How to Set Up a Company in Singapore: Step-By-Step Guide for Foreign and Local Business Owners

By /

Introduction

Singapore is one of the easiest places in the world to start a business. Known for its business-friendly regulations, efficient government systems, favourable tax framework, and strong global reputation, Singapore offers both local and foreign entrepreneurs an ideal environment to build and scale a company. Whether you’re launching a startup, expanding a regional presence, or relocating your business to Singapore, the incorporation process is designed to be fast, transparent, and secure.

This step-by-step guide will walk you through everything you need to know about setting up a company in Singapore—from choosing the right business structure, preparing the required documents, understanding regulatory requirements, opening a bank account, hiring staff, applying for visas, and getting your business ready for launch.

1. Understand the Types of Business Structures in Singapore

Before incorporation, you must decide which type of entity best suits your goals. Singapore offers several business structures, but the most common (and recommended) is the Private Limited Company.

a) Sole Proprietorship

  • Owned by one individual
  • Simple and low-cost
  • Not a separate legal entity
  • Owner is personally liable for all debts

Suitable for very small businesses but not ideal for growth.

b) Partnership

  • 2–20 owners
  • Still not a separate legal entity
  • Partners share liability

High risk due to unlimited liability.

c) Limited Liability Partnership (LLP)

  • Separate legal entity
  • Partners have limited liability

Often used by professional services firms (lawyers, accountants).

d) Private Limited Company (Pte. Ltd.)

  • Separate legal entity
  • Limited liability for shareholders
  • Eligible for tax incentives and grants
  • Strong credibility with banks and investors

This is the most popular and flexible structure for most businesses, offering both local and international growth potential.

2. Requirements for Setting Up a Private Limited Company

To incorporate a company in Singapore, you must meet the following requirements set by ACRA (Accounting and Corporate Regulatory Authority):

a) At Least One Resident Director

A resident director is required. This can be:

  • A Singapore citizen
  • A Singapore permanent resident
  • An EntrePass holder
  • An Employment Pass holder (with approval)
  • A nominee director provided by a corporate service provider

Foreigners can own 100% of the company but cannot be the sole director without a local resident director.

b) At Least One Shareholder

The shareholder can be:

  • An individual
  • A corporate entity
  • Local or foreign
  • Up to 100% foreign ownership allowed

Singapore is very open to foreign investment.

c) Company Secretary

A qualified company secretary must be appointed within 6 months of incorporation.

d) Registered Address

A local Singapore address is required.
No P.O. boxes allowed.

e) Paid-Up Capital

Minimum paid-up capital is S$1.
You can increase this anytime.

f) Business Activity Classification (SSIC Code)

You must choose the correct SSIC code that reflects your business activities.

These requirements make incorporation easy while maintaining regulatory transparency.

3. Step-by-Step Process to Set Up a Company in Singapore

Now let’s walk through the entire incorporation process from start to finish.

Step 1: Choose a Company Name

Your company name must be:

  • Unique
  • Not identical or too similar to existing names
  • Free of vulgar or prohibited terms
  • Approved by ACRA

Names containing regulated words like “finance,” “bank,” “school,” or “clinic” may require additional approval from authorities.

Once approved, the name is reserved for 120 days.

Step 2: Prepare the Required Documents

The following documents are needed for incorporation:

For Individual Shareholders

  • Passport copy
  • Proof of address
  • KYC (Know-Your-Customer) details

For Corporate Shareholders

  • Certificate of incorporation
  • Constitution of the company
  • Board resolution authorising investment

For All Directors

  • Personal details
  • Consent to act as director (Form 45)
  • KYC documents

For the Company

  • Registered address
  • Shareholding structure
  • Business activity information
  • Constitution (formerly M&A)

A corporate service provider usually prepares these documents.

Step 3: Submit Incorporation Application to ACRA

Company registration is done through BizFile+ (ACRA’s online portal).
Once submitted:

  • Most applications are approved within minutes
  • Some may take a few days if additional review is needed
  • Regulated industries may require extra licensing

After approval, you will receive:

  • Certificate of Incorporation
  • Company UEN (Unique Entity Number)
  • Business profile

Your Singapore company is now officially registered.

4. Post-Incorporation Requirements to Fulfil Immediately

After registration, a few critical tasks must be completed to stay compliant and operational.

A) Open a Corporate Bank Account

A corporate bank account is essential for transactions, payroll, and proper bookkeeping. Singapore offers world-class banks such as:

  • DBS
  • OCBC
  • UOB
  • Standard Chartered
  • HSBC
  • Maybank

Some may require directors to be physically present for verification, especially for foreign-owned companies.

Digital banks like Aspire and Airwallex are also popular alternatives.

B) Apply for the Required Business Licenses (if applicable)

Depending on your business activity, you may need sector-specific licences:

Examples include:

  • Food & Beverage licence
  • Employment agency licence
  • Clinic or medical licence
  • Childcare licence
  • Financial services licence
  • Retail and trading licences

Not all businesses require licensing, so checking early avoids compliance issues later.

C) Register for GST (If Required or Beneficial)

A company must register for GST (Goods and Services Tax) if:

  • Annual revenue exceeds S$1 million, or
  • It expects to exceed S$1 million in the next 12 months

Voluntary registration is also possible for businesses that want to claim input tax.

D) Set Up Accounting Systems and Bookkeeping Processes

Every Singapore company must maintain:

  • Proper accounts
  • Supporting invoices
  • Bank statements
  • Financial transaction records

You must prepare:

  • Annual financial statements
  • Corporate tax filings
  • Estimated Chargeable Income (ECI)
  • AGM minutes
  • Annual returns

Setting up proper bookkeeping early prevents compliance issues later.

E) Appoint a Company Secretary

This must be done within six months.
The secretary ensures compliance with:

  • Annual filing deadlines
  • Corporate governance
  • Maintenance of statutory registers
  • Documentation of changes (directors, shareholders, address, etc.)

F) Issue Share Certificates and Register of Members

These documents prove ownership of the company and must be kept updated.

G) Register Business Address and Set Up Office (if needed)

You may choose:

  • A physical office
  • Co-working space
  • Virtual office

Each depends on your business needs.

5. Additional Steps for Foreign Entrepreneurs

Foreigners can set up a Singapore company without visiting the country. However, they must consider the following:

A) Appoint a Nominee Director

Since at least one resident director is required, many foreign entrepreneurs engage a corporate service provider to supply a nominee director.

This director:

  • Does not participate in operations
  • Ensures compliance
  • Provides local residency fulfilment

The foreign owner retains full control over the company through shareholder rights.

B) Apply for an Employment Pass (EP) or EntrePass (Optional)

If the foreign owner wants to relocate to Singapore to manage the company, they can apply for:

Employment Pass (EP)

Suitable for professionals and business owners with a good salary and qualifications.

EntrePass

Suitable for innovators, startup founders, and venture-backed entrepreneurs.

Once approved, the owner can become the local resident director, removing the need for a nominee director.

C) Remote Incorporation

The incorporation process can be done fully online through a registered service provider, making Singapore a preferred destination for global founders.

6. Hiring Employees and Understanding HR Compliance

Once your company is set up, hiring is the next step.

Employment Act Compliance

You must comply with:

  • Employment contracts
  • Working hours
  • CPF contributions (for Singaporeans & PRs)
  • Leave entitlements
  • Termination and notice rules

CPF Contributions

Employers must contribute CPF for:

  • Singapore Citizens
  • Permanent Residents

Foreign employees do not receive CPF contributions.

Work Passes for Foreign Staff

Your company may hire foreigners through:

  • Employment Pass
  • S Pass
  • Work Permit

Quotas and levies apply, depending on the industry.

7. Corporate Tax Filing Requirements

Singapore’s tax system is simple and favourable.

Corporate Income Tax

  • A flat 17% tax on chargeable income
  • Tax exemptions for startups in first 3 years
  • Many incentives for SMEs and key industries

Annual Filing Requirements

Every company must file:

  1. Estimated Chargeable Income (ECI) within 3 months of financial year end
  2. Corporate tax return (Form C or CS)
  3. Financial statements

Companies that maintain clean records find filing straightforward.

8. Government Grants and Support for New Companies

Newly incorporated companies may qualify for grants such as:

Productivity Solutions Grant (PSG)

Supports IT solutions and automation tools.

Enterprise Development Grant (EDG)

Funds projects in innovation, business strategy, and overseas expansion.

Market Readiness Assistance (MRA) Grant

Covers up to 50% of costs for entering overseas markets.

Startup SG

Provides equity matching, mentorship, and support for innovative startups.

These grants significantly reduce business costs and help companies grow faster.

9. Ongoing Annual Compliance Requirements

To remain compliant, companies must fulfil:

Annual General Meeting (AGM)

  • Within 6 months of financial year end

Annual Return Filing

  • Within 7 months of financial year end

Financial Statements Prepared According to Singapore FRS

Maintain Statutory Registers

  • Shareholders
  • Directors
  • Charges
  • Company secretary

This ensures long-term compliance and avoids penalties from ACRA or IRAS.

Conclusion

Setting up a company in Singapore is a fast, efficient, and straightforward process that gives entrepreneurs access to one of the world’s most trusted business environments. With strong legal protection, low taxes, government support, world-class infrastructure, and access to global markets, Singapore continues to be the top choice for business owners—both local and foreign—who want stability, growth, and international expansion.

Whether you are starting a small business, launching a tech startup, or expanding your international operations, Singapore’s incorporation framework is designed to support your journey from day one.

Scroll to Top