Core Requirements for Setting Up a Business
Setting up a business in Singapore is relatively straightforward due to its business-friendly regulations. It is important to identify the core requirements of setting up your business in order to pave a path of success for your company.
Choosing a Business Structure
Select a business structure that aligns with your goals and needs. Common options include:
- Private Limited Company (Pte Ltd): Most popular for startups due to limited liability and tax benefits.
- Sole Proprietorship: Suitable for small businesses or individual ventures.
- Partnership: For businesses with two or more partners.
- Limited Liability Partnership (LLP): Combines features of partnerships and companies.
Registered Office Address
Businesses should provide a local registered office address in Singapore. It must be a physical address (not a P.O. box). This is where official correspondence will be sent.
Business Name Registration
One of the most important parts of starting a business is the business name. Your business name must be approved by the Accounting and Corporate Regulatory Authority (ACRA). It should be unique, not infringe on trademarks, and not be offensive or undesirable.
More information on choosing a company name can be found under Singapore Company Name Guidelines.
Compliance with Legal and Regulatory Requirements
Management for Businesses
Tax Obligations
Companies should file annual corporate taxes by their stipulated deadlines. Failure to do so will result in fines imposed. Companies should also be aware of available tax exemptions and filing requirements depending on company type. Businesses with an annual taxable turnover exceeding SGD 1 million must also register for GST and pay any GST due within 1 month after the end of each accounting period.
Bookkeeping and Auditing
In Singapore, bookkeeping and auditing are essential aspects of maintaining a compliant and well-run business. Companies should maintain accurate and up-to-date financial records, and engage an auditor if required (for companies meeting certain thresholds). Companies in Singapore must maintain proper accounting records to reflect the financial position and transactions of the business, including bank statements, contracts invoices, as well as receipts and payment vouchers along with payroll records.
Exempt Private Companies (EPCs) are exempt from statutory audits if they meet the small company criteria. However, companies that do not meet these criteria are required to have their financial statements audited and some industries, such as financial services, require audits regardless of size due to regulatory oversight.
By maintaining proper bookkeeping and auditing practices, businesses in Singapore can operate smoothly, avoid legal issues, and present a credible financial position to stakeholders.
Employment Regulations
Hiring Local Employees: Companies must ensure compliance with the Employment Act and contribute to CPF for Singaporean and Permanent Resident employees.
Hiring Foreign Employees: Companies should apply for relevant work passes (e.g., Employment Pass, S Pass), depending on employees’ skill level. Companies should also comply with Fair Consideration Framework (FCF) guidelines to prioritize local hiring.
Setting Up a Bank Account in Singapore
Having a business bank account in Singapore is crucial for operating a business effectively and complying with legal and financial requirements. A corporate bank account is typically required to fulfill compliance obligations and to maintain financial transparency. A bank account is necessary for filing taxes, such as corporate income tax and GST, and for issuing payments to the Inland Revenue Authority of Singapore (IRAS). Having a business bank account can aid your company in clear bookkeeping and accounting, simplified financial audits and protecting personal assets in case of business liabilities.
Appropriate Licensing
Depending on your company’s scope of businesses, licenses may be require for smooth operation and compliance with Singapore regulations. Licensing ensures businesses comply with industry-specific regulations, such as safety, hygiene, and operational standards and adds credibility. A licensed business demonstrates professionalism and compliance with government regulations, building trust with customers. Some common businesses and their corresponding licenses include:
- Food and Beverage (F&B): Requires a Food Shop License and liquor license for alcohol sales.
- International Trade: For businesses involved in import/export, specific licenses (e.g., customs permits, trade licenses) are required to conduct cross-border transactions.
For more information on licenses in Singapore, refer to Guide to Licenses.
Key Roles in Businesses
Company Secretaries
Directors
How Fastcorp can Assist You
Company Secretaries
A company secretary is an integral part of corporate governance in Singapore, ensuring that the company complies with legal, regulatory, and administrative requirements. Under the Singapore Company Act, all companies must appoint a qualified company secretary within six months of incorporation to ensure compliance with Singapore’s regulations. The company secretary must be a resident of Singapore and qualified for the role, especially for public companies.
Company secretaries can help businesses by filing statutory documents with the Accounting and Corporate Regulatory Authority (ACRA), and ensuring timely filing of all required documentation to avoid fines or penalties for late submissions. For foreign-owned companies, a company secretary is particularly important as they ensure compliance with Singapore’s local regulations, proper communication with local regulatory authorities and management of statutory duties without the owner being physically present in Singapore.
For more information, visit our Company Secretary page.
Directors
Companies may have multiple directors, but at least one director must be a resident of Singapore (a Singapore citizen, permanent resident, or holder of an EntrePass, Employment Pass, or Dependent Pass). Fastcorp has a list of pre-approved nominee directors to aid businesses aiming to start up in Singapore. For more information regarding Nominee Directors, visit Nominee Directors. Foreign directors who are not residents of Singapore can still be appointed as long as the company meets the residency requirement for at least one director. However, foreign directors are required to apply for an Employment Pass to legally work in Singapore.
How Fastcorp can assist you
Company Secretaries: Fastcorp understands the importance of company secretaries in today’s business climate, and specialises in providing Singapore company secretary services and recognises the pivotal role these professionals play in navigating legal obligations with ease and precision.
Nominee Directors: Our services offer businesses the assurance of compliance and effectiveness in their operations, ensuring that business operations are not only compliant but also optimised for success. We provide indispensable guidance and support for companies, simplifying what could otherwise be a daunting task for foreign investors and companies looking to gain their footing in Singapore. With Fastcorp, businesses can navigate the complexities of corporate compliance with ease, benefiting from our expertise and commitment to the highest standards of professionalism and legal adherence.
The Benefits of Partnering with Fastcorp
Fastcorp’s valuable knowledge and experience in business solutions can provide companies with an advantage in the competitive landscape of business registration and immigration services.
Expert Knowledge of Singapore's Regulatory Frameworks
Fastcorp specializes in helping foreign businesses navigate the complex regulatory requirements of doing business in Singapore. Our expertise in the country’s business laws, immigration policies, and regulatory framework ensures that clients can avoid common pitfalls. The service stays current with any changes in government policies, tax regulations, and work pass requirements, which is vital for ensuring compliance and reducing the risk of delays or penalties.
End-to-End Service for Business Setup
Fastcorp offers comprehensive solutions, including business registration, pass applications and ongoing compliance assistance. Companies can entrust Fastcorp with these tasks and focus on expanding and growing their businesses. Fastcorp understands that each business has unique needs, and we offer personalised advice on the best type of work pass for business owners, directors, and employees, taking into consideration their qualifications, role in the business, and other factors.
