Entrepreneurship often starts with a vision—but turning that vision into reality requires bold steps, strategic decisions, and plenty of preparation. For those wondering how to start a business in Singapore, this global business hub offers the ideal environment to bring your ideas to life.
Known for its thriving economy and forward-thinking policies, Singapore is consistently ranked as one of the world’s easiest places to do business. It’s no surprise that entrepreneurs from around the world are drawn to its opportunities.
Whether you’re a local entrepreneur, an ambitious expat, or a startup founder, this step-by-step guide, presented by BBCIncorp, will walk you through everything you need to know about starting a business in Singapore.
Step 1: Choose Your Business Structure
How to open a business in Singapore starts with selecting the right business structure. It defines your company’s legal framework and taxation requirements. Singapore offers several types of business entities, including:
Sole proprietorship
- This is the simplest and easiest business structure to set up and manage, requiring minimal compliance and paperwork.
- Suitable for independent business owners who want full control over their operations and profits.
- Offer no liability protection, meaning the owner is personally responsible for all debts and legal obligations of the business. This can pose a significant risk.
Partnerships
- Ideal for joint ventures where two or more individuals or businesses come together to share skills, resources, and profits.
- There are two main types of partnerships
- General partnerships, where all partners share equal responsibility for the business’s debts and management.
- Limited partnerships allow one or more partners to have limited liability, making them responsible only for their investment in the business while not participating in daily management.
Private Limited Company (Pte. Ltd.)
- The most popular business structure for entrepreneurs and start-ups as it provides limited liability, scalability, and tax efficiency.
- It offers limited liability protection, meaning the personal assets of shareholders are protected if the company incurs debts or losses.
- A Pte Ltd company also enables easier access to funding, including investments from venture capitalists and angel investors.
- Additionally, it provides tax benefits, such as exemptions for newly incorporated companies in the initial years.
Step 2: Check Eligibility Requirements
Setting up a business in Singapore is a straightforward process, but there are a few key requirements you need to meet to ensure compliance with local regulations.
- Minimum of one resident director: Your company must have at least one director who is a Singapore resident. This can be a Singapore citizen, permanent resident, or someone holding an EntrePass or Employment Pass. If you’re a foreigner, you can appoint a nominee director to fulfill this requirement.
At least one local resident director is required for company registration and operation.
- Minimum of one shareholder: A Singapore company requires at least one shareholder, which can be either an individual or a corporate entity. There is no cap on the maximum number of shareholders. Additionally, all directors and shareholders must be at least 18 years of age and free of disqualifications such as criminal convictions or bankruptcy.
- Share capital: The minimum paid-up capital required to start a company is S$1. However, there’s no specific minimum share capital for startups or businesses owned by foreign entities.
- Company secretary: You must appoint a qualified company secretary within six months of incorporation. The secretary ensures compliance with statutory obligations, including annual filings and other legal requirements.
- Registered local address: Your business must have a physical address in Singapore. While virtual offices are acceptable, they must adhere to guidelines set by the Inland Revenue Authority of Singapore (IRAS).
By meeting these straightforward requirements, you’ll be well on your way to incorporating your business in Singapore.
Step 3: Register Your Business Name
Your business name is more than just a title—it’s the foundation of your brand and identity in the market. Singapore’s name approval process is straightforward but comes with certain guidelines:
- The name must not be identical or too similar to existing businesses
- Avoid using vulgar, offensive, or restricted terms
- Ensure the name does not infringe or any trademarks or copyrights
When opening a business in Singapore, you can check the availability of your desired business name through the Accounting and Corporate Regulatory Authority (ACRA) portal.
Once approved, the name will be reserved for your company for 120 days, giving you ample time to complete the registration process.
Step 4: Incorporate Your Business
After reserving your company name, the next vital step is incorporation. Fortunately, the government’s online platform, BizFile+, allows digital filing for company set up in Singapore with ease.
The Singapore government’s agency official website BizFile+ for businesses
Required documents for incorporation include:
- Company constitution (formerly known as Memorandum and Articles of Association).
- Identification documents for all shareholders and directors
- Details of the appointed company secretary
- Proof of registered local address
Once these documents are verified, the approval process is typically quick, often completed within 1–3 business days.
Step 5: Open a Corporate Bank Account
Managing your finances is essential when starting business in Singapore, and a corporate bank account is vital to ensure clear separation between personal and business funds. It also streamlines financial transactions, making it easier to run your operations.
Singapore offers a wide range of banking options, including trusted institutions like DBS, OCBC, and UOB.
To open an account, you’ll generally need:
- A copy of your ACRA business profile
- Company constitution documents
- Passport copies of all directors and key shareholders
- A board resolution approving the account opening
Some banks may require directors or company representatives to be physically present during the process, so it’s important to plan accordingly to avoid unnecessary delays.
You may need to attend an in-person meeting with the bank representative.
Step 6: Obtain Relevant Licenses and Permits
While many businesses in Singapore can operate without additional licenses, certain industries require permits to ensure compliance and uphold public safety. Here are a few examples:
- Food and Beverage Licenses for restaurants and cafes
- Import/Export Permits if your business involves international trade
- Fintech Licensing for tech-enabled financial services
You can easily verify licensing requirements for your industry through Singapore’s GoBusiness Licensing portal.
Step 7: Know your Tax and Compliance Obligations
Singapore’s pro-business tax system is one of the reasons it’s a top destination for entrepreneurs. However, understanding your tax and compliance obligations is a key step in figuring out how to set up a business in Singapore.
Here are the key requirements to keep in mind:
- Corporate tax rate: A flat 17% rate applies, with generous incentives for start-ups, including tax exemptions on the first S$200,000 of taxable income for the first three years.
- GST registration: Mandatory if your business turnover exceeds S$1 million.
- Annual filing:Companies must file financial reports and tax returns with ACRA and IRAS within the prescribed deadlines.
- Annual General Meeting (AGM): Private limited companies are required to hold an AGM, unless exempted under the large exemption criteria.
Step 8: Build your Brand and Community
After incorporation, focus on building a compelling brand that resonates with your audience. Use a mix of digital and offline strategies to maximize your reach and visibility.
- Branding: Focus on creating a compelling value proposition that resonates with your target audience. A professional website and active social media presence can go a long way.
- Engage with communities: Singapore is home to a thriving entrepreneurial scene. Attend events hosted by organizations like Entrepreneur First and SGTech to connect with like-minded professionals.
- Collaborate with partners: Leverage local expertise by forming partnerships, tapping into co-working spaces, or collaborating with accelerators and incubators.
Partner with BBCIncorp for seamless support
Wondering how to start a business in Singapore? At BBCIncorp, we can help you make your entrepreneurial dream a reality. From incorporation to compliance, we provide dedicated support every step of the way.
If you’re ready to take the leap, get in touch with our team today via [email protected] and start building your business with BBCIncorp.
Contact information:
Organization: BBCIncorp
Website URL: https://bbcincorp.com/
Name: BBCIncorp
Email: [email protected]
Phone number 1: (+852) 8192 8666
Phone number 2: (+65) 6011 8200
Hong Kong address: Office 3906, 39th, The Center, 99 Queen’s Road Central, Central, Hong Kong
Singapore address: 9 Raffles Place, #29-05 Republic Plaza, Singapore (048619)
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