Want to Start a Business in Singapore? This Guide Covers All the Key Points!

Thinking of Starting a Business in Singapore? Here's Everything You Need to Know

In recent years, as the global economic landscape continues to evolve, more entrepreneurs and businesses are setting their sights on Southeast Asia. As a regional financial and business hub, Singapore has become a top destination for international investors due to its stable environment, efficient services, robust legal system, and strategic geographical location.

1. Advantages of Singapore’s Business Environment

Singapore has consistently ranked among the world’s best places to do business. According to the World Bank’s 2025 Ease of Doing Business Report, Singapore leads in key indicators such as starting a business, accessing credit, and enforcing contracts. These rankings reflect the country’s streamlined administrative procedures, low tax policies, and highly transparent regulatory framework.

Singapore operates one of the lowest corporate tax systems globally, with a standard rate of 17%. Newly incorporated companies also enjoy tax exemptions for the first three years. Personal income tax follows a progressive structure, with the highest marginal rate capped at just 22%. This favorable tax regime benefits both businesses and individuals.

2. Basic Steps to Register a Company

Registering a company in Singapore is straightforward and typically takes only a few working days. The basic process includes

1. Company Name Approval Submit your proposed company name via the Accounting and Corporate Regulatory Authority ACRA website for approval.

2. Prepare Constitution and Shareholder Information Define the company structure, shareholder distribution, and director details.

3. Submit Registration Documents File the necessary documents through ACRA’s online portal and pay the registration fee.

4. Open a Corporate Bank Account After registration, choose a local or international bank to open a business account.

5. Apply for Licenses and Permits Depending on the industry e.g., food service, education, finance, additional licenses may be required.

This entire process can be handled by professional secretarial firms, saving time and effort.

3. Investor-Friendly Policies

Singapore welcomes foreign entrepreneurs with open arms. Foreigners can own 100% of a company’s shares without needing local residency. However, every company must appoint at least one resident director who is either a Singapore citizen, permanent resident, or Employment Pass EP holder.

The country offers various visa options to support entrepreneurship, including the EntrePass - designed specifically for foreign entrepreneurs looking to start a business in Singapore. This pass allows applicants and their families to reside long-term and potentially apply for permanent residency upon meeting certain conditions.

4. Industry Trends and Investment Hotspots

According to Enterprise Singapore’s 2025 data, technology, green energy, healthcare, and digital finance are among the fastest-growing sectors. Startups in artificial intelligence, blockchain, and sustainable technologies have seen significant growth.

For example, Singapore actively promotes its Smart Nation initiative, encouraging innovation and tech adoption. In early 2025, the government announced an additional S$1.5 billion investment to support digital transformation, particularly for small and medium enterprises SMEs. Meanwhile, environmental sustainability remains a major investment focus. Many multinational corporations include green technology in their strategic plans when establishing regional headquarters in Singapore. Reports indicate that over 20 new clean energy companies registered in the first half of 2025 alone.

5. World-Class Infrastructure and Support Services

Beyond its world-class ports and airports, Singapore boasts advanced telecommunications networks and logistics systems. Companies benefit from efficient supply chain support whether operating locally or expanding internationally.

The country maintains a strong legal system and rigorous intellectual property protection laws, offering solid safeguards for long-term business growth. Additionally, numerous subsidy and grant programs help reduce initial operational costs. For instance, the Scale-Up SG initiative provides funding and market access resources to high-growth eligible companies.

6. Cultural Diversity and Talent Pool

Singapore is a multicultural society where English is the official language. The harmonious coexistence of Chinese, Malay, Indian, and other communities creates an inclusive environment ideal for recruitment and customer engagement.

More importantly, Singapore is home to a large pool of highly skilled professionals, especially in finance, technology, and engineering. According to the Ministry of Manpower’s 2025 report, Singapore continues to attract global talent, particularly in AI, cybersecurity, and biomedicine, ensuring a steady supply of expertise for growing businesses.

Conclusion

If you're considering setting up a business overseas, Singapore stands out as a compelling choice. From supportive policies and a top-tier business environment to excellent infrastructure and a rich talent pool, the city-state offers strong competitive advantages. Whether you’re a startup or a multinational corporation, Singapore provides fertile ground for growth. With thorough market research and proper preparation, you too can seize valuable business opportunities in this Garden City.