Singapore Company Registration What Are the Business Scope Options?

Singapore Company Registration What Do You Know About Business Activities?

In the business landscape of Southeast Asia and globally, Singapore has become a top destination for entrepreneurs and investors to establish companies due to its stable environment, efficient legal system, and open economic policies. In recent years, with shifts in the global economic structure and the advancement of the Regional Comprehensive Economic Partnership RCEP, Singapore’s role as a bridge between Eastern and Western markets has become even more prominent. An increasing number of small and medium-sized enterprises SMEs and startups are choosing to register companies in Singapore to expand into international markets.

A key step during the company registration process is defining the Business Activities of the company. This decision not only affects the direction of future operations but also impacts tax reporting, industry regulation, and subsequent business partnerships. So, what exactly constitutes business activities in Singapore, and how should one choose the most suitable scope?

1. What Are Business Activities?

When registering a company in Singapore, an applicant must submit a Business Activity Classification to the Accounting and Corporate Regulatory Authority ACRA. This classification defines the main nature of the company's business operations.

The classification follows the Singapore Standard Industrial Classification SSIC, a system developed by the Singapore Department of Statistics to standardize and categorize different types of commercial activities. Each registered company can declare up to two primary business activities, with one designated as the main activity. These activity codes are recorded in the company’s registration documents and may affect areas such as taxation, employment, and import/export regulations.

2. Common Categories of Business Activities

According to the 2025 updated SSIC classification, Singapore's business activities span across agriculture, manufacturing, information technology, financial services, and many other sectors. Below are some of the most common and popular categories

1. Trading Wholesale/Retail

As a global trading hub, Singapore sees strong demand for trade-related businesses. These include import/export, wholesale sales, and retail operations-especially in electronics, machinery, and daily consumer goods, which are commonly chosen by foreign investors.

2. Technology Information Services

With the rapid development of the digital economy, tech-based companies are growing rapidly. Examples include software development, IT system integration, cloud computing services, and cybersecurity consulting. The Singapore government actively supports the Smart Nation initiative, offering favorable policies for tech enterprises.

3. Professional Services

This includes legal advisory, accounting, human resources, market research, and management consulting. These services are typically offered by professional firms or individuals and are ideal for freelancers or small service-oriented companies.

4. Education Training Services

Singapore boasts a world-class education system, making this sector highly active. It covers language training, vocational courses, and online education platforms. With the rise of remote learning, more edtech startups are setting up headquarters in Singapore.

5. Food Beverage and Hotel Management

Despite the impact of the pandemic on tourism and hospitality, Singapore remains a major international travel destination, and these industries have recovered quickly. Registering FB management, chain restaurant operations, or hotel services still holds significant market potential.

6. Finance Investment Management

As one of Asia’s leading financial centers, Singapore offers a robust financial services sector. This includes investment advisory, fund management, insurance brokerage, and fintech platforms. However, companies engaging in financial activities usually need to apply for licenses from the Monetary Authority of Singapore MAS.

7. Environmental Sustainability

With growing global emphasis on sustainability, green technologies, environmental engineering, and renewable energy are emerging sectors. The Singapore government encourages green economic development through tax incentives and other support measures.

3. How to Choose the Right Business Activities?

Choosing the right business scope may seem straightforward, but it significantly influences the company's future growth path. Here are some recommendations

1. Align with Resources and Strengths

Before registration, clearly define your core business and competitive advantages. Select activities that match your existing capabilities and avoid overextending too early.

2. Consider Market Trends and Policy Direction

Review industries prioritized by the Singapore government, such as digital economy, green energy, and biotechnology, to take advantage of policy benefits.

3. Allow Room for Expansion

Although only two main business activities can be declared at registration, Singapore law allows changes or additions later. Plan ahead when selecting initial activities.

4. Be Aware of Industry Regulations

Certain sectors like finance, education, and healthcare require permits or certifications from relevant authorities. Research regulatory requirements before registration to avoid operational disruptions.

4. Real-World Examples

Take the example of a recently established tech company in Singapore whose primary business is software development and technical support, supplemented by cloud services. Headquartered in China, the company chose Singapore as a subsidiary location to access Southeast Asian markets and leverage Singapore’s status as an international financial center to attract investment. They selected SSIC code 62010 - Computer Programming and 63120 - Data Processing, Hosting, and Related Services, and successfully completed the approval process.

Another example is a company primarily engaged in importing and exporting environmental equipment. They chose 46900 - Wholesale of Other Goods Not Elsewhere Classified as their main activity and 38089 - Manufacture of Other Machinery and Equipment Not Elsewhere Classified as the secondary activity to reflect their diversified operations.

5. Conclusion

While the process of registering a company in Singapore is relatively straightforward, choosing the appropriate business scope requires careful planning. It directly affects the legality of operations, market expansion, and fundraising capabilities. In today’s increasingly integrated global economy, understanding and strategically planning your business activities will lay a solid foundation for long-term success in Singapore.