If you plan to start a business in Asia, Singapore is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Singapore , and is ready to share its results and help you choose the right jurisdiction.

What are the main advantages of incorporating a company (business) in Singapore?

1. Promising Location in the Heart of Asia

Singapore is situated at the heart of Southeast Asia, making it an ideal gateway to key markets such as China, India, Indonesia, and other Asia-Pacific countries. With an extensive network of free trade agreements and one of the busiest ports in the world, the country serves as a powerful logistics and trading hub. Businesses based in Singapore enjoy direct access to over 2.5 billion consumers across the region.

2. Stability and Security

Singapore boasts one of the most stable political systems globally, along with an exceptionally low crime rate. The country ensures strong protection of intellectual property rights and actively enforces anti-corruption measures. This creates a reliable environment for investors and entrepreneurs to operate without the risks of interference or legal uncertainty.

3. Business-Friendly Tax Environment

Singapore’s tax system is among the most attractive in the world, featuring low corporate tax rates, numerous tax incentives, and no capital gains tax. Startups and innovative companies can benefit from various government support schemes, which allow businesses to optimize tax planning and enhance profitability.

4. Advanced Infrastructure and Business Services

Singapore offers world-class infrastructure—from modern office spaces and an efficient transport system to top-tier digital services. Companies have easy access to professional support such as legal, accounting, and HR services, enabling them to scale efficiently. The high quality of life also helps attract international talent.

5. Support for Innovation and Technology

Singapore actively supports startups and tech companies through incubators, venture capital, government grants, and tax incentives. Its ecosystem is innovation-driven, and the country is home to numerous R&D centers of global corporations. From flexible regulations to robust government backing, everything is in place to help tech businesses grow and thrive.

How to register a company in Singapore and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Verification and reservation of the company name at the Accounting and Corporate Regulatory Authority (ACRA);
• Facilitating the notarial process for the company’s official registration;
• Opening a bank account in the owner’s name and depositing a minimum of SDG 1 of the share capital;
• Incorporating the company’s data into the ACRA;
• Obtaining the Certificate of incorporation issued by the ACRA, Memorandum and Articles of Association.

Requirements for registering a company in Singapore on the example of a Private Limited Company (LTD):

• Shareholders: the company is required to have a minimum of 1 shareholder and can have a maximum of 50 shareholders. Shareholders can be a person or another legal entity.
• Director: the company must have a minimum 1 director and he must be an individual (not a corporate entity). At least 1 director must be a Singapore resident, which means he/she must be a Singapore citizen, permanent resident or an Employment Pass holder.
• Company secretary: it must have at least 1 eligible secretary within 6 months of its incorporation. If the company only has 1 director / shareholder, the company needs to appoint a separate natural individual to become the company’s secretary.
• Minimum share capital: the minimum capital requirement is SGD 1 (approx. €0.68). The capital can be raised at any time after registration.
• Legal address: the company needs to have a local Singapore address. The address should not be a P.O. Box.
• Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.
• Accounting: Ltd is required to maintain proper accounting records and prepare financial statements in accordance with the Singapore Financial Reporting Standards (SFRS).
• Auditor: Singaporean company must employ an auditor within three months from its incorporation date unless it is exempted from audit requirements.

What do you have to know about taxes when registering a company in Singapore?

Corporate income tax (CIT):

• The standard CIT rate is 17% (flat rate).
• The company must file 2 CIT Returns with IRAS every year: Estimated Chargeable Inc ome (ECI) and Form C-S/ Form C-S (Lite)/ Form C.

Personal income tax (PIT):

Resident PIT rates:

• First $20,000 – 0%;
• Next $10,000 – 2%.
• First $30,000 – none;
• Next $10,000 – 3.5%.
• First $40,000 – none;
• Next $40,000 – 7%.
• First $80,000 – none;
• Next $40,000 – 11.5%.
• First $120,000 – none;
• Next $40,000 – 15%.
• First $160,000 – none;
• Next $40,000 – 18%.
• First $200,000 – none;
• Next $40,000 – 19%.
• First $240,000 – none;
• Next $40,000 – 19.5%.
• First $280,000 – none;
• Next $40,000 – 20%.
• First $320,000 – none;
• Next $180,000 – 22%.
• First $500,000 – none;
• Next $500,000 – 23%.
• First $1,000,000 – none;
• In excess of $1,000,000 – 24%.

Non-resident tax rates: the tax rate is currently at 24%. It applies to all income including rental income from properties, pension and director’s fees, except employment income and certain income taxable at reduced withholding rates.

Value-added tax (VAT):

• The current VAT or GST (Goods and Services Tax) rate in Singapore is 9%.
• GST-registered businesses are required to charge and account for GST at 9% on all sales of goods and services in Singapore unless the sale can be zero-rated (exporting of goods, providing international services) or exempted (the provision of financial services; the supply of digital payment tokens (with effect from 1 Jan 2020); the sale and lease of residential properties; and the import and local supply of investment precious metals) under the GST law.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Singapore. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in Singapore, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Singapore and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.