Singapore has consistently earned its reputation as one of the world’s most business-friendly destinations. With transparent regulations, efficient government processes, and a strategic location in Southeast Asia, the city-state welcomes foreign entrepreneurs who want to start a business in Singapore. If you’re considering launching your venture in Singapore, this comprehensive guide provides verified, accurate information based on current regulations.

How to Start a Business in Singapore as a Foreigner (2025 Update)

Yes, Foreigners Can Start a Business in Singapore

The straightforward answer is yes, foreigners can absolutely start a business in Singapore. Here are the verified key facts:

• Foreigners can own 100% of a Singapore private limited company with no local partnership required
• You must appoint at least one local resident director (Singapore citizen, Permanent Resident, or holder of an EntrePass/Employment Pass)
• Registration is completed online through ACRA’s BizFile+ system
• Average incorporation time is 1–3 working days after submission
• ACRA incorporation fee is SGD $315 (SGD $15 name application + SGD $300 registration)
• Minimum paid-up capital requirement is just SGD $1

Summary: Foreign entrepreneurs enjoy full ownership rights when they start a business in Singapore without requiring local partners. The incorporation process is digital, efficient, and typically completed within days, making Singapore one of Asia’s most accessible business hubs.

Why Singapore is Ideal for Foreign Entrepreneurs

Singapore consistently ranks among the top countries globally for ease of doing business. Understanding what makes Singapore attractive helps you make informed decisions about establishing your business here.

1. Business-Friendly Tax System: Singapore offers a competitive corporate income tax rate of 17%. New qualifying startups benefit from the Start-Up Tax Exemption (SUTE) scheme, which provides 75% exemption on the first SGD $100,000 of normal chargeable income and 50% exemption on the next SGD $100,000 for the first three consecutive years of assessment. Additionally, for the Year of Assessment 2025, all taxpaying companies may qualify for a 50% corporate income tax rebate, capped at SGD $40,000. 
2. Strategic Asian Hub: Located at the crossroads of major international shipping routes, Singapore provides unparalleled access to Southeast Asian markets and beyond. The country maintains free trade agreements with numerous countries and serves as a regional headquarters for over 7,000 multinational corporations.
3. 100% Foreign Ownership Permitted: Unlike many jurisdictions in Asia that impose foreign ownership restrictions, Singapore permits foreigners to own 100% equity in private limited companies. This policy demonstrates the government’s commitment to attracting international entrepreneurship and investment.
4. Efficient Company Registration: Singapore’s incorporation process through ACRA’s digital BizFile+ system is remarkably efficient. Most standard applications receive approval within 1–3 working days, enabling you to commence business operations quickly after you start a business in Singapore.
5. Transparent Legal Framework: Singapore operates under a common law system with clear, predictable regulations. The legal environment features minimal corruption, strong intellectual property protection, and political stability—all crucial factors for businesses seeking to innovate and scale.
6. World-Class Banking Infrastructure: With a AAA credit rating and political stability, Singapore offers a secure environment for your business. The banking sector provides sophisticated financial services with both international banks and local institutions serving businesses of all sizes.

Legal Requirements for Foreign Business Owners

Understanding Singapore’s legal requirements ensures smooth incorporation and ongoing compliance when you start a business in Singapore. Here are the mandatory requirements verified from official sources:

Local Resident Director Requirement: Every Singapore company must have at least one director who is ordinarily resident in Singapore. This means the director must be a Singapore citizen, Singapore Permanent Resident, or holder of an EntrePass or Employment Pass. Directors must be natural persons (not corporate entities), at least 18 years of age, of full legal capacity, and not disqualified from directorship. If you don’t have a qualifying local contact, you can engage a nominee director service through registered corporate service providers like Bizsquare Management Consultants.

Registered Business Address: Your company requires a physical registered address in Singapore. Post office boxes are not acceptable. The address must be accessible to the public for at least three hours during normal business hours on each business day. Many foreign entrepreneurs initially use their corporate service provider’s address, which is a common and accepted practice.

Company Secretary Appointment: Within six months of incorporation, you must appoint a qualified company secretary who is a resident of Singapore. The company secretary ensures statutory compliance, maintains proper records, and files required returns with ACRA. The secretary must possess the requisite knowledge and experience to discharge duties under the Companies Act.

Employment Pass or EntrePass: If you plan to relocate to Singapore and actively manage your business, you’ll need appropriate work authorization. The EntrePass suits foreign entrepreneurs starting innovative, venture-backed businesses, while the Employment Pass is appropriate for foreign directors and senior executives meeting salary and qualification requirements.

Share Capital Requirement: Singapore law requires a minimum paid-up capital of just SGD $1. While this nominal amount is legally sufficient, many businesses choose higher capitalization for credibility purposes and to facilitate banking relationships. There is no maximum capital limitation. Private limited companies can have up to 50 shareholders.

Step-by-Step Process to Start a Business in Singapore

The incorporation process in Singapore is straightforward when you understand each required step. Here’s the verified procedure:

1. Choose a Unique Business Name: Use ACRA’s BizFile+ portal to search for name availability and submit your name application (SGD $15 fee). Your proposed name must be unique and not identical or too similar to existing companies. Avoid sensitive words requiring additional approvals (such as “bank,” “insurance,” or “trust”). Name reservation is valid for 120 days. During this process, you must specify your primary business activities using the Singapore Standard Industrial Classification (SSIC) Code. 
2. Decide on Your Business Structure: The Private Limited Company (Pte Ltd) is the most popular choice for foreign entrepreneurs, offering limited liability protection and separate legal entity status. Other options include sole proprietorship (requires Singapore citizenship or PR), partnership, limited liability partnership, or branch/subsidiary of a foreign company. For most foreign business owners, a Pte Ltd company is the recommended structure due to liability protection and tax advantages. 
3. Appoint Local Director and Secretary: Secure your local resident director before filing your incorporation application. If using a nominee director service, arrange this through a reputable corporate services firm. Similarly, identify your company secretary, though the formal appointment must occur within six months post-incorporation. Both roles carry statutory responsibilities under the Companies Act. 
4. Register with ACRA: Submit your incorporation application through the BizFile+ online portal. You’ll need to provide:

• • Transaction number from approved name application
  • Company Constitution (adopt Model Constitution or create customized version)
  • Director and shareholder details and identification
  • Registered address
  • Business activities description using SSIC codes
  • Share capital information
  • Consent to Act forms from directors and secretary

The filing fee is SGD $300 for incorporation (plus the earlier SGD $15 name application fee). Most applications receive approval within 1–3 working days. Appointed officers must endorse their appointments within 60 days, or the application will lapse.

5. Open a Corporate Bank Account: After receiving your Business Profile and Unique Entity Number (UEN) from ACRA, you can apply for a corporate bank account. Major banks in Singapore include DBS, UOB, OCBC, and various international banks. Prepare for detailed due diligence—banks require incorporation documents, business plan, director identification, proof of business activities, and typically prefer in-person meetings with at least one director. Account opening typically takes 2–6 weeks. 
6. Apply for Work Visa (If Relocating): If moving to Singapore, submit your EntrePass or Employment Pass application through the Ministry of Manpower’s online portal after company incorporation. Processing times vary: Employment Pass applications typically process within 3 weeks, while EntrePass applications take approximately 8 weeks. 
7. Register for Tax Obligations: Register your company with the Inland Revenue Authority of Singapore (IRAS) for corporate income tax. Your company will need to file Estimated Chargeable Income (ECI) within three months of your financial year-end, and annual Corporate Income Tax Returns (Form C-S or Form C). GST registration becomes mandatory if your annual taxable turnover exceeds SGD $1 million, though voluntary registration is permitted at lower thresholds.

Summary: The core incorporation process from name reservation to receiving your Business Profile takes 1–3 days. However, the complete setup including banking and visa applications typically extends to 4–8 weeks depending on individual circumstances and bank requirements.

Required Documents & Estimated Costs

Proper preparation ensures you can smoothly start a business in Singapore. Here’s what you’ll need and accurate cost information based on current rates:

Required Documents for Foreign Directors and Shareholders:

• Valid passport (with at least six months validity)
• Proof of residential address (utility bill, bank statement, or official government document dated within three months)
• Resume or CV demonstrating business and professional experience
• Business plan (particularly important for EntrePass applications and banking relationships)
• Proof of source of funds for share capital payment
• Corporate documents if any shareholder is a company (certificate of incorporation, register of directors/shareholders)

Accurate Cost Breakdown for Singapore Company Incorporation:

Additional costs to consider:

• EntrePass application fee: SGD $105
• Employment Pass application fee: SGD $105 (plus SGD $225 for issuance if approved)
• Accounting and bookkeeping services: SGD $200–$500 monthly depending on transaction volume
• Business licenses (if required for specific regulated industries)
• Office rental (if not operating remotely or using virtual office)

Cost Summary: FForeign entrepreneurs should budget SGD $2,000–$5,000 to start a business in Singapore, including the first year of mandatory compliance services. This represents excellent value considering Singapore’s business advantages, efficient processes, and long-term benefits.

Visa & Work Pass Options for Foreigners

If you plan to be actively involved in your Singapore business and reside in Singapore, securing appropriate work authorization is essential. Singapore offers specific options for foreign entrepreneurs and business owners.

EntrePass — For Startup Founders and Innovators

The EntrePass is specifically designed for foreign entrepreneurs who want to start and operate a business in Singapore that is venture-backed or possesses innovative technologies.

Eligibility Requirements:

You can apply for an EntrePass if you meet BOTH conditions:

1. Have started, or intend to start, a private limited company registered with ACRA (or intend to register one). If the company is already registered, it cannot be more than 6 months old at application date. Companies older than 12 months are assessed using renewal criteria instead.
2. Meet at least ONE of the following criteria:

• • Funding: Raised at least SGD $100,000 from eligible investors (approved venture capital firms, business angels, or government-supported investors) in a single funding round for any past or current business
  • Incubator/Accelerator Support: The business is or will be supported by a government-recognized or internationally renowned incubator or accelerator
  • Previous Business Sale: Founded and sold a business that was venture-backed or owned innovative technologies (must provide incorporation documents, proof of founding role, evidence of venture backing/IP, and Sale and Purchase Agreement)
  • Intellectual Property: The business holds IP registered with an approved national IP institution that provides significant competitive advantage which cannot be easily replicated
  • Research Collaboration: The business has relevant ongoing research collaboration in Singapore with an Institute of Higher Learning (IHL) or Research Institution (RI). The research must involve your participation, relate to the business, and be verified by a contact person from the institution.

Ineligible Businesses for EntrePass include: coffee shops, hawker centres, food courts, bars, night clubs, karaoke lounges, foot reflexology, massage parlours, acupuncture, traditional Chinese medicine, herbal dispensing businesses, employment agencies, and geomancy businesses.

The EntrePass is initially valid for one year and renewable based on business performance against specific criteria. Successful EntrePass holders can bring family members after holding the pass for one year and meeting income requirements.

Employment Pass — For Directors and Senior Executives

If you’re a director or shareholder taking an active management role in your company, the Employment Pass may be more straightforward than the EntrePass.

The Employment Pass is typically valid for up to two years initially and renewable for up to three years. Processing time is approximately 3 weeks for applications sponsored by Singapore-registered companies.

Important Note for Business Owners: If you’re incorporating a company and applying for Employment Pass as director-shareholder, ensure your company has adequate paid-up capital (recommended minimum SGD $50,000) as MOM assesses the company’s ability to pay your salary. Applications with minimal capitalization may face higher scrutiny or rejection.

Taxes & Compliance in Singapore

Singapore’s tax system is transparent, efficient, and internationally competitive. Understanding your obligations ensures compliance and maximizes available benefits.

Corporate Income Tax: The headline corporate tax rate is 17% on chargeable income, applicable to both local and foreign companies. This rate is significantly lower than most developed nations.

Tax Exemption Schemes (companies must choose one):

1. Start-Up Tax Exemption (SUTE) – For qualifying new companies for their first 3 consecutive Years of Assessment:
   • 75% exemption on first SGD $100,000 of normal chargeable income (exempts SGD $75,000)
   • 50% exemption on next SGD $100,000 of normal chargeable income (exempts SGD $50,000)
   • Maximum exemption: SGD $125,000 per year 
2. Partial Tax Exemption (PTE) – For all other companies:
   • 75% exemption on first SGD $10,000 of normal chargeable income (exempts SGD $7,500)
   • 50% exemption on next SGD $190,000 of normal chargeable income (exempts SGD $95,000)
   • Maximum exemption: SGD $102,500 per year

Qualifying Conditions for SUTE:

• Incorporated in Singapore
• Tax resident of Singapore for that Year of Assessment
• Total share capital beneficially held directly by maximum 20 shareholders throughout the basis period, where all shareholders are individuals OR at least one shareholder is an individual holding at least 10% of issued ordinary shares
• NOT engaged in investment holding as principal activity
• NOT engaged in property development for sale, investment, or both

Excluded from SUTE: Investment holding companies and property development companies can only claim Partial Tax Exemption.

Corporate Income Tax Rebate for Year of Assessment 2025: As announced in Budget 2025, all taxpaying companies (whether tax resident or not) receive a 50% rebate of corporate tax payable, capped at SGD $40,000. Active companies that employed at least one local employee (Singapore citizen or PR, excluding shareholder-directors) in calendar year 2024 receive a minimum benefit of SGD $2,000 through the CIT Rebate Cash Grant.

Goods and Services Tax (GST): Singapore’s GST rate is currently 9% (as of 2023 and continuing into 2025). Businesses must register for GST if annual taxable turnover exceeds SGD $1 million. GST-registered businesses charge GST on taxable supplies and can claim input tax credits for GST paid on business purchases. Businesses below the threshold can voluntarily register for GST.

Annual Compliance Requirements:

• Estimated Chargeable Income (ECI): File within 3 months of financial year-end
• Corporate Income Tax Return: File Form C-S (for small companies meeting criteria), Form C-S (Lite), or Form C by November 30 following the Year of Assessment
• Annual Return to ACRA: File within specified timeframe (varies based on AGM date or financial year-end)
• Annual General Meeting: Hold within timeframes specified by Companies Act
• Financial Statements: Prepare according to Singapore Financial Reporting Standards

Financial Year Selection: Companies can choose any financial year-end date. Common choices include December 31 (calendar year), March 31, June 30, or September 30. Your first financial year cannot exceed 18 months from incorporation date.

Common FAQs (Quick Answers)

1. Can foreigners register a company without living in Singapore?
   Yes, foreigners can incorporate and own a Singapore company without residing in Singapore. You’ll need to appoint a local resident director and maintain a Singapore registered address, but you can manage operations remotely from anywhere globally.
   
2. How long does it take to incorporate a company in Singapore?
   The actual ACRA incorporation process takes 1–3 working days after submission. However, preliminary steps (name application, document preparation, director arrangements) may add a few days. Overall, expect 1–2 weeks from start to receiving your Business Profile if all documents are ready.
3. Do I need a local partner to start a company in Singapore?
   No, you don’t need a local partner or shareholder. Foreigners can own 100% of a Singapore private limited company. While you need a local resident director, this person doesn’t require ownership stake, they can be a nominee director without shareholding.
4. How do I open a corporate bank account as a foreigner?
   After incorporation, apply directly with your chosen bank, providing incorporation documents, business plan, director identification documents, proof of registered address, and information about business activities. Most banks require at least one director to appear in person for due diligence meetings. The process typically takes 2–6 weeks and involves thorough documentation review.
5. What are the minimum capital requirements for a Singapore company?
   The legal minimum paid-up capital is SGD $1. However, most businesses capitalize at SGD $1,000 or higher for credibility. If applying for Employment Pass as director, consider minimum SGD $50,000 paid-up capital as MOM assesses the company’s financial ability to pay your salary. There’s no maximum capital limitation.
6. What is the EntrePass and who qualifies?
   The EntrePass is a work pass for foreign entrepreneurs starting innovative or venture-backed businesses in Singapore. To qualify, your company must be less than 6 months old (or not yet incorporated), and you must meet at least one criterion: SGD $100,000+ funding from eligible investors, incubator/accelerator support, registered IP providing competitive advantage, previous venture-backed business sale, or ongoing research collaboration with Singapore institutions. The company cannot be more than 12 months old at application date.
7. What is the difference between EntrePass and Employment Pass?
   EntrePass is specifically for entrepreneurs starting innovative/venture-backed businesses and doesn’t have minimum salary requirements but has strict business criteria. Employment Pass is for professionals, managers, and executives (including company directors) and requires minimum monthly salary of SGD $5,600 (non-financial sectors) or SGD $6,200 (financial services), plus acceptable qualifications and COMPASS points.

Helpful Government Resources

Accessing official resources ensures you have accurate, current information throughout your business journey:

• ACRA Singapore — The Accounting and Corporate Regulatory Authority manages all company registrations through BizFile+, maintains the business registry, and provides guidance on statutory compliance requirements including annual filings and company updates.
• Ministry of Manpower (MOM) — MOM processes all work pass applications including EntrePass and Employment Pass through their online portal. Their website contains detailed eligibility criteria, application procedures, COMPASS assessment information, and processing timelines.
• Inland Revenue Authority of Singapore (IRAS) — IRAS administers all tax matters including corporate income tax, GST, tax exemption schemes, and rebates. Essential for understanding tax obligations, filing requirements, and claiming available incentives.
• Enterprise Singapore — This government agency supports business growth through grants, financing schemes, market development assistance, and capability development programs—particularly valuable for startups and innovative companies.
• Economic Development Board (EDB) — EDB focuses on attracting and supporting strategic investments in Singapore, offering insights on key industries, business opportunities, and sector-specific incentives.These resources provide authoritative information directly from Singapore’s government agencies. Always verify current requirements from official sources as regulations may be updated periodically.

Your Singapore Business Journey Starts Here

Starting a business in Singapore as a foreigner is not only feasible, it’s remarkably streamlined compared to most global jurisdictions. The combination of 100% foreign ownership, efficient digital processes, competitive taxation with generous exemptions, and strategic location makes Singapore an outstanding choice for international entrepreneurs.

The incorporation process takes just days, costs are transparent and reasonable starting from SGD $315 for ACRA fees, and ongoing compliance requirements are clear and manageable with proper professional support. Whether you’re launching a technology startup, establishing a regional trading entity, creating a holding structure for Asian investments, or providing professional services, Singapore provides the infrastructure, talent pool, and business ecosystem to support your ambitions.

Success factors include understanding the local resident director requirement, preparing thorough documentation, maintaining adequate paid-up capital (especially if applying for Employment Pass), and engaging experienced corporate service providers who navigate the process efficiently. With proper planning and guidance, your Singapore company can be operational within weeks.

Singapore’s commitment to maintaining its position as a leading global business hub means the government continuously refines policies to attract and retain entrepreneurs. The city-state’s stability, rule of law, transparent regulations, and pro-business environment provide a solid foundation for long-term growth and success.

Ready to Start Your Singapore Business?

At Bizsquare, we specialize in helping foreign entrepreneurs navigate Singapore incorporation seamlessly. Our experienced team provides comprehensive services including:

• Company registration and ACRA filing
• Nominee director and company secretary services
• Registered address provision
• Corporate bank account opening assistance
• Ongoing compliance and accounting services
• Employment Pass and EntrePass application support
• Tax filing and advisory services

We handle the complexities so you can focus on building and growing your business.

Get a free consultation with our incorporation specialists today and discover how we can help you establish your Singapore presence efficiently, compliantly, and cost-effectively. Your journey to becoming a Singapore business owner is just one conversation away.

📞 Contact Bizsquare Management Consultants now to schedule your consultation and receive your complimentary 2025 Singapore Incorporation Checklist with detailed step-by-step guidance.