Singapore is one of the biggest financial hubs in Asia. Its low tax, stable political and business friendly environment attract entrepreneurs from all over the world.
Singapore PTE Ltd companies have a relatively low corporate income tax at 17% with incentives for new companies.
No capital gains and dividend tax makes it a preferred jurisdiction for holding companies in Asia along with Hong Kong.
Quick Facts
Corporate Tax Rate
17%
Local Director Required
Yes
Audit Required
No
Complexity
Simple
Legal Information
Legal Information
Entity Type
Corporation
Company Form
Private Limited Company (Pte. Ltd.)
Liability
Shareholders' liability is limited to their contribution to the company’s share capital.
Share Capital
Minimum share capital is SGD 1.
Company Name Rules
Must be unique and not similar to existing names. Must include “Pte. Ltd.” in the name. Cannot contain restricted or misleading terms (e.g., “bank” or “insurance” without approval).
Types of Shares Allowed
Ordinary shares, preference shares, redeemable shares.
Bearer Shares Allowed
No, bearer shares are not permitted.
Foreign Ownership Rules
100% foreign ownership allowed.
Redomiciliation
Allowed
Shareholders
1 shareholder (natural or legal person).
Directors
Minimum: 1 director (must be a Singapore resident).
Secretary
Registered Address
Every Pte. Ltd. company must have a registered office in Singapore.
Incorporation Timeline
Company Name Reservation
1-2 business daysSubmit the proposed company name to ACRA for approval.
Appointment of Directors & Secretary
1-2 business daysAppoint at least one local director and a company secretary (required within 6 months).
Preparation of Incorporation Documents
2-3 business daysDraft the company constitution, shareholder agreements, and other incorporation documents.
Filing with ACRA
1 business daySubmit incorporation documents and register the company with ACRA.
Certificate of Incorporation Issued
1 business dayOnce approved, ACRA issues the Certificate of Incorporation.
Employment Pass & Visa Processing (If Required)
2-8 weeksApply for an Employment Pass or EntrePass for foreign directors or employees.
Bank Account Opening
5-15 business daysOpen a corporate bank account. Most banks require at least one local director to be present.
Tax & CPF Registration
2-5 business daysRegister for corporate tax with IRAS and CPF contributions for employees.
Compliance & Operational Setup
OngoingEnsure compliance with regulatory requirements, appoint accountants, and start business operations.
Singapore Corporate Taxation
Corporate Income Tax: 17%
Effective Tax Rate: 17%
Exemptions:
A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available.
Dividends are tax exempt for Singapore companies
Capital gains are tax exempt for Singapore companies
No withholding on dividends paid out.
Applies to royalty payments made to non-resident individuals or companies