Singapore is one of the most business-friendly locations in Asia, offering a conducive environment for businesses both foreign and local to thrive. With a stable government, growing economy, and investment-welcoming environment, Singapore presents an attractive option for foreign entrepreneurs looking for locations in Asia to establish new businesses or even expand existing ones.
However, setting up business operations abroad involves navigating an unfamiliar regulatory system. Incorporating and locally establishing a company can seem daunting at first glance.
This article guides the major initial steps for foreigners seeking to start a new business venture in Singapore. Read on to get the essential requirements, the general process of registering a business in Singapore, the profitable business to set up, and some business-friendly spots in Singapore.
Before getting permission to run a business in Singapore, the first step is to conduct a name search and register the business name. Business owners can check name availability through ACRA’s BizFile+ portal. Once an available name is found, it can be reserved for 120 days by paying a $15 fee. To officially register the business, documents such as details of the business activities, shareholders, directors, and share capital must then be submitted along with the registration fee. Generally, name searches are instantly available while registration takes approximately 15 minutes if documents are in order. However, the process can also take up to 60 days if further review is required.
The structure chosen for a business impacts factors like registration requirements, ownership, and liabilities. A sole proprietorship has the simplest registration but offers no liability protection for the owner. Partnerships similarly provide no liability shield for partners. For both structures, the owners are personally responsible for all business debts. A private limited company provides shareholders with liability protection as it is a separate legal entity. More documents and a higher fee are required to register a private limited company compared to the other options.
Depending on the industry, additional licenses, permits or certifications may need to be obtained after incorporating the business. A business registration certificate is also issued, serving as proof of legal existence. Once registered, a corporate bank account can be opened through banks usually requiring director and shareholder presence. Work passes or visas are another necessity for foreign entrepreneurs to legally operate in Singapore, with proof of registration and a business plan required.
To start a business in Singapore as a foreigner, you will need to obtain several permits and approvals depending on the nature of your business and your role within it. Here’s a list of the key permits and requirements:
- Business Registration
- All businesses must be registered with ACRA which includes submitting documents and paying a fee.
- Work Passes
- Foreign entrepreneurs need to obtain the correct work pass like EP, EntrePass, or TechPass to legally operate.
- Local Director Requirement
- Foreigners must appoint at least one local director who is a Singapore citizen, PR, or Employment Pass holder. This is required for company registration.
- Licenses and Permits
- Additional licenses may be needed depending on the business, e.g. food business licenses, retail licenses, professional licenses.
- Corporate Bank Account
- Open a corporate bank account after registration to manage finances. Requires business registration and director/signatory identification.
- Additional Compliance
- Appoint a local company secretary within 6 months and register for GST if turnover exceeds $1m.
Top location for business in Singapore
| Location | Type of Businesses |
| Central Business District (CBD) | Banking, finance, legal services, corporate offices, and tech startups. |
| Marina Bay | Hospitality, luxury retail, tourism, and entertainment businesses |
| .Orchard Road | Retail, fashion, beauty services, and food and beverage outlets. |
| Tanjong Pagar | Shipping, trading companies, insurance, and professional services. |
| One-North | Technology firms, research and development, and startups in biotech and IT. |
| Jurong Industrial Estate | Manufacturing, logistics, and industrial services. |
| Suntec City | Marketing, media, IT companies, and event management services. |
| Bugis | Retail, food and beverage, and cultural businesses targeting tourists. |
| East Singapore | E-commerce, logistics, and delivery services due to proximity to transport hubs. |
| City Hall | Corporate offices, event spaces, and hospitality services. |