Singapore is one of the most preferred places in the world by entrepreneurs due to its business-friendly atmosphere, coherent rules and regulations, and its location. Appearing to know how to start a company in Singapore will assist entrepreneurs in setting up a compliant company and creating a robust base to achieve long-term success.

Why Start a Company in Singapore?

Singapore has excellent infrastructure and colossal trade connectivity. Key advantages include:

• Strategic Global Positioning: It is the most important trade gateway to the fast-growing Asia-Pacific region.
• Pro-Business Environment: Start a business in Singapore in less than 10 minutes: Business start procedures are digitally handled via a central portal.
• Attractive Corporate Tax System: A flat headline of 17% with high tax exemptions for start-up business Singapore entities in their early stages.
• Good Legal System: Excellent intellectual property rights and effective commercial arbitration courts.
• Entry into Global Markets: Wide-ranging double-taxation agreements (DTAs) that promote international Singapore investment prospects.

Choose the Right Business Structure

The choice of the legal form is crucial to risk management and tax planning:

Private Limited Company (Pte Ltd)

The most adaptable and expansive design. It is a distinct legal structure, which restricts the scope of the liability of shareholders to the capital they contributed and thus makes a private limited company in Singapore the best investment option.

Sole Proprietorship

Applicable to small businesses that consist of one owner, but the owner has unlimited personal liability for all debts and risks.

Partnership / Limited Liability Partnership (LLP)

LLP is the one that offers partners limited liability but internal flexibility, which is the case in professional service firms, such as lawyers and accountants.

Step-by-Step Company Registration Process

The company incorporation process with the Accounting and Corporate Regulatory Authority (ACRA) consists of five major steps:

[1. Reserve Name] ──> [2. Prep Documents] ──> [3. Appoint Officers] ──> [4. File via BizFile+] ──> [5. UEN Issued]

1. Step 1: Select a Company Name: Request name approval through BizFile+. It should have a unique name without being offensive.
2. Step 2: Draft Incorporation Documents: Draft company Constitution, description of initial share capital and business activity (SSIC) codes.
3. Step 3: Directors and Shareholders: Nominate one or more locally resident directors and nominate preliminary shareholders.
4. Step 4: Register with ACRA: file the electronic application and pay the standard S&315 ACRA fee.
5. Step 5: Receive the Certificate of Incorporation: When approved, your official Certificate of Incorporation and Unique Entity Number (UEN) are issued by ACRA.

Streamlined ACRA company registration applications are typically approved in 1 to 3 business days.

Documents Required to Register a Company

To make your company registration Singapore application, you need to obtain the following information:

• Company Name & SSIC Codes: Approved name reservation and detailed primary activity codes.
• Identification Documents: Passports and residential address documents of foreigners; NRICs of Singaporeans.
• Registered Office Address Singapore: A physical, operational local address (P.O. boxes are not allowed).
• Shareholder Information: Distribution of shareholdings, minimum paid-up capital of S$1.
• Director/Officer Credentials: Signed explicit consent forms of appointed position holders.

Legal & Compliance Requirements

Compliance under Singapore law is an active compliance that must be administered:

• Corporate Secretary Appointment: Within 6 months of incorporation must appoint a qualified local corporate secretary.
• Annual Filings: Submit Annual Returns via BizFile+ within 7 months of your Financial Year End (FYE).
• Accounting Records: Have clear financial books to comply with the requirements of Statutory Audit and IRAS requirements.
• Business Licenses Singapore: Secure required operational licenses to operate in particular industries such as fintech, catering, or employment agencies.

Tax Registration & Financial Compliance

• Corporate Tax Singapore: There is a flat tax rate of 17 per cent on chargeable income. New start-ups are eligible to receive the Start-Up Tax Exemption (SUTE) scheme for the initial 3 years of assessment.
• GST Registration Singapore: It is mandatory if your taxable revenue exceeds S1 million in 12 months. 
• Bookkeeping & bank account: Establish a corporate business bank account Singapore to maintain a separation between personal and business capital.

Can Foreigners Start a Company in Singapore?

Yes! When registering a Singapore company incorporation on behalf of foreigners, foreign entrepreneurs are allowed 100% foreign ownership.

In the case of an overseas business establishment in Singapore, foreign founders are required to utilize the services of a licensed Corporate Service Provider (CSP) to submit the registration to ACRA. Due to the requirement to have at least one director as an ordinary resident of Singapore, foreign founders usually hire a nominee director service or buy an Employment Pass (EP) / Entrepass to relocate.

Common Mistakes to Avoid When Starting a Company

Wrong Structure: Forming a sole proprietorship rather than a Pte Ltd, and putting personal assets at risk in the business.

Failure to comply with Deadlines: Missing AGMs, annual filings, or estimated chargeable income (ECI) reports, which attract ACRA late fees.

Choosing the wrong SSIC Codes: Distorting the main business activities, which makes bank account approvals or licensing inspections difficult.

How Professional Corporate Service Providers Can Help

Working with an established agency makes the process of setting up easier:

Professional Service	Operational Value
Turnkey Incorporation	Handles reservation of names, drafting and submission of documents under ACRA.
Nominee Director and Secretary	Provides complying local resident director and company secretary.
Accounting Services	Manages bookkeeping, GST and corporate tax returns.

Frequently Asked Questions (FAQ)

Q1. How much capital should be raised to incorporate a company in Singapore?

Ans: The minimum amount of paid-up capital to register a company in Singapore is low, and entrepreneurs can start with a small nominal amount. As your company requires more capital to operate, you can also raise it any time after registration.

Q2. Is it possible to own a company in Singapore?

Ans: Yes. A business in practically every sector can be fully owned by foreign entrepreneurs. You are not required to have a local partner or joint-venture entity to hold shares.

Q3. Will the business require foreign owners to be a resident of Singapore?

Ans: No, you can open a company and operate and run it anywhere on the planet. Local laws do, however, require that each company has at least one director who is a local resident, and this requirement can be addressed by using a professional nominee director.

Q4. What is the duration of the official registration of the company?

Ans: Digital submission and approval by the corporate regulatory authority usually requires a few business days after completion of the identity verification checks and signing of all the paperwork.

Q5. Are there any tax incentives to businesses that are newly established?

Ans: Yes. Singapore has a favorable taxation regime with special start-up tax exemption schemes that facilitate taxation of new businesses during their initial years of operation. 

Conclusion: Build Your Business Successfully

The knowledge of how to start a company in Singapore simplifies the incorporation process and aids businesses in remaining compliant at the inception stage. Entrepreneurs can easily set up and develop their businesses in one of the top business destinations in the world with proper planning, professional guidance, and constant adherence.

You can be sure that your business in Singapore is starting on a good footing by having a professional company incorporation and corporate service team to take you through.

Related Sandhurst Consultancy services

• Company registration in Singapore
• Nominee director services
• GST registration and filing

How to Start a Company in Singapore, Step by Step

1. Choose your business structure – usually a Private Limited company for liability protection and tax efficiency.
2. Reserve your company name with ACRA through the BizFile+ portal.
3. Appoint directors – at least one must be ordinarily resident in Singapore. Overseas founders can use a nominee director.
4. Appoint a company secretary within six months of incorporation.
5. Prepare the constitution and KYC documents for all officers and shareholders.
6. Register with ACRA – approval is often same day to three working days.
7. Open a corporate bank account for your new company.
8. Set up accounting, GST if applicable, and any licences your activity requires.

Want it handled for you? See our company registration services from $300.

Frequently Asked Questions

How do I start a company in Singapore as a beginner?

Choose a company name, decide the structure, appoint a director and secretary, prepare the documents and register with ACRA, usually within a few days.

How much does it cost to start a company in Singapore?

Registration can start from around SGD 300 with Sandhurst, in addition to the ACRA filing fees.

Do I need a local director to start a company?

Yes, at least one director must be ordinarily resident in Singapore, and a nominee director can meet this requirement.