How to Start a Business in Singapore: A Complete Step-by-Step Guide

Singapore is one of the world’s most business-friendly countries, making it a top destination for entrepreneurs and investors. Whether you’re a local or a foreigner, starting a business here is a straightforward process — as long as you understand the steps and compliance requirements.

In this guide, we’ll walk you through how to register and set up a business in Singapore, from choosing the right structure to meeting ongoing obligations.

Step 1: Choose the Right Business Structure

When embarking on the journey of establishing a business in Singapore, one of the first and most crucial decisions you will face is selecting the appropriate business structure. The choice of business entity can significantly impact your operational flexibility, tax obligations, and personal liability. The most common business entities in Singapore are:

• Private Limited Company (Pte Ltd) - This is the most popular choice among entrepreneurs and business owners in Singapore. A Private Limited Company provides limited liability protection to its shareholders, meaning that their personal assets are shielded from the company's debts and liabilities. This structure not only enhances credibility with clients and suppliers but also offers significant growth potential, as it allows for the issuance of shares to raise capital. Furthermore, a Pte Ltd can enjoy various tax incentives and is subject to a lower corporate tax rate, making it an attractive option for many.

• Sole Proprietorship - This is one of the simplest forms of business structure to establish. It is owned and run by a single individual, making it easy to set up with minimal regulatory requirements. However, while it offers ease of management and complete control over business decisions, it does not provide any liability protection. This means that the owner is personally liable for all debts and obligations incurred by the business, which can pose a significant risk, especially in the event of financial difficulties.

• Partnership - This structure involves two or more individuals who agree to operate a business together. Partnerships are well-suited for small teams or family-run businesses. While they allow for shared responsibilities and pooled resources, it is essential to understand that all partners share the liabilities of the business, which means that each partner is personally responsible for the debts and obligations of the partnership. It is advisable to have a partnership agreement in place to outline the roles, responsibilities, and profit-sharing arrangements among partners.

Step 2: Check Your Company Name Availability

Once you have decided on the business structure, the next step is to choose a name for your company. It is vital to ensure that your desired business name is available and not already registered by another entity. To do this, utilize the ACRA BizFile+ portal, which is the official online platform for business registration in Singapore. When selecting a name, it should be unique, meaning it cannot be identical or too similar to existing names. Additionally, the name must not be offensive or inappropriate and should not infringe on any existing trademarks. A well-thought-out business name can create a strong first impression and help in branding your business effectively.

Step 3: Appoint Key Roles

• Director - Every company must appoint at least one director, and it is a requirement that at least one of these directors is a resident of Singapore. This ensures that there is a local representative who is familiar with Singapore's business environment and regulations. The director is responsible for the overall management and decision-making of the company, and their qualifications and experience can influence the company’s credibility.

• Company Secretary - Within six months of incorporation, it is mandatory to appoint a company secretary. This individual plays a crucial role in ensuring compliance with the regulatory requirements set forth by the Accounting and Corporate Regulatory Authority (ACRA). The company secretary must possess relevant knowledge and experience in corporate governance and compliance matters, as they will assist in maintaining statutory records and filing necessary documents.

• Shareholders - The ownership of the company is determined by its shareholders, who can be individuals or other companies, either local or foreign. There is no restriction on the number of shareholders in a Private Limited Company, but it is essential to understand the implications of share ownership, including rights to dividends and decision-making power. Proper management of shareholder relations is critical for the smooth operation of the business.

Step 4: Register with ACRA

After finalizing your business structure and appointing key roles, the next step is to formally register your company with the Accounting and Corporate Regulatory Authority (ACRA). This process can be conveniently completed through the BizFile+ portal. When submitting your application, you will need to provide several essential documents and information, including:

• Approved company name - You must have your business name cleared and approved by ACRA before proceeding with registration.

• Details of directors, shareholders, and secretary - This includes personal particulars such as identification numbers and addresses of all appointed individuals.

• Registered business address - A physical address in Singapore is required for the company's registered office, which will be used for official correspondence and legal notices.

Step 5: Understand Your Compliance Obligations

Once your company is successfully registered, it is crucial to understand and comply with the ongoing obligations to maintain good standing with ACRA and other regulatory bodies. This includes:

• Annual filing requirements - Companies are required to file annual returns and financial statements, ensuring transparency and accountability in their operations.

• Tax submissions to IRAS - You must file your corporate income tax returns with the Inland Revenue Authority of Singapore (IRAS) annually. Understanding your tax obligations is vital for effective financial management.

• GST registration if your revenue exceeds the threshold - If your business turnover exceeds the prescribed Goods and Services Tax (GST) threshold, you must register for GST and comply with the related tax filing requirements.

Starting a business in Singapore is easier when you know the process. However, compliance doesn’t stop after registration; staying on top of accounting, tax, and corporate filings is crucial.

Need help with business incorporation and compliance? Contact our team today for expert guidance!