Key Points You Must Know to Start a Company in Singapore!

What You Need to Know About Starting a Company in Singapore

In recent years, as the global economic landscape continues to evolve and regional cooperation deepens, Singapore has maintained its position as one of the world’s most competitive business hubs, attracting entrepreneurs and investors from around the globe. According to the latest data released by Enterprise Singapore, the number of newly registered businesses in the first half of 2025 increased by 12% year-on-year, with foreign-invested enterprises accounting for more than 40%. This trend indicates that despite global economic uncertainties, Singapore remains an ideal destination for business establishment and growth.

So, what key information should you know before starting a company in Singapore? This article will provide a detailed overview from the following perspectives choosing the right company structure, registration procedures, tax policies, talent acquisition, and industry trends.

1. Choosing the Right Company Structure

The first step in setting up a business in Singapore is to determine the appropriate corporate structure. Common types of business entities include the Private Limited Company, Partnership, and Limited Liability Partnership LLP. Among these, the Private Limited Company is the most popular choice due to its status as a separate legal entity, limited liability for shareholders, and advantages in fundraising and business expansion.

According to the Accounting and Corporate Regulatory Authority ACRA, at least one director aged 18 or above and ordinarily resident in Singapore is required to incorporate a Private Limited Company. Shareholders can be individuals or corporate entities, and there is no minimum capital requirement. The incorporation process is highly digitized and typically completed within one to two business days.

2. Streamlined and Efficient Registration Process

In recent years, Singapore has continuously improved its business environment by introducing various facilitation measures. For example, the BizFile+ platform operated by ACRA enables end-to-end online company registration. Applicants need only submit the necessary documents to complete the incorporation process. Entrepreneurs can also choose to work with professional incorporation agencies to ensure compliance.

Notably, starting in 2025, the Monetary Authority of Singapore MAS has streamlined the registration process for fintech companies, further reducing approval times. This is undoubtedly positive news for entrepreneurs planning to enter the fintech sector.

3. Attractive Tax Policies

Singapore’s tax system is known for its simplicity, transparency, and low tax rates, making it one of the world’s most attractive tax environments. The corporate income tax rate is uniformly set at 17%, with tax exemptions or rebates available for newly established companies during their first three years of operation. For instance, the first SGD 100,000 of taxable income is fully exempt, and the next SGD 200,000 enjoys a 50% tax rebate.

Singapore follows a territorial tax system, meaning only income sourced in Singapore is subject to tax. For companies engaged in cross-border operations, this helps avoid double taxation. To date, Singapore has signed more than 80 Double Taxation Avoidance Agreements DTAs with countries and regions worldwide, providing strong support for companies aiming to expand internationally.

4. Talent Acquisition and Work Visa Policies

Talent is a core asset for business growth. Singapore places great emphasis on talent attraction and offers various work visa schemes, including the Employment Pass, S Pass, and Work Permit. The Employment Pass is designed for professionals earning a minimum monthly salary of SGD 5,000, with the evaluation criteria considering salary, educational background, and industry relevance.

In 2025, the Ministry of Manpower MOM revised the Employment Pass scoring mechanism, placing greater emphasis on the alignment between applicants’ skills and industry demand. This adjustment aims to attract high-value talent and enhance the competitiveness of the local labor market.

5. Industry Trends and Opportunities

Beyond being a global financial center, Singapore is also a key hub for technological innovation and green economy development. In recent years, the government has actively promoted high-growth sectors such as digital economy, biomedicine, and renewable energy. For example, the Agency for Science, Technology and Research ASTAR has increased investments in cutting-edge technologies like artificial intelligence and quantum computing, while the Green Plan 2030 provides policy support and financial subsidies for sustainable development.

According to a July 2025 report by Lianhe Zaobao, Singapore plans to invest over SGD 3 billion over the next five years to accelerate its green transition, with a focus on supporting carbon neutrality-related RD and applications. This presents a significant market opportunity for companies aiming to develop in the fields of environmental protection and new energy.

The medtech industry in Singapore is also experiencing rapid growth. According to data from the Ministry of Health, venture capital funding for medtech startups increased by nearly 30% year-on-year in the first half of 2025. The government continues to encourage investment in this sector through tax incentives and RD subsidies.

Conclusion

Starting a company in Singapore means entering a highly efficient, transparent, and legally robust business environment - and positioning yourself at the gateway to global markets. Whether you are a startup or an established business, with the right strategy and compliance practices, Singapore offers fertile ground for growth. For entrepreneurs aiming to expand internationally, Singapore is undoubtedly a top destination worth serious consideration.