How to start a business in Singapore: a DHL guide

For entrepreneurs looking to launch a new venture or expand their existing company, Singapore may be the right place to start a small business. With its strategic location and excellent infrastructure, it is one of the best places in Southeast Asia to bring ideas to life.

There are also government incentives available that give entrepreneurs and startups access to funding and grants, offering support for those passionate about setting up a company in Singapore. If you're dreaming of pursuing your entrepreneurship goals in the Lion City, this comprehensive guide will equip you with the essential knowledge on how to start a business, so you can turn your vision into reality.

Key steps to starting a business in Singapore in 2025

1. Decide on a business structure

For starters, you will need to choose any one of the following business structures under the Accounting and Corporate Regulatory Authority (ACRA) of Singapore:

• Private Limited Company: This is the most common business structure in Singapore, offering limited liability protection to shareholders and allowing for greater flexibility and scalability. It should have no more than 50 shareholders, as stated under the Singapore Companies Act. Should there be any debts or losses incurred, the liability of the shareholders to creditors will be limited to the share capital they had originally invested in the company. 
• Sole Proprietorship: While sole proprietorships are the easiest and most affordable to set up, do note that they offer no legal distinction between the business and the owner, meaning you are personally liable for any business debts. This means that as its sole owner, creditors are able to sue you for any debts and losses. 
• Limited Partnership (LP): An LP comprises a minimum of two partners - one general partner and one limited partner. This structure does not have a separate legal entity from its partners, meaning it cannot sue or be sued. An LP is also unable to own property in its name. While a limited partner will not be liable for debts and obligations of the business, it will be expected of the general partner. 
• Limited Liability Partnership (LLP): Under this structure, you can enjoy the flexibility of operating as a partnership while enjoying the benefits of a private limited company. Should the LLP be subjected to any business debts, both partners will not be held personally liable. That being said, a partner may be personally liable for claims from losses he caused by his own wrongful act or omission.

Your choice of business structure will ultimately depend on a number of factors. This includes your capital budget, the number of business owners and the responsibilities required of them, as well as the risks and long-term goals involved in your operations.

2. Register your new company with ACRA

Once you have decided on your company structure, you can proceed to register your new business under ACRA. Be sure to have the below compliance requirements confirmed on your end: 

1. Company name application: Choose a unique company name and submit an application to ACRA for approval
2. Shareholders and directors: You'll need at least one shareholder AND one Singapore-resident director for your company.
3. Qualified company secretary: Appoint a qualified company secretary within six months of incorporation.
4. Registered office address in Singapore: Establish a registered office address in Singapore where official correspondence can be sent. This address must be a physical address and cannot be a P.O. Box.

You will also need to set aside at least $315 for the incorporation process¹. This is roughly how much it will cost to apply for a business name and register your company. You will receive a Certificate of Incorporation if you have successfully completed your company registration with ACRA.

3. Obtain necessary business licenses and permits

Depending on the nature of your business, you may need to obtain specific business permits and licenses to operate legally in Singapore². These licenses and permits ensure compliance with industry regulations and safety standards. For instance, businesses intending to export or import food into Singapore need to obtain an Export Health Certificate.

You can find detailed information about specific licenses and permits needed to start a business on the GoBusiness website, a central information hub for business owners in Singapore, or the websites of relevant government agencies, such as the Singapore Food Authority (SFA).

4. Open a corporate bank account

Finally, make sure to keep your personal and company finances separate by creating a corporate bank account for business purposes. It also adds credibility to your business and facilitates financial management. To establish your small business and start taking in orders, you can manage your expenses through either a local or international bank. When choosing a bank, consider factors like:

• Transaction fees: Compare transaction fees for various banking services, such as fund transfers, cash withdrawals, and foreign exchange transactions.
• Online banking capabilities: Choose a bank with robust online banking capabilities that allow you to manage your accounts, make payments, and track transactions conveniently.
• Business support services: Some banks offer additional business support services, such as access to business loans, credit facilities, and financial advice.

5. Set up your operations

With your business registered and your bank account set up, it's time to establish your operations. This may involve:

• Securing office space: Find a suitable location for your business, whether it's a traditional office, a co-working space, or a home office. Location, size, accessibility, and cost will be key factors when choosing your workspace.
• Hiring employees: If you need to hire staff, familiarize yourself with the latest Employment Act in Singapore to ensure compliance with labor laws and regulations, such as minimum wage, working hours, overtime pay, and leave entitlements.
• Establishing accounting and financial systems: Set up proper accounting and financial systems to track income and expenses, manage cash flow, and ensure compliance with tax obligations.

Leverage technology to streamline your operations and improve efficiency. Cloud-based solutions, online accounting software, and digital communication tools can all help you manage your business effectively.

Navigating business-related regulations and compliance in Singapore

Taxation

Understanding Singapore's tax system is crucial for business owners. Key taxes to be aware of include:

• Corporate Income Tax: Singapore has a competitive corporate income tax rate, currently capped at 17% of chargeable income.
• Goods and Services Tax (GST): GST is a consumption tax levied on most goods and services supplied in Singapore, unless the sale can be zero-rated or exempted under the GST law. Businesses with an annual turnover exceeding S$1 million are required to register for GST. The current GST rate is 9%³.
• Withholding Tax: This tax applies to certain payments made to non-resident individuals or companies.

Stay informed about the latest tax regulations and utilize resources like the Inland Revenue Authority of Singapore (IRAS) website to ensure compliance.

Employment

Singapore has comprehensive employment laws and regulations to protect the rights of employees. Key areas to be aware of include:

• Wages: While Singapore does not have a universal minimum wage, there are specific minimum wage requirements for certain sectors, such as cleaning and security, to ensure fair wages for workers.
• Working hours and overtime: The latest Employment Act regulates working hours, overtime pay, and rest days. Failure to comply with these regulations may result in penalties for employers.
• Leave entitlements: Employees are entitled to various types of leave, including annual leave, sick leave, and maternity leave. The Employment Act specifies minimum leave entitlements for employees, which employers must comply with.

Intellectual property

Protecting your intellectual property (IP) is crucial for safeguarding your business's competitive advantage. Singapore has a robust IP framework that allows you to register trademarks, patents, and copyrights. Registering your IP with the Intellectual Property Office of Singapore (IPOS) can help prevent others from using your brand, inventions, or creative works without your permission.

Data protection

The Personal Data Protection Act (PDPA) governs the collection, use, and disclosure of personal data in Singapore. Businesses handling customer data must comply with PDPA requirements to protect customer privacy and avoid penalties. This includes obtaining consent for data collection, implementing data security measures, and providing customers with access to their personal data. Non-compliance with the PDPA can result in significant financial penalties.

Leveraging Singapore's business ecosystem

Government support and incentives

A major benefit of starting a business in Singapore is the variety of government support and incentives to encourage entrepreneurship and business growth, such as:

• Startup SG Founder⁴: Provides mentorship and funding support to first-time entrepreneurs.
• Productivity Solutions Grant (PSG)⁵: Supports businesses in adopting technology solutions to improve productivity.
• Market Readiness Assistance (MRA) Grant⁶: Helps businesses expand overseas by providing funding for activities like market research and overseas marketing.

More information can be found on Enterprise Singapore’s website.

Networking and collaboration

Singapore has a vibrant business community with numerous networking opportunities. Take advantage of these opportunities to build relationships, learn from others, and stay informed about industry trends. Attend industry events, join business associations, and connect with other entrepreneurs to share knowledge, explore partnerships, and expand your reach.

E-commerce and digitalization

Digitalization in Singapore is rapidly transforming the business landscape. Embrace e-commerce and digital technologies to reach a wider audience, streamline your operations, and enhance customer experience. Singapore offers a thriving e-commerce ecosystem with various platforms, payment gateways, and logistics solutions to support online businesses.

Get your venture off the ground with DHL Express

To truly achieve success in Singapore, every type of startup – offline and online – can benefit from having a reputable logistics company to provide a variety of solutions ranging from order supplies to delivery services. With your time, money and energy on the line, it can pay off having a reliable partner to depend on for anything related to order fulfillment. 

As a leading provider of international logistics solutions and international shipping solutions, DHL Express is dedicated to supporting businesses of all sizes in Singapore. Here's how we can help you achieve your business goals:

• International shipping and logistics: Our expertise in international shipping, customs clearance, and end-to-end logistics solutions can help you navigate customs regulations, optimize shipping routes, and ensure the timely delivery of your goods. We offer an extensive network, fast transit times, and reliable service to connect you with customers worldwide and expand your global reach.

• E-commerce fulfilment: Our e-commerce fulfillment and last-mile delivery services help businesses streamline their operations and enhance customer satisfaction. We can help you manage your inventory, process orders efficiently, and deliver goods to your customers quickly and reliably – leading to cost savings, improved efficiency, and increased capability to focus on your core business activities.

• Customized shipping solutions: We understand that every business is unique. That's why we offer customized solutions tailored to your specific needs, whether you're a startup or a large enterprise. Our team of experts can help you optimize your logistics, achieve your growth objectives, and unlock your business's full potential.

In fact, DHL Express has helped local brands like Maison 21G reach out to a global audience with the assurance of smooth and quick delivery. This has allowed Maison 21G to build lasting connections with customers who are now fans of theirs around the world. Another local brand that’s broken into the international stage with DHL Express’ support is Delugs, with DHL’s global reach enabling them to provide reliable delivery services even in new markets.

Singapore's pro-business environment, coupled with the comprehensive support and resources available, makes it an ideal location to launch and grow your business. With DHL Express as your trusted logistics partner, you can confidently navigate the complexities of international trade and logistics and focus on achieving your business aspirations.