Revealing the Entire Process of Starting a Company in Singapore - Entrepreneurship Isn’t That Hard!

Registering a Trading Company in Singapore A Practical and Step-by-Step Guide

In today’s globalized economy, more and more entrepreneurs and small business owners are setting their sights on overseas markets. Among them, Singapore stands out as a top destination due to its stable economy and efficient business environment. As a key financial and trade hub in Southeast Asia, Singapore serves not only as a gateway to the Asian market but also as a popular choice for companies looking to establish an international presence.

If you're considering setting up a trading company in Singapore but are unfamiliar with the process, this article will walk you through the entire registration process - making your entrepreneurial dream both simple and efficient.

Why Register a Trading Company in Singapore?

Let’s first explore why Singapore is such a favored destination for entrepreneurs worldwide.

According to the World Bank’s 2025 Doing Business Report, Singapore has consistently ranked among the top countries globally for ease of doing business. Its transparent tax system, high operational efficiency, and robust legal framework make it an ideal place for international trade.

Singapore adopts a low-tax policy, with a maximum corporate income tax rate of just 17%. Moreover, it follows a territorial tax system, meaning only profits generated within Singapore are taxed. For export and import businesses, this is a major advantage.

Additionally, with the official implementation of the Regional Comprehensive Economic Partnership RCEP, demand for international trade in Southeast Asia has surged. Thanks to its strategic location and mature logistics infrastructure, Singapore has become the preferred gateway for many companies entering the ASEAN market.

Basic Requirements for Registering a Trading Company in Singapore

Before diving into the registration process, here are the key requirements

1. Company Name The name must be approved through the Accounting and Corporate Regulatory Authority ACRA website.

2. Company Type The most common structure is a Private Limited Company Pte Ltd, which suits most trading businesses.

3. Shareholders and Directors At least one director is required, aged 18 or above. This person can be a Singapore citizen, permanent resident, or foreigner with a valid work pass. A single shareholder can fully own the company.

4. Registered Address You must have a local Singapore address for official correspondence.

5. Company Secretary Within six months of incorporation, a qualified company secretary must be appointed to manage compliance matters.

6. Paid-Up Capital The minimum is just 1 Singapore dollar, with no upper limit. Typically, a capital of S$100 is recommended.

Step-by-Step Registration Process

Step 1 Determine Company Structure and Business Scope

Before registering, clarify your company’s business nature. Trading companies usually engage in import/export activities, so choose the appropriate business category during registration - such as wholesale trade or international trade support services.

Step 2 Submit Company Name for Approval

Use ACRA’s BizFile+ system to submit your preferred company name. Approval is usually instant. If the name is already taken, you’ll need to resubmit a new one.

Step 3 Prepare Required Documents

You’ll need the following documents

Company Constitution Articles of Association

Identity proof of shareholders and directors

Proof of registered address

Appointment documents for the company secretary

These documents can be prepared with the help of a registered agent. Many professional service providers offer one-stop incorporation services, saving you time and effort.

Step 4 Official Company Registration

Submit your registration application via the BizFile+ platform and pay the registration fee usually between S$300-S$400. Incorporation is typically completed within 1-2 business days.

Step 5 Open a Corporate Bank Account

After registration, the next step is to open a business bank account. Singapore is home to major international banks such as DBS, OCBC, and UOB, all of which offer corporate banking services. Some banks even allow remote account opening - a great advantage for overseas entrepreneurs.

Step 6 Apply for Necessary Licenses and Permits

If your trading company deals with specific goods - such as electronics, medical devices, or food - you may need to apply for relevant import/export licenses. For example, food importers must obtain a license from the Singapore Food Agency SFA.

Practical Tips and Key Considerations

1. Choose a Reliable Registration Agent

For those unfamiliar with the process, selecting a trustworthy registration agent is crucial. Look for agents with a good reputation, transparent service packages, and reasonable fees.

2. Understand Tax Obligations

While Singapore’s tax system is simple, companies still need to file corporate income tax and Goods and Services Tax GST, if applicable. Hiring a professional accountant or using accounting services can help ensure compliance.

3. Leverage Opportunities from RCEP

With the implementation of RCEP, Singapore’s role as a regional trade hub has grown stronger. Entrepreneurs can use this opportunity to expand into ASEAN markets, reduce tariffs, and boost competitiveness.

4. Make Use of Digital Tools

Singapore actively promotes digital transformation. Many business services - including company registration, tax filing, and trademark applications - can be done online. Utilizing these tools can save significant time and reduce costs.

Conclusion

Setting up a trading company in Singapore doesn’t have to be complicated. With the right knowledge and preparation, you can easily take your first step toward global business expansion. In this increasingly interconnected world, Singapore offers not just a solid platform for entrepreneurship but also a vital bridge connecting Asia to the rest of the world.

We hope this guide provides you with a clear and practical roadmap to start your international trading journey. Let your entrepreneurial dream take flight - and let Singapore be your launchpad.