March 07, 2025
Incorporating an LLC in Singapore: Step-by-Step Process
Singapore has earned its reputation as one of the most business-friendly countries in the world, thanks to its favorable tax policies, ease of doing business, and strategic location in Asia. For entrepreneurs looking to expand or start a new venture, incorporating a Private Limited Company (commonly referred to as an LLC in other jurisdictions) is one of the most popular and reliable options.
Below is a breakdown of the process of incorporating an LLC in Singapore:
Benefits of Incorporating an LLC in Singapore
Before diving into the steps, here are some key reasons why Singapore is an ideal location for LLC incorporation:
- Ease of Doing Business: Singapore is renowned for its ease of doing business. The incorporation process is quick, and businesses can be operational in as little as one day.
- Low Corporate Tax Rates: Singapore offers one of the most attractive tax rates in the region, with a corporate tax rate capped at 17%. Additionally, startups can benefit from tax exemptions and incentives.
- Strategic Location: Singapore’s location in Southeast Asia makes it a prime hub for businesses in the region, especially for companies looking to expand into the ASEAN market.
- Stable and Transparent Regulatory Framework: The country offers a robust legal system with minimal corruption and clear regulations, making it safe for investors.
- Access to Talent: Singapore is home to a skilled and diverse workforce, attracting talent from around the world.
Steps to Incorporate an LLC in Singapore
- Select a Company Name
The first step in incorporating an LLC is selecting a unique and appropriate company name. The name must adhere to the guidelines set by the Accounting and Corporate Regulatory Authority (ACRA). It should:
- Be distinct and not similar to existing company names.
- Not be offensive or vulgar.
- Accurately reflect the business’s activities.
The name must be reserved with ACRA before proceeding with the incorporation.
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- Appoint Directors and Shareholders
There are certain mandatory requirements regarding directors and shareholders for a Private Limited Company in Singapore:
- Directors: A minimum of one director is required, and at least one director must be a Singapore resident (Singapore citizen, permanent resident, or holder of an Employment Pass). Directors can be individuals or corporate entities.
- Shareholders: A minimum of one shareholder is required. Shareholders can be individuals or corporate entities of any nationality, with the number of shareholders capped at 50.
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- Register the Company with ACRA
Once the company name, directors, and shareholders have been finalized, the next step is to register the company with ACRA. This involves submitting the following details:
- Company name.
- Business activities (using business activity codes from ACRA’s list).
- Details of directors and shareholders.
- Registered office address in Singapore.
The registration process is done online through ACRA’s BizFile+ portal. Typically, approval is received within a few hours.
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- Appoint a Company Secretary
After the company is registered, a company secretary must be appointed within six months. The company secretary is responsible for ensuring compliance with legal requirements and assisting with administrative tasks. For foreign entrepreneurs, hiring a professional corporate service provider for this role is common.
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- Open a Corporate Bank Account
To start financial operations, a corporate bank account must be opened. This requires providing the bank with the company’s registration details, identification documents of directors and shareholders, and other relevant company information. It’s important to research banks and choose one that meets the business’s needs.
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- Obtain Relevant Licenses and Permits
Depending on the nature of the business, certain licenses or permits may be required. For instance, businesses in the food and beverage sector need a food establishment license. It is essential to research industry-specific regulations and apply for the appropriate licenses.
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- Ongoing Compliance Requirements
After incorporation, the LLC must comply with several ongoing obligations:
- Annual Returns: The company must file its annual returns with ACRA, including financial statements and business information.
- Tax Filing: An annual corporate tax return must be filed with the Inland Revenue Authority of Singapore (IRAS).
- Financial Statements: The company must prepare and file financial statements in compliance with Singapore’s accounting standards.
Conclusion
Incorporating an LLC in Singapore offers numerous benefits, including a business-friendly environment, low corporate tax rates, and access to global markets. However, it is important to follow the required steps and remain compliant with local regulations to ensure the success of the business.
With a straightforward incorporation process and access to professional services, Singapore remains an ideal destination for businesses looking to expand or establish operations. By adhering to the necessary steps and maintaining compliance, a business can thrive in this dynamic and stable market.
For more information or queries, please email us at
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Key Contact
Surendra Singh Chandrawat
Managing Partner
