How to Start Business in Singapore

How to Start a Business in Singapore: Step-by-Step Guide (2025)

ingapore is one of the easiest places in the world to start and run a business. With its strong economy, strategic location, and business-friendly policies, many entrepreneurs and investors choose Singapore as their base. If you are wondering how to start a business in Singapore, this guide will walk you through the process step by step.

Why Start a Business in Singapore?

Before learning how to start a business in Singapore, it’s important to know why it’s such an attractive destination:

• Low corporate tax rates (17%)

• No capital gains tax

• World-class infrastructure

• Strong legal and banking system

• Easy company registration process

• Government support for startups and SMEs

 Step-by-Step Process to Start a Business in Singapore

1. Choose Your Business Structure

The most common option is a Private Limited Company (Pte Ltd) because it offers limited liability and credibility. Other structures include:

• Sole Proprietorship

• Partnership

• Limited Liability Partnership (LLP)

 For foreign entrepreneurs, Pte Ltd is usually the best choice.

2. Register Your Company Name

• Use the Accounting and Corporate Regulatory Authority (ACRA) BizFile+ portal.

• The name must be unique, professional, and not infringe trademarks.

• Once approved, the name is reserved for 120 days.

3. Appoint Directors and Shareholders

• At least one director must be a Singapore resident (citizen, PR, or holder of EntrePass/Employment Pass).

• You need at least 1–50 shareholders (can be individuals or corporations).

4. Appoint a Company Secretary

• Every Singapore company must have a qualified Company Secretary within 6 months of incorporation.

5. Define Paid-Up Capital

• Minimum requirement: SGD 1.

• You can increase this later as the business grows.

6. Registered Office Address

• Your business must have a local Singapore address (P.O. Boxes are not allowed).

7. Register with ACRA

• File incorporation documents with ACRA.

• Once approved, you will receive a Certificate of Incorporation and Business Profile.

8. Open a Corporate Bank Account

• Popular banks in Singapore: DBS, OCBC, UOB, HSBC, Standard Chartered.

• Most banks require the directors/shareholders to be physically present for account opening.

9. Apply for Business Licenses (if required)

Some industries (F&B, finance, healthcare, education) need additional licenses.

10. Register for GST (if applicable)

• Mandatory if your annual turnover exceeds SGD 1 million.

 Tips for Foreign Entrepreneurs

If you are a foreigner wondering how to start a business in Singapore, you have two options:

1. Appoint a local director and manage your company from abroad.

2. Apply for an EntrePass (business visa) to relocate and run the company in Singapore.

 Costs to Start a Business in Singapore

• Company registration with ACRA: SGD 315

• Corporate secretary services: SGD 300–1,000 per year

• Nominee director (if needed): SGD 1,500–3,000 per year

• Registered address services: SGD 200–500 per year