By Medinex Team  |  Mar 2025

Singapore is one of the most business-friendly destinations in the world, offering a robust legal framework, a strong economy, and an attractive tax regime. Whether you are a local entrepreneur or a foreign investor, registering a business in Singapore is a relatively straightforward process. However, understanding the legal requirements and costs associated with business incorporation is essential for a smooth registration process. This article provides a comprehensive guide to Singapore business registration, covering the legal obligations, different business structures, and associated costs.

Legal Requirements for Registering a Business in Singapore

1. Choosing the Right Business Structure

Before proceeding with the registering a business in Singapore, you must decide on the most suitable business structure. Singapore offers various business entities, including:

• Sole Proprietorship – Owned and managed by a single individual or corporate entity. It is the simplest and least regulated structure but lacks liability protection.
• Partnership – A business owned by two or more individuals or entities. There are General Partnerships, Limited Partnerships, and Limited Liability Partnerships (LLPs), each with different levels of liability and regulatory requirements.
• Private Limited Company (Pte Ltd) – The most common and preferred structure due to its separate legal entity status, liability protection, and credibility among investors.
• Company Limited by Guarantee (CLG) – Suitable for non-profit organisations, charities, and clubs that require limited liability but do not distribute profits to members.

2. Business Name Registration

Your business name must be approved by the Accounting and Corporate Regulatory Authority (ACRA) before proceeding with incorporation. The name should be:

• Unique and not similar to existing business names
• Free from offensive or prohibited words
• Compliant with Singapore’s regulations

3. Appointing Company Officers

For a Private Limited Company, you must appoint at least:

• One resident director (Singapore citizen, Permanent Resident, or an Employment Pass holder)
• One company secretary within six months of incorporation
• A shareholder (individual or corporate entity)

A Company Limited by Guarantee Singapore must also have at least one resident director and a company secretary.

4. Registered Office Address

All businesses must provide a registered office address in Singapore. It cannot be a P.O. Box and must be a physical address where official correspondence is sent. Home-based businesses may use their residential address under the Home Office Scheme.

5. Paid-Up Capital Requirements

The minimum paid-up capital for a Private Limited Company in Singapore is SGD 1. However, certain industries may require higher capital requirements as stipulated by regulatory authorities. Company Limited by Guarantee businesses are not required to have a share capital but must guarantee a nominal amount (e.g. SGD 1 to SGD 100).

6. Compliance with Tax and Regulatory Obligations

Registered businesses must adhere to various regulatory requirements, including:

• Goods and Services Tax (GST) Registration – If annual revenue exceeds SGD 1 million, GST registration is mandatory.
• Corporate Tax Compliance – Singapore’s corporate tax rate is 17%, with tax exemptions for new start-ups.
• Annual Filing and Reporting – Companies must file annual returns and financial statements with ACRA and the Inland Revenue Authority of Singapore (IRAS).

Costs of Business Incorporation in Singapore

1. Business Registration Fees

ACRA charges the following fees for business registration:

• Name Approval Fee – SGD 15
• Incorporation Fee (for Private Limited Company) – SGD 300
• Company Limited by Guarantee Registration Fee – SGD 300

2. Other Incorporation-Related Costs

Additional costs may include:

• Company Secretary Services – SGD 300 to SGD 600 per year (if outsourcing)
• Registered Office Address – SGD 100 to SGD 300 annually
• Nominee Director Services – SGD 1,500 to SGD 3,000 per year (for foreign-owned companies requiring a local director)
• GST Registration (if applicable) – No registration fee, but businesses must comply with tax regulations

3. Professional Service Fees

Many businesses hire professional firms for incorporation services, which can cost between SGD 600 and SGD 1,500 depending on the service provider and package chosen. These firms may assist you with:

• Name reservation and incorporation
• Company secretarial services
• Compliance and tax filing

4. Other Ongoing Business Costs

Once incorporated, businesses must consider:

• Work Visa Applications – Foreign business owners may need an Employment Pass (EP), costing SGD 105 for application and SGD 225 upon issuance.
• Annual Filing Fees – SGD 60 for private companies
• Accounting and Auditing Fees – Typically ranges from SGD 500 to SGD 5,000 per year, depending on business size

Process of Business Incorporation in Singapore

The registration process typically takes 1 to 3 days if all documents are in order. Here’s a step-by-step guide:

Step 1: Name Approval

Submit your proposed business name to ACRA via BizFile+. Approval usually takes 1 to 2 hours, unless further vetting is required.

Step 2: Document Preparation

Prepare necessary incorporation documents, including:

• Company constitution
• Shareholder and director details
• Registered office address proof
• Business activity details

Step 3: Filing with ACRA

Submit the incorporation application through BizFile+ and pay the relevant fees. ACRA will issue a Certificate of Incorporation upon approval.

Step 4: Opening a Corporate Bank Account

Most banks in Singapore require the following for account opening:

• Certificate of Incorporation
• Company constitution
• Directors’ resolution for account opening

Step 5: Register for Taxes and Business Licences

Depending on the sort of business, one may need to:

• Register for GST (if applicable)
• Obtain sector-specific licences (e.g., food business, financial services)

Registering a business in Singapore is a seamless process, provided you meet the legal requirements and budget accordingly. With a well-structured incorporation plan, entrepreneurs can take advantage of Singapore’s pro-business environment, tax benefits, and global connectivity.

Whether you are setting up a Private Limited Company or a Company Limited by Guarantee in Singapore, understanding the costs and compliance obligations will help ensure a smooth registration process.

If you require professional assistance, engage us to help you navigate the incorporation process efficiently. With the right support, your business can thrive in Singapore’s dynamic economy.