Are you thinking of starting a business in Singapore?
With its prime location, strong economy, and business-friendly policies, the country is definitely the number one choice for entrepreneurs worldwide. In fact, as of 2022, around 60,300 businesses in Singapore are mostly foreign-owned. These companies make up about 20% of all businesses and provide jobs for 1.2 million Singaporeans.
With that being said, it is important to know the key steps and requirements for starting a company in Singapore. Today, we are going to share a step-by-step guide of what you need to know about starting your own business here.
Essential Requirements to Register a Singapore Company
1. Choose a Business Structure
Selecting the appropriate business structure is the first step. The most common types in Singapore include:
Private Limited Company (Pte. Ltd.): A separate legal entity with limited liability for shareholders.
Sole Proprietorship: Owned by a single individual, bearing full liability.
Limited Liability Partnership (LLP): Combines features of partnerships and companies, offering limited liability to partners.
Each structure has its advantages and considerations, so choose one that aligns with your business goals.
2. Register Your Business Name
Your chosen business name must be unique and not infringe on existing trademarks.
Anyone running a business for profit on an ongoing basis must register with the Accounting and Corporate Regulatory Authority (ACRA) unless they qualify for an exemption. You are exempt if:
- Your business name is your full name as stated in your NRIC.
- If you have partners, the business name consists only of your full names as stated in your NRIC.
However, if you include any descriptive words (for example, Cakes by Alex Chen), registration is needed. Additional exemptions exist, and the full list can be found in the Business Names Registration Act.
You can check the availability and reserve your desired name through the Accounting and Corporate Regulatory Authority (ACRA) via the Bizfile+ portal.
Here is a guide on how to choose the right business name and check if it is available.
3. Fulfill Director and Shareholder Requirements
- Shareholders: Every business in Singapore must have at least one shareholder, with a maximum limit of 50.
- Directors: Every Singaporean business must have at least one director who is locally based. However, this does not necessarily mean a Singaporean citizen; a legally residing foreigner can fulfill this requirement. Alternatively, businesses can appoint a Nominee Director, who serves only to meet legal requirements and has no decision-making authority.
- Appoint a Company Secretary: Within six months of incorporation, you will need to appoint a qualified company secretary who is a Singapore resident. This is not just a formality, the company secretary plays an important role in keeping your business compliant with Singapore’s corporate regulations.
4. Register a Local Address
Every legal entity in Singapore is required to have a registered address, which must be a physical location and not a PO box.
If you do not have a fixed headquarters, you can rent a registered address. Many companies in Singapore provide virtual office services, where they receive your mail, scan it, and forward it to you. A registered address can be any physical location, including a home office or a co-working space.
Keep in mind that Housing Development Board (HDB) flats and private residential properties are meant for residential use, and specific guidelines must be followed. Most importantly, the property must remain primarily for residential purposes, and any business activities should be kept small-scale to avoid disturbances to your neighbours.
5. Register with ACRA
Once all requirements are met, register your company with ACRA through the Bizfile+ portal. The process is straightforward and can often be completed within a day.
How Foreigners Can Register a Company in Singapore
Foreign entrepreneurs are welcomed in Singapore and can fully own a company. However, they are still expected to meet the following criteria:
1. Employ a Registered Filing Agent
Foreigners cannot register themselves in Singapore and have to use a registered filing agent such as a corporate service provider, law firm, or accounting firm to file on their behalf during incorporation.
2. Appoint a Local Director
As a foreign national, you should have at least one locally appointed director who is a resident of Singapore.
3. Comply with Work Visa Requirements
Employment Pass (EP): To obtain an employment pass, you need to earn a minimum monthly salary which is subject to approval by the Ministry of Manpower. EP is more suitable for managing directors and business owners.
EntrePass: EntrePass is for entrepreneurs who meet certain requirements, like obtaining funding from investors or having relevant business experience.
4. Open a Corporate Bank Account
After incorporation, you will need to open a corporate bank account in Singapore. Singapore provides entrepreneurs with a wide range of banking options. Foreigners can open business bank accounts in Singapore without restrictions, as long as they follow the necessary legal procedures.
5. Understand Taxation and Compliance
Singapore has agreements with many countries to prevent double taxation, so you will not get taxed twice on the same income.
You will need to file corporate tax in December, and everything is done online through the IRAS e-filing portal. If your annual revenue is under S$5 million and you have no taxable income, you do not need to file.
Just make sure timely filing of annual returns and compliance with ACRA and the Inland Revenue Authority of Singapore (IRAS) requirements. IRAS can and will charge penalties for late payments.
Starting a business in Singapore is an exciting step, but the paperwork and compliance requirements can be a lot to keep up with. That is where we come in.
At My Office Pte Ltd, we make the process smoother with services designed to help businesses, whether you’re a startup or an established company looking for hassle-free support.
Here is how we can help:
Company Incorporation: We will guide you through the entire registration process so you can get your business up and running as soon as possible.
Corporate Secretarial Services: Stay compliant with local regulations while we handle filings, statutory records, and deadlines.
Registered Office Address: Get a professional business address in prime locations like Tanjong Pagar or Woodlands.
Virtual Office Solutions: Need a business presence without a physical space? We provide mail handling, call forwarding, and meeting room access to keep your operations running smoothly.
Ready to get started? Check out our Corporate Services starting from only SGD 288 per year!
