Incorporating a company in Singapore has become an increasingly popular choice for entrepreneurs and investors due to the country’s ease of doing business, transparent regulatory framework, and tax-friendly environment. Whether you are a foreigner or a local entrepreneur, knowing the correct steps, legal requirements, and benefits can streamline your journey to successfully incorporate company in Singapore.
This comprehensive guide outlines everything you need to know about how to incorporate company in Singapore, including pre-registration steps, legal requirements, post-incorporation tasks, and how Ease to Compliance can help you get started.
Why Choose Singapore for Company Incorporation?
Singapore consistently ranks among the top global destinations for doing business. Here are some compelling reasons:
1. Strategic Location
Singapore serves as a gateway to Asia and offers easy access to key markets like China, India, and Southeast Asia.
2. Tax Benefits
Singapore offers a low corporate tax rate (17%) and a variety of tax incentives, such as:
- Tax exemptions for new startups (first SGD 100,000 exempted for first 3 years)
- No capital gains tax
- Extensive Double Taxation Avoidance Agreements (DTAAs)
3. Political Stability and Rule of Law
The country enjoys a transparent legal system, low corruption levels, and a strong rule of law that protects both local and international businesses.
4. Pro-Business Environment
Singapore boasts minimal bureaucratic red tape, and government agencies like ACRA and IRAS offer efficient digital platforms for business registration and compliance.
Step-by-Step Process to Incorporate Company in Singapore
Step 1: Decide the Type of Business Entity
Most businesses opt for a Private Limited Company (Pte Ltd) due to limited liability, scalability, and ease of transfer of ownership. Other entity types include:
- Sole Proprietorship
- Limited Liability Partnership (LLP)
- Public Company (for larger corporations)
To incorporate company in Singapore as a Pte Ltd, the entity must have:
- Between 1 and 50 shareholders
- At least one director residing in Singapore
- A local registered address
Step 2: Choose and Reserve a Company Name
Submit your preferred business name for approval via ACRA’s BizFile+ portal. Ensure the name:
- Is unique
- Is not vulgar or obscene
- Does not infringe on trademarks
- Does not resemble existing companies
Name approval generally takes 1-2 hours but may take up to 14 days if referrals to other authorities are needed.
Step 3: Appoint Key Personnel
Director
- At least one director must be a local resident (Singapore citizen, PR, or holder of a valid employment pass or dependent pass).
- Directors must be at least 18 years old and not disqualified due to past criminal or bankruptcy cases.
Company Secretary
- Must be appointed within 6 months of incorporation.
- Cannot be the sole director.
- Must be a resident in Singapore.
Shareholders
- Can be individuals or corporate entities.
- 100% foreign ownership is allowed.
Auditor
- Must appoint an auditor within 3 months of incorporation unless exempted as a small company.
Step 4: Decide on Share Capital and Structure
- Minimum share capital: SGD 1
- No maximum capital requirement
- Can issue different share classes (ordinary, preference, etc.)
Shareholders’ equity distribution should be clearly defined in the company’s Constitution (formerly Memorandum and Articles of Association).
Step 5: Registered Office Address
Your company must have a registered local address in Singapore. It must be a physical address where company records are accessible. Residential addresses can be used under the Home Office Scheme.
Step 6: File for Incorporation with ACRA
All the above steps culminate in filing the incorporation documents with ACRA. You will need:
- Approved business name
- Company Constitution
- Details of shareholders, directors, and company secretary
- Registered address
- Share capital details
Once the information is verified and payment made (SGD 300), ACRA typically completes the registration within 1 business day.
Post-Incorporation Checklist
Successfully incorporating is just the beginning. Here’s what to do next:
1. Open a Corporate Bank Account
Top banks such as DBS, OCBC, UOB, and HSBC require:
- Company registration documents
- Board resolution authorizing account opening
- KYC (Know Your Customer) checks for all directors and shareholders
Some banks may require in-person visits.
2. Register for Goods and Services Tax (GST)
Mandatory if annual turnover exceeds SGD 1 million. Voluntary registration is possible and beneficial if you deal with GST-registered suppliers or clients.
3. Apply for Necessary Business Licenses
Certain industries require permits, such as:
- F&B: Singapore Food Agency license
- Education: MOE registration
- Retail: Liquor license, advertising license, etc.
4. Setup Bookkeeping and Accounting Systems
Singapore companies must:
- Maintain proper accounting records for 5 years
- Submit annual financial statements
- File Estimated Chargeable Income (ECI) and Corporate Tax Returns
5. Employment and Payroll Compliance
Hiring staff? Ensure:
- CPF (Central Provident Fund) registration
- Employment contracts follow MOM (Ministry of Manpower) guidelines
- Foreign hires have valid work passes
Can Foreigners Incorporate Company in Singapore?
Yes! Singapore welcomes foreign investment. However, foreigners who wish to incorporate must:
- Hire a local resident director (can be a nominee)
- Engage a registered filing agent (if not residing in Singapore)
- Apply for an EntrePass if planning to relocate and run the business locally
Ease to Compliance assists foreign founders to incorporate company in Singapore without the hassle of residency or relocation.
Register a Company in Singapore: What’s the Difference?
While the terms “register a company in Singapore” and “incorporate company in Singapore” are used interchangeably, there’s a subtle distinction:
- Registering: Applicable to any business structure, including sole proprietorships and partnerships
- Incorporating: Refers specifically to forming a legally distinct entity, such as a private limited company
So, when you want full liability protection, scalability, and credibility, it’s best to incorporate company in Singapore.
Compliance and Reporting Requirements
Singapore has strict but manageable corporate compliance rules:
Annual Filing Obligations:
- Annual Return with ACRA
- Annual General Meeting (AGM) unless exempted
- Corporate Tax Filing with IRAS
Financial Reporting:
- Maintain proper records (receipts, invoices, bank statements)
- Prepare unaudited financial statements if exempt as a small company
- Appoint auditors if revenue > SGD 10 million or company is part of a group
Non-compliance can result in fines, legal penalties, and deregistration.
Benefits of Incorporating a Company in Singapore
- Limited Liability: Shareholders are protected against debts
- Credibility: Boosts investor confidence and improves client trust
- Access to Capital: Easier to raise funds through share issuance
- Tax Relief: Several government grants and startup tax exemptions
- Continuity: Company remains unaffected by death or resignation of members
Cost Breakdown for Company Incorporation in Singapore
| Expense Item | Estimated Cost (SGD) |
|---|---|
| ACRA Name Approval | 15 |
| ACRA Incorporation Fee | 300 |
| Company Secretary (Annual) | 350–800 |
| Nominee Director (if needed) | 1,500–3,000/year |
| Registered Address | 200–400/year |
| Bank Account Setup | Varies |
| Total | 1,000–4,500 (Depending on services needed) |
How Ease to Compliance Helps
At Ease to Compliance, we provide end-to-end support to help you incorporate company in Singapore quickly and without complications. Our services include:
- Company Registration: Fast filing with ACRA and complete documentation
- Nominee Director Services: For foreign entrepreneurs without local residency
- Registered Address & Mail Forwarding
- Company Secretary Services: Ensure annual compliance and reporting
- Accounting, Payroll & Tax Filing
We also assist clients who want to register a company in Singapore for e-commerce, tech, F&B, and consulting ventures. Whether you’re expanding globally or starting fresh, our team ensures your incorporation process is smooth and compliant.
Ready to incorporate company in Singapore? Let Ease to Compliance take care of everything from paperwork to compliance, so you can focus on what truly matters growing your business. Contact us today to get started!
FAQs On How to Incorporate a Company in Singapore: A Quick Guide
Question 1. What is the minimum capital required to incorporate a company in Singapore?
Answer: The minimum paid-up capital to incorporate a company in Singapore is just SGD 1, making it highly accessible for startups and small businesses. There are no complex capital requirements at the time of registration. However, businesses can increase their capital later to meet operational or investor demands, especially if applying for work passes or bidding for government contracts.
Question 2. Can a foreigner be the sole director and shareholder of a Singapore company?
Answer: A foreigner can own 100% of the shares in a Singapore private limited company and be the sole shareholder. However, at least one director must be a local resident—this includes Singapore citizens, permanent residents, or holders of valid work passes with a Letter of Consent. If a foreigner wants to manage the company personally from Singapore, they must apply for an Employment Pass or hire a nominee director locally.
Question 3. Is a physical office address mandatory to register a company in Singapore?
Answer: Yes, Singapore law requires every company to have a local registered office address to incorporate. This address must be a physical location in Singapore that is accessible during normal business hours. While commercial addresses are preferred, some types of businesses can use a residential address under the Home Office Scheme, subject to approval. P.O. Boxes are not allowed as registered business addresses.
