How it works
Most businesses in Singapore use a private limited company: a separate legal entity with limited liability and up to 50 shareholders. What changes is what surrounds it. Who owns it decides the audit and tax exemption position. Whether anyone lives here decides the director question. The purpose decides how hard tax residence will be to prove, and revenue decides GST and transfer pricing.
Worked example
A group parent abroad sets up a Singapore holding company, with no one resident in Singapore and revenue under S$1 million. The finder flags: a resident director is needed; an audit is likely under the group test; the year end should match the parent; and the company will need real substance to obtain a certificate of residence.
Questions people ask
Can a foreigner own 100% of a Singapore company?
Yes. The company still needs at least one director ordinarily resident in Singapore.
What is the minimum paid-up capital?
S$1. Many founders start higher to make bank onboarding easier.
How long does incorporation take?
Once documents and checks are complete, a straightforward incorporation is often approved within a day.
Sources
- ACRA: Submitting your application to set up a local company
- IRAS: Corporate income tax rates, exemptions and rebates
Last checked 1 November 2026. General information only, not advice for your situation. Speak to a qualified adviser before you act.