Top 10 Key Points You Must Know When Starting a Business in Singapore

Top 10 Key Factors You Need to Know When Starting a Company in Singapore

As one of the world's most competitive business hubs, Singapore has attracted a large number of international investors and entrepreneurs due to its stable environment, transparent legal system, and strategic geographical location. In recent years, with the rapid development of the digital economy in Southeast Asia, more and more companies have chosen to set up operations in Singapore as a gateway to the ASEAN market. According to data released by Enterprise Singapore in 2025, despite a complex and volatile global economic environment, Singapore continues to demonstrate strong growth in attracting foreign investment and registering new startups.

For entrepreneurs looking to start a business or expand operations in Singapore, understanding the local business environment and key requirements is crucial. Below are the top 10 key factors you must know when setting up a company in Singapore.

1. Choose the Right Company Structure

Singapore offers several types of business entities, including Private Limited Companies Pte Ltd, Branch Offices, Partnerships, and Sole Proprietorships. Among these, the Private Limited Company is the most popular due to its separate legal identity, limited liability for shareholders, and strong financing capabilities. According to the Accounting and Corporate Regulatory Authority ACRA, a Private Limited Company must have at least one local director who is a Singapore citizen, permanent resident, or a foreigner holding an Employment Pass. There is no minimum capital requirement.

2. Meet Basic Registration Requirements

To register a company in Singapore, the following basic requirements must be met at least one shareholder, one local director as described above, a qualified company secretary, and a valid registered office address. The company’s paid-up capital is typically denominated in Singapore dollars, and shareholders can pay in installments rather than in a single lump sum.

3. Define the Scope of Business Activities

When registering a company, you must clearly define the primary business scope and select up to two main business activity codes from the Singapore Standard Industry Classification SSIC. This information will affect future applications for relevant licenses or permits, so it should be chosen carefully based on actual business plans.

4. Efficient and Streamlined Registration Process

The company registration process in Singapore is highly digitized and mainly conducted through ACRA’s BizFile+ system. The entire process usually takes just one day and includes name approval, submission of documents, and issuance of the business license. A one-stop service is also available to help companies quickly complete tax registration, employee registration, and other follow-up procedures.

5. Attractive Tax Incentives

Singapore operates a low corporate tax regime, with a maximum corporate income tax rate of 17%, significantly lower than many developed countries. It also offers various tax incentives, such as the Start-up Tax Exemption Scheme and the Partial Tax Exemption Scheme, to help new businesses reduce their tax burden. In addition, Singapore has signed more than 80 Double Taxation Avoidance Agreements DTAs with countries around the world, enabling companies to optimize their international tax structures.

6. Robust Financial and Legal Infrastructure

Singapore has a well-developed financial infrastructure and a strong legal system that provides solid support for investors. The Monetary Authority of Singapore MAS ensures the stability and transparency of the financial system through effective regulation. The judicial system is efficient and impartial, and international arbitration institutions are also based in Singapore, offering businesses a reliable mechanism for resolving commercial disputes.

7. Flexible and Skilled Labor Market

Singapore has a highly skilled and educated workforce, with a strong education system and widespread use of English, providing a solid talent base for businesses. The country also has a clear visa framework for hiring foreign workers, such as the Employment Pass EP and S Pass, enabling companies to recruit suitable talent based on job requirements.

8. Business-Friendly Environment

According to the World Bank’s Ease of Doing Business Report, Singapore consistently ranks among the top globally. The government promotes digital governance, allowing processes such as company registration, tax filing, and recruitment to be completed online, significantly improving operational efficiency. With excellent infrastructure and convenient logistics, Singapore serves as a vital hub connecting East and West markets.

9. Strong Support for Innovation and Entrepreneurship

Singapore actively supports technological innovation and entrepreneurial activities through various funding and development programs, such as the Enterprise Development Grant EDG and the Innovation and Capability Fund ICF. These initiatives offer financial subsidies, RD support, and assistance with market expansion. In recent years, Singapore has focused on developing its digital economy, promoting emerging industries such as artificial intelligence, blockchain, and green technology, thereby creating vast opportunities for startups.

10. Compliance and Ongoing Management

While the registration process is straightforward, companies operating in Singapore are still required to comply with various legal and regulatory obligations, including annual financial reporting, audit requirements, and tax filings. Companies must also update their corporate information regularly, such as changes in directors or shareholder structures, to ensure ongoing compliance. Failure to comply may result in penalties or even revocation of the business license. Therefore, it is advisable for companies to establish robust internal management systems and consider hiring professional accounting or legal firms to assist with administrative tasks.

In recent years, with the global restructuring of supply chains and the advancement of regional economic integration, Singapore’s role as a business hub in Southeast Asia has become increasingly prominent. Whether you are a tech startup or a traditional manufacturing company, setting up in Singapore not only allows you to benefit from favorable policies and an efficient business environment, but also provides access to a global network for broader market expansion. For entrepreneurs considering investment in Singapore, a deep understanding of these ten key factors will lay a solid foundation for successful business establishment.