Want to Start a Company in Singapore? Master These 5 Key Requirements and Take the First Step Easily!

Thinking of Registering a Company in Singapore? Understand These 5 Key Requirements and Take the First Step Toward Success!

In recent years, with the deepening of global economic integration, more entrepreneurs and investors have turned their attention to the Southeast Asian market. Among the vibrant countries in this region, Singapore undoubtedly stands out as one of the most attractive investment destinations. With its stable political and economic environment, efficient legal system, low tax regime, and strategic geographical location, Singapore has become the preferred choice for companies around the world when setting up overseas headquarters or branches.

According to data released by Enterprise Singapore in early 2025, despite global economic uncertainty, the number of newly registered businesses in the first quarter increased by 8.6% year-on-year, with a significant rise in the proportion of foreign-invested enterprises. This trend indicates that even amid a global economic slowdown, Singapore continues to maintain strong business vitality and appeal.

If you're considering registering a company in Singapore, it's essential to understand the following five key requirements before taking action. These will help you smoothly complete the registration process and lay a solid foundation for future growth.

1. Determine Your Company Type Choose the Right Legal Structure

The first step in registering a company in Singapore is to determine its legal structure. The most common forms include Private Limited Company, Branch Office, and Representative Office.

Among these, the Private Limited Company is the most popular option among foreign investors due to its separate legal identity, limited liability for shareholders, and favorable tax incentives. For instance, according to the Accounting and Corporate Regulatory Authority ACRA, a private limited company may have up to 50 shareholders and cannot raise funds from the public. Additionally, such companies are eligible for tax exemptions on profits for the first three years, making it highly appealing to startups.

2. Meet Minimum Paid-Up Capital Requirements Flexible and Low Barrier to Entry

Singapore does not impose a minimum paid-up capital requirement, meaning you can set the amount based on your financial situation. Many startups choose to register with just S$1 as initial capital and increase it gradually as the business grows.

However, certain regulated industries-such as finance, healthcare, and education-may require higher capital thresholds set by relevant authorities. Therefore, it’s crucial to research industry-specific regulations beforehand to avoid delays during approval processes due to non-compliance.

3. Appoint a Qualified Resident Director Ensuring Compliance

Under Singapore’s Companies Act, every locally registered company must appoint at least one director who is ordinarily resident in Singapore. This individual can be a Singapore citizen, permanent resident PR, or a foreigner holding a valid work pass, such as an Employment Pass EP.

Foreign entrepreneurs wishing to manage their company directly typically need to apply for an Employment Pass to serve as a director. In addition, a company secretary must be appointed within six months of incorporation, and the company must file its first Annual Return. While these compliance steps may seem burdensome, they are essential for ensuring lawful operations.

4. Provide a Valid Local Registered Address A Physical Office Is Required

All companies registered in Singapore must have a valid local registered address. This address cannot be a post office box but must be a real physical location. Many startups opt for shared office spaces to meet this requirement, which offers cost efficiency and a professional working environment.

It’s important to note that this address serves as the official mailing address for government communications. Any changes must be promptly updated with ACRA to avoid reputational damage or legal risks.

5. Fulfill Tax and Compliance Obligations The Key to Sustainable Growth

Singapore follows a territorial tax system, taxing only income derived within the country. The corporate income tax rate is currently a flat 17%, and eligible startups can enjoy partial or full tax exemptions on profits for their first three years.

Despite the relatively light tax burden, companies are required to submit financial statements, fulfill tax filing obligations, and comply with audit requirements. Recently, the Inland Revenue Authority of Singapore IRAS has intensified its scrutiny of corporate compliance. According to a September 2025 report by Lianhe Zaobao, several companies were fined or even had their licenses revoked for failing to submit annual reports or falsifying financial data.

To ensure smooth and compliant operations, it is advisable to establish robust financial management systems from the outset or engage professional service providers to assist with compliance matters.

Conclusion

Registering a company in Singapore marks not only the first step toward international expansion but also a critical platform for achieving long-term strategic goals. By planning ahead and fulfilling these five fundamental requirements, you can efficiently complete the registration process while staying fully compliant, paving the way for future business growth.

At a time when global market dynamics are rapidly evolving, seizing the opportunity and acting decisively could very well be the key to launching your business into new heights.