Thinking of starting a company in Singapore? Here are the registration requirements you should know first

Lately, a lot of my friends have been talking about starting businesses-especially setting up companies in Singapore. Some say the policies are business-friendly with great tax benefits; others praise its strong and high level of internationalization. And it’s true more and more Chinese entrepreneurs and small-to-medium enterprises SMEs have been turning their eyes toward Singapore in recent years. But let’s be real-launching a company there isn’t as simple as clicking a few buttons. You need to understand the basic requirements and procedures first, or you could easily run into trouble.

Take a recent piece of news, for example. At the end of 2025, Enterprise Singapore released data showing over 60,000 new business registrations that year alone-with significant numbers coming from investors in China, India, and other Southeast Asian countries. This proves Singapore is still a top destination for global startups. But with rising demand comes tighter scrutiny. For instance, rules around local directors are now much stricter. Trying to get around them by using a “nominal” director? Good luck-it won’t fly anymore.

So what are the actual must-have conditions for registering a company in Singapore?

First and foremost you need at least one resident director. This person must be a Singapore citizen, a permanent resident PR, or a foreigner holding an EntrePass. A lot of people think they can just find someone local to put their name on paper-but ACRA the Accounting and Corporate Regulatory Authority has cracked down hard on this. The resident director must actually participate in managing the company, not just serve as a figurehead. If you don’t have eligible status yourself, your options include applying for an EntrePass or hiring a qualified local individual as director. Either way, plan ahead-both time and cost matter.

Second, your company needs a local registered address. It can't be a P.O. box or virtual office number-it has to be a real physical address, commercial or residential. Many startups don’t have office space when they begin, so they use the address provided by a corporate secretarial firm. That’s perfectly legal, but make sure the agency is reputable. I know someone who went cheap and picked an unlicensed agent-their address got flagged by ACRA as high risk, and later, their bank account application was flat-out rejected.

Third, capital requirements are surprisingly flexible. There's no minimum paid-up capital-you could technically register a company with just 1 Singapore dollar. Of course, nobody actually does that. Most people start with between 10,000 and 50,000 SGD, which shows credibility without creating heavy tax obligations. Plus, capital is mostly on a subscription basis-you don’t need to deposit all the money upfront. You can inject funds gradually as your business grows.

Now, taxes-that’s one of the biggest draws. The corporate income tax rate is a flat 17%, and for the first three years, the first 100,000 SGD of taxable profit enjoys partial exemptions, bringing the effective rate down to as low as 4.5%. On top of that, Singapore has double taxation avoidance agreements with nearly 90 countries worldwide. For cross-border businesses, this is a huge advantage. A friend of mine runs an e-commerce store selling from China to Europe and the U.S., routing shipments through Singapore. Not only is logistics smoother, but he’s also saving significantly on taxes.

Another key requirement appointing a company secretary. By law, every private limited company must hire a qualified company secretary within six months of incorporation. This person or firm should be well-versed in Singapore’s Companies Act and handle annual filings, tax submissions, and registration updates. Don’t underestimate this role. I’ve seen companies get into serious trouble because their secretary failed to file annual returns or update contact details on time. When choosing a service provider, look beyond price-check reputation and attention to detail.

Then comes the headache many didn’t expect opening a corporate bank account. While Singapore’s financial system is open, anti-money laundering checks have gotten increasingly strict. Banks dig deep into your company background, shareholder structure, and business model. If you’re a Chinese national and your company lacks clear operational plans or a physical presence, your application might get turned down. My advice? Prepare thoroughly have a solid business plan, contracts, website, even invoices ready to show that your business is legitimate-not just a shell company.

One more thing to remember once incorporated, your company must file annual returns and tax declarations every year-even if it hasn’t done any business. In that case, you still need to submit a “nil return.” Fail to do so, and you’ll face fines. Worse, prolonged non-compliance could lead to forced deregistration. I knew a guy whose business didn’t take off the first two years, so he skipped filing. By year three, when he wanted to restart, he found his company had already been struck off the register. He had to go through the entire setup process again-wasting both time and money.

Truth is, registering a company is just the beginning. The real challenge lies in ongoing operations and compliance. Hiring staff? You’ve got to follow Singapore’s employment laws. Payroll must be processed properly, and CPF Central Provident Fund contributions need to be made on time. Intellectual property protection, trademark registration-these things should be planned early too.

Singapore really is a great place to start a business transparent policies, efficient systems, and strong rule of law. But the barrier to entry isn’t as low as some might think. To set up smoothly, consider working with a trusted professional agency-or better yet, apply for an EntrePass and spend some time on the ground getting familiar with the environment.

After all, entrepreneurship isn’t just about courage-it’s about preparation and getting the details right. Sometimes, a decision that seems simple on the surface requires a ton of groundwork underneath. Registering a company isn’t a trend to jump on-it’s about taking steady, thoughtful steps forward.

So-are you really ready?