Easy Guide to Starting a Small Business in Singapore for Expatriates

Singapore has become a prime target for expatriates looking to open small businesses. The country offers an attractive tax system, comprehensive facilities, and a relatively straightforward business setup process. This step-by-step guide will help you start your small business in Singapore without any major issues.

Main Steps and Legal Procedures for Starting a Small Business in Singapore

To build a strong and legally recognized business foundation in Singapore, you must follow the procedures set by local authorities. Below is a complete roadmap detailing every critical stage, from planning the legal structure to fulfilling annual tax obligations.

1. Choose the Right Business Entity

First, you must determine the business structure that suits your needs. In Singapore, options include a Private Limited Company, Limited Liability Partnership (LLP), or Sole Proprietorship. For expatriates, a Private Limited Company is the most popular choice because it offers legal protection and makes it easier to raise capital.

This entity separates personal liability from the company, keeping your personal assets safe from business risks. It is also internationally recognized and carries a strong reputation with investors and clients.

2. Prepare the Requirements for Incorporation

Before registering, you must meet several government requirements:

• Shareholders: At least one shareholder (any nationality).
• Resident Director: At least one director who resides in Singapore and is at least 18 years old. If you don’t have a local contact, you can use a Nominee Director service from a licensed provider.
• Company Secretary: Must be a resident of Singapore.
• Capital: Minimum initial capital is S$1. However, if you plan to apply for a work visa, a minimum capital of S$100,000 is usually recommended.

3. Choose a Company Name and Business Activity

The name must be unique and not registered with the Accounting and Corporate Regulatory Authority (ACRA). You must reserve the name for a fee of approximately S$15, which is valid for 60 days.

Next, determine your primary business activities and select the appropriate Singapore Standard Industrial Classification (SSIC) code. Some fields, such as finance, education, healthcare, and food production, require special licenses after incorporation.

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4. Register a Singapore Office Address

Every company must have a physical, valid office address in Singapore for official government correspondence. If you do not have a physical office yet, you can use a Registered Address service. Note that ACRA does not accept P.O. Boxes; it must be a valid physical location.

5. Register the Company with ACRA

Once requirements are met, register online via the ACRA portal. You will need to fill out forms and upload documents like passports, proof of address, and the company’s Constitution. The registration fee is approximately S$300. If approved, you will receive a Unique Entity Number (UEN), which serves as your company’s official identification for opening bank accounts and paying taxes.

6. Open a Corporate Bank Account

After incorporation, you must open a corporate bank account to separate personal and business finances. You will need documents such as the account opening forms and a director’s resolution approving the account. Once opened, you must deposit the initial share capital. Choose a bank that offers services suited to your needs, such as international transfers and low administrative fees.

7. Secure a Work Visa for Operations

As an expatriate, you need an appropriate work visa to run the business. There are two main types:

• Employment Pass (EP): For professionals with a minimum salary of S$5,000 per month (S$5,500 for the financial sector). There is no quota limit.
• S Pass: For skilled workers with a minimum salary of S$3,150 per month. This is subject to a company quota.
  To apply for an EP, you generally need a degree and a managerial or specialized position.

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8. Fulfill Tax Obligations and Reporting

Singapore is famous for its competitive tax system, with a corporate tax rate of only 17%. You must register with the Inland Revenue Authority of Singapore (IRAS). With various tax exemptions available, the effective tax rate can often be less than 10%. You are also required to hold an Annual General Meeting (AGM) and file financial statements according to Singapore accounting standards.

By following these steps, you can launch your small business in Singapore smoothly. We hope this article proves helpful for your entrepreneurial journey!

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