CFO GROUP INTEGRATED SERVICES

The Ultimate Guide to Setting up a Business in Singapore

CMO Media Lab Pte Ltd • Dec 18, 2021

Many people dream of starting their own company. Here in Singapore, there are many opportunities for entrepreneurs to do so! Setting up a company is not as difficult as you might think, and before long, you'll be on your way to running your very own company. This post will help you set up a company in Singapore- from registering the company with all the required information and documents and how to start a business in Singapore.

Registering a Singapore Company in 2021

When you register a company in Singapore, there are a few things that you must have on hand. Singapore company registration can be complicated but working with a Singapore corporation and business solution like CFO Accounts & Services is the best way to make sure that you're engaging in all of your activities legally. A fast and easy process that will help your business in incorporating a company. With CFO Accounts & Services experienced team, we'll guide you through the incorporation of your new company, so it's done correctly from start to finish!                             

Before You Register Company in Singapore

Now that you're ready to register your business in Singapore, it's important to provide the following information:

  • Name of the Company - To register a business in Singapore, you must have pre-approval for your new company name.

  • Directors - At least one of your Resident Directors in Singapore must be present. In this case, we are talking about the documents that are associated with lawful status. As many directors as you'd like, both local and international can be appointed. You must make sure that applicants are at least 18 years of age, have no outstanding criminal charges, and have enough financial wherewithal to deal with any financial hardship that may arise. To begin with, directors don't have to be stockholders.

  • Shareholders - The maximum number of shareholders allowed for a private limited company is between one and fifty. Shareholders can be individual people or companies and those located inside or outside of a country. You will be able to issue or transfer shares after incorporation. International ownership is allowed in all ventures, be they foreign or domestic.

  • Owner's Equity - To form a business in Singapore, Pte Ltd, you must have at least S$1 in paid-up capital. However, you can increase this amount at any time after incorporation. In Singapore, the usage of permitted capital is forbidden. Instead, ordinary shares, preference shares, or other shares might be chosen.

  • Registered address - All companies must ensure that their registered office is open and accessible to the public for at least three hours during ordinary business hours on each business day. A business day is any day excluding Saturday, Sunday and public holidays.

    The purpose of this requirement is to allow members of the public to reach out to the office if necessary and to facilitate the delivery of any legal documents. Companies and directors that fail to comply with this requirement may be fined up to S$5,000.

    The registered office must be an address in Singapore, but it need not be the place of operation.

  • Home Office Scheme - If you plan to conduct a small-scale business from your home, you may use your residential address as the office address under the Home Office Scheme managed by the Housing Development Board (for HDB flats) and Urban Redevelopment Authority (for private residential properties). This scheme is available to owners, tenants and authorised occupants of housing units.

    You must apply for approval under the Home Office Scheme before submitting your application to incorporate your company.

  • Taxation - I'm sure you'll like Singapore's generous tax breaks and incentives. For example, always pay 8.5% tax on your first S$300,000 of annual profits but increase your tax to 17% after that. Don't even consider taxes on dividends or capital gains. There is no better time to realize the numerous benefits firms have due to Singapore's tax policies and corporate reputations.

Pre-Incorporation Criteria for ACRA Registration

If you want to apply for the ACRA Company Registrar of Singapore, you must meet the following formation criteria:

  • At least one (1) Shareholder
  • A minimum initial Paid-up Capital of S$1
  • At least one (1) Company Secretary
  • At least one (1) Local or Resident Director
  • A local registered address for the company office

Steps for Company Registration 

Foreigners incorporating in Singapore will need to engage corporate service providers to register a Singapore company. Even local entrepreneurs should do so as there may be no familiarity with Singapore company law or regulations. It provides detailed information on annual compliance requirements for Singapore companies and immigration policies. Singapore Visas can be accepted only on application. These steps will brief you on setting up your business in Singapore:

  • Step 1: Need Company Name Approved

    Before registering a business in Singapore, your company's name must be authorized by the ACRA. For name approval, the procedure is straightforward, and the following rules apply:


    • The name should not be the same as or too similar to any trademarks.
    • Any obscenity or vulgarity in the name is prohibited.
    • If someone else has claimed that name, the name should not be used.

    Always keep the following things in mind when working with the name approval process:


    • When the company name follows ACRA's rules, it will approve less than a day.
    • For names of a different government authority that contain specific regulated business terms such as “finance,” “legal,” “law,” “broker,” or “school,” you may get further permission by forwarding your request to that other agency. With this, the name approval procedure may be delayed by a few weeks.
    • If an organization is approved, they are permitted to reserve the name for up to 14 to 60 days to process. The name is released if it is not included in the designated time period.
    • ● Use the company name search tool to verify if a firm name is available.

  • Step 2: Prepare the Company Registration Documents

    After the name approval and before applying for a business name and/or registering your firm, an organization must have the following paperwork prepared.


    For ACRA compliance, include the following:


    • The former Articles of Association for the business have now been renamed to Company Constitution. However, you may want to use the standard Singapore incorporation document accessible through ACRA, which serves as a generally accepted constitution for most businesses.
    • Signed Consent to Act as a Director for each director
    • Signed Consent to Act as Company Secretary by the company secretary
    • Each shareholder and official is assigned a unique identification and residence address information.

    Registered filing agents (“RFA”), are required  to comply with the anti-money laundering and counter terrorism financing requirements which are set out as terms and conditions in the ACRA (Filing Agents and Qualified Individuals) Regulations 2015.

  • Step 3: Register with ACRA, Singapore's Company Registrar

    When incorporation paperwork has been produced, a business can be registered with ACRA. There is an online registration procedure that takes around an hour to complete. The business registration might be held up in some circumstances while additional checking is done with a different government body.

What happens post-incorporation?

You receive a Certificate of Incorporation. ACRA will send you an email to notify you that your firm has been registered. This is your official Singapore Company Incorporation Certificate, which includes your business registration number. In addition, you may request a hard copy of the certificate for S$50 by making an online request to ACRA.

You receive a Business Profile (”Bizfile") similar to an individual's Social Security number. ACRA will also provide your new firm with a free corporate profile. The business profile is the company's identity document.

Business Licenses Application. Depending on your business's activities, you might also need to apply for business licenses. You will complete this process after registering your company and before starting your business.

Compliance for Singapore Companies

Goods and Service Tax (GST) Registration

The supply of goods and services in Singapore and the import of commodities are subject to the GST. However, no GST is applied to goods and services originating in Singapore and are exported elsewhere or provided elsewhere. Currently, the GST tax rate is 7%.

GST registration is mandatory for all Singapore businesses with taxable turnover above S$1 million or recently done taxable supply activities whose anticipated taxable revenue is above S$1 million. If the firm has been determined to be liable for GST, it must register within thirty days.

For further details on GST, refer to the Singapore GST Guide. 

Annual Filing Requirements

To comply with Singapore's Companies Act, which stipulates that all companies must file an Annual Return (AR) with the Accounting and Corporate Regulatory Authority (ACRA) within one month after their AGM, Singapore Company is compelled to do so.

For more details on this, see Annual Filing Requirements for Singapore Companies.

Frequently Asked Questions

  • Can EP holders do business in Singapore?

    In order to open a new company by an existing EP holder, you will need to obtain a Letter of Consent (LOC) approval from MOM.

  • How long does it take to register a company in Singapore?

    It will take only a day to complete your company registration in Singapore if you use a Singapore business registration service provider, including all required papers.

  • Can a foreigner incorporate a company in Singapore? Can a foreigner own 100% of the equity of a Singapore company?

    Yes, for both questions. Shareholders of a Singapore company can be any of the following:


    • A local individual,
    • A foreign individual,
    • A local corporate entity, or
    • A foreign corporate entity.
    • A Singapore company may be wholly owned by one or more shareholders.

    Foreigners are permitted to form businesses in Singapore without moving there, and they are free to operate their firms from anywhere. However, if they wish to live in Singapore, they must acquire a Singapore immigration pass.


    Source: https://www.corporateservices.com/singapore/singapore-company-registration/#minimum

  • Do I need to appoint a corporate secretary for my Singapore company?

    Yes, a corporate secretary is required by law for each Singapore business. A company secretary is a person who resides in Singapore and is knowledgeable about Singapore company law. Thus, you need to appoint a secretary within 6 months after incorporation.


    Source: https://www.corporateservices.com/singapore/singapore-company-registration/

  • What are the minimum legal requirements for registering a Singapore company for a foreigner?

    You must have at least one shareholder. (A 100% foreign shareholding is allowed, and the shareholder can be either a person or a business entity.)


    • At least one Singapore resident director. (Singapore residents and foreign permanent residents can be company directors. Corporate directors are not allowed.) A Singapore resident may be a Singapore citizen, a Singapore permanent resident, or an Employment Pass holder, and nominee directors are also acceptable for this purpose.
    • At least one Singaporean business secretary is required.
    • The initial paid-up share capital for a new business must be at least S$1.00.
    • A local registered address. Do not worry if you do not have one, CFO will help you.

    Source: https://www.singaporecompanyincorporation.sg/how-to/incorporate/all-you-need-to-know-about-incorporating-a-singapore-company/

  • How to open a corporate bank account in Singapore?

    After incorporation, you can open a bank account in Singapore. You can choose from a number of banks, whether they are international or local.


    As of now, 125 commercial banks are operating in the city-state, of which five are local, and the rest are foreign.


    The Development Bank of Singapore (DBS), United Overseas Bank (UOB), and Oversea-Chinese Banking Corporation (OCBC) own the five locally incorporated entities. Standard Chartered Bank, HSBC, Citibank, and ABN AMRO are among the world's best banks. It is also worth noting a locally incorporated Neobank, Aspire.


    The Monetary Authority of Singapore (MAS) is the nodal agency in charge of Singapore's financial institutions.


    Source: https://www.rikvin.com/incorporation/opening-a-corporate-bank-account-in-singapore

  • How do I check if a company is registered in Singapore?

    Accounting and Corporate Regulatory Authority (“ACRA”) has provided the free online directory search that the public can search for a business entity by just typing in the company name.


    Here is how it works:


    1. Go to ACRA’s free online directory search platform: https://www.bizfile.gov.sg/
    2. Key in the “company name” (which you would like to verify)

    By these, you can verify the registered company and check the company’s name, address, UEN, and industry, The business entity’s status, etc.

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