How to Set Up an Entity in Singapore

Setting up an entity in Singapore is attractive for foreign businesses because the country combines a stable common law system, clear company law, and a pro-business tax regime with easy access to the wider Asia-Pacific market. For many global companies, a Singapore entity becomes the core regional hub for holding IP, contracting with customers, and employing local and foreign talent.

The process is relatively streamlined by regional standards, with most filings completed online through the national corporate registry. The main challenges are assembling the right structure (local resident director, company secretary, registered office), passing anti-money-laundering checks, opening a bank account, and staying on top of tax and employment rules. In return, businesses gain full control over their operations, the ability to hold assets directly in Singapore, access to a competitive 17% corporate tax rate, and a strong reputation with investors and counterparties.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Singapore?

Opening an entity in Singapore means incorporating a local company (most often a Private Limited Company, or “Pte Ltd”) with the Accounting and Corporate Regulatory Authority (ACRA) and registering it so it can legally trade, hire staff, pay taxes, and enter contracts.

Entity overview in Singapore

Foreign investors generally incorporate a Private Limited Company as their local subsidiary. Registration is completed online via ACRA’s BizFile+ system, usually with support from a local filing agent. Branches and representative offices follow different rules, but for most foreign businesses the subsidiary structure provides the best mix of flexibility, tax benefits, and limited liability.

Step-by-step guide: How to open an entity in Singapore

Step 1: Choose the right structure

Most foreign companies use a Private Limited Company (Pte Ltd) as a wholly owned subsidiary. It offers separate legal personality, limited liability, tax residency in Singapore, and full foreign ownership, making it suitable for hiring staff, booking revenue, and holding IP. A Branch Office is legally an extension of the foreign parent, with the parent fully liable for its debts and with more limited access to local incentives. A Representative Office cannot generate revenue or sign commercial contracts and is typically used only for short-term market research, not for building a long-term operational presence.

Step 2: Verify business name availability

Business names are checked and reserved through ACRA’s BizFile+ portal. You must ensure the proposed name is not identical or too similar to an existing entity and does not use prohibited or misleading terms. Name approval and reservation are usually handled by your local filing agent as part of the incorporation package.

Step 3: Prepare incorporation documents

Before filing, gather the documents required for ACRA’s company registration and anti-money-laundering checks. Standard requirements include:

• Identification and proof of address for individual shareholders and directors (e.g., passport and recent utility bill or bank statement).
• Corporate documents for any parent company shareholder (certificate of incorporation, constitution, register of directors/shareholders).
• Details of the proposed share capital, shareholding structure, and list of officers (directors, company secretary).
• The company’s Constitution (often the standard Model Constitution) and director consent forms.

These are usually submitted electronically by your Registered Filing Agent through ACRA’s BizFile+ system, using templates and forms provided within the portal.

Step 4: Register with ACRA

Your Registered Filing Agent files the incorporation application online with ACRA, entering the approved company name, registered office address, business activity codes (SSIC), share capital, shareholdings, and particulars of all officers. Government fees are paid electronically. Once ACRA approves the application, the company receives a digital Certificate of Incorporation (hard copies are no longer provided by default) and a Business Profile showing its Unique Entity Number (UEN), officers, and share structure. At that point, the company is legally incorporated and can sign contracts, apply for bank accounts, and register for tax.

Step 5: Register for tax and social security

New companies are automatically visible to the Inland Revenue Authority of Singapore (IRAS) and must file corporate tax returns once they become active and earn income. If annual taxable turnover is expected to exceed S$1 million, or if the company chooses to register voluntarily, it applies for a GST registration with IRAS and begins charging 9% GST on taxable supplies. To employ Singapore citizens and permanent residents, the company must also register as an employer for Central Provident Fund (CPF) purposes so it can remit mandatory social security contributions on wages.

Step 6: Open a corporate bank account

To open a corporate bank account, the company submits its ACRA Business Profile, constitution, board resolutions authorizing account opening, and KYC documents for all directors, authorized signatories, and ultimate beneficial owners. Banks may request additional evidence of genuine business activity, such as contracts, invoices, or a business plan, and in some cases may require in-person or video verification. Local bank accounts are not strictly mandated by law but are practically necessary for paying salaries, suppliers, and local taxes in Singapore dollars.

Step 7: Set up payroll and employment compliance

To hire employees, the company must issue compliant written employment contracts, register as a CPF employer if hiring locals, and respect working time, leave, and termination rules under Singapore employment law. For foreign staff, the company applies for appropriate work passes (such as the Employment Pass) and must meet the salary and points-based COMPASS framework requirements. Payroll systems must calculate net pay, CPF contributions for eligible local employees, any applicable levies, and withholdings, and ensure these are reported and paid on time.

Post-registration obligations

After incorporation, companies in Singapore must stay compliant with local governance, tax, and employment laws. Typical requirements include:

• Tax and financial reporting: File corporate income tax returns (and GST returns if registered) with the Inland Revenue Authority of Singapore (IRAS).
• Corporate registers: Maintain up-to-date records of directors, shareholders, and beneficial owners and report any changes to ACRA through the BizFile+ system within the prescribed timelines.
• Compliance tracking: Monitor all tax, licensing, and corporate filing deadlines (e.g., Annual General Meeting and Annual Return deadlines) using a compliance calendar, automated reminder system, or local service provider to avoid penalties.
• Licenses and renewals: Renew any sector-specific business licenses, trade permits, or professional registrations with the relevant ministries or agencies according to their renewal cycles.
• Recordkeeping: Retain accounting, payroll, HR, and transaction records for at least the minimum period required under Singapore law (typically at least 5 years), ensuring they are accessible for audits or inspections.
• Employment law compliance: Adhere to labour, benefits, social security, and data-protection rules, including maintaining compliant employment contracts, performing accurate payroll reporting, paying CPF contributions for eligible employees, and implementing appropriate data-protection measures.

Taxes and financial considerations

Key obligations include:

• Corporate income tax: Flat 17% corporate income tax rate on chargeable income, administered by IRAS and generally payable annually following the company’s financial year end.
• VAT/GST: 9% GST on most taxable goods and services, with mandatory registration once annual taxable turnover exceeds S$1 million, and periodic GST return filing for registered businesses.
• Payroll/social contributions: Mandatory CPF contributions for Singapore citizen and permanent resident employees, with combined employer and employee rates (for younger workers) typically around 37% of wages up to the prevailing salary ceilings; no CPF on wages paid to foreign work-pass holders.
• Accounting standards: Financial statements are prepared under Singapore Financial Reporting Standards (SFRS), which are largely converged with IFRS.

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into New Zealand—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Singapore?
Typically 1–2 weeks for straightforward cases when working with a local filing agent, assuming documents and KYC information are complete. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
The statutory minimum paid-up capital for a Private Limited Company is S$1, though higher capital is often used to support banking and work-pass applications.

Can foreign companies own 100% of an entity in Singapore?
Yes. In most sectors, foreign companies and individuals can own 100% of the shares in a Singapore Pte Ltd, subject to sector-specific restrictions in regulated industries.

Do I need a local director or representative?
Yes. Every Singapore company must have at least one director who is “ordinarily resident” in Singapore (citizen, permanent resident, or eligible work-pass holder). Foreign-owned companies often use a nominee director service until a suitable local or work-pass-holding director is in place.

How much does it cost to register an entity?
Government fees are modest, but once you include filing agent, nominee director, and company secretarial services, total setup costs commonly range from S$2,000–S$6,000. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Generally, you must complete incorporation before entering local employment contracts. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your Singapore entity setup is in progress.

Can Deel help me open an entity in Singapore?
Yes. Deel Entity Setup manages the end-to-end process—from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.