Essential Steps Key Factors to Know When Starting a Company in Singapore

Key Elements and Steps to Set Up a Company in Singapore

In recent years, as the global business environment continues to evolve, more entrepreneurs and investors have turned their attention to Southeast Asian markets. As one of the most competitive business hubs in Asia, Singapore has become a top destination for international companies looking to establish regional headquarters or expand operations, thanks to its stable political and economic environment, efficient legal system, and strategic geographical location. Particularly in 2025, amid rising global economic uncertainty, Singapore’s appeal has further increased. According to data released by Enterprise Singapore, the number of newly registered businesses in the first half of 2025 rose by more than 12% year-on-year, with a significant increase in the proportion of foreign-invested enterprises.

If you are considering setting up a company in Singapore, the following outlines the key elements and steps you need to know.

1. Choose the Right Company Structure

The most common types of business entities in Singapore include

Private Limited Company Pte Ltd

Branch Office

Representative Office

Partnership

Among these, the Private Limited Company is the most popular, offering benefits such as separate legal identity, limited liability for shareholders, and favorable tax treatment. For foreign investors, a Private Limited Company is generally the most suitable option.

2. Meet Basic Registration Requirements

To successfully register a company in Singapore, the following basic requirements must be met

1. At least one director must be a local resident of Singapore Singapore citizen, permanent resident, or foreigner holding an Employment Pass.

2. At least one shareholder, who can be an individual or corporate entity.

3. Minimum paid-up capital of S$1, with no upper limit.

4. A local Singapore registered address.

5. Appointment of a qualified company secretary.

6. The company name must be approved by the Accounting and Corporate Regulatory Authority ACRA and must not be identical or too similar to existing names.

3. Prepare Required Documents

Before officially registering the company, the following documents should be prepared

1. Memorandum and Articles of Association

2. Identity and address proof of directors and shareholders

3. Proof of registered office address in Singapore

4. Appointment documents for the company secretary

5. Contact details of directors and shareholders

6. Description of business activities and scope of operations

4. Registration Process

The company registration process in Singapore is efficient and transparent, involving the following main steps

1. Company Name Approval Submit the proposed company name via ACRA’s BizFile+ system, which typically takes just a few minutes to be approved.

2. Submit Registration Documents Include the company constitution, director and shareholder information, and registered address details, all submitted online through BizFile+.

3. Company Incorporation Once documents are approved, ACRA will issue a Certificate of Registration, and the company is officially formed.

4. Open a Corporate Bank Account After incorporation, you can apply for a corporate bank account at a local bank.

5. Apply for Licenses and Permits Depending on the nature of the business, you may need to apply for industry-specific licenses from relevant authorities e.g., finance, healthcare, education.

6. Tax Registration Register with the Inland Revenue Authority of Singapore IRAS for Goods and Services Tax GST and Employer Registration File ERF, among others.

5. Taxation and Compliance Requirements

Singapore is known for its low tax rates and simplified tax system. The corporate income tax rate for Private Limited Companies is 17%, with tax exemptions for the first S$300,000 of annual profits. Additionally, Singapore has signed more than 80 Double Taxation Avoidance Agreements DTAAs worldwide, helping to reduce cross-border tax burdens.

Ongoing compliance requirements include

1. Filing an Annual Return with ACRA every year.

2. Holding an Annual General Meeting AGM and submitting audited financial statements unless exempt.

3. Maintaining proper accounting records and undergoing annual audits unless exempt.

4. Complying with labor laws, including employment contracts and CPF Central Provident Fund contributions.

5. Fulfilling Anti-Money Laundering AML and Know-Your-Customer KYC obligations.

6. Employment and Talent Attraction

Singapore encourages companies to bring in high-skilled professionals. Foreign entrepreneurs or executives can work in Singapore by applying for an Employment Pass or S Pass. Additionally, Singapore offers the Tech.Pass, a special visa aimed at attracting global tech talent.

7. Business Environment and Support Policies

Singapore has consistently ranked highly in global ease-of-doing-business indices. The government supports business growth through various incentive programs, including tax exemptions, RD grants, and training subsidies. For example, the Economic Development Board EDB offers tailored support plans for companies in high-tech, biotech, and financial sectors.

With world-class infrastructure, an efficient logistics network, and a multicultural social environment, Singapore provides a solid foundation for companies aiming to expand across Asia and globally.

Conclusion

While setting up a company in Singapore involves multiple steps and requirements, the transparent and efficient registration process, combined with a favorable business environment and robust legal framework, makes the process relatively smooth. For entrepreneurs and investors looking to tap into the Asian market, Singapore is undoubtedly an ideal choice. With proper planning and a clear understanding of the relevant policies and procedures, company registration can be a straightforward and valuable step toward international expansion.