How to Start a Business in Singapore as a Foreigner in 2025

Singapore is one of the most business-friendly countries in the world, making it a top destination for foreign entrepreneurs. With its strategic location, robust economy, and pro-business policies, it’s no wonder that many foreigners are eager to start a business in Singapore. However, navigating the process can be challenging if you’re unfamiliar with the local regulations and requirements.

In this guide, we’ll walk you through everything you need to know about starting a business in Singapore as a foreigner, from legal requirements to practical tips for success. Whether you’re looking to set up a small business or a large corporation, this article will provide you with the insights and resources to make your entrepreneurial journey smooth and successful.

Why Start a Business in Singapore?

Before diving into the steps, let’s explore why Singapore is such an attractive destination for foreign entrepreneurs:

1. Ease of Doing Business: Singapore consistently ranks as one of the easiest places to do business globally, thanks to its efficient regulatory environment and minimal bureaucracy.
2. Strategic Location: Situated at the heart of Southeast Asia, Singapore serves as a gateway to the region’s booming markets.
3. Tax Benefits: The country offers low corporate tax rates, tax exemptions, and no capital gains tax, making it a tax-efficient location for businesses.
4. Strong Legal Framework: Singapore’s legal system is transparent and reliable, providing a secure environment for businesses.
5. Skilled Workforce: The country boasts a highly educated and multilingual workforce, ideal for businesses looking to scale.

Types of Companies Foreigners Can Open in Singapore

When starting a business in Singapore, foreigners can choose from several business structures. Each has its own advantages and disadvantages, depending on your goals and circumstances. Here’s a comparison table to help you decide which type of company to open.

Business Structure	Pros	Cons
Private Limited Company (Pte Ltd)	– Separate legal entity – Limited liability – Tax benefits – High credibility	– Requires a local director – Higher compliance requirements
Branch Office	– Easy to set up – Part of the parent company – No local shareholder required	– Unlimited liability – Limited to activities of the parent company
Representative Office	– Low cost – Ideal for market research or promotional activities	– Cannot engage in revenue-generating activities – Limited to 3 years
Sole Proprietorship	– Simple and inexpensive to set up – Full control over the business	– Unlimited liability – Not suitable for large-scale operations
Partnership	– Shared responsibilities – Easy to establish	– Unlimited liability – Potential for disputes among partners

For most foreign entrepreneurs, a Private Limited Company (Pte Ltd) is the best option due to its scalability, credibility, and tax benefits. If you’re unsure which structure is right for you, consider consulting with Vero, a trusted corporate secretarial company in Singapore that specializes in helping foreigners set up businesses seamlessly.

Steps to Start a Business in Singapore as a Foreigner

1. Choose the Right Business Structure

As highlighted in the table above, selecting the right business structure is crucial. A Private Limited Company is the most popular choice for foreigners due to its flexibility and credibility.

2. Register Your Business

To register a business in Singapore, follow these steps:

• Choose a Company Name: Ensure the name is unique and complies with ACRA guidelines.
• Appoint a Local Director: At least one director must be a Singapore resident. If you don’t have a local contact, Vero can assist by providing nominee director services.
• Hire a Company Secretary: A qualified company secretary must be appointed within six months of incorporation. Vero offers professional company secretary services to ensure compliance.
• Submit Required Documents: These include the company’s constitution, details of shareholders and directors, and a registered office address in Singapore.

The entire registration process can be completed online through the ACRA website and typically takes 1-2 days. For a hassle-free and seamless experience, you can consider engaging a corporate secretarial firm like Vero to handle the incorporation process on your behalf. 

3. Open a Corporate Bank Account

Once your business is registered, you’ll need to open a corporate bank account. Most major banks in Singapore offer business banking services, but requirements may vary. Generally, you’ll need:

• Your company’s incorporation documents.
• Identification documents of directors and shareholders.
• Proof of business activities (e.g., invoices or contracts).

4. Understand Visa and Work Pass Requirements

As a foreigner, you’ll need the appropriate visa or work pass to legally operate your business in Singapore. The most common options include:

• EntrePass: Designed for foreign entrepreneurs looking to start and operate a new business in Singapore.
• Employment Pass (EP): For foreign professionals, managers, or executives who wish to work in their Singapore-based company.
• Dependent’s Pass: Allows your spouse and children to live in Singapore while you run your business.

Each pass has specific eligibility criteria, so it’s essential to choose the one that best suits your situation.

5. Comply with Tax and Regulatory Requirements

Singapore has a straightforward tax system, but it’s crucial to stay compliant. Key considerations include:

• Goods and Services Tax (GST): If your annual revenue exceeds SGD 1 million, you must register for GST.
• Corporate Tax Filing: Companies are required to file annual tax returns, even if no tax is payable.
• Annual General Meetings (AGMs): Hold AGMs and file annual returns with ACRA to maintain good standing.

6. Secure Funding for Your Business

Funding is a critical aspect of starting a business. Singapore offers various funding options for foreign entrepreneurs, including:

• Government Grants: Programs like the Startup SG Equity scheme provide funding for innovative startups.
• Venture Capital: Singapore is home to numerous venture capital firms that invest in high-growth businesses.
• Bank Loans: Many banks offer business loans with competitive interest rates.

7. Build a Strong Network

Networking is key to success in Singapore’s business ecosystem. Join industry associations, attend networking events, and leverage platforms like LinkedIn to connect with potential partners, clients, and mentors.

Tips for Success as a Foreign Entrepreneur in Singapore

1. Understand Local Culture: Singapore is a multicultural society, so understanding local customs and etiquette can help you build stronger relationships.
2. Leverage Government Support: Take advantage of government initiatives and resources designed to support startups and SMEs.
3. Focus on Innovation: Singapore values innovation, so incorporating technology and unique solutions into your business can set you apart.
4. Hire Local Talent: Employing local staff can help you navigate the market and build credibility.
5. Stay Compliant: Regularly review your legal and tax obligations to avoid penalties.

Common Challenges for Foreign Entrepreneurs

While Singapore is business-friendly, foreigners may face some challenges, such as:

• High Operating Costs: Rent and labor costs can be expensive, especially in prime locations.
• Competition: The market is highly competitive, so thorough research and a unique value proposition are essential.
• Cultural Differences: Adapting to local business practices and consumer behavior may take time.

How to Start a Business in Singapore as a Foreigner

Starting a business in Singapore as a foreigner is a rewarding endeavor, but it requires careful planning and execution. By following the steps outlined in this guide, you can navigate the process with confidence and set your business up for success.

Singapore’s pro-business environment, strategic location, and robust infrastructure make it an ideal destination for entrepreneurs worldwide. Whether you’re launching a tech startup or expanding an established business, Singapore offers the resources and opportunities to help you thrive.

Ready to take the next step? Vero, a trusted corporate secretarial company in Singapore, can help you set up your business quickly and efficiently. From company registration to compliance support, Vero provides end-to-end solutions tailored to your needs. Contact Vero today to start your entrepreneurial journey in Singapore!

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