Considering Asia for your business launch? Singapore deserves your focused attention. Consistently ranked among the world’s most competitive economies, securing 2nd place globally in the IMD World Competitiveness Ranking, Singapore offers a compelling proposition.
Its attractive flat corporate tax rate of 17% and strategic position make it a prime springboard for both nascent startups and established global players.
When it comes to setting up a company in Singapore, entrepreneurs benefit from a strong legal system and a modern government that is fully integrated into the digital world—making it easier to streamline the setup process.
Whether you’re a first-time entrepreneur or looking to expand your international footprint, this article provides the practical insights you need to navigate the Singaporean business landscape.
Types of business structures to incorporate in Singapore
When incorporating a business in Singapore, choosing the right type of company structure is crucial to aligning with your business goals, tax planning, and regulatory requirements. The most common types of companies that foreign entrepreneurs consider are:
Private Limited Company (Pte Ltd)
The Private Limited Company (Pte Ltd) is the most popular and flexible structure for entrepreneurs. It offers limited liability protection to shareholders, meaning their personal assets are protected from the company’s debts and liabilities. Key benefits include:
- Limited liability: Shareholders are only liable for the amount they invest in the company.
- Tax advantages: Enjoy tax exemptions such as the partial tax exemption and startup tax exemptions, which significantly reduce the tax burden during the early years.
- Access to grants: Qualify for various government incentives, such as the Enterprise Development Grant (EDG) and funding programs aimed at supporting startups.
The Pte Ltd structure is ideal for businesses seeking to raise capital or expand operations, and it is also suitable for foreign investors as there are no restrictions on foreign ownership.
Sole Proprietorship
A Sole Proprietorship is the simplest business form, suitable for individual entrepreneurs who operate the business alone. It has fewer compliance requirements and is quick to set up.
However, as the owner, you are personally responsible for all debts and liabilities of the business. Moreover, there is limited access to funding, and sole proprietorships often face challenges in raising capital or qualifying for government grants.
This structure is ideal for small businesses with limited financial risk, such as freelancers or consultants.
Limited Liability Partnership (LLP)
An LLP is a hybrid business structure, offering the flexibility of a partnership while providing limited liability to its partners. Benefits include:
- Flexibility: Partners can actively manage the business and retain personal liability protection.
- Tax transparency: The LLP itself is not taxed, but partners are taxed individually on their share of profits.
An LLP is suitable for businesses with multiple owners who want a partnership-like structure while limiting personal financial risk.
The best structure for your business will depend on your business size, risk tolerance, tax planning needs, and long-term goals.
Detailed steps to Singapore company registration
Starting a business in Singapore is a well-structured and efficient process, guided by the Accounting and Corporate Regulatory Authority (ACRA). As of 2025, most company registrations can be completed online within a day if all requirements are met.
If you’re wondering how to register a company in Singapore, below is a step-by-step guide tailored for entrepreneurs, startups, and foreign companies.
Step 1: Choose the right business structure
The most common structure for new businesses is a private limited company (Pte Ltd), which allows 100% foreign ownership, limits liability, and is scalable.
Other structures, such as sole proprietorships or partnerships, offer less protection and generally are not ideal for foreign investors or growth-focused ventures.
Step 2: Reserve your company name with ACRA
Your company name must be unique, not identical to existing entities, and free from restricted or offensive words. Name approval is usually instant via ACRA’s BizFile+ system, unless the name involves regulated terms (e.g., “finance” or “school”), which may require referral to other authorities. The name will be reserved for 120 days upon approval.
Step 3: Appoint key officers
By law, your company must appoint:
- At least one local resident director (Singapore Citizen, Permanent Resident, or eligible Employment/EntrePass holder with a Letter of Consent)
- A company secretary within six months of incorporation (must be a resident individual)
- Between 1 to 50 shareholders, who can be either individuals or corporate entities, local or foreign
Step 4: Decide your financial year-end (FYE)
Your company must choose a financial year-end, which determines the timeline for filing annual returns, holding your annual general meeting (AGM), and submitting corporate tax returns. Many companies align the FYE with the calendar year (e.g., 31 December), but you can select any date that suits your business cycle.
Picking an appropriate FYE early on ensures smoother planning and avoids compliance issues down the line.
Step 5: Prepare incorporation documents
Before registering your company, gather all the required documents and information. These will form the basis of your ACRA application. Make sure everything is accurate and complete to avoid delays.
Here’s what you’ll need:
- Approved company name from ACRA
- Company constitution (you can adopt the standard constitution provided by ACRA or customise your own)
- Consent to act as a director (Form 45) signed by each proposed director
- Consent to act as company secretary, if already appointed
- Identification documents for all directors, shareholders, and beneficial owners (passport and proof of residential address for foreigners; NRIC for locals)
- Details of share capital and shareholding structureRegistered office address in Singapore, which must be operational and accessible during business hours
- Additional documents for corporate shareholders (e.g., Certificate of incorporation Singapore, board resolutions)
If you’re using Singapore company formation services from professional service providers like BBCIncorp (highly recommended for foreign entrepreneurs), they will handle the preparation, compliance checks (e.g., KYC/AML procedures), and submission on your behalf.
Step 6: Register through BizFile+
Once your documents are ready, you can proceed to register your company throughBizFile+, ACRA’s official online filing portal. You’ll need a SingPass account if registering directly, but many foreign entrepreneurs prefer to engage a registered filing agent or corporate service provider to manage the process.
The application includes details such as:
- Company name (previously approved)
- Business activity codes (SSIC)
- Shareholding structure and capital
- Officer appointments and personal particulars
- Registered office address
If all submitted information is complete and requires no further review, most companies receive approval within hours. However, applications flagged for additional screening, especially those in regulated industries or with foreign stakeholders, may take up to 14 days.
Upon successful registration, you’ll receive:
- A Certificate of Incorporation (issued electronically)
- A Unique Entity Number (UEN), which serves as your official business ID for tax, banking, and government services
- An official Business Profile from ACRA, summarizing your company’s structure, directors, and shareholding
This marks your official entry into Singapore’s corporate landscape. With your company legally incorporated, you can now proceed with operational setup, including banking, licensing, and ongoing duties.
Step 7: Apply for business licenses and register for GST
Not all businesses in Singapore can begin operations immediately after incorporation. Certain sectors require regulatory approval or specific licenses, such as:
- Financial services (regulated by MAS)
- Education providers (Ministry of Education)
- Healthcare and medical clinics (Ministry of Health)
- Food and beverage outlets (Singapore Food Agency, NEA)
- Employment agencies (Ministry of Manpower)
Before launching, check the GoBusiness Licensing Portal to determine whether your business activities require additional approval.
Separately, you must assess whether your company needs to register for Goods and Services Tax (GST). GST registration is:
- Compulsory if your annual taxable turnover exceeds SGD 1 million, or is expected to
- Voluntary if you are below the threshold but want to claim input tax
As of 2025, the GST rate remains at 9%.
Step 8: Open a corporate bank account
Once your company is incorporated, the next step is to open a corporate bank account with a local financial institution. Major banks in Singapore include DBS, OCBC, and UOB, all of which have a range of business banking services tailored to startups and SMEs.
While some banks facilitate digital onboarding for local companies, in-person verification is still common, especially for companies with foreign directors or shareholders. It’s advisable to schedule a meeting in advance and consult the bank about their specific requirements.
If physical presence is not feasible, look for banks with remote onboarding through a corporate service provider that partners with them.
Bookkeeping and compliance requirements
Once your company is registered, staying compliant with Singapore’s corporate regulations is essential. The government places strong emphasis on financial transparency and accurate recordkeeping, and failure to meet these obligations can lead to fines, audits, or even legal action.
Below is a breakdown of your ongoing requirements, starting with bookkeeping and ending with statutory audits.
Maintain proper bookkeeping records
Every Singapore company must keep detailed financial records that reflect its transactions, assets, and liabilities. This includes:
- Sales and purchase invoices
- Bank statements and payment vouchers
- Receipts and payroll records
- Contracts and asset registers
These documents must be retained for at least five years, even if the business ceases operations. Although there’s no requirement to file monthly reports, maintaining clean and up-to-date books makes it easier to comply with annual obligations and respond to audits.
Prepare financial statements
All companies, unless exempt, are required to prepare financial statements in accordance with the Singapore Financial Reporting Standards (SFRS). These statements include:
- Profit and loss statement
- Balance sheet
- Cash flow statement
- Statement of changes in equity
- Notes to the accounts
Companies must ensure their statements are accurate and reflect the financial position of the business at the end of the financial year.
Hold Annual General Meetings (AGMs) and file Annual Returns
Private companies must:
- Hold an AGM within six months of their financial year-end (unless exempted under the Companies Act)
- File their Annual Return with ACRA within seven months of their FYE
Some companies can dispense with AGMs if all shareholders agree and written resolutions are used instead. Nevertheless, Annual Returns must still be filed on time to avoid penalties.
Submit corporate tax filings
Companies must file two types of tax returns with IRAS each year:
- Estimated Chargeable Income (ECI): Due within three months of FYE unless exempted
- Form C-S or Form C: The annual corporate tax return, due by 30 November (paper) or 15 December (e-filing)
The corporate tax rate remains at a flat 17%, but many tax exemptions and rebates are available for startups and SMEs.
Auditing obligations for Singapore companies
In Singapore, businesses are required to adhere to stringent standards of financial transparency and corporate governance. One of the key compliance obligations for companies is the annual audit of their financial statements.
The requirement for an audit depends on the size and nature of the business. Below is a detailed overview of the auditing requirements for companies in Singapore.
Statutory audit requirement
Generally, all Singapore-incorporated companies are required to undergo a statutory audit annually. The audit process involves an independent examination of the company’s financial records to ensure that the financial statements reflect a true and fair view of the company’s financial position and comply with the Singapore Financial Reporting Standards (SFRS).
The audit process includes:
- A thorough review of the company’s accounting records
- Verification of the financial statements (income statement, balance sheet, cash flow statement)
- Assessment of internal controls and corporate governance practices
An independent audit enhances the credibility of financial statements, which is crucial for building trust with investors, lenders, and other stakeholders. It also ensures the company
Audit exemption for SMEs
Not all companies in Singapore are subject to a statutory audit. Small companies, defined by meeting two of the following three criteria for two consecutive financial years, are eligible for audit exemption:
- Revenue of less than SGD 10 million
- Total assets of less than SGD 10 million
- Fewer than 50 employees
If the company is part of a group, the group as a whole must meet these criteria for audit exemption to apply. Even if exempt from a statutory audit, companies must still prepare financial statements in accordance with SFRS, although these are not subject to an independent audit.
Appointment of auditor
Companies that are required to undergo an audit must appoint a qualified auditor within three months of incorporation. The auditor must be a public accountant registered with the Accounting and Corporate Regulatory Authority (ACRA).
The auditor’s primary role is to examine the company’s financial records and ensure that they accurately reflect the company’s operations and financial health.
Audit process and timeline
The audit typically occurs after the close of the company’s financial year. The timeline for completing the audit depends on the size and complexity of the company’s operations. Companies must file their audited financial statements with ACRA and their tax returns with the Inland Revenue Authority of Singapore (IRAS) within the prescribed deadlines.
For private companies that qualify for audit exemption, the statutory audit requirement is waived. Notably, these companies must still prepare and maintain accurate financial records, which may be subject to review by other parties or authorities if necessary.
Tips: Benefits of auditing even when your company’s not obligated to
Although certain companies may be exempt from a statutory audit, there are several advantages to voluntarily conducting an audit:
- Credibility with stakeholders: An independent audit enhances the reliability of financial statements, which is particularly important for attracting investors, securing loans, or forming strategic partnerships.
- Operational insights: Auditors often provide valuable recommendations on improving financial controls and enhancing operational efficiency, helping the company to mitigate risks and optimize resources.
- Good standing with the government: A well-conducted audit ensures that the company complies with local financial reporting standards and tax regulations, reducing the risk of penalties or legal issues.
Simplify compliance for your Singapore business with BBCIncorp
The incorporation of a company in Singapore is only the first step. Ensuring smooth operations, proper accounting, and full regulatory compliance requires ongoing attention, especially for entrepreneurs managing cross-border businesses. That’s where BBCIncorp comes in.
With years of experience helping startups and foreign investors succeed in Singapore, BBCIncorp offers a complete suite of corporate services, including formation, accounting, auditing, bookkeeping, and more:
- From company registration and bookkeeping to unaudited financial report preparation and tax filing, BBCIncorp covers every required obligation.
- Avoid penalties with timely preparation and filing of Estimated Chargeable Income (ECI), Annual Returns, and financial statements in line with IRAS and ACRA requirements.
- BBCIncorp ensures your books are audit-ready, connecting you with licensed auditors.
- Enjoy secure, cloud-based accounting tools with real-time access to financial reports
- Transparent pricing and scalable packages
- Advisory support to help you navigate GST registration, tax planning, and corporate structuring with ease
Visit their site for expert bookkeeping, auditing, and accounting services in Singapore, or get in touch with their team today for more information and timely support. With BBCIncorp, your Singapore incorporation and compliance are effortless.
In conclusion
Setting up a company in Singapore is a clear and efficient process, but building a strong business requires more than registration. Long-term success depends on meeting ongoing requirements such as proper bookkeeping, timely tax submissions, and accurate financial reporting.
These duties support your company’s credibility and reduce risk while ensuring alignment with local regulations. With a trusted partner like BBCIncorp, you gain expert guidance and comprehensive services that cover everything your business needs.
By approaching both setup and compliance with diligence and professionalism, businesses can position themselves for long-term growth and resilience in one of the world’s most respected corporate landscapes.
Contact information:
Organization: BBCIncorp
Website URL: https://bbcincorp.com/
Email: service@bbcincorp.com
BBCIncorp’s Headquarters in Hong Kong:
Address in Hong Kong: Office 3906, 39th, The Center, 99 Queen’s Road Central, Central, Hong Kong
Phone in Hong Kong: (+852) 9889 3529
BBCIncorp’s Office in Singapore:
Address in Singapore: 9 Raffles Place, #29-05 Republic Plaza, Singapore (048619)
Phone in Singapore: (+65) 6011 8200
BBCIncorp’s Office in Vietnam:
Address in Vietnam: 39-41 Ngo Thi Bi Street, Him Lam Area, Tan Hung Ward, Ho Chi Minh City
Phone in Vietnam: 18006338
