Thinking of starting a company in Singapore? Here are the key requirements and details you need to know!

Lately, a lot of people have been talking about starting businesses. Some want to expand from China into overseas markets, while others are eyeing the growth potential in Southeast Asia. And Singapore keeps coming up in these conversations. This small country on the Strait of Malacca may be tiny in size, but it’s widely recognized as a global business hub. With low taxes, transparent policies, and a business-friendly environment, it's no wonder so many entrepreneurs are looking its way.

If you're thinking about setting up a company in Singapore, this might help clear things up and save you some hassle. Here’s a recent update according to data from Enterprise Singapore, over 60,000 new companies were registered in 2025 alone, nearly 30% of which were led or co-founded by foreigners. That shows how increasingly attractive Singapore is becoming for international founders. The government has also been streamlining processes-like launching BizFile+, an all-in-one online portal last year that allows everything from company registration to tax setup and license applications to be done digitally, saving time and effort.

So what do you actually need to start a company in Singapore as an ordinary person? And what’s the process like?

Good news the entry barrier is pretty low. Singapore allows 100% foreign ownership, meaning you don’t need a local partner to set up shop. But there’s one key requirement every company must have at least one resident director-a person who’s either a Singapore citizen, permanent resident PR, or someone holding an employment pass like EntrePass or EP and living locally long-term. Many entrepreneurs work with licensed service providers to appoint a nominee director when they don’t have someone qualified themselves-but make sure to go through channels to avoid legal risks.

Most people opt for a Private Limited Company Pte Ltd, the most common and popular structure. It offers limited liability for shareholders, independent legal status, and makes fundraising and scaling easier down the line. To register, you’ll need at least one shareholder individual or corporate, one company secretary must be a licensed professional based in Singapore, and a local registered office address can’t be a residential unit, though virtual office services can fulfill this requirement.

The registration process itself is straightforward. Submit your application via the BizFile+ system-fill in details like company name, constitution, shareholder and director info-and approval usually comes within 1-2 days. Your company name needs to be unique, not duplicate existing ones, and avoid sensitive terms. Once approved, you’ll get an electronic Certificate of Incorporation-the official birth certificate of your company.

Next step opening a bank account. This is often the first real hurdle for overseas founders. While Singapore has major banks like DBS, OCBC, and UOB, their scrutiny has tightened in recent years due to anti-money laundering rules and compliance requirements. You’ll likely need to provide full company documents, a detailed business plan, shareholder background info, and possibly attend an interview. Tip prepare a solid explanation of your business purpose-like who your main customers will be and expected cash flow patterns-to boost your chances.

Tax-wise, Singapore shines. The corporate tax rate is a flat 17%, with partial exemptions on the first S$300,000 of taxable income. Even better, it follows a territorial tax system-only income earned locally is taxed; foreign-sourced income brought back to Singapore is generally tax-free. Plus, Singapore has double taxation avoidance agreements with over 100 countries and regions, making cross-border operations much smoother.

But remember registering your company is just the beginning. Staying compliant matters. You’re required to file annual financial statements and tax returns-even if your company didn’t operate, you still need to submit a nil return. Your company secretary will remind you to hold annual shareholder meetings and keep records updated. Neglecting these duties could lead to fines or even deregistration.

On a positive note, Singapore offers strong support for startups. Programs like Startup SG Grants can cover up to 70% of project costs. If your business works in tech innovation, green economy, or similar fields, there are even targeted funding opportunities. For early-stage teams, these resources can be a game-changer.

One final tip language and culture aren’t formal barriers, but understanding local business norms helps build trust. Singaporeans value efficiency and punctuality, and prefer direct, clear communication. Be precise in contracts and avoid vague wording. English is the main business language, but knowing basic Chinese or Malay can add warmth and rapport when working with locals.

Setting up a company in Singapore isn’t out of reach. With the right documents and support from reliable professionals, the whole journey can be smooth. More importantly, its open market, stable legal framework, and strategic location between East and West offer solid ground for growing your business. Whether you’re testing overseas waters or building a global brand, Singapore is definitely worth a try.