What's It Really Like to Start a Biz in Singapore? Full Breakdown from Registration to Operations

What’s It Like to Start a Business in Singapore? A Full Walkthrough from Registration to Operations

In recent years, as the global economic landscape continues to shift, more entrepreneurs and small business owners have started looking overseas for better business environments and market opportunities. Singapore, the small red dot at the heart of Southeast Asia, has become a top choice for many international entrepreneurs due to its stable environment, efficient services, robust financial system, and strategic location.

If you’ve ever wondered what it’s really like to start a company in Singapore, this article will walk you through the entire process-from registration to daily operations-and give you a realistic picture of what it means to run a business there.

1. Company Registration Fast and Efficient-but Not Without Requirements

Singapore’s company registration process is known for its speed and efficiency. According to data from the Accounting and Corporate Regulatory Authority ACRA, over 90% of new company applications were approved within a day in 2025. Entrepreneurs can submit applications online through ACRA’s BizFile+ portal, and the entire process is mostly digital and straightforward.

Most entrepreneurs choose to set up a Private Limited Company Pte Ltd, a structure that provides limited liability protection and is recognized as a separate legal entity. Required documents typically include the company name, business scope, registered address, director and shareholder details, and the appointment of a company secretary.

However, while the process is simple, it’s not completely barrier-free. For example, at least one director must be a local-either a Singapore citizen, permanent resident, or a foreigner holding an Employment Pass. If you don’t meet this requirement, you’ll need to hire a compliance director. Additionally, appointing a company secretary, preparing annual financial statements, and fulfilling audit obligations are all mandatory legal duties.

2. Tax Benefits Low Rates and Generous Incentives

Singapore’s corporate tax rate stands at 17%, significantly lower than many Western countries. What’s more, the country offers a range of tax incentives. For example, new startups can enjoy full tax exemption on the first S$100,000 of taxable income, and pay only around 8.5% tax on the next S$200,000.

Singapore also has double tax treaties with more than 80 countries worldwide, offering tax relief for cross-border businesses. These benefits have attracted a growing number of tech firms, trading companies, and regional headquarters to set up shop in Singapore.

3. Business Environment Supportive and Efficient

Singapore offers strong support for small and medium-sized enterprises SMEs. Organizations like Enterprise Singapore and the Economic Development Board EDB provide guidance, funding assistance, and market expansion support. In recent years, the government has also placed a strong emphasis on digital and green economies, offering grants and subsidies for tech startups and sustainable business initiatives.

Moreover, Singapore’s legal environment is widely praised. According to the World Bank’s Ease of Doing Business report, Singapore consistently ranks among the top countries globally. Processes such as dispute resolution and contract enforcement are transparent and efficient.

4. Operational Challenges High Labor Costs and Fierce Competition

Despite its many advantages, running a business in Singapore is not without its challenges.

One major issue is high labor costs. The local labor market is tight, especially for skilled professionals and technical workers, whose salaries are relatively high. This can be a heavy burden for startups.

Another challenge is the intense market competition. While Singapore’s domestic market is small, it’s packed with top-tier companies from around the world. Whether in retail, tech, or services, standing out requires a clear market positioning and a strong competitive edge.

5. Real Entrepreneurs’ Experiences

Starting a company in Singapore may be easier than you think-but running it is another story.

One entrepreneur who launched an e-commerce platform shared, We underestimated the logistics costs and the difficulty of local marketing, but government startup programs really helped us get through the early stages.

A founder of a tech startup added, The business ecosystem in Singapore is very mature, and there are many financing options available. But the pressure to grow quickly is real. If you can’t validate your business model fast enough, cash flow can become a problem.

6. Conclusion

Starting a business in Singapore offers a highly efficient, well-regulated, and globally connected environment-but it also comes with real challenges. It’s a place with one of the best business climates in the world, supported by a transparent legal system and an open market. However, it also demands strong operational capabilities and strategic thinking.

If you're considering starting a business overseas, Singapore could be the perfect launchpad. Here, you can access a broader international market while building your company in a highly professional environment. With the right preparation and strategy, Singapore might just be the place where your business takes off.