How to Start a Company in Singapore A Step-by-Step Guide to the Process and Benefits

Nestled in Southeast Asia-a region buzzing with commercial energy-Singapore shines as a standout gem. In recent years, more and more entrepreneurs, small-to-medium business owners, and even large multinational corporations have turned their eyes to this city-state. It’s not just because of its prime location, but also thanks to its efficient, transparent business environment and highly attractive tax policies. If you’re thinking about expanding overseas, setting up a company in Singapore might just be the smart move you’ve been looking for.

Recent news highlights that in 2025, Singapore hit a new record in foreign investment inflows, especially in tech, fintech, and green energy sectors. A growing number of international companies are choosing to register their headquarters or regional operations centers here. Behind this surge isn’t just political stability and a strong legal system-it’s also the remarkably smooth and efficient company registration process.

So, can an ordinary person really set up a business in Singapore? Is it complicated? Let’s break down the entire process and explore the real advantages that make Singapore such a compelling destination for global businesses.

First off, starting a company in Singapore is far from out of reach. According to the Accounting and Corporate Regulatory Authority ACRA, the entire registration process can be completed online-and typically takes only 1 to 3 days. You don’t need to be physically present; all steps-from name approval and appointing directors and shareholders to obtaining your business license-can be handled through a licensed corporate service provider.

It starts with choosing a company name. You’ll submit at least one option, and ACRA will instantly check for duplicates or policy violations. Once approved, you move on to formal registration.

One key requirement you must have at least one local director who is either a Singapore citizen, permanent resident, or someone holding an Employment Pass. But shareholders? They can be foreign nationals-no restrictions there. That means you can fully own 100% your Singapore-based company.

Capital requirements are also incredibly flexible. The minimum paid-up capital is just S$1, and there’s no need to deposit it upfront. You can inject funds gradually as your business grows-making it much easier for startups to get off the ground.

Another mandatory step is appointing a company secretary. By law, every Singapore company must hire a licensed corporate secretary within six months of incorporation. This person handles compliance tasks like annual filings, meeting minutes, and regulatory updates. Most professional firms offer this service at a reasonable cost-typically between S$1,000 and S$2,000 per year.

Once registered, your company gets a unique UEN Unique Entity Number and is officially listed in the national business registry. From there, you can proceed to open a corporate bank account, register for taxes like GST-Goods and Services Tax, and apply for any industry-specific licenses.

Now, you might be wondering With so many places to choose from, why Singapore?

First, the tax benefits are hard to beat. The corporate income tax rate is just 17%, and there’s a partial tax exemption on the first S$100,000 of taxable profit-bringing the effective rate down to as low as 8.5%. Even better, Singapore follows a territorial taxation system only income earned locally is taxed. Profits made overseas and repatriated to Singapore are tax-free.

On top of that, Singapore has signed double taxation avoidance agreements with over 80 countries and regions worldwide, significantly reducing the tax burden for cross-border operations.

Second, the financial ecosystem is mature and business-friendly. With world-class banks and capital markets, opening accounts, securing financing, and conducting international transactions are all straightforward. While some international banks have tightened scrutiny on non-resident companies lately, having complete documentation and legitimate business activities-supported by a reliable local agency-still leads to high approval rates.

Third, intellectual property protection, contract enforcement, and dispute resolution mechanisms are robust. For tech startups and innovation-driven businesses, this peace of mind is invaluable-your ideas and investments are well protected.

And let’s not overlook Singapore’s role as Asia’s gateway. Positioned at the heart of East-West trade routes, it operates primarily in English, offers top-tier services, and provides a high quality of life-all of which attract global talent. Many companies use Singapore as a regional HQ before expanding into Southeast Asia and the broader Asia-Pacific market.

Of course, incorporation is just the beginning. Ongoing compliance matters too-filing annual returns, paying taxes on time, updating company details, etc. The good news? These responsibilities can be outsourced to professionals, freeing you to focus on growing your business.

What’s more, Singapore is pushing hard into digital transformation. ACRA’s “BizFile+” platform has made company registration, changes, and tax filings smarter and faster. Even physical company chops are being replaced by electronic signatures-ushering in a truly paperless way of doing business.

Setting up a company in Singapore isn’t some mysterious or elite privilege. As long as you have a clear business plan and work with a trusted local partner, the journey can be smooth and stress-free.

Whether you’re testing the waters in international markets or building a global strategy, Singapore offers a stable, transparent, and efficient launchpad.

More and more Chinese entrepreneurs are already making their move. Some are running e-commerce ventures, selling Chinese products across Southeast Asia. Others are launching fintech platforms serving regional clients. And some are tapping into Singapore’s strong RD environment to drive innovation. Across the island, business dreams are taking root and thriving.

If you’ve ever considered going global, take a closer look at this small but mighty nation. Sometimes, all it takes is a change of stage-and the opportunity is right in front of you.