Thinking about expanding your business internationally? If you’re eyeing Southeast Asia, Singapore should be at the top of your list.
Many businesses, from sole proprietorships to multinational corporations, have chosen to establish companies in Singapore to tap into the city-state’s talent pool, economic stability, and investor confidence. But before you take the leap, you’ll need to understand what it takes to start building connections in Singapore.
Let’s walk through the process: We’ll start with the “why,” then explore what you’ll need to register your company, and discuss how to stay compliant while hiring locally.
Why Establish Company in Singapore?
There are several reasons why starting your own business in Singapore makes a lot of sense:
- Ease of doing business – Ranked among the easiest places in the world to do business, Singapore offers an online approach to company registration and management.
- Strategic location – Planted at the tip of the Malay Peninsula along the Strait of Malacca, one of the world’s busiest shipping lanes, Singapore is ideally situated between several growing markets in ASEAN, China, and India.
- Stable legal framework – Investors can feel confident about contract enforcement amidst Singapore’s transparent legal and regulatory system.
- Attractive tax environment – While new businesses can take advantage of several tax incentives, Singaporean law caps overall corporate tax rates at 17%.
Key Steps to Register a Company in Singapore
Businesses in Singapore must register with the Accounting and Corporate Regulatory Authority (ACRA). You can register your business in six steps:
1. Choose a Business Structure
There are several types of business structures available in Singapore, but the most common are:
- Sole-Proprietorship – A simple and relatively affordable option where owners bear full liability.
- Partnership – A joint ownership structure where all stakeholders share ownership and responsibility.
- Private Limited Company (Pte Ltd) – Usually the best option for foreign companies, allowing for foreign ownership while limiting personal liability.
2. Reserve Your Company Name with ACRA
After choosing a business structure, reserve your company’s name through ACRA’s BizFile+ system. Names must be unique, non-offensive, and free of any copyright claims. Once approved, business names are reserved for 120 days until the company’s incorporation.
3. Prepare Company Details and Documents
To verify your company’s identity, structure, and legal standing in Singapore, you’ll need to provide ACRA with documents and details, like:
- Your company’s name
- Business activities (based on SSIC codes)
- Information about directors and other stakeholders
- A registered office address
- A company constitution
4. Submit Incorporation via BizFile+
With these details and documents in hand, you’re ready to incorporate your business. Like much of the process, you’ll submit the incorporation application online through BizFile+. Applications, which cost S$300, are typically processed within one to three business days.
5. Open a Corporate Bank Account
Once your company is incorporated, you can open a corporate bank account with a local or international bank. To do that, you’ll need:
- A certified copy of the Certificate of Incorporation
- A company resolution to open an account
- Identification documents for directors and authorised signatories
6. Register for Necessary Licenses and Taxes
Specific types of businesses, those operating in the finance, education, or food services sectors, require certain licences. If your annual turnover exceeds S$1 million, you’ll also have to register for the Goods and Services Tax (GST).
Local Director Requirement and Compliance Obligations
Every Singaporean company must have a local resident appointed as Director. They could be a Singapore citizen, permanent resident, or someone holding an Employment Pass or EntrePass with a local address.
International businesses will also need to:
- Appoint a qualified company secretary within six months of incorporation
- Hold an Annual General Meeting (AGM)
- File an Annual Return with ACRA
- Maintain accurate financial records and statutory registers
Cost and Timeline for Company Incorporation
Here’s a quick overview of the standard costs for company incorporation:
- S$15 for the name reservation
- S$300 for company registrations
If all documentation is in order, approval can take as little as 15 minutes. However, some applications are referred to other agencies for review; this can extend the approval timeline to 14-60 days.
Hiring Employees in Singapore: What to Know
With your company established, it’s time to hire workers, either locally or abroad. What should you consider before hiring begins?
Work Visas and Employment Passes
If you intend to employ professionals from abroad, you’ll need to secure them an Employment Pass (EP) before they’re able to work in Singapore. Conditions include:
- A minimum monthly salary of S$5,000
- Recognised qualifications and relevant work experience
To demonstrate fair hiring practices, you’ll have to advertise the position on the MyCareersFuture portal before submitting an EP application.
Payroll, Benefits, and Statutory Contributions
Businesses hiring local Singaporean talent are required to:
- Make Central Provident Fund (CPF) contributions
- Issue itemised payslips
- Provide minimum statutory benefits (like sick or maternity leave)
Be sure to adhere to Ministry of Manpower (MOM) and CPF Board guidelines closely, as failure to comply could result in penalties.
