Singapore

Company Formation in Singapore

Singapore

Formation Time

1–2 business days

Min. Capital

SGD 1

Corporate Tax

17% (effective 0–8.5% for startups)

Foreign Ownership

100%

Overview

Singapore is the undisputed corporate and financial capital of Southeast Asia, consistently ranking among the top three nations globally for ease of doing business, rule of law, and financial integrity. Governed by the Accounting and Corporate Regulatory Authority (ACRA), incorporating a Singapore Private Limited Company (Pte Ltd) is entirely digitized through BizFile+ and can be completed in as little as 1 to 2 business days. Singapore operates a progressive single-tier territorial corporate tax system with a headline rate of 17%, dramatically reduced by startup tax exemptions (up to 75% exemption on the first SGD 100,000 of normal chargeable income and 50% on the next SGD 100,000 for the first three consecutive years). Crucially, Singapore levies zero capital gains tax, zero dividend withholding tax, and zero inheritance tax. With over 90 comprehensive Avoidance of Double Taxation Agreements (DTAs), top-tier intellectual property protection under English common law, and world-class commercial banks (DBS, OCBC, UOB), Singapore serves as the premier regional headquarters hub for venture-backed tech startups, multinational trade, and family offices entering the 700-million consumer ASEAN single market.

#1 ease of business

SGD 1 capital

0% capital gains

90 treaties

8.5% effective startup rate

Why Choose Singapore

#1 in Asia for ease of doing business and regulatory transparency

17% headline corporate tax with 0%–8.5% effective rate for startups under PTE scheme

Zero capital gains tax and zero withholding tax on outbound dividend distributions

Extensive bilateral tax treaty network of 90+ comprehensive DTAs

SGD 1 minimum paid-up capital with instantaneous electronic ACRA incorporation

Asia-Pacific's premier financial centre with AAA sovereign credit rating

Variable Capital Company (VCC) framework for investment funds and private wealth

Gateway to ASEAN's 700M consumer market with zero foreign exchange controls

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Private Limited Company (Pte Ltd)	100%	1 (must be Singapore resident/nominee)	SGD 1	17% headline; 75% exemption on first SGD 10K, 50% on next SGD 190K (Years 1-3); partial exemption thereafter	Tech startups, international trading, regional headquarters, holding structures
Variable Capital Company (VCC)	100%	1 (at least 1 Singapore resident director with MAS eligibility)	No minimum	Tax exemptions under Sections 13O and 13U of Income Tax Act	Investment funds, family offices, private equity, umbrella fund structures
Limited Liability Partnership (LLP)	100%	2 partners + 1 local manager	No minimum	Pass-through tax transparency — partners taxed at personal/corporate level	Professional service firms, consulting practices, legal and accounting partnerships
Branch Office of Foreign Company	100%	1 resident authorized representative	None	Taxed at 17% on Singapore-sourced income; not eligible for startup tax exemption	Established foreign corporations testing or servicing the Singapore market
Representative Office (RO)	100%	1 representative from parent	None	Zero commercial operations permitted; not subject to corporate tax	Market research, feasibility studies, promotional liaison before full incorporation

Step-by-Step Formation Process

Name Clearance & ACRA Reservation

1 hour

Submit company name via BizFile+ portal for immediate approval and reservation.

Statutory Documentation Execution

1 day

Execute constitution, Form 45 director consents, and shareholder resolutions digitally.

ACRA Electronic Incorporation

15 min – 1 day

Lodge incorporation filing with ACRA and receive immediate Unique Entity Number (UEN).

IRAS Tax & Corppass Activation

1 day

Activate government Corppass account and register corporate tax profile with IRAS.

Corporate Bank Account Setup

1–2 weeks

Open multi-currency business accounts with tier-one banks (DBS, OCBC, UOB) or fintech platforms (Aspire, Wise).

Employment Pass / Visa (Optional)

3–8 weeks

Lodge Employment Pass application via Ministry of Manpower's COMPASS points framework.

Costs & Fees

Government / License Fee	SGD 315+
Our Service Fee	USD 2,500+
Annual Renewal	USD 1,500+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Singapore boasts the world's most stable commercial banking ecosystem. The 'Big Three' domestic banks — DBS Bank, OCBC Bank, and United Overseas Bank (UOB) — command superior credit ratings (Aa1/AA-). International giants including Standard Chartered, HSBC, and Citibank maintain comprehensive corporate facilities. Account opening for foreign-owned entities can be conducted via secure remote video verification or through specialized digital business accounts like Aspire and Wise.

Account Opening Time

1–2 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

DBS BankOCBC BankUnited Overseas Bank (UOB)Standard Chartered SingaporeHSBC SingaporeAspire BusinessWise Business

Tax Overview

Corporate Tax

17% headline rate; effective 0–8.5% for first SGD 200,000 under partial exemptions

Personal Income Tax

0% to 24% progressive (no tax on first SGD 20,000)

VAT / Sales Tax

9% GST (Goods and Services Tax; threshold SGD 1M taxable turnover)

Capital Gains Tax

0% — no tax on capital gains or share transfer profits

Withholding Tax

0% on dividends paid to non-residents; 10% on royalties; 15% on interest (reduced by treaties)

Double Tax Treaties

90 countries

Under the Start-up Tax Exemption (SUTE) scheme, qualifying new companies enjoy 75% exemption on the first SGD 10,000 of normal chargeable income and 50% exemption on the next SGD 190,000 for their first three consecutive tax years. Partial Tax Exemption (PTE) applies thereafter. Foreign-sourced income not remitted into Singapore is completely exempt.

Visa & Residency

Employment Pass (EP)

2 years (renewable for 3 years)

For company directors and executives earning at least SGD 5,000/month (SGD 5,500 in financial services), assessed under the COMPASS points framework

EntrePass

1 year, renewable

For innovative entrepreneurs backed by recognized VC investors, incubators, or holding proprietary IP

Overseas Networks & Expertise (ONE) Pass

5 years

For top talent earning at least SGD 30,000/month or with outstanding artistic/scientific achievements

Dependant's Pass (DP)

Aligned with principal EP holder

For legally married spouses and unmarried children under 21 of EP holders earning SGD 6,000+/month

Family visa: AvailableProcessing: 3–8 weeks

Frequently Asked Questions

Do I need to visit Singapore in person to incorporate a company?

No. The entire incorporation process is conducted 100% online through ACRA's BizFile+ system. Document signing is completed electronically. You only need to fulfill the statutory requirement of having at least one Singapore resident director, which Incorp International provides via our licensed nominee director service.

How does Singapore's Startup Tax Exemption (SUTE) scheme work?

Qualifying new Singapore companies receive substantial tax relief during their first three consecutive years of assessment: a 75% exemption on the first SGD 10,000 of normal chargeable income, and a 50% exemption on the next SGD 190,000. On profits up to SGD 200,000, the effective corporate income tax rate is reduced to approximately 8.5%.

Can a foreigner be the sole owner and director of a Singapore company?

A foreigner can own 100% of the shares in a Singapore company. However, the Singapore Companies Act mandates that at least one director must be 'ordinarily resident' in Singapore (a Singapore citizen, permanent resident, or EntrePass/EP holder). We provide a licensed nominee resident director to fulfill this legal requirement until the foreign founder secures an Employment Pass.

Can I open a corporate bank account in Singapore remotely?

Yes. Major domestic banks like DBS and OCBC, as well as digital commercial platforms like Aspire and Wise Business, offer secure remote onboarding via video call KYC. In-person branch visits are no longer strictly necessary for standard trading and tech service profiles.

Does every Singapore company require an annual statutory audit?

No. Singapore provides a 'small company' audit exemption. A private company is exempt from audit requirements if it satisfies at least two of the following three criteria: annual revenue under SGD 10 million, total balance sheet assets under SGD 10 million, or 50 or fewer full-time employees.

When is GST registration mandatory for a Singapore company?

GST (Goods and Services Tax, currently 9%) registration is mandatory only if your company's taxable turnover exceeds SGD 1 million at the end of any calendar year, or if you reasonably expect turnover to exceed SGD 1 million in the next 12 months. Voluntary registration is permitted below this threshold.

How does the COMPASS points framework affect Employment Pass applications?

Under the Ministry of Manpower's COMPASS (Complementarity Assessment Framework), Employment Pass candidates are evaluated on salary benchmark, qualifications, employer diversity, and support for local employment. Applicants must score at least 40 points across these criteria to qualify for an EP.