Want to Register a Company in Singapore? Here's What You Need to Know First!

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Are You Planning to Register a Company in Singapore? Here Are Key Considerations

In recent years, as globalization deepens and the business environment continues to evolve, more entrepreneurs and companies are looking to expand into overseas markets. Among them, Singapore has become a top destination for international investors, thanks to its political stability, strategic location, efficient services, and favorable tax policies.

Especially since 2025, with the global economy gradually recovering, interest in registering a company in Singapore has continued to rise. According to data from the Accounting and Corporate Regulatory Authority ACRA, new company registrations in Singapore increased by over 12% year-on-year in the first half of 2025, with a significant rise in registrations by Chinese companies. This reflects a growing awareness among Chinese businesses and individuals about the benefits of setting up a presence in Singapore.

However, before you decide to register a company in Singapore, there are several key points you must carefully consider.

1. Clarify the Purpose and Choose the Right Company Type

First and foremost, you need to be clear about your company’s purpose. Is it for overseas investment, brand expansion, international trade, or asset management? Your business goal will directly influence the type of company structure you should choose.

The most common types of companies in Singapore include

Private Limited Company Pte Ltd - The most popular option, offering limited liability for shareholders, independent legal status, and access to preferential tax rates.

Branch Office - Suitable for foreign companies seeking to expand operations in Singapore, but it is considered an extension of the parent company.

Representative Office - Ideal for initial market research, though it cannot engage in profit-generating activities.

Choose the structure that best fits your business needs.

2. Understand the Tax System and Plan Accordingly

Singapore’s tax system is known for its simplicity and low rates. The maximum corporate income tax rate is 17%, significantly lower than in many other countries.

Singapore operates a single-tier tax system, meaning that once a company pays corporate tax, dividends distributed to shareholders are not taxed again. Additionally, Singapore has signed Double Taxation Avoidance Agreements DTAs with more than 80 countries, making cross-border financial activities more efficient for multinational businesses.

However, it's important to note that even with low tax rates, all income - including foreign income - must be declared in accordance with Singapore tax law. Don’t let the low tax rate lull you into complacency.

3. Registration is Simple, but Compliance is Strict

Thanks to its pro-business environment, Singapore allows companies to be registered in as little as 1-3 working days. However, once registered, companies are subject to strict compliance requirements.

For example, all companies must

Submit an Annual Return

Undergo annual audits unless exempt

Maintain proper accounting records

File taxes on time

If you're unfamiliar with local regulations, it’s wise to hire a professional accounting or corporate secretary service to help manage these responsibilities and avoid penalties due to oversight.

4. Local Operations and Human Resources

While the registration process is straightforward, actually running a business in Singapore involves more practical considerations.

For instance

Do you need a physical office?

Will you hire local staff?

Do you need to apply for work permits?

Under Singapore’s Ministry of Manpower MOM regulations, foreign companies hiring non-residents - including Chinese nationals - must apply for work passes such as the Employment Pass EP or S Pass. These have specific requirements regarding salary levels, qualifications, and experience.

Keep in mind that labor costs in Singapore are relatively high, so factor this into your operational budget.

5. Bank Account Setup and Financial Transactions

After registering your company, one of the next steps is opening a corporate bank account. In recent years, banks in Singapore have tightened their due diligence procedures due to stricter global Anti-Money Laundering AML regulations.

When opening a bank account, you may be required to

Provide detailed business plans

Submit shareholder background information

Attend in person for verification

While capital movement in and out of Singapore is generally free, it must still comply with financial regulations. Large transactions may require documentation to justify their commercial background and avoid triggering regulatory scrutiny.

6. Ongoing Maintenance Costs and Exit Strategy

Registering a company is just the beginning. Maintaining it involves ongoing costs such as

Annual audits and tax filings

Secretary and accounting services

Office rental and other operational expenses

Additionally, if your company ceases operations in the future, the process of winding it down is not simple. Singapore has strict procedures for company deregistration, including asset liquidation, debt settlement, and submission of final financial statements. Mishandling this process could negatively impact shareholders.

Conclusion

Registering a company in Singapore is a strategic move worth considering for businesses looking to go global. However, any decision should be based on thorough understanding and preparation.

In today’s increasingly complex global business environment, making decisions based on trends or limited knowledge can lead to unexpected risks. Before taking the plunge, evaluate your business goals carefully, consider legal, tax, and operational aspects, and seek professional advice when necessary. This way, you’ll be better positioned to build a strong and sustainable presence in Singapore.

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