Singapore has long earned its reputation as one of the most business-friendly destinations in the world. Its strategic location, robust legal system, stable political environment, and attractive tax policies continue to make it a magnet for entrepreneurs, startups, and multinational firms. If you’re considering expanding your business into Southeast Asia, Singapore offers a gateway to the region with unmatched ease of doing business.
Starting a business in Singapore is surprisingly efficient. The process is streamlined and digital-first, allowing entrepreneurs to go from planning to incorporation in a matter of days. The most common legal structure is a Private Limited Company (Pte Ltd), which allows for 100% foreign ownership and limits the liability of shareholders to their capital contribution. This is the preferred model for most foreign investors and startup founders.
Company setup process: What you will need
To get started, the first step is choosing a company name and getting it approved by Singapore’s Accounting and Corporate Regulatory Authority, or ACRA. Name approval is usually instant unless the proposed name contains sensitive words or duplicates an existing entity. Once the name is approved, the incorporation process can begin using the BizFile+ portal, where the company details, share structure, and director information are submitted.
Foreigners looking to set up a company must appoint at least one resident director. This could be a Singapore citizen, permanent resident or someone holding an EntrePass or Employment Pass. Many entrepreneurs without local ties engage professional firms to act as the nominee director, a legally accepted and widely used solution. You’ll also need a registered business address in Singapore, which must be a physical location and not a P.O. box.
Once incorporated, the company receives a Unique Entity Number (UEN) and a Certificate of Incorporation. These documents are essential for setting up a corporate bank account, which is often the next significant step. Singapore offers a robust financial ecosystem, featuring both traditional banks and fintech options. While some banks may require in-person verification, others allow remote onboarding depending on the nature of the business and its stakeholders.
Selecting a business structure:
This choice will directly affect your tax obligations, liability, and ongoing compliance requirements. Business owners can select from a range of legal entities, including Sole Proprietorship, Partnerships, and different types of Companies such as Private Limited (Pte Ltd), Variable Capital Companies (VCC), and Public Companies. Other options include setting up a Branch Office or a Representative Office, depending on whether the goal is to carry out commercial activities or simply establish a presence.
Tax, talent and support systems
From a tax perspective, Singapore is one of the most competitive jurisdictions globally. The corporate tax rate is capped at 17%, and numerous tax exemptions are available for startups and small businesses. For instance, new companies can benefit from tax exemptions on the first S$200,000 of taxable income during the first three consecutive years. There is no capital gains tax or dividend tax, which is a significant advantage for investors.
Singapore also offers strong legal protections for investors and an efficient judicial system based on English common law. The accounting and compliance framework is also clear. Companies must maintain proper financial records, appoint a company secretary within six months of incorporation and file annual tax returns with the Inland Revenue Authority of Singapore (IRAS).
If your business is expected to have an annual turnover exceeding S$1 million, it will be mandatory to register for Goods and Services Tax (GST). Even if your revenue is lower, you can opt in voluntarily to enhance your corporate image and reclaim input taxes. In terms of its workforce, Singapore boasts a highly skilled and multilingual talent pool. Hiring foreign staff requires employment passes or work permits, which are governed by strict but manageable criteria.
Why Singapore remains a smart choice
Singapore supports innovation and growth through government grants and support schemes. Programs such as Startup SG, Enterprise Development Grant, and productivity-related incentives can significantly reduce the financial burden for eligible companies. These schemes are designed to support local R&D, overseas expansion, digital transformation, and workforce upskilling.
While the setup process is simple in principle, compliance with tax reporting and employment laws can become complex and require careful attention. Many founders choose to work with local service providers to handle incorporation, nominee directorship, tax filing, and licensing. This frees them to focus on growing the business instead of managing paperwork.
All in all, Singapore remains a top-tier destination for anyone looking to expand in Asia. Whether you are launching a startup or scaling a global business, Singapore offers unmatched efficiency, credibility and access to opportunity, all backed by a government that welcomes innovation and investment.
