Setting Up a Business in Singapore from Abroad: A Step-by-Step Guide

Singapore is consistently ranked among the most business-friendly countries in the world. With its strategic location, efficient legal system, attractive tax policies, and world-class infrastructure, it’s no surprise that global entrepreneurs view it as a top destination for business expansion.

If you're considering starting a business setup in Singapore from abroad, you're in the right place. This guide will walk you through each step of company registration in Singapore, even if you’re not a resident.

Why Set Up a Business in Singapore?

Before diving into the steps, here’s why so many international entrepreneurs choose company incorporation in Singapore:

• 100% foreign ownership allowed

• Low corporate tax (17%) with exemptions for startups

• No capital gains tax

• Robust IP protection and legal system

• Access to ASEAN markets and global investors

• Highly skilled, multilingual workforce

Whether you're launching a tech startup, professional service firm, or trading company, Singapore offers a pro-business ecosystem to help you scale.

Step 1: Understand the Business Structures Available

When you begin your business setup in Singapore, you’ll first need to decide on the legal entity type. The most common structures include:

1. Private Limited Company (Pte Ltd)

• Separate legal entity

• Limited liability for shareholders

• Eligible for tax benefits and grants

• Can be wholly foreign-owned

This is the preferred and most scalable structure for foreign entrepreneurs.

2. Sole Proprietorship or Partnership

• Not recommended for foreigners

• Unlimited liability

• Must have a local resident as owner or partner

Conclusion: Most foreign founders go with a Private Limited Company (Pte Ltd) for maximum flexibility and credibility.

Step 2: Meet the Basic Requirements

To proceed with company incorporation in Singapore, your business must meet the following:

• At least one director must be a Singapore resident (citizen, PR, or EntrePass holder)

• At least one shareholder (can be a foreigner or company)

• A company secretary (must be appointed within 6 months of incorporation)

• Registered local address (P.O. boxes not allowed)

• Paid-up capital of at least SGD 1 (can be increased later)

If you don’t have a local director, many professional firms offer nominee director services to meet this legal requirement.

Step 3: Choose and Reserve Your Company Name

Go to Singapore’s Accounting and Corporate Regulatory Authority (ACRA) website to:

• Search your desired business name for availability

• Ensure it complies with naming guidelines (no vulgar or restricted terms)

• Reserve the name (valid for 120 days)

This step is fast and typically approved within a day, unless the name requires additional approval from authorities.

Step 4: Prepare and File Incorporation Documents

The next step is to submit your incorporation request to ACRA via BizFile+, Singapore’s online business registration portal. Required documents include:

• Company name approval

• Description of business activities (SSIC code)

• Details of directors and shareholders

• Registered office address

• Constitution of the company (formerly called M&AA)

Most foreigners appoint a licensed corporate services provider in Singapore to handle the registration process and fulfill regulatory obligations.

Step 5: Obtain a Local Nominee Director (If Needed)

Since a Singapore resident director is mandatory, non-resident founders typically engage a nominee director. This is a local individual who fulfills the legal requirement but does not interfere with daily operations.

Nominee director services usually cost between SGD 2,000 – SGD 5,000 per year and are subject to proper agreements for legal protection.

Step 6: Open a Corporate Bank Account

Once your company is registered, the next step is to open a business bank account. Singapore has several world-class banks, including:

• DBS Bank

• OCBC

• UOB

• Standard Chartered

• HSBC

Banks typically require:

• Company registration documents

• Business profile

• Passport copies of directors/shareholders

• Proof of address

Some banks may require you to be physically present, although certain digital banks (like Aspire or Wise Business) offer remote onboarding options for foreign directors.

Step 7: Register for Taxes and Licenses (If Applicable)

While Singapore has a simplified tax system, your company may still need to register for:

1. Goods and Services Tax (GST)

• Mandatory if annual turnover exceeds SGD 1 million

• Voluntary registration allowed below this threshold

2. Customs Registration

• Needed if your business involves import/export

3. Industry-Specific Licenses

• E.g., finance, food services, healthcare, education

It’s essential to consult with your incorporation provider to ensure all tax and industry compliance requirements are met.

Step 8: Appoint a Company Secretary

Every company in Singapore must appoint a qualified company secretary within 6 months of incorporation. This individual is responsible for:

• Ensuring compliance with ACRA regulations

• Filing annual returns and resolutions

• Maintaining statutory registers

Your incorporation firm can also provide corporate secretarial services as part of a bundled package.

Step 9: Comply with Annual Filing and Reporting Requirements

Singapore is known for its regulatory transparency. Once your company is operational, you must maintain compliance by:

• Filing Annual Returns with ACRA

• Preparing and submitting financial statements (for most companies)

• Holding an Annual General Meeting (AGM) (within 6 months of financial year-end)

• Filing corporate income tax returns with the Inland Revenue Authority of Singapore (IRAS)

Failure to comply can result in fines or legal actions, so it's best to retain a professional accountant or firm for ongoing support.

FAQs

1. Can I set up a Singapore company if I don’t live there?

Yes, foreigners can fully own a company in Singapore, but you will need to appoint at least one local director. You can manage the company from abroad and even set up the entire business remotely through service providers.

2. Do I need a visa or work permit to own a business in Singapore?

No, ownership doesn’t require a visa. However, if you plan to live and work in Singapore, you’ll need to apply for an EntrePass or Employment Pass through your company.

3. How long does company registration in Singapore take?

Once your documents are ready and name is approved, company incorporation can be completed within 1–2 days. The process is fast and streamlined via Singapore’s online registration system.

Final Thoughts

Singapore has earned its global reputation as a premier destination for international entrepreneurs. With a stable legal system, low taxes, and world-class infrastructure, it’s one of the best places in Asia to launch and grow a global business.

Whether you're an e-commerce seller, tech founder, or consulting agency looking to enter Southeast Asia, company registration in Singapore is a strategic move. With the right support and guidance, you can complete your business setup in Singapore remotely—and start reaping the benefits of a globally respected business hub.