Start Business Singapore Complete Setup Guide 2025

Singapore consistently ranks as the world's easiest place to do business according to the World Bank's Doing Business report. The city-state processed over 50,000 new company incorporations in 2024, with foreign entrepreneurs making up 35% of new business registrations. This isn't just about convenience - Singapore offers a unique combination of political stability, strategic location, and business infrastructure that makes it an ideal launchpad for Asian market expansion.

The country's regulatory framework, overseen by the Accounting and Corporate Regulatory Authority (ACRA), emphasizes transparency and efficiency. Most incorporation processes are digitized, with the entire company registration taking as little as 15 minutes online. However, the real advantage lies in Singapore's extensive network of Double Taxation Agreements (DTAs) with over 80 countries, which can significantly reduce your global tax burden when structured properly.

Singapore offers several business structures, but the Private Limited Company (Pte Ltd) dominates with over 90% of new registrations. Understanding the differences is crucial as your choice affects everything from liability protection to tax obligations and compliance requirements.

The incorporate in Singapore foreigner process has been streamlined through ACRA's BizFile+ platform. While the actual registration takes minutes, proper preparation and understanding of requirements can take several weeks. Here's the complete timeline from initial planning to operational business.

Singapore business setup guide requirements are specific and non-negotiable. Missing any mandatory requirement will delay your incorporation or result in rejection. ACRA maintains strict standards to preserve Singapore's reputation as a transparent business hub.

Understanding the true cost to start business Singapore goes beyond the SGD 300 government fee. Hidden costs like nominee director fees, corporate secretary charges, and ongoing compliance can significantly impact your budget. Here's a transparent breakdown of all expenses you'll encounter.

All amounts in SGD. Prices may vary.

Government Fees

• Company name reservation: SGD15 (one-time)
• Company incorporation: SGD300 (one-time)
• IRAS tax registration: SGD0 (one-time)

Professional Services

• Nominee director service: SGD1200 - SGD2400
• Corporate secretary: SGD600 - SGD1200
• Registered address service: SGD300 - SGD800
• Incorporation agent fees: SGD0 - SGD500 (one-time) (optional)

Banking & Operations

• Corporate bank account opening: SGD0 - SGD300 (one-time)
• Bank account maintenance: SGD120 - SGD600
• Accounting software: SGD200 - SGD600 (optional)

Ongoing Compliance

• Annual ACRA filing: SGD60
• Tax filing (simple): SGD500 - SGD1500
• Audit (if revenue > SGD 5M): SGD3000 - SGD8000 (optional)

💰 First Year Total: SGD1595 - SGD3575

📅 Annual Ongoing: SGD1480 - SGD4760

⚠️ Factor in potential visa application costs (SGD 2,500+ for EntrePass) and higher living costs if relocating to Singapore.

Incorporating a Singapore company doesn't automatically grant you the right to live and work in Singapore. Foreign entrepreneurs need appropriate work authorization, with the EntrePass being the primary visa for startup founders. Understanding visa requirements is crucial as they directly impact your ability to manage your Singapore business.

EntrePass: The Entrepreneur Visa

The EntrePass is designed for foreign entrepreneurs who want to start and operate an innovative business in Singapore. The Ministry of Manpower (MOM) evaluates applications based on the entrepreneur's profile, business concept, and investment commitment. Key requirements include a minimum SGD 50,000 investment and a scalable business model.

• Investment Requirement: Minimum SGD 50,000 paid-up capital within 6 months of approval
• Business Innovation: Must demonstrate scalable and innovative business model
• Entrepreneur Profile: Relevant experience, education, or track record in business
• Validity Period: Initially 1 year, renewable up to 2 years based on milestones

Employment Pass Alternative

If your business doesn't qualify for EntrePass, you might consider the Employment Pass route. This requires your Singapore company to hire you as an employee with a minimum salary of SGD 5,000. However, this path has restrictions on business ownership and control that may not suit all entrepreneurs.

Singapore's corporate tax system is a key attraction for international businesses, with a headline rate of 17% and generous exemptions for new companies. The Inland Revenue Authority of Singapore (IRAS) operates a territorial tax system, meaning only Singapore-sourced income is taxable. However, understanding the nuances can save significant money in your first years of operation.

New Company Tax Exemptions

New Singapore companies benefit from substantial tax exemptions in their first three years. The Start-up Tax Exemption provides 100% exemption on the first SGD 100,000 of chargeable income for the first three consecutive years, plus 50% exemption on the next SGD 200,000. This means new companies pay zero tax on their first SGD 100,000 of profit.

• Years 1-3: 100% exemption on first SGD 100,000 + 50% on next SGD 200,000
• Year 4 onwards: Partial Tax Exemption scheme - 75% exemption on first SGD 10,000 + 50% on next SGD 290,000
• GST Registration: Mandatory when annual turnover exceeds SGD 1 million

While Singapore consistently ranks as the world's easiest place to do business, it's important to understand both advantages and challenges. This honest evaluation is based on feedback from hundreds of foreign entrepreneurs who have incorporated Singapore companies over the past five years.

These errors cost entrepreneurs time, money, and opportunities in Singapore's competitive business environment.

1. Choosing the wrong business structure

❌ Consequence: Higher taxes, personal liability exposure, or inability to raise investment capital later

✅ How to avoid: Consult with a Singapore corporate lawyer before deciding, especially if you plan to raise funding or have complex ownership structures

2. Underestimating the local director requirement

❌ Consequence: Delays in incorporation, dependency on nominee services, or compliance issues if director relationship breaks down

✅ How to avoid: Secure a reliable nominee director service or local partner before starting incorporation, and understand ongoing obligations and costs

3. Ignoring GST registration requirements

❌ Consequence: Penalties and interest charges from IRAS, plus potential audit scrutiny for late registration

✅ How to avoid: Monitor your revenue closely and register for GST before hitting the SGD 1 million threshold, or voluntarily register if beneficial

4. Poor record keeping from day one

❌ Consequence: Difficulties with tax filing, audit issues, and potential penalties for inadequate documentation

✅ How to avoid: Implement proper accounting systems immediately, maintain all invoices and receipts, and consider cloud-based accounting software

5. Misunderstanding territorial taxation

❌ Consequence: Unexpected tax liabilities on foreign income that's deemed Singapore-sourced or received in Singapore

✅ How to avoid: Get professional tax advice on your specific situation, especially if you have income from multiple countries or complex business structures

Information compiled from official Singapore government sources, verified through ACRA and MOM websites, and cross-referenced with current regulations as of December 2025.

• Accounting and Corporate Regulatory Authority (ACRA): https://www.acra.gov.sg/ (accessed 2025-12-15)
• Ministry of Manpower Singapore: https://www.mom.gov.sg/ (accessed 2025-12-15)
• Inland Revenue Authority of Singapore: https://www.iras.gov.sg/ (accessed 2025-12-15)
• Enterprise Singapore: https://www.enterprisesg.gov.sg/ (accessed 2025-12-15)

Information accurate as of December 2025. Singapore regulations change frequently - verify current requirements with official sources before making business decisions.