specific sensitive words such as bank and insurance.

2. Submission of Registration Documents Once approved, the next step is to prepare and submit all necessary registration documents. These typically include the Memorandum of Association, proof of identity for directors and secretaries, etc. Recent reports indicate that due to the widespread adoption of remote work models post-pandemic, many companies have chosen to complete the entire registration process online, significantly improving efficiency.

3. Payment of Capital Singapore allows the use of a subscription system to set the minimum paid-up capital for a company. However, in practice, most companies choose at least 10,000 SGD as a symbolic amount. It is worth noting that from this year onwards, new companies involved in cross-border payment businesses must also submit a risk assessment report to the Monetary Authority of Singapore.

4. Obtaining Business License After completing the above steps, ACRA will issue an official business license within a few weeks. At this point, you can begin renting office space and hiring employees.

Key Considerations

Tax Incentives Singapore operates a low-tax regime with a corporate income tax rate of 17%, and there are various funding support programs for RD activities. Latest information shows that further reductions in tax burdens for certain industries are under consideration.

Intellectual Property Protection As one of the world-renowned intellectual property centers, Singapore provides a comprehensive legal framework to protect the legitimate rights and interests of right holders. If you engage in high-value-added product trade, special attention should be paid to this aspect.

Human Resource Management Although labor costs are relatively high, the rich pool of high-quality talent gives long-term competitive advantages. However, when hiring foreign workers, strict quota restrictions must be followed, and corresponding work permits must be obtained.

In summary, setting up a trading company in Singapore is not difficult as long as the correct procedures are followed and reasonable decisions are made based on actual circumstances. I hope the above information will be helpful to those who wish to enter this vibrant market!