Starting a Company in Singapore? Here Are the Key Steps and Things to Keep in Mind

In the dynamic startup landscape of Southeast Asia, Singapore undoubtedly shines as a gem. In recent years, more and more entrepreneurs, small and medium business owners-even large multinational corporations-have turned their eyes to this city-state. It’s not just because of its strategic location or strong legal system, but also thanks to its exceptionally business-friendly policies. If you're considering going global and expanding your operations overseas, registering a company in Singapore might be a smart move worth serious consideration.

According to data recently released by the Accounting and Corporate Regulatory Authority ACRA, new business registrations in 2025 rose nearly 8% year-on-year, with a significant increase in foreign-owned companies-especially from China, India, and neighboring Southeast Asian countries. This growth is a direct result of Singapore's ongoing efforts to improve its business environment, streamline registration procedures, and enhance digital services.

So, what key details should you know about setting up a company in Singapore? And is the process really as smooth and efficient as people say? Let’s take a closer look.

First things first choosing the right company structure. The most common type of business entity in Singapore is the Private Limited Company, often abbreviated as Pte Ltd. This structure offers limited liability for shareholders, independent legal status, and makes fundraising and future expansion much easier. Most foreign investors go with this option because it protects personal assets while building solid international credibility.

Next comes naming your company. Sounds simple, but there’s more to it than meets the eye. You’ll need to submit at least one proposed name through ACRA’s BizFile+ portal, which automatically checks for duplicates or restricted terms. Words like “bank,” “insurance,” or “fund” usually require additional approvals. To avoid delays, prepare two or three alternative names just in case your first choice gets rejected.

Once the name is approved, it’s time to gather your registration documents. Key requirements include

- At least one local director-a Singapore citizen, permanent resident, or a foreigner holding an Employment Pass;

- One company secretary, who must be a licensed professional based in Singapore;

- A minimum paid-up capital of just 1 Singapore dollar no need to fully pay it upfront;

- A registered office address that’s a physical commercial or office space-not a PO box;

- And shareholder information.

One important note while 100% foreign ownership is allowed, Singapore law requires every company to have at least one director who ordinarily resides in Singapore. If you’re not living locally, you can hire a corporate service provider to appoint a nominee director on your behalf. However, this service typically costs between SGD 2,000 and 4,000 per year, depending on the provider.

The registration process itself is remarkably fast. Everything can now be done online via ACRA’s BizFile+ platform. With complete and correct documentation, approval usually takes anywhere from 15 minutes to one day. Once registered, you’ll receive an electronic Certificate of Incorporation, officially marking your company’s birth.

But here’s the thing registration is only the beginning. Several post-incorporation steps are crucial.

Opening a corporate bank account is often the next step. While Singapore boasts world-renowned banks like DBS, OCBC, and UOB, account opening has become tougher in recent years due to stricter anti-money laundering checks. Banks commonly ask for business plans, shareholder background info, proof of business address, and sometimes even conduct video interviews. Working with a professional agency to prepare these materials can significantly boost your chances of approval.

Then there’s tax registration. Singapore follows a territorial taxation system-only income earned locally is taxed, at a competitive rate of 17%. New companies may also enjoy partial tax exemptions for their first three years if they meet certain criteria. After incorporation, you’ll need to register for Goods and Services Tax GST with IRAS-the current rate is 9%. Whether or not you must register depends on your annual turnover mandatory if it exceeds SGD 1 million. So assess your business scale carefully.

Don’t forget annual compliance duties. Every company must hold an annual general meeting AGM, file financial statements, and submit an Annual Return to ACRA. Missing deadlines could lead to fines-or even deregistration. Many business owners choose to outsource these tasks to local accounting or corporate secretarial firms, saving time and reducing stress.

Worth noting Singapore has been pushing hard on digital transformation. Starting in 2025, all newly incorporated companies must identify and report their beneficial owners through a national registry to promote transparency. While this adds some initial paperwork, it strengthens trust in Singapore’s reputation as a reliable global financial hub.

Finally, while the setup process is straightforward and efficient, doing your homework still matters. Differences in language, culture, and legal systems can present unexpected challenges. Rather than navigating everything alone, teaming up with experienced professionals ensures each step is compliant and secure.

With its political stability, efficient bureaucracy, and open economy, Singapore continues to attract ambitious entrepreneurs from around the world. Whether you're setting up a regional headquarters or using it as a springboard into ASEAN markets, the city-state offers a powerful launchpad. As long as you understand the rules and plan wisely, taking that first step isn’t hard at all.

And that slim piece of paper-the Certificate of Incorporation-might just be your ticket to a much bigger world.