7 Key Things to Know about Business Registration in Singapore

Registering a business in Singapore is a relatively straightforward process. With its ease of doing business, low corporate tax rates, attractive incentives, and exemptions, Singapore has become a global hub for startups looking to thrive.

However, while the process is fast and simple, navigating the requirements can be challenging for new businesses and foreign entrepreneurs. Missing critical steps may lead to delays or complications.

In this article, we’ll break down the 7 essential details you need to know about business registration in Singapore, including costs, timeframes, and key requirements, so you can avoid common mistakes and get your business up and running in no time.

The first and most crucial requirement for registering a company in Singapore is a Singpass ID, which is a digital identity system for accessing government services online, including the Accounting and Corporate Regulatory Authority’s (ACRA) online portal, BizFile+. ACRA does not accept any other method for registration.

To apply for a SingPass, you must be a Singapore citizen or permanent resident or hold a valid pass such as an Employment Pass, EntrePass, or Work Permit.

While a Singpass is necessary to self-register a company, if you are not eligible, you can work with a registered filing agent, such as a corporate service provider, to handle the process on your behalf.*

There are three main types of business entities in Singapore, each with unique requirements, advantages, disadvantages, and characteristics.

Below are the most common and recommended options when registering a business in Singapore.

A Private Limited Company (Pte Ltd) is the most common business type in Singapore. This type of structure has fewer than 50 individuals who hold ownership shares, and these shares are not available for public trading.

When compared to other types of companies in Singapore, a private limited company is the most advanced entity. It also happens to be more flexible and scalable, as it can easily adapt to changes in ownership and capital structure, facilitating efficient expansion. 

Moreover, this structure offers limited liability protection to its owners, meaning their personal assets are shielded from the company's debts and liabilities. In the event of financial difficulties, owners are only liable for the amount they invested in the company, reducing their risk and encouraging investment.

Individuals and companies can be shareholders of this type of company. 

A sole proprietorship is a simple business structure in which a single individual owns and operates the business. It is easy to set up and has fewer regulatory requirements compared to other business types.

This structure is commonly used for small businesses, such as a consultant providing marketing services, a freelancer offering online services, or a small handmade goods shop operating from home.

A sole proprietor in Singapore must be either a Singapore citizen, a permanent resident, or an EntrePass holder.

While this form of company is straightforward, it comes with a higher level of risk.  Under Singapore law, a sole proprietorship is not a standalone entity. Hence, the business owner and the business are considered as one and the personal assets of an owner are not protected from the business debt and liability. 

A sole proprietorship is taxed at personal income tax rates and exempt from tax incentives. 

A limited liability partnership (LLP) combines the features of companies and partnerships, allowing partners to share profits while limiting their personal liability for business debts. Partners are not personally responsible for the actions or negligence of others.

In Singapore, an LLP can have individuals, local or foreign companies, or other LLPs as partners. However, the entity must be set up by a Singapore citizen, permanent resident, or holder of an eligible Foreign Identification Number (FIN).

LLPs are commonly used by professionals, such as architects or lawyers, to form joint practices. Profits are taxed at personal income tax rates for individual partners or at corporate tax rates for corporate partners. Unlike general partnerships, LLPs have no limit on the number of partners.

Before registering a new company, you must check if your chosen business name is available. If it is, reserve it on BizFile+ by clicking the “Application for a New Business Name” button.*

A company name must not:

• Infringe on any trademarks 
• Be identical to any existing business in Singapore. You can verify if your selected name is already in use or reserved by searching for it on the ACRA BizFile+ e-services, which is the same website you have to use to submit your selected company name. You can also check trademarks on the IPOS Digital Hub.
• Be classified as vulgar. 
• Be reserved by another business. 

Provided that a company name adheres to ACRA regulations, the approval process generally takes less than an hour. However, this process may be delayed if the name is referred to another government authority for additional approval. This can happen if the name contains regulated business words like “legal” and “finance”.

Once a company name is approved, it is reserved for 120 days. If the company is not incorporated within that period, the name will be released and made available to others. The application fee for the name is SGD 15. 

Under the Singapore Companies Act, every company must appoint at least one local director, at least one shareholder, and a corporate secretary. 

Although Singapore allows 100% foreign ownership, every company must have at least one director who is a qualified Singapore resident.

A resident director must meet the following criteria:

• Be a natural person (an individual, not a corporate entity, as corporate directors are not recognised under Singapore law).
• Be at least 18 years old.
• Be a Singapore Citizen, Singapore Permanent Resident, or EntrePass holder. An Employment Pass holder may also qualify, but they must first obtain a Letter of Consent (LOC) from the Ministry of Manpower before being appointed as a company director in Singapore.

Foreign businesses without a local partner often use a nominee director to meet this requirement. While nominee directors typically do not have administrative power, they share the same legal responsibilities and liabilities as other directors under the Companies Act, which can result in higher costs.

Companies in Singapore need to have a minimum of one shareholder and no more than 50 for a private limited company. 

Shareholders can be individuals or corporate entities. Individual shareholders can be Singapore citizens, permanent residents, or foreign nationals who hold valid visas, while corporate shareholders can be companies or limited liability partnerships.

Shares may be fully or partially paid up. 100% foreign shareholding is permissible.

Companies are required to appoint a company or corporate secretary, who must be a natural person and a Singapore resident, within six months of incorporation. 

A company secretary is responsible for ensuring that a company complies with the necessary provisions and regulations. 

The company secretary also ensures that board members maintain their responsibilities towards the company while updating statutory registers such as the register of substantial shareholders.

It is mandatory for companies to have a local registered address in Singapore, which cannot be a PO Box. All of a company’s statutory documents should be kept at the local registered address. 

You have several options for finding a registered business address, such as establishing your own dedicated office space, renting a co-working space or using Singapore corporate service providers that offer registered address services.

A virtual office can serve as your registered business address in Singapore. However, not all providers meet ACRA's standards, so it's important to ensure that the provider is a registered filing agent that can handle ACRA-related obligations and comply with their regulations.

Once you’ve decided on your company structure, secured a registered address, and registered your company name, you can proceed with the registration process on BizFile+.

Most of the business information, such as details of directors and business activities, will be pre-filled from the company name application. However, additional documents must be submitted in English, including:

1. Company Constitution (formerly the Articles of Association). You can either use ACRA’s standard template or upload a customised version.*
2. Signed Consent to Act as Company Secretary.
3. Signed Consent to Act as Company Director for each director.
4. Identification and residential address details that apply to each director and company shareholder. 

If you’re using a corporate service provider to help complete the process, they may request additional information and documents to conduct Know Your Customer (KYC) due diligence in accordance with Anti-Money Laundering (AML) regulations.* These may include:

• Verification of ID and proof of address documents 
• Professional background details for officers and stakeholders of the proposed company

Once your company is registered, you will receive a free Business Profile from ACRA. This document contains your business details, including a Unique Entity Number (UEN), which serves as a unique identifier for all interactions with Singapore government agencies.

Most banks in Singapore often request the Business Profile or UEN when opening a corporate account, as it serves as proof of registration. Additionally, you can request a Certificate of Incorporation for a fee of SGD 50.

Now that we’ve covered the essential requirements, let’s look at the costs and timeframe for registering a local company in Singapore.

Using incorporation services to register a business in Singapore typically costs between SGD 2,350 and SGD 3,500, depending on the scope of services provided. 

While government fees and the cost for a certificate total around SGD 350, there are additional expenses to consider, such as hiring a company secretary or nominee director. 

Here’s a breakdown of the potential costs associated with starting and registering a business in Singapore. 

• Company name application with ACRA: SGD 15. 
• Local company application fee: Around SGD 300. 
• Sole proprietorships and partnerships application fee: Around SGD 100 - SGD 160. 
• Certificate of Incorporation: SGD 50 
• Qualified company secretary fees: About SGD 300 for basic needs to SGD 1,500 for full compliance, depending on the complexity of your structure.
• Registered address: Registered address fees vary by location and provider. This is required if you don’t already have an address in Singapore.
• Nominee director fees: About SGD 1,000 to SGD 5,000 per year, as they assume significant risk. You will need a nominee director if you don’t have a local partner or anyone holding a pass that qualifies them to be a director under Singapore regulations.

Typically, your application will be approved for review within 15 minutes after the registration fee is paid. The review will then take a few days to a week. According to World Bank statistics from 2019, the average time is about 2 days.*

However, if your application requires further review by referral authorities, it may take anywhere from 14 to 60 days.

As you’re preparing to register your new company, here are some practical tips to ensure a smooth and efficient process.

1. Prepare required documents in advance: Ensure you have the key requirements and documents ready, such as the Company Constitution, at least one local director, and an address. 
2. Budget for fees and additional costs: Beyond the government registration fee (SGD 315), plan for other expenses, including nominee director fees, company secretary services, and registered address costs.
3. Plan for post-incorporation tasks: After registration, you’ll need to open a corporate bank account, with options ranging from traditional banks to digital banks and fintech providers. Additionally, check if your business activities require licences or permits and register for GST if applicable.
4. Engage a corporate service provider if needed: If you’re unfamiliar with the process or ineligible for a SingPass ID, a corporate service provider can handle the registration and compliance steps for you.

If you’re planning to incorporate a company in Singapore, Statrys is your solution to simplify the process. With a comprehensive incorporation package that covers everything you need at a transparent, all-inclusive price, Statrys makes starting your business seamless and hassle-free.

Here’s a summary of the package: