Singapore’s corporate tax is set at a competitive rate of 17% on chargeable income, whether a company is local or foreign. To further support businesses, the government offers several corporate tax relief schemes.

Tax Exemption Scheme for New Start-up Companies

Qualifying companies are given the following tax exemptions for the first three consecutive years of assessment (YAs) where the YA falls in:

YA 2020 onwards

75% exemption on the first $100,000 of normal chargeable income; and A further 50% exemption on the next $100,000 of normal chargeable income.

YA 2010–2019

Full exemption on the first $100,000 of normal chargeable income; and A further 50% exemption on the next $200,000 of normal chargeable income

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Partial Tax Exemption for All Companies

All companies, including companies limited by guarantee, can enjoy the following tax exemption:

YA 2020 onwards

75% exemption on the first $10,000 of normal chargeable income; and A further 50% exemption on the next $190,000 of normal chargeable income.

YA 2010–2019

75% tax exemption on the first $10,000 of normal chargeable income; and A further 50% exemption on the next $290,000 of normal chargeable income.

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Corporate Income Tax Rebate

Given to all companies:

YA 2020 onwards

75% exemption on the first $10,000 of normal chargeable income; and A further 50% exemption on the next $190,000 of normal chargeable income.

YA 2013–2019

Refer to applicable rates here.

Singapore offers a range of tax incentives designed to support business growth and innovation, making it an attractive destination for setting up a business.

These are some of the key incentive schemes:

Pioneer Certificate Incentive

Granted to companies that locate “pioneering” activities that are not carried out in Singapore at the time. It is designed to attract companies in high-tech, innovative, or strategically important industries that can contribute significantly to Singapore’s economic development, helping to establish Singapore as a regional hub for advanced industries.

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Development and Expansion Incentive

Encourages companies to develop capabilities and/or expand their activities in Singapore. The concessionary tax rate for this incentive is either 5% or 10%, depending on the size of economic investments these companies commit to bringing into Singapore.

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Enterprise Innovation Scheme (EIS)

Effective from YA 2024 to YA 2028, is designed to help businesses which are focused on research, innovation, and digital transformation. The EIS provides enhanced tax deductions or cash payouts for qualifying expenditures in areas such as R&D, intellectual property registration, and training in innovation.

Singapore also offers Foreign Income Tax Reliefs and Exemptions, where it does not tax capital gains on the sale of fixed assets or foreign exchange on capital transactions. However, companies (irrespective of tax residency) operating in Singapore are taxed on income sourced in the country and foreign income when remitted to and received in Singapore.

According to the Inland Revenue Authority of Singapore (IRAS),companies that are Singapore tax residents can enjoy tax breaks on foreign income as follows:

• Tax Exemption or Reduction: Upfront exemption or reduction in tax imposed on the foreign income when foreign income is derived in a jurisdiction that has an Avoidance of Double Taxation Agreement (DTA) with Singapore;
• Specified Foreign Income Exemptions: Tax exemption of specified foreign income such as foreign-sourced dividends, branch profits and service income; and
• Foreign tax credit: Credit for the taxes paid in the foreign jurisdiction against the Singapore tax payable on the same income.

Supported by the government, the Enterprise Development Grant (EDG) and Productivity Solutions Grant are the initiatives designed to support local businesses:

Enterprise Development Grant (EDG)

This provides funding to cover up to 80% of the qualifying project costs, including consultancy fees, budgets for equipment and software and internal manpower costs, for projects that drive innovation, productivity and market success. To apply for the grant, the business must be registered and operate in Singapore with 30% of the local equity owned by Singaporeans or Singapore’s permanent residents. It should also demonstrate its capability to start and finish the project and have a minimum of SGD 400,000 turnover.

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Productivity Solutions Grants (PSG)

This grant aims to cover the costs of IT solutions, equipment and consultancy services for SMEs, enabling them to adopt technology to improve their productivity. It offers up to 50% of the qualifying costs for each company. Similar to EDG, only registered and operating businesses in Singapore can apply for the grant. However, the project must involve the adoption of technology to be eligible.

Whether you are setting up a business or have been operating an SME company for more than years, the government in Singapore provides many grant schemes in support of startups and companies across sectors. You can refer to GoBusiness Singapore for the full list of grants available.

Enterprise Financing Scheme (EFS) is offered in Singapore to assist SMEs and startups in securing financing for their business operations. This government-backed scheme provides financing to eligible SMEs for various business purposes, including Green Loans for sustainable projects, SME Working Capital Loans for investments in fixed assets, and Venture Debt Loans in support of innovative projects by enterprises.

To be eligible for the scheme, the business must meet the following requirements:

• Registered and physically located in Singapore;
• 30% of the local equity must be directly or indirectly held by Singaporeans or Singapore’s permanent residents;
• Group annual sales turnover should not exceed SGD 500,000,000.

Singapore is one of the most competitive economies in the world, ranking first in the Asia Pacific (APAC) region and fifth in the world for economic competitiveness by the IMD World Competitiveness Yearbook 2021.

100% of the shares of incorporated companies in Singapore can be owned by foreigners or foreign companies (except for broadcasting and domestic news media).

There are no export tariffs and foreign exchange controls in Singapore, but there are import tariffs on:

• intoxicating liquors;
• tobacco products;
• motor vehicles;
• petroleum products; and
• biodiesel blends.

As Singapore’s primary business and administrative language, English is widely used in Singapore, making it easier for foreign investors to establish companies within the region. Additionally, Singapore’s bilingual policy means that many professionals are fluent in both English and Mandarin, which is particularly advantageous for companies looking to tap into the vast Chinese-speaking market in Asia. This bilingual environment ensures that businesses can effectively engage with a diverse range of clients, partners, and stakeholders, bridging cultural and linguistic gaps while enhancing regional business operations.

The most common types of business structures operating in Singapore are:

• Sole Proprietorship: This is the simplest form of business structure, owned and operated by a single individual. It’s easy to set up and manage, with minimal legal formalities. However, the owner is personally liable for all debts and obligations of the business, meaning their personal assets are susceptible to risks.
• Partnership: A partnership is a business structure formed by two or more individuals who agree to share profits and losses. There are two main partnership types — general and limited. In a general partnership, all partners have equal rights and responsibilities. In a limited partnership, there is at least one general partner with unlimited liability and one or more limited partners with limited liability.
• Limited Liability Partnership (LLP): An LLP is a hybrid business structure that combines the characteristics of a partnership and a company. Similar to a company, it offers limited liability for all partners. However, unlike a company, an LLP is not a separate legal entity. While this protects partners’ personal assets from business debts, they remain personally liable for their own actions and liabilities, as well as for the actions of fellow partners within the scope of the LLP’s business.
• Private Limited Company: A private limited company is a separate legal entity from its owners. Shareholders have limited liability, meaning their personal assets are generally protected from business debts. Private companies are typically owned by a small group of individuals, allowing up to 50 shareholders.
• Public Limited Company: A public limited company is a separate legal entity that the public can own. Shares of the company can be traded on a stock exchange. Shareholders have limited liability, similar to a private limited company. Unlike private limited companies, this type of business structure must have a minimum of 50 shareholders.
• Foreign Company Office: Established outside of Singapore, foreign companies can register in the country to start either a representative office, which is not for business purposes, or a branch office. Neither option creates a separate legal entity, however, so all liability extends to the parent company.

Your company must avoid choosing a name that is:

• the same as an existing business name already approved by the Accounting and Corporate Regulatory Authority (ACRA);
• undesirable names that are vulgar, obscene, or offensive; and
• prohibited by order of the Minister for Finance.

You can search the online business and company name register in Singapore, BizFile, to check if your preferred name is available.

If you are setting up a company, you need to determine the structure of your company per the following requirements:

• Directors: a minimum of at least one person. One director needs to be a natural person (i. an individual). Directors must be aged 18 years or older and be either:
• a Singaporean citizen; or
• permanent resident; or
• a person with an Employment Pass; or
• a person with an Entrepreneur Pass (EntrePass).

BoardRoom offers a nominee director service to help you meet the local director requirements in Singapore.

• Shareholders: a minimum of at least one shareholder. 100% of shares can be foreign-owned.
• Company secretary: a sole director must not act as the company secretary. To start and register a company in Singapore, you must appoint a natural person who lives in Singapore as a company secretary. Companies like BoardRoom can provide expert company secretarial services so that your company can meet all of its statutory obligations in Singapore.
• Share capital: the minimum issued capital must be at least $SGD1.
• Registered address: must be a physical address in Singapore, not a P.O. Box. If your business does not yet have local office space, professional service firms like BoardRoom can help your company by setting up a registered office location.

Once you have decided on a company name and the designated company share structure, you can now proceed to the company registration, officially setting up your own business. If you are a Singaporean or a permanent resident of Singapore, you can apply online via the ACRA’s BizFile+ Portal. Simply use your SingPass, which is digital identification designed specifically for the local citizens, to access the platform. Once you log in, please start the registration and provide the following documents and information to complete the application:

• Approved company name from ACRA
• Company constitution (Articles of Association)
• Identification and residential address of shareholders and directors
• Signed consent from each director
• Registered office address in Singapore
• SSIC code for business activities

It generally takes only a day to approve the application. Please ensure you prepare all the necessary documents in advance.

After the application is approved, the ACRA will issue you a Business Registration Number (BRN). This number, also known as the Unique Entity Number (UEN) in Singapore, is an important legal identifier for the business it is assigned to, as it is required for corporate tax return filing, industry-specific permits, licences, and various transactions with the government. Even if the business details of the company are modified, its BRN will remain unchanged.

Having a BRN streamlines the compliance processes by eliminating the need for multiple IDs or applications to interact with or fulfil regulatory requirements across various government agency platforms.

Depending on the type of business you operate, you may need to apply for other permits and business licences. Find more information about permits and licences here.