Reasons to Setup a Company in Singapore

5 min read|Last Updated: May 24, 2023|

Many organisations tracking the business friendliness in countries have rated Singapore highly for the ease with which a new business can be started. The pro-business environment is capable of attracting sizable foreign investments and business entrepreneurs. Furthermore, there were more business entities that were incorporated in Singapore than other countries during the Covid-19 pandemic.

Singapore As a Business Hub

Largely known as a business hub in Asia, Singapore is home to many MNCs, SMEs, and start-ups. The statistics and rankings tell a story of how open Singapore is as a country for foreign-owned and local businesses.

Check out the statistics and rankings below to see Singapore as a powerhouse in the world!

  • #1 in the Best Business Environment 2020 by The Economist Intelligence Unit
  • #1 in the Human Capital Index 2020 by World Bank Group

  • #1 in the Economic Freedom Index 2021 by The Heritage Foundation
  • #2 in the Ease of Doing Business Ranking 2021 by The World Bank
  • #3 in the Corruption Perceptions Index 2020 by Transparency International
  • #4 in the Starting A Business Ranking 2021 by The World Bank
  • #5 in the World Competitiveness Ranking 2021 by Institute for Management Development

Reasons to Start Your Company in Singapore

Ever wondered why foreigners and locals are incorporating companies in Singapore over other countries like New Zealand or Hong Kong? There are 10 reasons why:

  • Ease of company incorporation

    No frills and straightforward process when you incorporate your company in Singapore. According to The World Bank, Singapore ranks 2nd in the ease of doing business. The incorporation process only takes one day should all documents are ready.

  • Medium of language
    Language is a key component to consider when setting up a business in a country. In Singapore, English is the official business and administrative language and almost all Singaporeans are available to speak English, reducing potential communication obstacles.
  • Strategic location

    Hailed as the gateway to Asia, Singapore is only a short plane ride away to Southeast Asian countries and Australia. Its strategic location enables you to expand to other parts of Asia Pacific easily, connecting your business to a diverse base of consumers and workforce.

    For business expansion, you can tap on the Market Readiness Assistance grant supported by the government to reduce the overall expansion costs – find out more about it here.

  • Complete company ownership

    Any foreigner can set up their own company in Singapore, and this can be done without a Singapore partner! As you have full control over your company, you can decide on the capital structure that best suits your business.

Eric - Chief Executive Officer
  • Low corporate tax rate

    One of the most important considerations for investors and entrepreneurs is the corporate tax rates. No one likes to be taxed a hefty figure when doing business – as such, Singapore, boasting a low corporate tax rate capped at 17% is an attractive proposition for them!

  • Extensive double tax treaties

    Likewise, paying double tax is never an ideal situation. To avoid double taxing, Singapore has been part of many double tax treaties with various countries across the world. This helps to ensure that those who pay taxes to the Singaporean tax authorities will not have to pay taxes to the other countries involved in the tax treaties.

  • Talent hub

    Talents are aplenty in Singapore. With its open immigration policy and strong liveable conditions, more talents are opting to come to Singapore to live and work, making it easier for companies to get the skilled talents required.

  • No restrictions on movement of foreign currency

    Setting up a company requires a substantial amount of capital at the initial stage. The good news is you can bring in as much capital as you need from your home country when you set up a company in Singapore without any restrictions unlike China and India.

  • Open economy

    Ranked 1st in the Economic Freedom Index by The Heritage Foundation, Singapore stands out from its competitors by having stable political environment, business-friendly tax system, its openness to foreign investments, labour market, and modern infrastructure.

  • Grants for businesses

    The Singapore government encourages start-ups and SMEs by offering various grants that help these companies to accelerate their business ventures, even for foreign-owned businesses. Discover the list of business grants available for you to tap on!

  • Productive workforce

    Singapore’s excellent education system produces high-scoring students on global comparative standards. These students then become part of Singapore’s workforce, providing quality work and outstanding performance. On top of this, Singaporeans are known to be extremely hardworking, law-abiding, productive, and highly educated.

  • Law-abiding

    Singapore has a practice of recruiting its best citizens into its civil service, paying them exceptionally well so that there is little to no temptation for corruption. Singapore also possesses strict laws, meaning corruption and official misconduct are faced with harsh punishments. These government policies have resulted in Singapore ranking as one of the least corrupt cities in the world.

  • Excellent quality of life

    Singapore’s public transportation is efficient and easily accessible, making it easy for people to travel all around the country. With international markets on every corner, access to fresh groceries is also convenient and hassle-free. The government has created a safe, clean, efficiently-run place to live, where business freedoms and the rule of law are well respected.

Starting A Business in Singapore

While there are many reasons to start a business in Singapore, the next important step is to identify which industries to enter. Check out the top business opportunities and growing industries in Singapore

In addition, do take note of the business licenses required for certain industries such as financial services, trading, and more before making your decision.


Come to our office or get in touch virtually for a consultation on your company incorporation and other corporate services.


Is it true that Singapore does not have taxation on capital gains?2021-08-31T09:40:47+08:00

Yes, one of Singapore’s most well-known tax policies is that of the lack of taxation on capital gains. This policy was put in place to encourage the undertaking of business ventures in Singapore. Thus, it has contributed to the country’s economic development.

Do I need to set up a company when running an e-commerce business in Singapore?2021-08-30T16:46:24+08:00

Yes, you must start a company when running your e-commence business. Find out more here!

What are the requirements to set up a company in Singapore?2021-08-30T16:45:25+08:00

The basic requirements to set up a company in Singapore include:

  • At least one local director (Singapore citizen, a Singapore permanent resident, an EntrePass/Employment Pass/Dependent’s Pass’s holder with LOC, or a nominee director)
  • At least 1 shareholder (full flexibility here, can be corporate or individual, 100% foreign owned is acceptable too!)
  • At least S$1 paid-up capital
  • A physical local registered address
  • A company secretary

You can find out more about incorporation in our article here!

Can foreigners set up a company in Singapore?2020-11-13T09:00:36+08:00

Anyone can set up a company in Singapore and own 100% of the company. 

What are the popular business that I can start in Singapore?2020-11-13T09:00:51+08:00

Some popular businesses in Singapore are food and snacks, transportation, consulting firm, home tutoring service, online marketing, laundry service, and personal trainer. 

I want to run an e-commerce business in Singapore, must I set up a company?2020-11-13T09:01:28+08:00

Yes, to run an e-commerce business in Singapore, you must set up a company.

Singapore does not have Taxation on capital gains, is it true?2020-11-13T09:01:45+08:00

Yes, one of Singapore’s most well-known tax policies is that of the lack of taxation on capital gains. This policy was put in place to encourage the undertaking of business ventures in Singapore. Thus, it has contributed to the country’s economic development. 

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