How to register a company in Singapore: Easy guide to setting up a local entity
According to the World Bank, Singapore has a strong and growing economy—it even ranks best in the world for human capital development, making it particularly attractive for global businesses to recruit and hire employees. Businesses looking to invest in Singapore’s diverse talent pool can do so by establishing a local entity in the country. And if you’re wondering how to register a company in Singapore, there’s even more good news—Singapore is one of the easiest places in the world to start a business, consistently ranking high on the World Bank’s Ease of Doing Business report.
Compared to many other countries, Singapore makes registering a business entity relatively easy and straightforward for foreign entrepreneurs and employers. In this guide, we’ll cover the legal requirements, business entity types, and steps employers need to take—plus alternatives to registering a company, like partnering with an employer of record service to hire employees in Singapore even faster.
Why register a company in Singapore?
Global businesses that want to hire and pay employees in Singapore have two options:
- Partner with a third-party service like an employer of record (EOR)
- Hire and pay employees directly by establishing a local business entity in Singapore
Setting up a local entity in Singapore gives you more control over your company’s operations, compliance, and brand representation in the local market. The tradeoff is that it takes more time and resources to set up, whereas partnering with an EOR means entering the Singaporean market more quickly, potentially hiring in Asia in a matter of days.
Pros and cons of a legal entity vs. EOR
Legal entity
EOR
✓ More operational control
✓ Direct relationships with employees
✓ Potential tax exemptions and local incentives
✗ Longer setup process
✗ Higher initial investment
✗ More administrative duties
✓ Faster market entry
✓ Built-in compliance management
✓ Fewer administrative duties
✗ Slightly less control over employee management
✗ May be more expensive as your business scales
Types of business entities in Singapore
Under the Companies Act, there are several types of companies a foreign entrepreneur, startup, or business can establish within the country. Foreigners can register any business type in Singapore, provided they meet the requirements—one of which is having a Singapore citizen, permanent resident, or EntrePass or Employment Pass holder serve as the business’s local resident director or authorized representative.
Other than that, choosing an entity type comes down to whichever best suits your business needs.
Entity type
Local residency requirements
Other requirements
Sole Proprietorship / Partnership
At least one local resident authorized representative
Foreigners who plan to live in Singapore to manage operations must seek approval from the Ministry of Manpower after registering the business.
Local Company
At least one local resident director
Foreigners who live overseas can own shares and be appointed as foreign directors of Singapore businesses.
Foreign Company
At least one local resident authorized representative
A foreign company can be registered as a branch office (part of the foreign company) or a subsidiary (a separate legal entity).
Limited Liability Partnership (LLP)
At least one local resident manager
Foreigners who live overseas must appoint a local resident manager. Foreigners who plan to live in Singapore and manage the operations of an LLP must seek approval from the Ministry of Manpower.
Limited Partnership
At least one local resident general partner or local manager
Foreigners who live overseas must appoint a local resident manager. Foreigners who plan to live in Singapore and manage the operations of a limited partnership must seek approval from the Ministry of Manpower.
Requirements to register a company as a foreigner in Singapore
The Accounting and Corporate Regulatory Authority (ACRA) and the Ministry of Manpower generally regulate company registration in Singapore. Compliance requirements vary depending on the business entity type you choose to register, but there are some general requirements that all business owners and employers should prepare for, such as:
- Preparing financial statements and other necessary documents for business registration
- Paying registration fees
- Appointing a director and company secretary
- Fulfilling tax filing and annual filing requirements (including tax returns, annual reports, etc.)
How to register a company in Singapore
The Singapore company registration process is straightforward and can typically be done entirely online. While the exact steps of the company incorporation process vary depending on your business entity type, some steps are the same no matter which entity you choose. If you’re a foreign company already operating elsewhere in the world and want to establish a local entity in Singapore, skip to the next section for more detailed instructions on how to do so.
If you’re not already operating in another country, here’s what to do:
- Choose a company name. All new companies must register with ACRA. The first step is to choose a business name and submit an online name application. The name you choose must meet some criteria. For example, it can’t be identical to an existing business name or contain any prohibited words.
- Select your business entity type. Next, determine the type of entity that best suits your business needs.
- Determine your fiscal year-end. You can choose any date you want, but most businesses choose March 31, June 30, September 30, or December 31. Note that your fiscal year-end date determines when your corporate tax filings and income tax payments are due. Companies in Singapore must also file their annual return each year within seven months of the end of their fiscal year.
- Appoint key personnel. This often includes a company director, company secretary, and auditor.
- Create a company constitution. This legal document sets rules and regulations by which your company will be governed. It must contain:
- Your company’s name and registered office address
- A description of your business activities
- Liabilities of members of the company
- Total share capital and issued shares
- Rules and regulations for company governance
- Submit your application via BizFile. There are two parts: the company name application and the incorporation application. You can submit them separately or at the same time.
- Pay the application fees. The name application fee is $15, and the business registration fee is $300.
- Receive your UEN. If your application is successful, you’ll receive a certificate of incorporation and a unique entity number (UEN). You’ll need your company name and UEN to conduct business activities like sending letters or invoices or corresponding with Singapore government agencies. You’ll receive an automatically generated UEN by default, but you can choose your own for an additional fee if you'd like.
- Open a corporate bank account. Be sure to open a bank account for your new business. You’ll need it to receive payments, pay employees, register for goods and services tax (GST), and other important steps.
- Access your business profile. Once your business registration is complete, ACRA will send you information to access your free business profile, an online portal where key information about your new business is stored.
How to register a foreign company in Singapore
Established foreign businesses have four options for setting up a local entity in Singapore:
Transfer of registration (re-domiciliation)
When a foreign company transfers (or re-domiciles) its business registration to Singapore, it becomes a Singaporean company and must comply with the Companies Act.
Setting up a representative office
Foreign companies interested in doing business in Singapore can set up a representative office to assess the business environment before committing to a permanent establishment. A representative office is a temporary setup with no legal status, so it can’t engage in business activities that yield a profit. Companies must submit applications to Enterprise Singapore.
Incorporating a subsidiary (i.e., a local company)
A foreign company can incorporate a subsidiary in Singapore and can hold shares of the local business. The local business must comply with all parts of the Companies Act.
Registering a branch of a foreign company
A foreign company can set up a branch office in Singapore. It must have a local resident serve as an authorized representative and comply with all parts of the Companies Act.
After choosing the entity type that best fits your foreign business, here’s how to continue the registration process:
- Submit your application via BizFile. Foreign companies should engage a registered filing agent (typically a law, accounting, or corporate secretarial firm) to submit the online application on their behalf.
- Pay the application fees. The name application fee is $15 for foreign businesses, and the business registration fee is $300.
- Wait for approval. Most applications are processed within minutes once you pay the fees, but if your application needs referral to an outside agency, it could take up to a few weeks.
Employer of record: A time- and money-saving alternative to setting up a legal entity in Singapore
If establishing a business entity in Singapore isn’t feasible, you have an alternative: partnering with an employer of record (EOR).
An EOR is a third-party service provider that helps companies legally hire employees in other countries without setting up their own entities while still complying with local labor and employment laws. The EOR acts as the full legal employer for the company’s international workforce, taking on employment-related HR duties like payroll processing, tax compliance, employment contracts, and benefits administration on the company’s behalf.
If you want to hire and pay Singaporean employees—but don’t necessarily need an established business presence in Singapore—an EOR can help you hire and pay your international workforce without going through the time-consuming and costly process of registering a business. And as an added benefit, the EOR helps you navigate much of the legal and compliance risks of international expansion.
Rippling EOR can help you hire employees in Singapore quickly and compliantly. And if you set up your own entity in Singapore, Rippling can still support your employees with global payroll—or even a complete workforce management platform.
Frequently asked questions about registering a company in Singapore
Can a foreigner register a company in Singapore?
Yes. Singapore is friendly to foreign investors and entrepreneurs and allows foreigners to easily set up any business entity type as long as they meet the requirements in the Companies Act.
What is a foreign entity for tax purposes?
A foreign entity for tax purposes is a business created or incorporated outside of Singapore that conducts business activities in the country. Foreign entities have to meet legal requirements, such as registering with the Singapore government. They also have tax obligations in Singapore: Many of their business activities are taxable, particularly if they have a permanent establishment there. Tax rates depend on the business entity type and other factors.
Is it required to have a physical office in Singapore?
Generally, no. The Companies Act requires businesses in Singapore to have a registered address where they can receive mail and visitors and where their company registers are kept. For the most part, a corporate service provider that offers registered address services can satisfy these requirements. However, there are exceptions, for example, for businesses that require certain types of special licensing that need a physical address.
How long does it take to register a business in Singapore?
As long as all the required documents are in order, most applications are processed within a few minutes after you pay the application fees. However, if your business registration application requires referral to any outside industries, it could take longer (up to a few weeks).
What are the requirements for local company directors?
Local directors must be:
- At least 18 years old
- Of full legal capacity
- A Singapore citizen, permanent resident, or EntrePass or Employment Pass holder
- Not disqualified from holding the position (for example, due to bankruptcy)
The law also states that a company can’t appoint an “inactive director,” “nominee director,” or “sleeping director” just to satisfy legal requirements. Every company must have an active local director.
This blog is based on information available to Rippling as of November 18, 2024.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
