Must-Know Requirements for Starting a Company in Singapore!

Key Conditions You Need to Know to Establish a Company in Singapore

In recent years, with the acceleration of global economic integration, more and more investors have turned their attention to Singapore-an attractive destination with a stable business environment and an efficient management system. As one of the world’s most competitive economies, Singapore has drawn a large number of international businesses with its low tax rates, strong infrastructure, strategic location, and high-quality services. For entrepreneurs looking to start a business or expand operations in Singapore, understanding the basic requirements for company registration is essential.

1. Choosing the Right Company Structure

The first step in setting up a company in Singapore is to determine the appropriate business structure. The most common types include

Private Limited Company Pte Ltd

Branch Office

Partnership

Sole Proprietorship

Among these, the Private Limited Company is the most popular. It is a separate legal entity, and shareholders enjoy limited liability protection up to the amount of their share capital. This structure also enhances business credibility, making it easier to raise capital and expand operations. According to data from the Accounting and Corporate Regulatory Authority ACRA, over 70% of newly registered companies in 2025 were Private Limited Companies, demonstrating the widespread acceptance of this structure in the local market.

2. Basic Requirements for Company Registration

At least one local director Singapore law requires that every company must appoint at least one director who is at least 18 years old and a Singapore citizen, permanent resident, or a foreigner holding a valid work pass.

Company secretary Within six months of incorporation, a qualified company secretary who is a Singapore resident must be appointed. The secretary is responsible for ensuring compliance with statutory requirements, including filing annual returns and organizing shareholder meetings.

Share capital There is no minimum share capital requirement. Shareholders may contribute in the form of cash, assets, or intellectual property. Startups often adopt a structure of 100 shares at SGD 1 per share to simplify administration.

Registered office address A physical address in Singapore not a P.O. Box is required for company registration.

Company name approval Before registration, the proposed company name must be submitted through ACRA’s online system to ensure it is available and complies with naming guidelines.

3. Tax Incentives and Corporate Benefits

Singapore is often referred to as a global tax haven, with a maximum corporate tax rate of only 17%-significantly lower than many developed countries. It operates a single-tier tax system, meaning that dividends distributed to shareholders are not subject to additional taxation after corporate tax has been paid.

To encourage growth in specific sectors, the government offers various tax incentives and grants. For example, in 2025, the Economic Development Board EDB announced a five-year tax exemption for qualified tech and startup companies, aiming to attract high-value industries to Singapore. These incentives provide significant financial support and growth opportunities for startups.

4. Company Registration Process

The process of setting up a company in Singapore is highly efficient and mostly conducted online via ACRA’s platform. The typical steps include

1. Submitting a company name application

2. Preparing legal documents such as the company constitution and shareholder agreements

3. Registering the company and submitting required documents

4. Opening a corporate bank account

5. Applying for necessary business licenses and permits

In most cases, the entire registration process can be completed within 3 to 5 working days-much faster than in many other countries.

5. Opening a Bank Account and Ongoing Compliance

After incorporation, businesses must open a corporate bank account in Singapore to conduct operations. Major banks such as DBS, OCBC, and UOB offer streamlined account-opening services for new companies. Required documents typically include the certificate of incorporation, director identification, and business plan.

Companies must also comply with local regulatory and financial requirements, including

Filing annual financial statements

Holding annual general meetings

Submitting annual returns on time

For foreign businesses, adhering to local regulations is key to long-term, stable operations.

6. Industries Well-Suited for Company Formation in Singapore

Singapore offers distinct advantages for businesses in several key sectors

Technology and innovation The government provides substantial funding and policy support for tech startups.

Finance and investment As a global financial hub, Singapore offers a robust and well-regulated financial system.

International trade With its strategic location and world-class logistics infrastructure, Singapore serves as a vital link between Asia and global markets.

Education and healthcare These high-value service sectors are open to foreign investment and offer significant growth potential.

Conclusion

With its favorable business environment, transparent legal system, and efficient services, Singapore has become a top destination for global businesses. For entrepreneurs seeking to expand into the Southeast Asian market, understanding the key conditions for company registration not only streamlines the setup process but also lays a solid foundation for future compliance and sustainable growth.