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Thinking of Registering a Company in Singapore? These Secrets and Tips Might Surprise You!

ONEONEAug 10, 2025
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Thinking about registering a company in Singapore? Discover secrets and tips you never knew!

In recent years, as global economic integration has accelerated, more and more entrepreneurs and business owners have started looking toward overseas markets. As one of Asia's most competitive business hubs, Singapore has become a top destination for global investors, thanks to its stable environment, efficient legal system, strategic location, and open economic policies.

Thinking of Registering a Company in Singapore? These Secrets and Tips Might Surprise You!

According to data released by Enterprise Singapore, the number of newly registered companies in Singapore increased by more than 10% year-on-year in 2025, with a significant rise in investors from China, India, and Southeast Asian countries. This trend not only reflects Singapore’s appeal in the global business landscape, but also shows that more small and medium-sized enterprises are actively seeking opportunities beyond their home markets.

Although the company registration process in Singapore appears transparent and efficient, many hidden details and practical tips can make a big difference-especially for first-time investors. Today, let’s uncover some of the lesser-known but highly useful secrets of setting up a business in Singapore.

1. Choosing the right company structure matters

The most common type of company in Singapore is the Private Limited Company Pte Ltd, which is also the preferred choice for most foreign investors. It has a separate legal identity, offers limited liability to shareholders, and is ideal for raising funds and scaling operations.

However, many people are unaware that Singapore also offers other company structures suitable for different stages of entrepreneurship

Branch Office Suitable for companies with an overseas parent company that want to operate in Singapore. However, it does not have independent legal status, and the parent company is liable for its obligations.

Representative Office Ideal for market research purposes only, and cannot engage in profit-making activities. It is typically allowed to operate for up to one year.

Limited Liability Partnership LLP Best suited for professionals such as lawyers or accountants, offering flexibility and risk protection.

Choosing the right structure not only affects tax planning but also impacts future financing and growth potential.

2. Hidden requirements for shareholders and directors

Singapore law requires at least one local director who is over 18 years old and a Singapore resident. However, many people overlook the definition of a local director. This person can be a Singapore citizen, permanent resident PR, or even a foreigner holding an Employment Pass EP and living in Singapore long-term.

For foreign investors without local resources, hiring a nominee director is a common solution to meet legal requirements. However, this comes with risks. It’s important to work with a reputable service provider and have a clear agreement in place to protect your interests.

There are no nationality restrictions for shareholders. This means you can use an overseas company as the shareholder of your Singapore company, enabling cross-border ownership.

3. Low capital requirement-but choose wisely

The minimum paid-up capital for a Singapore company is just 1 Singapore dollar, and there's no need for capital verification. But many people mistakenly believe that higher capital is always better-which isn’t the case.

Setting a high capital might lead to higher tax obligations and even affect credit assessments. It’s best to determine the capital based on your business size and future funding plans. For startups, a typical range is between S$10,000 and S$100,000, which shows credibility without causing financial strain.

4. Don’t overlook the company secretary and registered address

Under Singapore law, every company must appoint a qualified company secretary within 30 days of incorporation. The secretary plays a key role in ensuring compliance, maintaining company records, and submitting annual reports.

If you don’t have a local team, you can outsource this role to a professional secretarial service.

Additionally, your company must have a valid Singapore registered address-a P.O. Box is not acceptable. Many startups opt for shared office spaces or use address services provided by registration agents, which is both cost-effective and compliant.

5. Plenty of tax benefits-but compliance is key

Singapore is known for its low corporate tax rate of 17%, and newly incorporated companies enjoy tax exemptions for the first three years. For example, profits up to S$100,000 are fully exempt, and the next S$200,000 receive partial relief.

Singapore also has Double Taxation Avoidance Agreements DTAs with more than 80 countries, helping businesses reduce cross-border tax burdens.

However, while tax incentives are generous, compliance is strictly enforced by the Inland Revenue Authority of Singapore IRAS. Late or incorrect filings can result in serious penalties. It’s wise to establish proper financial systems early on or hire a professional accounting firm to manage tax reporting.

6. Bank account opening is more flexible than you think

Contrary to popular belief, you don’t need to be physically present in Singapore to open a corporate bank account. Major local banks like DBS, OCBC, and UOB now offer remote account opening services, especially for clients from countries like China and India.

Still, banks conduct thorough due diligence on the company’s business background and source of funds. To increase your chances of approval, prepare a detailed business plan, shareholder information, and all necessary incorporation documents before applying.

7. Leverage government support to cut costs

Singapore places great emphasis on supporting small and medium-sized enterprises SMEs. Programs like Startup SG offer funding grants, office space support, and talent incentives to qualifying startups.

The Monetary Authority of Singapore MAS also runs several financial technology support programs, encouraging tech-driven companies to set up in Singapore.

Foreign entrepreneurs who understand and utilize these programs can significantly reduce initial costs and risks.

Conclusion

Registering a company in Singapore may seem straightforward, but truly establishing a successful business requires a deep understanding of local laws, tax rules, financial systems, and the broader business environment.

By choosing the right company structure, making smart use of available resources, and ensuring compliance from day one, even first-time entrepreneurs can find their space in this global city.

If you're planning to set up a company in Singapore, now is the time to start preparing-and take advantage of this gateway to the global market.

Customer Reviews

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Small *** Table
December 12, 2024

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December 18, 2024

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December 19, 2024

I originally thought that they only did mainland business, but I didn’t expect that they had been doing Hong Kong business and were doing very well. After the on-site interview, I decided to ask them to arrange the registration of my Hong Kong company. They helped me complete it very quickly and provided all the necessary information. The efficiency was awesome. It turns out that professional things should be done by professionals.👍

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December 16, 2024

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I am Alan, a business consultant specializing in HK company registration, bank account opening, tax compliance and CBEC Tel: +86 159 2006 4699

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