Setting Up a Business in Singapore: A Complete Guide 2025

Singapore is one of the most business-friendly countries in the world, consistently ranking at the top for ease of doing business. With its robust legal framework, pro-business government policies, and strategic location, the city-state has become a preferred destination for entrepreneurs and multinational corporations alike. If you're looking to start a business in Singapore in 2025, this guide will walk you through everything you need to know.

Why Singapore? Key Advantages for Entrepreneurs

Strategic Location: Positioned at the heart of Southeast Asia, Singapore offers easy access to key markets, including China, India, and ASEAN

Ease of Doing Business: Ranked among the top countries in the former World Bank’s Ease of Doing Business Index and consistently recognized in the new Business Ready report, Singapore remains a global leader in business-friendly regulations.

Attractive Tax System: A low corporate tax rate of 17%, no capital gains tax, and various tax incentives make it a favorable destination for businesses.

A transparent and efficient legal system provides strong protections for businesses and investors:

• Stable Political & Economic Environment: Singapore offers political stability, strong economic growth, and robust financial markets.
• Skilled Workforce: The city-state has a highly educated, multilingual workforce, with expertise in finance, technology, and innovation.

Step 1: Choosing a Business Structure

Before registering your business, you must decide on the appropriate structure. Singapore offers several types of business entities:

1. Private Limited Company (Pte. Ltd.)

• Most popular choice for entrepreneurs and investors.
• Treated as a separate legal entity, limiting shareholders’ liability.
• Tax-efficient and eligible for government incentives.
• Can have between 1 and 50 shareholders.

2. Sole Proprietorship

• Suitable for solo entrepreneurs but does not provide limited liability protection.
• Business owner is personally liable for debts and losses.
• Less paperwork but fewer tax benefits.

3. Partnership

• Can be General Partnership (unlimited liability) or Limited Liability Partnership (LLP).
• LLP is the preferred choice as it limits personal liability while allowing flexible management.

4. Subsidiary, Branch, or Representative Office

• Subsidiary: A locally incorporated private limited company, best for foreign companies expanding into Singapore.
• Branch Office: An extension of the parent company with no separate legal entity.
• Representative Office: Ideal for market research but cannot engage in commercial activities.

5. Variable Capital Companies (VCC)

If you are setting up an investment fund rather than a traditional business, you may consider a Variable Capital Company (VCC). This structure is designed specifically for fund management, including hedge funds, private equity funds, and venture capital firms. VCCs offer flexible capital structures, tax incentives, and confidentiality benefits but require a licensed fund manager and regulatory approval from the Monetary Authority of Singapore (MAS).

Recommendation: If you are a foreign entrepreneur, setting up a Private Limited Company (Pte. Ltd.) is usually the best option due to tax benefits and legal protection.

Step 2: Registering Your Business

All businesses in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA) through the BizFile+ system. Here’s how:

Requirements for Incorporation:

For most business structures in Singapore, the registration requirements vary. However, the following criteria primarily apply to a Private Limited Company (Pte. Ltd.), the most common and flexible business entity.

1. Company Name: Must be unique and approved by ACRA.
2. Directors: At least one director must be a Singapore resident (citizen, PR, or Employment Pass holder).
3. Shareholders: Minimum of one shareholder (can be an individual or a corporate entity).
4. Company Secretary: The company secretary must be a Singapore resident (citizen, PR, or valid work pass holder) and appointed within six months of incorporation.
5. Registered Office Address: Must be a local Singapore address (P.O. boxes are not allowed).
6. Paid-Up Capital: Minimum SGD 1, but higher capital may be required for certain industries.

Registration Process:

1. Reserve Your Company Name (SGD 15) – Approved within 1-2 hours if there are no conflicts.
2. Submit Incorporation Documents via BizFile+ (SGD 115-315).
3. Receive Approval – Incorporation typically takes less than 24 hours.

Once registered, you will receive a Certificate of Incorporation and a Business Profile, which are required for bank account opening and tax filing. We can register your company in Singapore in 1 day.

Step 3: Opening a Corporate Bank Account

If you plan to operate actively in Singapore, it is highly advisable to open a corporate bank account for your company. Singapore is home to top local and international banks, including:

• DBS Bank
• OCBC Bank
• UOB
• HSBC
• CitiBank
• RHB
• May Bank

Neo Banks & Payment Systems

In recent years, neobanks and digital payment systems have gained popularity as alternative financial solutions. These platforms offer functionalities similar to traditional banks but often have more flexible account opening requirements and fewer regulatory constraints.

Corporate Bank Account Requirements

Most banks in Singapore require the following documents for corporate account opening:

1. Completed account opening form

Fill out the form at the link

• Proof of Address for Directors and Shareholders

Any official document in English that includes the name and residential address, such as a bank statement or utility bill.

• Company BizFile

○ A company registration record issued by the Accounting and Corporate Regulatory Authority (ACRA).
○ RSBU provides this document for its clients. You can submit a request here).

Bank Reference Letter

• A recommendation letter from the bank where the director or shareholder holds a personal account.
• Preference is given to Singapore banks or reputable international banks with a presence in Singapore.

Passport Copies of Directors and Shareholders

• Scanned color copies of the passport’s main page.

Director(s) and Shareholder(s) Profile

• A summary in English outlining education and professional activities over the past 10 years.

Company Constitution

• The company’s constitutional document outlining its structure and governance.
• RSBU provides this document for its clients).

Company Presentation

• A well-structured document detailing the company’s business activities, industry focus, and projected operations.
• RSBU offers professional services for creating presentation materials.

Additional Requirements

Depending on the bank and the nature of your business, additional documents may be required, such as:

• A brief business plan outlining the company’s activities and financial projections.
• Proof of asset ownership (if applicable).
• Lease agreement for an office or business location in Singapore.
• Long-stay visa or work pass of the director(s) or key personnel.
• Evidence of business experience and reputation of directors and shareholders.

Need Assistance?

If you require consultation or help preparing your application, RSBU specialists can assist you in compiling the necessary documents and navigating the account opening process.

RSBU may assist you with corporate and personal bank account opening in Singapore: https://www.rsbu.sg/opening-bank-account/en

Substance Requirements:

Many banks and regulatory authorities now assess whether a company has a real economic presence in Singapore. Simply incorporating a business is not always enough to open a corporate bank account or qualify for tax incentives. To demonstrate substance, a company may need:

• A physical office in Singapore (not just a registered address)
• A local director actively involved in business operations
• Employees based in Singapore
• A local corporate secretary
• Business transactions conducted within Singapore

These requirements can vary depending on the nature of the business and the bank’s internal compliance policies. Some foreign-owned companies may need to provide additional documentation or have a face-to-face interview with the bank. You can read our full guide on opening a corporate bank account in Singapore for a detailed step-by-step process and tips on choosing the right bank.

In recent years, banks and regulatory authorities in Singapore have placed increasing emphasis on economic substance when assessing corporate bank account applications. Simply registering a company is no longer sufficient - banks want to see that the business has a genuine operational presence in Singapore.

To demonstrate substance, companies may need to fulfill the following criteria:

1. Physical Office in Singapore

• A real office space (not just a virtual address or registered business address) is often required to prove that the company has a legitimate presence in Singapore.
• Some banks may request a tenancy agreement as supporting evidence.

2. Local Director Actively Involved in Business Operations

• Many banks prefer that at least one director be a Singapore resident who plays an active role in managing the business.
• This requirement ensures that the company is not just a shell entity and has decision-makers physically present in Singapore.

3. Employees Based in Singapore

• Employing local staff further strengthens the business’s credibility.
• Some banks may request employment records, CPF contributions (Central Provident Fund), or payroll details to confirm local hiring.

4. Local Corporate Secretary

• Every Singapore company is required to have a corporate secretary who ensures regulatory compliance.
• Having a qualified local corporate secretary reassures banks that the company is properly managed and adheres to Singaporean corporate laws.

5. Business Transactions Conducted in Singapore

• Banks typically review a company’s expected business activities to determine its economic footprint in Singapore.
• Evidence of local contracts, invoices, purchase orders, or customer agreements may be required to prove that the business is actively engaged in Singapore’s economy.

Why Substance Matters

Having real economic substance is not only crucial for opening a corporate bank account but also plays a key role in:

✅ Gaining access to Singapore’s tax benefits (such as the 17% corporate tax rate and startup exemptions).
✅ Maintaining compliance with banking regulations and reducing the risk of account rejection or closure.
✅ Strengthening credibility with banks, regulatory bodies, and business partners.

Each bank has its own internal compliance policies, and requirements may vary depending on the nature of the business, the nationality of directors and shareholders, and the risk assessment of the company’s activities.

For a detailed step-by-step guide on choosing the right bank and preparing a strong application, check out our full guide on opening a corporate bank account in Singapore

Step 4: Hiring Employees & Work Passes

If you plan to hire employees in Singapore, you must comply with the Employment Act and ensure that foreign hires obtain the necessary work passes from the Ministry of Manpower (MOM). Singapore’s pro-business environment offers a range of work passes for professionals, entrepreneurs, and skilled workers, with strict eligibility criteria to ensure a high-quality workforce.

Key Work Passes in Singapore (Updated for 2025)

1. Employment Pass (EP) – For Highly Skilled Foreign Professionals

The Employment Pass (EP) is issued to foreign professionals, executives, and specialists working in managerial, executive, or specialized roles.

Eligibility Criteria:

• Minimum monthly salary of SGD 5,600 (SGD 6,200 for financial sector jobs) – higher for older or more experienced candidates.
• Must meet the Complementarity Assessment Framework (COMPASS), which evaluates:

○ Salary & Skills: Based on candidate’s qualifications and experience.
○ Diversity & Fair Hiring: Employers must show they are hiring fairly and maintaining workforce diversity.
○ Company Attributes: Evaluates the company’s economic contribution and industry value.

• Valid for 1 to 2 years initially, renewable for up to 3 years.
• Pass holders can bring dependents (spouse, children) under the Dependant’s Pass or Long-Term Visit Pass if they meet income thresholds.

Processing Time: 3-8 weeks for new applications.

Note: Companies hiring EP holders must meet Fair Consideration Framework (FCF) guidelines, ensuring that jobs are first advertised to locals on MyCareersFuture before applying for an EP.

2. Tech.Pass – For Global Tech Entrepreneurs & Experts

The Tech.Pass is designed to attract world-class technology leaders, entrepreneurs, and investors to Singapore’s tech ecosystem. It provides greater flexibility than an EP, allowing holders to work, invest, and mentor in the industry.

Eligibility Criteria:

• Minimum monthly salary of SGD 22,500 (or equivalent in past 12 months).
• At least 5 years of experience in a leadership role in a tech company valued at SGD 500M+ or with SGD 30M+ funding.
• Track record in tech product development, scaling businesses, or investments.

Key Benefits:

• Allows the holder to start and operate multiple businesses in Singapore.
• No restriction on employment—can work for multiple companies or act as a consultant/advisor.
• Valid for 2 years, renewable for another 2 years if renewal criteria are met.

Processing Time: 8-12 weeks, as it involves stringent vetting.

3. EntrePass – For Foreign Entrepreneurs Setting Up a Business in Singapore

The EntrePass is designed for foreign entrepreneurs, innovators, and investors who want to establish venture-backed or innovative businesses in Singapore.

Eligibility Criteria:

1. The business must be in an approved sector, such as:

• Technology (AI, SaaS, fintech, blockchain, etc.)
• Biotechnology & Healthcare
• Clean Energy & Sustainability
• E-Commerce & Digital Platforms

2. No minimum salary requirement, but applicants must prove their ability to fund and operate the business.

3. Requires a solid business plan and evidence of funding from recognized investors or a government grant.

Key Benefits:

• 100% foreign ownership allowed.
• Provides a clear pathway to Permanent Residency (PR) if the business scales successfully.
• Pass holders can bring dependents if business performance criteria are met.

Processing Time: 6-10 weeks, depending on the complexity of the business proposal.

Need more details? Read our full EntrePass guide here.

4. S Pass – For Mid-Skilled Workers

The S Pass is issued to mid-skilled foreign workers in industries such as manufacturing, construction, healthcare, and logistics.

Eligibility Criteria:

• Minimum monthly salary of SGD 3,150 (SGD 3,650 for financial sector jobs).
• Candidates must meet educational qualifications (diplomas or degrees) and relevant work experience.
• Employers must adhere to the Dependency Ratio Ceiling (DRC), limiting the percentage of foreign S Pass holders in their workforce.

Key Benefits:

• More affordable than EPs, as salary thresholds are lower.
• Renewable for up to 3 years.
• Employers must provide medical insurance for S Pass holders.

Processing Time: 3-5 weeks.

5. Dependant’s Pass & Long-Term Visit Pass – For Families of Work Pass Holders

Dependant’s Pass (DP) – Available for spouses and children (under 21 years old) of EP, S Pass, or Tech.Pass holders earning SGD 6,000+ per month.
Long-Term Visit Pass (LTVP) – For common-law spouses, stepchildren, or parents of EP holders earning SGD 12,000+ per month.

Key Note: DP holders can apply for a Letter of Consent (LOC) to work in Singapore under specific conditions.

Key Employment Regulations to Consider

1. Employment Act Compliance

• All employees must receive written contracts, clearly stating salary, working hours, leave entitlements, and termination conditions.
• Mandatory CPF contributions apply to Singaporean and PR employees, but not to foreign work pass holders.

2. Fair Hiring Practices & Workforce Quotas

• The Fair Consideration Framework (FCF) requires companies to consider Singaporeans first before hiring foreigners.
• Quota restrictions apply to S Pass and Work Permit holders, depending on the industry.

3. Work Injury Compensation & Medical Insurance

• Employers must provide medical insurance coverage for all foreign employees.
• Work Injury Compensation Act (WICA) applies to work-related injuries, illnesses, and death claims.

Step 5: Understanding Taxes & Compliance

Singapore has one of the most business-friendly tax systems in the world. Here’s what you need to know:

Corporate Income Tax:

Flat 17%, but many businesses qualify for lower effective tax rates due to exemptions and incentives.

Tax Incentives and Exemptions:

• Partial Tax Exemption (PTE) – All companies get a 75% exemption on the first SGD 10,000 of taxable income and 50% exemption on the next SGD 190,000.
• Start-Up Tax Exemption (SUTE) – Newly registered companies enjoy higher tax exemptions on the first SGD 225,000 of taxable income in the first three years.
• Industry-Specific Tax Incentives – Certain businesses, such as trading, finance, and R&D, can qualify for tax rates as low as 5% to 10%.

Goods & Services Tax (GST):

• 9% from 2024 (applicable to businesses with revenue > SGD 1 million).
• Registration is mandatory for eligible businesses but can be voluntary for smaller companies.

Note on BEPS 2.0 (Effective 2025): From 2025, Singapore will implement the Global Minimum Tax (GMT) under the OECD’s BEPS 2.0 framework. This applies to multinational enterprises (MNEs) with annual revenue exceeding €750 million (~SGD 1.1 billion), ensuring they pay a minimum effective tax rate of 15%. Smaller businesses and startups are not affected and can continue to benefit from Singapore’s tax incentives.

If you need help with taxes, our specialists are here to assist you.

Step 6: Business Licenses & Permits

In Singapore, certain businesses are required to obtain additional licenses and permits before commencing operations. The specific requirements depend on the industry, nature of business activities, and regulatory framework.

1. Food & Beverage (F&B) Businesses

If you are opening a restaurant, café, catering service, food stall, or any other F&B establishment, you must apply for a Food Shop License from the Singapore Food Agency (SFA). Additional permits may be required depending on your operations:

Food Shop License – Required for operating any food & beverage outlet.
Halal Certification – If you intend to serve Halal food, certification from the Islamic Religious Council of Singapore (MUIS) is necessary.
Liquor License – If your establishment sells alcoholic beverages, you must apply for a Liquor License from the Singapore Police Force.
Food Import & Export License – If you import or export food products, additional permits from SFA may be required.

Processing Time: 1-4 weeks, depending on the complexity of the business.

2. Financial Services & FinTech Businesses

Companies operating in the financial sector, including payment processing, investment advisory, wealth management, or cryptocurrency exchanges, must obtain relevant licenses from the Monetary Authority of Singapore (MAS). Key licenses include:

Capital Markets Services (CMS) License – Required for fund management, securities trading, and investment advisory services.
Payment Services Act (PSA) License – Required for payment service providers, e-wallets, digital banking, or cryptocurrency exchanges.
Moneylender’s License – Required for companies involved in lending money to individuals or businesses.
Insurance & Financial Advisory License – Required for insurance brokers and financial advisors.

Processing Time: 2-6 months, depending on the nature of the financial business.

3. Retail, E-Commerce & Trading Businesses

Most retail and e-commerce businesses do not require a special license unless they are selling regulated products such as:

Pharmaceutical & Health Products – Requires a license from the Health Sciences Authority (HSA).
Alcohol & Tobacco Products – Requires a permit from the Singapore Customs Authority.
Second-Hand Goods Dealers – Requires a license from the Singapore Police Force (e.g., pawn shops, gold trading businesses).
GST Registration – Required if annual revenue exceeds SGD 1 million or if you voluntarily opt for GST registration.

Processing Time: 1-3 weeks for most permits.

4. Education & Training Businesses

If you are planning to open a private school, tuition center, or online training business, you may need approval from:

Committee for Private Education (CPE) – If offering formal education programs.
SkillsFuture Singapore (SSG) Registration – If providing SkillsFuture credit-eligible training courses.
Early Childhood Development Agency (ECDA) License – Required for preschools and childcare centers.

Processing Time: 4-8 weeks, depending on course accreditation requirements.

5. Health & Wellness Businesses

Medical, beauty, wellness, and fitness-related businesses may require specific permits, such as:

Medical Clinic License – Issued by the Ministry of Health (MOH) for general and specialist medical clinics.
Spa & Wellness Establishment License – Required if offering massage, spa, or wellness therapy services.
Traditional Chinese Medicine (TCM) License – Required for acupuncture, herbal medicine, or other TCM practices.
Processing Time: 4-6 weeks for standard applications.

Where to Check Licensing Requirements?

You can check the licensing requirements on GoBusiness Singapore or get a free consultation from our specialists.

Step 7: Scaling & Expanding

Once your business is established, you may want to expand regionally. Singapore offers incentives for scaling, including:

• Startup SG: Government grants and funding for early-stage businesses.
• EDB Incentives: Tax incentives for multinational companies setting up regional headquarters.
• Access to ASEAN: Free trade agreements and strong investor protections for businesses operating across Southeast Asia.

Annual Mandatory Reporting for Companies in Singapore

All companies registered in Singapore must comply with statutory annual reporting requirements to remain in good standing and avoid penalties. Non-compliance may result in fines, late submission fees, or legal consequences imposed by the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).

1. Corporate Tax Filing with IRAS

Companies are required to report their corporate income tax annually to the Inland Revenue Authority of Singapore (IRAS). The key tax filing requirements include:

Form C / Form C-S (Corporate Income Tax Return)

• Form C-S: For companies with annual revenue of SGD 5 million or less, no complex tax adjustments, and no foreign-sourced income.
• Form C: Required for all other companies, including those with revenue exceeding SGD 5 million or requiring additional tax deductions, exemptions, or foreign tax credits.
• Submission Deadline: November 30 each year.

Estimated Chargeable Income (ECI)

• All companies must file an Estimated Chargeable Income (ECI) within 3 months after the financial year-end, unless exempted.
• Exemptions apply if annual revenue is SGD 5 million or below and the estimated chargeable income is zero.
• Filing ECI allows businesses to benefit from IRAS' GIRO installment payment scheme for corporate tax.

Penalties for Non-Compliance: Failure to file corporate tax returns on time may result in fines, late submission penalties, and even court summons.

2. Annual General Meeting (AGM)

Holding an Annual General Meeting (AGM) is a legal requirement for Private Limited Companies (Pte Ltd) unless exempted. The AGM serves as a formal meeting for shareholders to review and approve the company’s financial statements and discuss important business matters.

AGM Requirements:

• Must be held within 6 months after the financial year-end.
• The company’s financial statements must be prepared in accordance with Singapore Financial Reporting Standards (SFRS) and approved at the AGM.

Exemptions from Holding an AGM:

Companies are exempt from holding an AGM if:

1. They have one shareholder only (sole shareholder).
2. They have sent their financial statements to shareholders within 5 months after the financial year-end.

Penalties for Non-Compliance: Failure to hold an AGM may result in ACRA fines, director disqualification, or strike-off action.

3. Annual Return (AR) Filing with ACRA

Every Singapore company must file an Annual Return (AR) with the Accounting and Corporate Regulatory Authority (ACRA) to update corporate records and maintain regulatory compliance.

Annual Return (AR) Submission Includes:

• Company details (business activities, directors, and shareholders).
• Financial statements (if applicable).
• Confirmation of AGM compliance (or exemption if applicable).

Filing Deadline:

• Must be filed within 7 months after the financial year-end.
• Exempted Private Companies (EPCs) that are solvent and not publicly listed may be eligible for simplified filing.

Penalties for Late Filing:

• ACRA imposes penalties ranging from SGD 300 to SGD 600 per late submission.
• Repeated non-compliance may result in directors being disqualified or the company being struck off the register.

4. Additional Compliance Obligations

Depending on the nature of your business, additional reporting requirements may apply, such as:

Goods and Services Tax (GST) Filing

• Companies registered for GST must submit quarterly or monthly GST returns to IRAS.
• Filing deadline: Within 1 month after the end of each accounting period.

XBRL Financial Reporting

• Certain companies must submit financial statements in XBRL format to ACRA.
• Required for public companies, large private companies, or subsidiaries of foreign corporations.

Employment-related Filings

• Companies must submit CPF contributions for employees monthly.
• Employment Income Tax (IR8A) forms for employees must be submitted annually to IRAS by March 1.

Why Compliance Matters

Maintaining compliance with annual reporting and tax obligations ensures that your company:

✅ Avoids legal penalties and late submission fines.
✅ Maintains a good corporate reputation in Singapore.
✅ Remains eligible for government grants, tax exemptions, and financial services.
✅ Prevents bank account restrictions or closures due to regulatory non-compliance.

Our specialists can assist in ensuring timely and accurate filing of all required reports. Submit a request here to get expert support.

Start Your Business in Singapore with RSBU – A Trusted Partner Since 2013

Setting up a company in Singapore is fast and straightforward, but ensuring compliance, efficiency, and smooth operations requires expert guidance. With over a decade of experience, RSBU has been helping entrepreneurs, investors, and global businesses establish and grow their presence in Singapore.

✅ One-Stop Solution – From company incorporation to bank account opening, tax compliance, and business licensing, we handle everything for you.
✅ Experienced Team – Operating in Singapore since 2013, we understand the local business environment and regulatory requirements inside out.
✅ Hassle-Free Process – We simplify the paperwork, reduce processing time, and ensure compliance, so you can focus on your business.
✅ Trusted by Global Clients – Our proven track record speaks for itself, with clients ranging from startups to multinational corporations.

NB! The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to ensure the content is accurate and up-to-date, it should not be relied upon as a substitute for professional consultation. For personalized advice or assistance with legal matters, please contact our specialists directly.

Still have questions? Singapore’s business landscape is dynamic, and it’s always best to check for the latest regulations. Feel free to reach out for expert guidance on incorporation, tax planning, and compliance.