Singapore is renowned for its stable jurisdiction, well-regulated economy, and robust financial infrastructure. Additionally, Singapore occupies a prime location in Southeast Asia and serves as an international hub.

Registering a company in Singapore has numerous advantages, including a business-friendly tax system that enables tax optimization. Singapore offers attractive tax rates and a plethora of tax incentives to promote entrepreneurship and business growth.

Singapore offers many business-friendly tax benefits as incentives to encourage companies to register in the country.

• New companies registered in Singapore can benefit from a generous startup tax scheme.
• In terms of shareholding, shareholders of Singapore companies can enjoy 0% tax for both dividends and capital gains.
• Singapore has also signed the Double Taxation Avoidance Agreements (DTA) with over 50 countries including China, Japan, Canada, France and the UK.
• Singapore has a thriving investor community that facilitates raising investment.
• All private companies in Singapore can be 100% foreign-owned.
• The regulations and procedures for opening a bank account and other company operations are straightforward.

Running a company in Singapore requires compliance with several legal regulations.

Here are some of the key legal compliances that companies in Singapore need to follow post company registration:

Business Licenses: Depending on the nature of the business, some companies may require specific licences and permits before they can operate in Singapore. These licences and permits can be obtained from the relevant government agencies.

Employment Laws: Singapore has a range of employment laws that businesses must comply with, including the Employment Act, the Work Injury Compensation Act, and the Retirement and Re-employment Act.

Taxation: Businesses in Singapore must register for and comply with the various tax laws, such as the Goods and Services Tax (GST), Corporate Income Tax, and Withholding Tax. If you expect your business’ annual turnover to exceed S$1 million, then you must register for Goods & Services Tax, or GST (also referred to as value added tax, VAT, in many countries). If you do not expect your business’ annual turnovers to reach S$1 million, you are not required to register for GST.

Data Protection: Under the Personal Data Protection Act (PDPA), businesses in Singapore must ensure that the personal data of their customers and employees are collected, used, and disclosed in accordance with the law.

Immigration: Companies in Singapore that hire foreign employees must comply with the Work Pass framework and ensure that their employees have the appropriate work permits and visas.

Intellectual Property: Businesses should be aware of the various intellectual property laws in Singapore, such as trademarks, patents, and copyrights, and take appropriate measures to protect their intellectual property.

No – it is possible to register a company completely online without ever visiting Singapore.

As a local:
No, locals do not need a visa to start a company in Singapore.

As a foreigner:
However, if you are a foreigner who wishes to relocate to Singapore to run your company, you will need to obtain the relevant work visa or pass, such as the Employment Pass (EP), Dependant Pass with Letter of Consent (LOC), ONE Pass, EntrePass or Personalised Employment Pass (PEP). The type of pass required will depend on your qualifications, work experience, and the nature of your company.

A company name can be reserved via ACRA’s portal. After the name application has been approved, the name will be reserved for 120 days straight. If you do not register the business or incorporate the company within this 120 days, the name will no longer be reserved and will be made available to other members of the public. If you have reserved a company name you can share the reference number with your Company  Secretary to use at time of company registration.

A foreign individual can register any of the  following business structure  in Singapore:

Private Limited Companies (Pte Ltd):

Among various Singapore company types, a private limited company (Pte Ltd) stands out as the most scalable, advanced, and flexible. It’s the prevalent choice compared to limited liability partnerships (LLP) or sole proprietorships (SP).

Characterized by fewer than 50 shareholders and shares not accessible to the public, Pte Ltd shareholders can be individuals, companies, or a mix.

Sole Proprietorships (SP):

While straightforward, SPs carry more risk, as owners are personally liable. Legally, SPs aren’t standalone entities, merging owner and business.

Restricted to Singapore citizens, permanent residents, and select foreigners, SPs lack asset protection. Owners face unlimited liability, risking personal assets for company debts.

It’s advised to avoid SPs due to this drawback.

Yes! There are no restrictions around foreign ownership in Singapore. EP applicants can also be shareholder of the company that is going to employ them.