Is Obtaining a Business License in Singapore Really That Simple? A Deep Dive into the Truth Behind It

Is Obtaining a Business License in Singapore Really That Simple? A Deep Dive into the Reality

When it comes to Singapore, words like efficient, transparent, and international often come to mind. This city-state, covering just over 700 square kilometers, has built a global reputation for its excellent business environment and efficient services. In particular, Singapore is widely regarded as one of Asia’s most attractive investment destinations, especially when it comes to starting a business and registering a company.

In recent years, as the global economic landscape continues to evolve, more small business owners, freelancers, and multinational corporations have turned their attention toward Singapore. One frequently asked question is Is obtaining a business license in Singapore really that simple? This article will explore the real story behind this question by analyzing actual procedures, policy support, and practical challenges, while incorporating recent news updates.

I. The Official Process Is Indeed Efficient and Convenient

According to the latest data released by the Accounting and Corporate Regulatory Authority ACRA as of the end of 2025, more than 90% of new company registration applications in Singapore can be approved within one hour. This high level of efficiency is the result of Singapore’s long-term commitment to digital transformation.

Take the registration of a Private Limited Company Pte Ltd as an example. Applicants only need to submit essential information-such as the company name, shareholder and director details, and paid-up capital-through the BizFile+ platform, along with a fee of about SGD 315 approximately RMB 1,600. The entire process can be completed online without the need for any physical visits to government offices.

Moreover, Singapore offers a one-stop enterprise service portal called the Business Grants Portal, which helps entrepreneurs quickly understand and apply for various subsidies and support programs. These initiatives have significantly lowered the barriers to entry and made it easier for foreign investors to set up businesses in the country.

II. Business Licensing Is Not Always Foolproof

While the overall process appears straightforward, successfully registering a company and obtaining the necessary licenses is not as simple as pressing a button.

First, company name approval is not guaranteed. According to ACRA regulations, names that are ambiguous, contain sensitive terms, or are too similar to existing companies will be rejected. Therefore, applicants must be cautious when choosing a company name to avoid delays caused by rejections.

Second, certain industries such as food services, finance, and healthcare require additional permits or licenses. For instance, opening a restaurant requires not only company registration but also applying for a Food Establishment License from the Singapore Food Agency SFA. Similarly, setting up a financial services firm involves submitting a detailed business plan to the Monetary Authority of Singapore MAS and undergoing a review process. These extra steps can be time-consuming and demand higher compliance standards.

III. Practical Challenges Faced by Foreign Entrepreneurs

Although Singapore welcomes foreign investment, international entrepreneurs often face real-world obstacles.

One major challenge is that foreigners cannot solely own a private limited company; at least one local resident must serve as a director. As a result, many foreign entrepreneurs choose to partner with locals or hire professional corporate secretarial firms, which typically charge between SGD 200 and SGD 500 per month. This adds to the overall cost of doing business.

Additionally, tax compliance in Singapore is strict. The country follows a territorial tax system, meaning only income sourced in Singapore is taxed. However, businesses must still adhere strictly to accounting standards and file accurate financial reports. For entrepreneurs unfamiliar with local practices, this can pose a significant challenge.

IV. Real Cases Some Succeed Easily, Others Encounter Pitfalls

In November 2025, The Straits Times reported on a Chinese entrepreneur who successfully launched a tech startup in Singapore. He shared From registration to obtaining the business license, the whole process took less than two weeks-much faster than I expected. He particularly praised the user-friendly website and the professionalism of customer service.

However, there are also cautionary tales. Earlier this year, an Indian entrepreneur had his business license suspended due to failing to update the company’s annual report on time. He admitted I thought once registered, I could leave it alone. I didn’t realize there was so much ongoing maintenance involved.

V. Conclusion

In summary, obtaining a business license in Singapore is indeed more efficient and transparent compared to many other countries. However, this does not mean that launching a business is effortless. Behind the streamlined processes lies a highly regulated, institutionalized commercial environment that places great emphasis on legal compliance.

If you possess basic business planning capabilities, are willing to invest time in understanding relevant policies, and can seek assistance from professional service providers, then starting a business in Singapore can be a wise decision. But if you expect a completely risk-free, zero-barrier entrepreneurial experience, you may find yourself disappointed.

Rather than calling the licensing process simple, it would be more accurate to say that Singapore’s system makes legal compliance more accessible-and that is precisely why this small nation continues to stand out on the global stage.