Key Steps and Tips for Setting Up a Business in Singapore

How to Successfully Establish a Business in Singapore A Comprehensive Guide to Every Step and Key Tips

Singapore, one of Asia’s most competitive business hubs, continues to attract global investors with its stable environment, efficient services, strategic location, and open economic policies. In recent years, with the advancement of the Regional Comprehensive Economic Partnership RCEP and the rapid growth of the Southeast Asian digital economy, an increasing number of Chinese companies are choosing Singapore as their first overseas destination.

However, setting up a business is not a simple or immediate process. It involves multiple steps and professional considerations. This article provides a detailed, practical guide to establishing a business in Singapore, incorporating the latest developments to offer actionable insights for aspiring investors.

1. Clarify Business Objectives and Choose the Right Company Structure

Before proceeding with company registration, it is essential to clearly define your business goals and strategic positioning. Will the company function as a regional headquarters? A trading hub? Or a tech innovation center? Different business directions influence the choice of company structure.

The most common types of business entities in Singapore include

Private Limited Company Pte Ltd The most popular choice for small and medium-sized enterprises SMEs, offering limited liability and separate legal identity.

Branch Office Suitable for existing foreign companies setting up a local branch, but without independent legal status.

Representative Office Ideal for market research purposes, but not permitted to engage in profit-generating activities.

According to data from Enterprise Singapore, new business registrations increased by 7.3% year-on-year in Q1 2025, with over 40% being foreign-owned private limited companies. This trend confirms that the private limited company remains the preferred choice for international investors.

2. Step-by-Step Registration Process From Company Name to Bank Account

1. Company Name Approval

The first step is to submit a company name application to the Accounting and Corporate Regulatory Authority ACRA. The name must comply with ACRA’s guidelines-no duplication, no sensitive or misleading words. It's advisable to prepare multiple name options to increase approval chances.

2. Determine Shareholder and Director Structure

A Singapore company must have at least one local director, who can be a Singapore citizen, permanent resident, or employment pass holder. Foreigners can be shareholders, and 100% foreign ownership is allowed. Companies may consider hiring a professional secretary service if they lack local representation.

3. Capital Structure and Shareholding

There is no minimum capital requirement under Singapore company law; the minimum can be as low as S$1. Share structures can be freely defined, typically including ordinary shares and preference shares.

4. Registered Address and Corporate Secretary

A Singapore-based registered address is mandatory. Additionally, a qualified company secretary must be appointed within six months of incorporation to ensure compliance with legal requirements. Secretaries are usually provided by professional service firms.

5. Submit Registration and Obtain Business License

Once all documents are ready, the registration can be submitted through ACRA’s BizFile+ system. Approval typically takes one business day. Upon successful registration, the company receives a Unique Entity Number UEN and can begin operations.

6. Open a Corporate Bank Account

After registration, the next step is to open a corporate bank account. Major banks in Singapore-such as DBS, OCBC, and UOB-offer services tailored for startups. Some banks allow remote account opening, but it's recommended to visit in person for the initial setup.

3. Tax Policies and Compliance Requirements

Singapore’s tax system is known for its simplicity and efficiency. The corporate income tax rate is 17%, with tax exemptions for newly incorporated companies. For example, the first S$100,000 of taxable income is tax-free, and the next S$200,000 enjoys a 50% tax exemption.

Singapore has signed double taxation agreements DTAs with more than 80 countries, helping businesses reduce cross-border tax liabilities.

From a compliance perspective, companies must submit an Annual Return to ACRA and undergo an audit unless exempt. Maintaining accurate financial records and adhering to anti-money laundering AML and know-your-customer KYC regulations are also required.

4. Leverage Singapore’s Business Support Resources

To encourage entrepreneurship and attract foreign investment, Singapore offers various incentive programs, including

Enterprise Development Grant EDG Supports innovation, market expansion, and operational efficiency.

Startup SG Grant Provides funding for early-stage tech startups.

Global Trader Programme GTP Offers tax incentives and subsidies for international trading companies.

In April 2025, the Monetary Authority of Singapore MAS announced plans to expand its FinTech Innovation Lab initiative, creating new opportunities for fintech startups.

5. Choose the Right Professional Service Partners

For first-time investors, selecting a reputable and experienced local service provider is crucial. These services may include

Company registration and compliance

Tax planning and filing

Payroll and HR management

Legal consultation and contract drafting

It is advisable to choose from ACRA-certified service providers and review client feedback to ensure quality and reliability.

6. Conclusion

Establishing a business in Singapore is a comprehensive process that spans legal, tax, financial, and administrative domains. For companies looking to expand into Southeast Asia, Singapore serves not only as a gateway but also as a transparent, efficient, and dynamic business hub.

As regional economic integration deepens, Singapore will continue to play a pivotal role in the global business landscape. By clearly defining strategic goals, choosing the appropriate company structure, following the registration process, leveraging government incentives, and seeking professional support, businesses-whether startups or multinationals-can successfully establish themselves and grow in this garden city. With proper preparation and by capitalizing on policy benefits, companies can find unique development opportunities in Singapore.