Startup Guide in Singapore Steps to Launch a Business - Explained!

How to Start a Business in Singapore A Step-by-Step Guide

Do you know the steps required to start a business in Singapore? Let’s take a closer look. In recent years, with shifts in the global economic landscape and deepening regional cooperation, more and more companies have turned their attention to Southeast Asian markets. Among these vibrant economies, Singapore undoubtedly stands out as one of the most attractive investment destinations. As one of the world’s most competitive economies, Singapore offers a stable environment, an efficient legal system, and a strategic geographical location-making it the top choice for companies looking to expand globally.

According to recent reports, Singapore's economy grew by 1.5% year-on-year in the first quarter of 2025, with particularly strong growth seen in the services sector. This presents significant opportunities for foreign businesses. At the same time, the Monetary Authority of Singapore MAS continues to roll out policies that support innovation and digital transformation, further improving the business environment.

This means that for international companies aiming to enter the Southeast Asian market, now is an excellent time to consider establishing a presence in Singapore. If you're planning to set up a company or expand your operations here, what exactly are the steps involved? Let’s walk through them one by one.

1. Choose the Right Business Structure

Before officially registering your business, you must first determine the type of entity you wish to establish. The most common business structures in Singapore include

Private Limited Company Pte Ltd The most popular structure, suitable for most small to medium-sized businesses. It has a separate legal identity, and shareholders enjoy limited liability.

Branch Office Applicable for companies already operating overseas. However, it does not have independent legal status.

Representative Office Ideal for initial market research. These offices are generally restricted to non-revenue-generating activities.

Partnership or Sole Proprietorship Suitable for individual entrepreneurs but without the benefit of limited liability protection.

Choosing the right structure affects not only legal responsibilities and tax arrangements but also future financing options and expansion strategies.

2. Register Your Company Name and Obtain Licenses

After deciding on the business structure, the next step is to submit your preferred company name to the Accounting and Corporate Regulatory Authority ACRA. This process is usually completed online via ACRA’s BizFile+ portal and typically takes just a few minutes to receive approval.

Once the name is approved, you can begin preparing the necessary documents for registration, including

Company Constitution

Identification documents of shareholders and directors

Registered address details

Appointment letters for the first director and company secretary

It’s important to note that Singapore law requires every company to have at least one local resident director. Additionally, a company secretary who is a Singapore resident must be appointed.

3. Open a Corporate Bank Account

After successfully registering your company, the next step is to open a corporate bank account. Singapore’s world-class financial system is supported by major banks such as DBS Bank, OCBC Bank, and UOB, which offer fast and efficient corporate banking services.

Some banks even provide specialized packages for startups to help manage cash flow and funding needs. Digital banks like Grab Financial and SeaMoney have also entered the space, offering more flexible and innovative financial solutions for businesses.

4. Apply for Required Permits and Ensure Compliance

Depending on your industry, your business may need to obtain specific licenses. For example, if you operate in sectors such as food service, retail, or education, you will need to apply for relevant permits from the appropriate authorities.

At the same time, it’s essential to comply with Singapore’s labor laws, tax filing requirements, and anti-money laundering regulations. Notably, the Inland Revenue Authority of Singapore IRAS has implemented a highly digitized tax system, allowing businesses to complete tax filings easily online.

Singapore maintains a low corporate tax rate, capped at 17%. Additionally, there are tax exemptions on the first SGD 300,000 of taxable income, making it especially appealing for small and medium-sized enterprises.

5. Hire Employees and Manage Human Resources

Once your business is legally established, you can begin hiring employees. Singapore boasts a rich pool of multicultural and professional talent. Employers can apply for work passes such as the Employment Pass or S Pass through the Ministry of Manpower MOM to bring in foreign workers.

Singapore places great emphasis on harmonious employer-employee relations and encourages open communication between both parties. Companies can also leverage local HR agencies to enhance recruitment efficiency and improve workforce management.

Conclusion

Starting a business in Singapore is not complicated. The entire process is transparent, efficient, and backed by comprehensive support systems. Whether you’re an entrepreneur entering the international market for the first time or an established company seeking regional expansion, Singapore provides an ideal starting point.

With the rapid development of Southeast Asia’s digital economy, seizing this opportunity now could position your business for greater success in the broader regional market in the years ahead.