How to Start a Business in Singapore in 2025: 10 Key Steps

Singapore stands out as a global hub for entrepreneurs and businesses seeking a dynamic and supportive environment. In 2025, it will continue to attract multinational companies seeking growth opportunities in Asia. 

Strategic location, favourable tax regulations, transparency, political stability, advanced infrastructures and strong support for business innovations, are some of the key factors that contribute to Singapore’s appeal.

Whether you are a resident or a foreign entrepreneur, starting a business in Singapore can be a fruitful pursuit. However, if you are still thinking about which business area to capitalize on, read our guide ‘Top 9 businesses to start in Singapore in 2025’.

Further, to effectively frame your strategy, it is important to understand the steps involved in the process of setting up your business, right from conceptualizing your business idea to establishing your operations.

Therefore, this guide provides a comprehensive roadmap for starting a business in Singapore in 2025, covering essential steps, legal requirements, government schemes, and essential considerations.

10 Key Steps for Starting a Business in Singapore in 2025

The outlined key steps ensure that you have the complete knowledge and tools to manage the process with confidence:

Step 1: Choose the Right Business Idea

To start a business in Singapore, one must conduct thorough market research to assess scope and demand, competition, and regulatory requirements in the chosen industry. Analyse current market trends such as sustainability, digital innovation and e-commerce that will continue to thrive in Singapore in 2025.

A distinct scalable idea tailored to meet the market demands while creating global opportunities will set the foundation for a profitable and successful business.

Step 2: Choose Your Business Structure

Selecting the business structure will depend on various factors like the type of business, no. of partners, authority to control and alignment with business needs and goals. The chosen structure will directly affect the legal obligations, taxation and operational flexibility.

Therefore, one must assess the business goals, risk appetite and long term vision before selecting the right structure.   

The Singapore government allows 4 primary business structures:

1. Sole Proprietorship (for a single owner) or Partnership (for two or more owners)
2. Limited Partnership (LP)
3. Limited Liability Partnership (LLP)
4. Company

Additionally, Foreign Companies can also set up Subsidiary and Branch Office.

Our guide ‘Choosing the best business structure for your Singapore business’ will help you find the perfect business structure that align with your requirements.

Step 3: Raise Capital for Your Business

The Singapore government and regulatory system does not restrict an entrepreneur to raise funds from bootstrapping, bank loans, venture capital, angel investors or crowdfunding.  

Additionally, one can take the benefit of the government’s schemes such as Startup SG Founder Grant, Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), etc. You can log in to GoBuiness Singapore to know more about the Government schemes and grants. 

It is, however, important to understand the business’s financial needs and create an influencing business plan to attract investors. Choosing the right mix of capital sources will ensure financial stability and foster business growth.

Step 4: Find an Office Space

ACRA requires all businesses in Singapore to register their business addresses. It allows for rental spaces as business or registered office addresses provided the required documents are furnished. Further, you should also consider the following:

·            Evaluating your budget, space requirements and the nature of business;

·            The space includes essential amenities like high-speed internet and meeting facilities;

·            Ensuring that the space complies with the Singapore’s zoning regulations;

·            Use virtual office services to meet regulatory requirements while saving costs;

·            Apply for a home office permit under the home office scheme of ACRA;

·            You may look for spaces in locations like

–   Central Business District (CBD) ideal for businesses needing prestige and proximity to financial hubs.

–   Jurong and Paya Lebar offer cost-effective alternatives.

–   Commercial office spaces in Marina Bay or Orchard.

Step 5: Register Your Business

After deciding on the structure, you must register your business with the Accounting and Corporate Regulatory Authority (ACRA) via the BizFile+ portal. The government requires registration of almost every business in Singapore except those that are in the exempt category. Click here to learn the list of exempted businesses.  

Steps for business registration in Singapore:

1. Company name reservation: For reservation of name, choosing an appropriate name is critical to avoid rejection by ACRA. Refer our guide – ‘How to check name availability’ to find a perfect name.  Further, you can get the business reserved with ACRA via BizFIle+ portal for 120 days by paying the reservation fee of SD15.
2. Submit incorporation documents, such as:
   • Details of partners, shareholders and directors as the case may be;
   • Partnership Agreement or Company constitution documents;
   • Business or Registered office address details, etc.
3. Pay the required registration fee.

Registration is typically completed within a day or two, if all documents are in order.

You may also refer to our guide on the most preferable business structure – ‘From Idea to Incorporation: Forming a Private Limited Company in Singapore’.

Step 6: Apply for Necessary Licenses and Permits

You should take care of the industry-specific licenses that you may require to take under the extant law of the State, such as, obtaining a food shop license from the Singapore Food Agency (SFA), licenses from the Monetary Authority of Singapore (MAS) or import/export permits via Singapore Customs, etc.

You can check the GoBusiness Licensing portal for industry-specific requirements.

Step 7: Hire Employees

Begin by establishing roles and responsibilities and identifying skills required to support your business goals. Draft clear job descriptions, conduct thorough interviews and offer competitive packages to attract the best candidates.

You can use local platforms like MyCareersFuture, industry-specific job boards, recruitment agencies or partner with local universities.

Take care of the compliance requirements with the Ministry of Manpower (MOM) for foreign hires, including obtaining the Employment Pass, S Pass or work permits and adhere to employment laws in respect of contracts, benefits and workplace safety.

Step 8: Set Up Financial and Tax Systems

Open a corporate bank account with a local or international bank and register for Goods and Services Tax (GST) if your annual revenue exceeds SGD 1 million. Work with tax professionals to ensure compliance with Inland Revenue Authority of Singapore (IRAS) requirements.

Step 9: Market Your Business

A strong marketing strategy is essential to penetrate any market. Consider:

• Digital Marketing: Use Search Engine Optimization, social media, and Google Ads to reach your audience.
• Networking Events: Participate in industry expos and forums.
• Partnerships: Collaborate with local businesses or associations.

Step 10: Stay Compliant with Regulatory Obligations

After setting up your business, ongoing compliance is necessary. This includes:

1. Filing annual returns and financial statements with ACRA.
2. Submitting corporate tax returns to IRAS.
3. Renewing necessary licenses.

Engaging corporate secretarial services can help ensure you meet all deadlines and requirements.

Conclusion

Starting a business in Singapore in 2025 offers incomparable opportunities, but it requires careful planning and execution. Following this guide can help entrepreneurs—both local and foreign to process effectively, from refining a business idea to establishing operations.

Consider partnering with 3E Accounting which will be the one stop solution for your business.

We will handle everything right from immigration to registration of your business, setting up tax and financial systems and secretarial and legal compliances.

Take the first step today and turn your entrepreneurial vision into reality in Singapore’s dynamic business economy.