Start Your Own Business in Singapore
Singapore is consistently ranked as one of the easiest places in the world to start a business. This guide covers the path from sole proprietor to Pte Ltd.
HustleHub AI provides general information only, not tax, legal, or financial advice. Singapore tax and business rules may change. Always check official guidance from IRAS and ACRA or consult a qualified professional.
Self-employed vs company — which is right for you?
| Feature | Sole Proprietorship | Private Limited (Pte Ltd) |
|---|---|---|
| Setup | ACRA BizFile+ (S$15) | ACRA incorporation (S$315 + professional fees) |
| Legal status | You and business are the same | Separate legal entity |
| Liability | Personally liable for all debts | Limited to company assets |
| Tax | Personal income tax (0-24%) | Corporate tax 17% with partial exemption |
| Admin | Minimal — annual ACRA renewal | Annual return, AGM, accounts, corporate secretary |
| Costs | S$15/year | S$315 registration + annual compliance fees |
| Fundraising | Personal loans only | Can issue shares, attract investors |
| Best for | Low-risk, testing ideas, freelancing | Growth, investor funding, credibility, liability protection |
Stay self-employed when...
- You are testing a business idea or freelancing part-time
- Your annual income is modest and personal tax rates are favourable
- You want minimal compliance and paperwork
- You do not need to raise external capital
Consider a Pte Ltd when...
- You want limited liability protection for personal assets
- You plan to raise funding or bring in partners/investors
- Your clients (especially government or MNCs) require a company structure
- Your income exceeds a level where corporate tax (17%) is more efficient than personal rates
How to form a company in Singapore
Choose and reserve a company name via ACRA BizFile+
Prepare the Constitution (replacing old Memorandum and Articles)
Incorporate online via BizFile+ (S$315 registration fee)
Appoint at least one local resident director
Appoint a qualified company secretary within 6 months
Provide a registered address in Singapore
Register for corporate tax with IRAS
Open a corporate bank account
Singapore-specific notes
Singapore offers a partial tax exemption scheme for new companies: 75% exemption on the first S$100,000 of chargeable income and 50% on the next S$100,000 for the first 3 years. Combined with no capital gains tax, Singapore is one of the most tax-efficient jurisdictions for small businesses.