Doing Business in Singapore

Singapore is ranked second in the World Bank’s 2020 Ease of Doing Business Index. On average, the process of starting a Singapore company takes one day. Of course, the steps to start a company in Singapore can be delayed or expedited, depending on how prepared for, and experienced with, the process of starting a company you are.

The Essential Checklist

As with all things in life, the process of starting a company runs more smoothly when you make sure to meet all the requirements. Having all the necessary documentation and information prepared before commencing will make the process quicker, easier and more likely to succeed. Go through our step-by-step guide on the process of starting a company below and ask one of our experts for further advice.

Singapore Company Incorporation Checklist
Name of Company	Obtain approval for a name reservation application
Principal activities of Company	To obtain approval from the relevant government bodies, if required
Minimum share capital	S$1.00
At least 1 shareholder	Shareholder’s full name
	Shareholder’s registered address
	Shareholder’s identification number/company registration number (if a shareholder is a corporate entity)
At least 1 resident director	Director’s full name
	Director’s registered address
	Director’s identification number / company registration number
Registered office address	In Singapore and it cannot be a P.O. Box address
Company Secretary	Company secretary’s full name
	Company secretary’s registered address
	Company secretary’s identification number

If your company has not yet found a local resident who is willing to undertake the role of a nominee director, do consider engaging a professional nominee director, who would be very familiar with the statutory requirements and obligations for local companies.

In addition, do note that foreign individuals are not allowed to register a company. Hence, foreign individuals or foreign corporate entities who wish to incorporate a business in Singapore are strongly advised to seek the services of a professional services firm, which would have a professional number and be able to make applications via the Accounting and Corporate Regulatory Authority’s (“ACRA”) electronic portal.

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Optional Applications

Depending on your company’s specific needs and requirements, your company may need to make additional applications prior to, or after the incorporation process. We run through a few of these applications that you may wish to consider.

Obtaining Approval from a Governing Authority

Particularly for industries that are scrutinized by governing bodies due to the nature of services that they provide to their clients, it may be necessary for a business to obtain approval or referral from a governing authority before they can proceed with incorporation, particularly if the desired name of the company relates to the specific nature of services. A quick snapshot of circumstances where companies would require approval is presented below:

Government Body	When it may be required*
Board of Architects Singapore	The use of the word “architect” in a name or business designation
Council for Estate Agencies	Principal activities involving “Real Estate Agent” or “Real Estate Agency”
International Enterprise Singapore	Names and activities involving “Physical Rubber”, “Commodity futures”, etc.
Ministry of Defence	Proposed names containing “Military” or “Defence”
Ministry of Education	Establishments functioning as and providing activities of an academic nature
Ministry of Foreign Affairs	Proposed names containing ASEAN
Monetary Authority of Singapore	Proposed names containing “bank” and its derivatives, “Finance Company” and “Finance”, “Futures Exchange”, “Securities Exchange”, etc.
Majlis Ugama Islam of Singapore	Proposed names and activities containing or involving “Islam”, “Muslim”, “Halal” and their derivatives
Singapore Police Force	Activities relating to arms, explosives, ammunition
Singapore Tourism Board	Usage of the Merlion symbol or name Entities wishing to carry out the business of a travel agent
The Law Society of Singapore	Names and activities containing or involving “Law”, “Law Corporation”, “LLC”, “Legal”, “Lawyer(s)”, “Advocate(s)”, “Solicitor(s)”
Institute of Singapore Chartered Accountants	Names and activities containing “Accountancy”, “Accounting”, “Audit”, or derivatives thereof
Registry of Co-operative Societies	Names and activities containing “Co-op” or “Co-operative”
Ministry of Health	Names and activities containing “hospital”, “medical clinic/centre”, “dental clinic/centre”, “surgery”, “medical/clinical laboratory”, “healthcare establishment” or any other term or name that implies similarity to these terms

*Please note that this is at the discretion of the Accounting and Corporate Regulatory Authority (“ACRA”) as well as the relevant government body. For the avoidance of doubt, companies should undertake the responsibility of checking with the relevant government body.

Obtaining a Business License

For certain types of business activities, it may be necessary to apply for a business license. Examples of such business activities would include:

• Retail stores
• Construction companies
• Companies dealing with import and export
• Hotels and Spas
• Medical clinics or associated services
• Employment agency
• Travel agency
• Companies offering financial advisory services or any other associated services
• Real estate agency
• Private education services

Generally, the application procedures and documentation requirements would differ, hence it would be good to seek the advice of a professional services provider when making the application.

Employment Pass Application

Foreign individuals who intend to relocate to Singapore to run their company operations must obtain an Employment Pass. Likewise, foreign corporations intending to relocate their staff are required to apply for an Employment Pass for them.

In a nutshell, the following requirements need to be fulfilled before one can obtain an Employment Pass:

• Fixed monthly salary of at least S$3,600
• Candidate is qualified with relevant degrees, professional qualifications or specialist skills*
• Work experience
• Job profile

*Do note that the Ministry of Manpower (“MOM”) has additional requirements for candidates who submit certificates from tertiary institutions from India and China.

There are two means of submitting an application to MOM. The first is through online application via an electronic portal, which can only be done by a licensed employment agency or an employee of the company. Alternatively, the application can also be submitted manually. Given that the estimated processing time for the online application is much faster than the manual application (a difference of approximately two weeks), do consider engaging a professional licensed employment agency who would be able to advise you on the application.

Related topics:
Visual information on All You Need to Know in Incorporating a Company in Singapore
Visual information on the Process of Company Incorporation in Singapore

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Completing the Singapore Company Registration Process

To complete the entire company start-up process, all companies should pay attention to these “follow-up” steps, which are just as essential. Particularly since Singapore has many business-friendly policies, thus companies should research and explore the possibility of applying for grants and other incentives. As certain grants and incentives are specifically targeted for newly incorporated companies, a company that procrastinates may end up losing out on all these incentives.

One example is the micro bank loan that is offered by various banks to new companies. This is a source of funding that comes at a relatively low fixed interest rate and does not require companies to submit extensive documentation to obtain approval.

Other matters that companies should consider would be as follows:

• Determining the company’s financial year end (FYE)
• Appointment of auditors (within three months from the date of incorporation, unless deemed exempt)
• Appointment of company secretary (within six months from the date of incorporation)
• Appointment of tax agent
• Holding of Annual General Meeting (“AGM”) and filing of Annual Returns (within 18 months from the date of incorporation)
• Goods and Services Tax registration
• CPF registration or SDF registration

By keeping aware and on top of these compliance matters, companies can ensure that their business records remain faultless, ensuring potential investors, shareholders, suppliers and business partners will not be turned away by poor compliance records. In addition, companies that ensure that their post-incorporation matters are handled properly will not risk being subject to any penalties that may be imposed by ACRA or any other relevant government bodies.

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One-Stop Singapore Company Registration Solution

Rikvin can help you register and launch your company in Singapore. Our specialists will take care of everything, from pre-incorporation to post-incorporation.

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