Starting a business in Singapore: A guide for Indian residents with requirements, fees, and opening a business account

Since its founding, Singapore has been a central point for trade, business and commerce in Asia especially for Indians. Its business-friendly environment continues to make it a strong location to work. If you are looking to open or register a business in Singapore, read on to learn more about the process, what to expect and what are ongoing costs for a new venture.

Can you register a company in Singapore from India?

Yes, foreigners can register and open a company in Singapore. There are a couple of steps that are required like registering with ACRA (the Accounting and Corporate Regulatory Authority) and applying for the correct visa if you are looking to work in Singapore as well. One big benefit of the process in Singapore is that much, if not all of it, can be done online.

There are two paths to having a company in Singapore:

1. Registering a foreign company: this is when an existing Indian company moves its registration or sets up a branch or representative office in Singapore. Registration fees can range from $300 to $1,000 SGD or more. Changing the domicile of an existing company to Singapore will require all the company’s documents, completing an application and paying application fees. You will be required to have a local representative in Singapore.
2. Starting a local company: this is when you start a company brand new in Singapore. You will need to figure out the company structure, type, name and more. Plus, have a registered address in Singapore. Once it is open, the company needs to file annual paperwork and pay fees. The filing process can be done online.

A unique option that Singapore offers is a visa called the EntrePass. This visa lets entrepreneurs or investors with a track record access to Singapore to start or establish a business or investments. Learn more about EntrePass towards the end of the article.

Here are the main steps to take to open a company in Singapore from India:

• Decide on your company’s business structure. The structure can be based on your industry, projected size, types of clients or customers, and what is best for you as an owner. Check out the next section for the different types of companies you can set up.
• Choose a business name. The name has to be unique and can’t already be in use in Singapore. The ACRA website is helpful to search for existing business names so you can avoid ones that are already taken.
• Register with ACRA. You can register your business on the ACRA website, which is often the easiest option. You will need to create an account, fill out the applications and upload your documents to submit your registration. You’ll also need to pay the filing fees. Mailing your application is an option as well and requires you to download the forms from the site, get hard copies of your documents and follow the directions for the mailing address.
• Pay the fees. You will only be able to register your business once you have paid the required fees. Keep in mind that you will need to pay annual fees every year once the business is open. The fee amount will depend on the type of business structure.
• Open a bank account. Your business will need to open a corporate bank account locally. The bank will want to see your company registration and other documents when you apply for an account.

There may be other additional steps to take, especially if you need licenses or permits for your business. To make the process easier from outside Singapore, you may want to consider hiring an agent but keep in mind they may come with a fee.¹

Different types of companies in Singapore

There are five main types of companies that you can own in Singapore:²

• Sole proprietorship: Typically a small business owned by one person, who is responsible and liable for profits and debts of the business. This is open to Singapore citizens, permanent residents, EntrePass holders or foreign citizens with one locally resident authorized representative. An owner who is a non-resident but a Singapore citizen is required to have an authorized representative in Singapore.
• Partnership: A business owned by two or more people, up to a maximum of 20. The partners have unlimited liability and profits are taxed as part of the partners’ personal income taxes. Like a sole proprietorship, the registration is an option only for Singapore citizens, permanent residents, EntrePass holders or foreign citizens with one locally resident authorized representative. An owner who is a Singapore citizen but a non-resident must have an authorized representative in Singapore.
• Limited partnership: This type of business is owned by two or more partners with at least one general partner and one limited partner. Liability depends on the status of the partner. The partners will need to appoint a local manager who is a resident of Singapore if the partners live abroad.
• Limited liability partnership: A business where there are at least two partners, with no cap on the number of partners you can have. The company is a separate legal entity from the partners. The registration needs to be completed by two partners and a local manager is required to be appointed if the partners reside abroad.
• Company: A company can be private or public, which determines how many people can own it. The company exists as a separate legal entity from the partners' and owners' personal assets. At least one director must be a resident of Singapore, and if a non-Singapore citizen wants to be a local director, they can apply for an EntrePass through the Ministry of Manpower.

To open a company in Singapore from India, your business structure must fall into one of these five types. There is the ability to move a sole proprietorship to a partnership or limited liability partnership as your business grows.

Requirements to start a Singapore company from India

One of the most important requirements for foreigners to register a business in Singapore is to have a local resident as part of the structure. Depending on the type of company you set up, it can be as:

• Authorized representatives.
• General partners.
• Managers.
• Directors.

A local authorized representative can be a Singapore citizen, permanent resident, EntrePass or Employment Pass holder. The chosen representative is advised to check with the Ministry of Manpower for their eligibility for the role in the company.

Additionally, a requirement for starting a brand new business and working in Singapore is to have a valid visa for the country. You can not start a new business from abroad without having a local representative in Singapore or a visa to work in the country.

You may register an existing business in Singapore, or open a business once you are a Singapore resident on a valid visa. All businesses are required to be registered with ACRA.

Indians living in India who are looking to operate and manage an existing business that is domiciled in Singapore can contact the Ministry of Manpower for approval and the right visas. This can only be done after the business is registered.³

What does it cost to run a Singapore company?

The costs for running a business in Singapore depend on the size of the business you have, operating expenses, the consumers, industry and structure. Here are common costs to be aware of:

• Employee salaries and benefits.
• Office rent and utilities.
• Equipment, machinery and supplies.
• Marketing and advertising.
• Insurance, taxes and legal fees.

DBS small business banking estimates that the total costs can range from $6,500 to $45,000 SGD, but the actual Singapore Dollar amount will vary from business to business.⁴

Starting costs for setting up the company

The starting costs for setting up a business in Singapore depend on the type of structure:⁵

*As of 9 October, 2023.

Sole-proprietorships, partnerships and limited partnerships can also file a 3-year registration for $175 SGD.

Fees for annual filings

Here are the yearly fees to expect for businesses in Singapore:

*As of 9 October, 2023.

There may be additional annual fees depending on other factors related to your business.

Starting a business account for a Singapore company

A business bank account is important for operating a company in Singapore. Banks like DBS Bank, OCBC Bank, UOB, Citibank and Standard Chartered are all popular options for small to large businesses.

🔍 Read more about the 6 Best Business Bank Accounts in Singapore.

But managing a Singapore bank account from India can have its challenges. If you are working across multiple countries, you’ll want a business account that can work in different currencies - but without having to pay high fees. Transferring money across borders, like from India to Singapore, and having the ability to receive money from clients in other countries quickly are important factors to consider when looking at a business account.

Want a business account that is as global as you? Check out the Wise Business Account.

Meet Wise Business

The Wise Business Account can help you manage and grow your business, no matter the size. With easy transfer features, low fees and transparent pricing, you can be on top of your business finances while saving time and money.

The Wise Business account gives you account details in multiple currencies, which makes it easy to receive payments from around the world. And the same account offers seamless international transfers that makes making payments to your team or suppliers abroad simple and efficient.

A Wise Business Account can fit into your business seamlessly with integrations into accounting software like Quickbooks, Xero and FreeAgent. Plus, it's easy to make batch payments.

Our online process lets you open and verify your Singapore business account from India. With our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

Business categories supported on Wise 👉

Moving to Singapore from India

There are two main ways to immigrate to Singapore with the intention of having a business:

• EntrePass: foreigners who have innovative tech, hold intellectual property, are venture-backed or have an investment track record can apply for an EntrePass. This pass lets you work, live and start a private limited company in Singapore. Entrepreneurs must show government-recognized funding for their idea, or existing company, to be eligible.⁹
• Employment Pass: this visa allows for employment in Singapore with a local company. There is a minimum salary requirement of $5,000 to $11,5000 SGD per month depending on your age and industry, which will be verified as part of your application. Your employer also must provide details for the reason for employment through a points-based system called COMPASS.¹⁰

Tourists, students or visitors are generally not allowed to start a business in Singapore, although some students may have the option to work while they study.

Cover photo by Larry Teo on Unsplash.