Starting a business in Singapore in 2026: a complete startup guide

• Singapore is one of the world’s most business‑friendly hubs, with online incorporation typically completed in a few days and a flat 17% corporate tax rate¹ that’s highly competitive globally.

• Starting a business in Singapore follows a clear set of steps: plan your business, raise capital, choose a structure and address, register with Accounting and Corporate Regulatory Authority (ACRA), open a corporate bank account, hire under the Employment Act, and stay compliant with tax.

• Airwallex helps foreign founders launch and scale smoothly, with fast digital onboarding, multi‑currency business accounts, competitive FX rates, and integrated spend management to keep costs low from day one.

For foreign entrepreneurs, Singapore offers a rare combination of stability, transparent regulation, and efficiency: you can register a company fully online, tap into a deep talent and investor pool, and benefit from a simple, low corporate tax regime that supports reinvestment and growth. That makes it an ideal base for testing new ideas and expanding across Southeast Asia from a single, trusted jurisdiction.

The challenge is less about “can I set up?” and more about “how do I manage everything cleanly once I do?”. By pairing Singapore’s pro‑business environment with an all‑in‑one financial platform like Airwallex – covering accounts, FX, payments, and expenses – you reduce friction on banking and operations. This lets you focus on customers, hiring, and product rather than paperwork and bank queues.

Can foreigners start a business in Singapore?

Yes, foreigners can start and run a business in Singapore, as long as they meet certain local directorship, address and immigration requirements. Singapore generally allows 100% foreign ownership of companies, but you must appoint at least one resident director (for a company) or local authorised representative (for a sole proprietorship or partnership) who is based in Singapore. This could be a citizen, Permanent Resident or eligible work pass holder. 

On top of that, you’ll also need a registered business address in Singapore that is a physical location (not a P.O. box). This can be your office, a co-working space or a virtual office service provider’s address, as long as it meets regulatory requirements.

Whether you need to relocate to Singapore depends on how involved you plan to be in day-to-day operations. If you intend to move here and manage the business on the ground, you typically need an appropriate work pass such as an Employment Pass or EntrePass, and in some cases a Letter of Consent if you are on a Dependant’s Pass or Long-Term Visit Pass. 

Key steps to start a business in Singapore

Starting a business in Singapore is much easier when you follow a clear sequence. These key steps will guide you from idea to launch so you can build your business with confidence.

1. Create your business plan: Define your offering, target market, business model, and basic financial projections so you have a clear roadmap.

2. Raise capital: Work out how much funding you need and explore options such as personal savings, investors, business loans, or government support schemes.

3. Choose the right business structure: Decide whether to operate as a sole proprietorship, partnership, or private limited company based on factors like liability, tax treatment, and long‑term growth plans.

4. Choose a business address: Secure a suitable registered address in Singapore, whether that’s a physical office, co‑working space, or virtual office provider.

5. Register your business: File your registration with ACRA, pay the relevant fees, and obtain your official business profile.

6. Open a corporate bank account: Set up a dedicated business account to separate personal and company finances and manage day‑to‑day transactions.

7. Hire employees according to the Employment Act: When you’re ready to grow your team, make sure your employment terms, working hours, leave, and benefits comply with Singapore’s Employment Act.

8. File corporate income tax: Keep your company compliant by tracking your financial year‑end and filing corporate income tax on time with IRAS.

Read on for an in-depth explanation of each of these steps.

Step 1: Create a business plan

Starting a small business in Singapore involves a series of strategic steps, beginning with a robust business plan. This plan should outline your business activities, financial projections, key business metrics, and plans for business registration.

Managing your business’s costs is essential for sustainability. This includes budgeting for operational expenses, such as rent, utilities, and salaries. Tax obligations are another important consideration, and it's advisable to familiarise yourself with the local tax laws and regulations before starting your business.

Finally, it's critical to select the right product or service to offer. Conduct thorough market research to understand the demand and competition in your chosen industry. The stronger your research, the less friction you’ll face when you start talking to investors, banks, and regulators.

Step 2: Raise capital

One advantage of incorporating in Singapore is the low barrier to entry: you can technically register a company with just S$1 in paid-up capital. However, foreign founders should plan for a larger buffer to cover incorporation costs, visas and relocation (if any), and the first stretch of operating expenses, as well as to present a stronger profile to banks and potential investors.

Beyond personal savings, most foreign entrepreneurs rely on a mix of private funding and, where eligible, local support. Singapore has an active ecosystem of angel investors and venture capital firms that regularly back foreign-led startups, alongside bank financing and alternative options like invoice or revenue-based financing. 

Some government grants and support schemes are open to companies with foreign founders, but they typically require the business to be incorporated and operating in Singapore with at least 30% of shares held by Singapore citizens or PRs, or to meet other local-ownership or hiring criteria. This means you may need a local partner or co‑founder to qualify.

Step 3: Choose the right business structure

Choosing the right company structure is an important step. It determines the legal and operational framework of the startup, affecting aspects like taxation, liability, and governance. Here’s a quick guide to choosing a business structure for startups.²

Sole proprietorship

A sole proprietorship is a business owned and managed by one person. Legally, the business is considered the same entity as its owner, which can pose several challenges. The owner reports business profits and losses on their personal tax return and pays personal income tax on those profits.

Partnership

In a partnership, a maximum of 20 individuals or entities come together to run a business. The business is the same legal entity as the partners. It requires a high level of trust, as all partners are equally liable for the actions of a co-partner. 

Limited Liability Partnership (LLP)

A limited liability company (LLP) is a legal entity where the owners' liability is limited to their investment in the company. This structure protects the owners’ personal assets from the company's debts and liabilities as it can be considered a separate legal identity.

Private Limited Company (Pte Ltd)

The Private Limited Company is the most common entity for its flexibility and scalability. It’s a separate legal entity that can have up to 50 shareholders. Its shares are not available to the public.

For foreign entrepreneurs, these are also the main structures to consider. You can either personally set up a local company in Singapore (most commonly a private limited company), or your existing overseas business can establish a presence here through a subsidiary, branch office, or representative office, each with different implications for liability, control, and tax. The next section explains how foreign companies usually structure their Singapore presence.

How do foreign companies set up in Singapore? 

Foreign companies typically enter Singapore using one of three main structures: a subsidiary, branch office, or representative office. Each option has different implications for legal liability, tax treatment, and how independently the Singapore presence operates from the overseas head office.

A subsidiary is usually incorporated as a Singapore private limited company, with the foreign parent owning some or all of its shares. It is treated as a separate legal entity, which limits the parent’s liability and allows the subsidiary to be taxed as a local company. This is why it’s often the default choice for foreign SMEs and growth-stage businesses that want a long‑term base in Singapore.

A branch office is legally an extension of the foreign company, not a separate entity, so the head office remains fully liable for its debts and obligations. Finally, a representative office is even more limited: It has no separate legal personality, and can't conduct profit‑making activities, making it suitable mainly for short‑term market research or feasibility studies before you commit to a full operating entity.

Step 4: Choose a business address

When selecting a business address in Singapore, consider the nature of your business, target market, budget, and legal requirements. You have three options to choose from:

• Residential address. Your home address can be a cost-effective solution for sole proprietorships and other micro-scale businesses. However, you need to apply for the Home Office Scheme³ before you register your company. If you own or rent a Housing Development Board (HDB) flat, you must obtain HDB approval before applying for the Home Office Scheme. 

• Virtual address. If you’re based overseas, a virtual office provider can provide a business address without renting physical office space. Virtual offices also offer mail collection and forwarding services, ensuring that you won't miss critical communications from ACRA.

• Commercial spaces. Renting offices at a commercial building or coworking space provides a professional setting for your operations. Consider the location's accessibility to clients and its proximity to business districts, as well as its suitability to your operations, potential for growth, and alignment with your budget.

Step 5: Register your business

Once you’ve chosen your business structure and prepared the basics, the next step is to formally register your Singapore business. For a full walkthrough of the process, costs, and documents required, see our detailed guide on how to register a company in Singapore. Otherwise, read on for a quick overview of the key steps.

Choose and reserve your company name

Before you can incorporate, you’ll need to choose a unique business name and have it approved by ACRA via the BizFile+ portal. Avoid names that are identical to existing entities, misleading, or offensive, pay the reservation fee, and wait for approval. Once approved, your chosen name is typically reserved for 120 days while you complete the rest of your registration.

Prepare company registration documents

Foreign founders should make sure all documents are in English and ready before filing to avoid delays. You’ll need these items:

• Your approved name and transaction number

• A brief description of your business activities and Singapore Standard Industrial Classification (SSIC) code

• Passport copies and residential addresses for all foreign directors and shareholders

• Details of your local resident director and registered address

• Details of your share structure

• Your company constitution (either ACRA’s model constitution or a customised version) 

Because at least one position holder is foreign, ACRA will also require you to appoint a licensed corporate service provider or filing agent to submit the application on your behalf.

Register your business with ACRA via BizFile+

When everything is ready, your filing agent (or you, if you have Singpass) will submit the incorporation application online through BizFile+. This involves entering your company details, directors and shareholders, share capital, and registered address, paying the registration fee, and then waiting for ACRA’s approval. Most straightforward applications are processed within one to three working days, although some applications take longer.

Register a Corppass Administrator Account

After your company is incorporated and you receive your Unique Entity Number (UEN), you should register for a Corppass Administrator account so your business can access Singapore government e‑services (for example, filing annual returns or applying for grants and licences). 

Corppass is linked to Singpass and serves as your company’s digital identity, so setting it up early makes it much easier to handle future compliance and submissions online.

Step 6: Open a corporate bank account

Once ACRA sends you the Certificate of Incorporation, you may open a corporate bank account with a fintech provider, digital bank or any major banks in Singapore. If you’re still weighing your options, read our guide on to compare business bank accounts.

For many new startups, a digital‑first fintech like Airwallex offers the right balance of speed, flexibility and cost. Our business account is an all-in-one account that brings together multi-currency accounts, high-speed international transfers, corporate cards, expense management, bill pay and a payment gateway solution. 

Airwallex’s cost-effective rates let new businesses stretch their financial resources, and our account opening process is both easy and seamless. Creating an account costs S$0 and the entire business verification process happens online, with no in-person visits required. Once your documents are approved, your Singapore Business Account will typically be ready within a few working days.

Step 7: Hire employees according to the Employment Act 

Hiring your first employees requires careful decision-making and adherence to the Employment Act. These labour laws outline the basic terms and conditions of employment, and the rights, duties, and responsibilities of employers and employees. 

For high-growth tech companies, programmes such as the Tech@SG scheme can also help you more easily hire and retain experienced foreign tech talent on employment passes while you build up your local team.

Step 8: File corporate income tax 

Singapore taxes corporate profits at a flat 17%, and most companies must file Estimated Chargeable Income (ECI) within three months of their financial year-end, then submit their annual corporate tax return by 30 November via IRAS’ myTax Portal. For a clearer breakdown of how this works, read our guide to corporate tax in Singapore.

The good news is that Singapore offers attractive startup tax exemptions and incentives that can lower your effective tax bill in the first few years. These include the Start‑up Tax Exemption (SUTE) and partial tax exemptions on your initial bands of chargeable income. There are also additional deductions and schemes for companies that invest in innovation and R&D.

How much does it cost to start a business in Singapore?

Compared with many global hubs, the direct cost of starting a business in Singapore is relatively modest: government registration fees typically fall between about S$100 and S$300, with total first‑year costs varying by entity type and whether you’re a local or foreign founder.

• Sole proprietorship: Expect roughly S$115 – S$1,300+ in your first year, from ACRA name and registration fees (from S$115) plus any costs for a registered address and basic service‑provider support if you don’t handle everything yourself.

• Partnership: Similar to sole proprietorships, simple partnerships and limited partnerships usually fall in the S$115 – S$1,300+ range once you add address and filing‑agent fees on top of the base ACRA charges.

• Limited Liability Partnership (LLP): Government fees start from about S$115, with total first‑year setup commonly landing between S$115 and S$800+ depending on your address and how much professional help you use.

• Private Limited Company (Pte Ltd): ACRA’s name application and incorporation fees total S$315, but all‑in first‑year costs are typically S$600 – S$1,500 if you’re a local with your own address, and around S$5,000 – S$8,000 for foreign founders who also need a nominee director, registered address and filing‑agent support.

Overall, the upfront cost of starting a business in Singapore is fairly low by international standards. Use a modern financial platform like Airwallex to help you manage your finances seamlessly and keep day‑to‑day business costs low as you scale.

Frequently asked questions (FAQs)

1. What is the best business to start in Singapore? 

The answer to this question depends on market demand, your expertise, and access to capital. However, sectors such as fintech, eCommerce, healthtech, and sustainable energy are thriving and offer promising opportunities for new startups in Singapore.

2. How long does it take to register a company in Singapore?

If your documents are in order, registering a private limited company in Singapore typically takes one to three working days once the application is submitted on BizFile+. Name approval is often instant, but if your business name or activities need review by another government agency⁴, approval can take up to two weeks or more. The preparation of documents may add a few days on top of this.

3. Can a foreigner own 100% of a business in Singapore?

Yes, a foreigner can own 100% of the shares in a Singapore private limited company, with no requirement for a local shareholder. The key conditions are that you must appoint at least one local resident director and have a registered local address in Singapore. Many foreign founders meet these requirements by using a nominee director and virtual office service.

4. How do I open a corporate bank account in Singapore?

To open a corporate bank account in Singapore, your company must first be incorporated and have its UEN. Banks will then require Know Your Customer (KYC) documents such as your company constitution, BizFile business profile, board resolution, and identification and address proof for all directors, authorised signatories and ultimate beneficial owners. Some banks require an in‑person visit, while fintech platforms like Airwallex allow you to complete onboarding fully online and start transacting in a few days.

5. What are the visa options for foreign entrepreneurs who want to move to Singapore to run their business?

Foreign entrepreneurs who want to relocate to Singapore to run their business typically look at the EntrePass (for innovative, venture‑backable or tech‑driven businesses) or the Employment Pass (EP) if their own Singapore company will employ them in a qualifying role. 

In some cases, founders may also explore the Tech.Pass or ONE Pass if they have an established global track record and meet higher income or experience thresholds. Each pass has specific eligibility criteria around salary, business model, funding, or experience, so choose your preferred route based on your profile and business plan.

6. How do I apply for an EntrePass? 

To apply for an EntrePass in Singapore, you submit an online application to the Ministry of Manpower (MOM) with details of your business plan, supporting documents (such as funding, IP, or accelerator acceptance), and your personal profile. Your proposed business must be innovative and meet at least one of MOM’s criteria (for example, being VC‑funded, owning IP, or collaborating with recognised research institutes). Approval is discretionary and can take several weeks.

7. How do I apply for an employment pass?

To apply for an EP, your Singapore‑registered company submits the application to MOM on your behalf, providing details of the role, your fixed monthly salary, and your qualifications and experience. EP applications are assessed under the COMPASS framework, which scores candidates on salary, qualifications, diversity, and company attributes. Processing usually takes around three to eight weeks, and you’ll receive an In‑Principle Approval (IPA) letter if the EP is granted.

Sources

1. https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes

2. https://www.acra.gov.sg/how-to-guides/setting-up-a-local-company/determining-the-company-type

3. https://www.ura.gov.sg/Corporate/Guidelines/Home-Business/Home-Office-Scheme

4. https://www.acra.gov.sg/how-to-guides/before-you-start/referral-authorities

5.  https://www.mom.gov.sg/passes-and-permits/entrepass

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.