6 Reasons Why Starting a Business in Singapore is the Best Option in 2025!
Singapore is one of the few first-world countries in Asia, with a highly efficient infrastructure, a free market economy, a stable socio-political environment, an attractive tax regime for setting up a company and a per capita income among the top five nations worldwide for start-up businesses. In Fact, according to the Ministry of Trade and Industry, Singapore, in 2024, the economy expanded by 4.0 per cent, outpacing the 1.1 per cent growth recorded in 2023. Learn more about the advantages of a Private Limited Company Singapore and the benefits of Starting a business in Singapore.
Singapore consistently ranks as one of the easiest places to start a business, with a pro-business environment and streamlined company registration processes. Global institutions such as the World Bank and the World Economic Forum have recognised it as one of the most competitive economies for company formation and business expansion. In fact, setting up a company in Singapore takes as little as an hour, making it an ideal destination for entrepreneurs and investors.
As a global trade hub, Singapore’s economy thrives on exports of consumer electronics, information technology products, pharmaceuticals, port services, and financial services. The city-state also offers numerous advantages for private limited companies in Singapore, from attractive tax incentives to strong legal protections for businesses.
Beyond its business-friendly policies, Singapore is a vibrant cosmopolitan city, known for its multicultural diversity, world-class infrastructure, and modern lifestyle. Approximately one in three residents is an expatriate, creating a dynamic blend of cultures, languages, arts, and architecture. This diverse and inclusive environment makes Singapore not only a great place to do business but also an excellent location to live and work.
Below is a comprehensive guide on living, working, and starting a business in Singapore.
Why is Singapore the Ideal Destination for Business and Investment?
Population and Multicultural Society
Singapore has a population of approximately 6.04 million people, with a rich blend of cultures contributing to its social and economic vibrancy. More than 75% of the population is Chinese, while the remaining 25% comprises Malays, Indians, and other ethnic groups. The nation takes pride in its racial harmony, mutual respect, and strong sense of community. The people of Singapore are highly educated, hardworking, and driven by innovation, making the country an excellent place for global businesses to thrive.
Political Stability and Governance
Singapore is known for its political stability and transparent governance. Since its independence in 1965, the country has been led by the People’s Action Party (PAP), ensuring long-term policy consistency and economic development. Ranked as one of the least corrupt countries in the world, Singapore offers a safe and, business-friendly environment with clear regulations that support both local and foreign investors.
World-Class Infrastructure and Robust Economy
Singapore boasts state-of-the-art infrastructure, including advanced communication networks, an efficient public transport system, and world-class road networks. The country is home to one of the busiest and most efficient air and seaports in the world, making it a global trade and logistics hub.
Singapore attracts multinational corporations, financial institutions, and investment firms as a leading international financial centre. Its pro-business government policies, including generous tax incentives and grants, have made it a preferred destination for:
- Corporate headquarters and holding companies
- Business and service centres
- Group finance and treasury operations
- High-tech industries, media, and communications
- Shipping, trade, and financial services
With its open economy and competitive tax framework, Singapore provides an unparalleled environment for startups, SMEs, and multinational corporations looking to establish or expand their presence in Asia.
Language and Communication
English is the primary language for business and government communications. In addition, Singapore recognises Chinese, Malay, and Tamil as official languages, further strengthening its position as a multilingual and culturally diverse business hub.
Currency and Exchange Control
The official currency is the Singapore Dollar (SGD). There are no foreign exchange controls, allowing businesses to repatriate profits freely and facilitating seamless global transactions.
Legal System and Business Regulations
Singapore operates under a common law legal system, ensuring clear and transparent business regulations. With a well-established legal framework, businesses benefit from strong intellectual property (IP) protection, contract enforcement, and corporate governance standards.
Entering Singapore and Setting Up a Company in Singapore
Singapore is a global business hub, attracting startups, investors, and skilled professionals, contributing to its thriving economy. The city-state offers a business-friendly environment, a highly skilled workforce, and pro-business policies that make company incorporation in Singapore straightforward. With over 110,000 expatriates and 7,000 multinational companies, Singapore provides an excellent platform for global talent to build careers and establish businesses.
Why Set Up a Business in Singapore?
Singapore is consistently ranked as one of the most desirable cities in Asia for business, work, and lifestyle. It invests heavily in education and workforce development to support evolving business needs. Additionally, setting up a company in Singapore exposes it to strong infrastructure and a competitive corporate tax system, making it an attractive destination for entrepreneurs and multinational corporations.
Business Entry Options for Foreign Investors and Entrepreneurs in Singapore
Singapore provides multiple pathways for foreign entrepreneurs and investors to start and operate businesses with ease:
1. Global Investor Program (GIP)
- Designed for high-net-worth individuals investing in Singapore
- Requires a minimum investment of S$2.5 million in either:
- A new or existing business expansion, or
- A GIP-approved fund
2. EntrePass for Entrepreneurs
- Ideal for startup founders and innovators
- Requires a sound business proposal
- Initial validity of up to two years
3. Employment Pass (EP) for Business Owners
- Suitable for professionals looking to run their own company
- Issued to applicants with a recognised degree and relevant experience
4. Personalised Employment Pass (PEP) for High-Earning Professionals
- Designed for top-tier professionals
- Requires a minimum last drawn monthly salary of S$8,000 or a skilled migrant visa
Cost of Living and Relocation Considerations
According to Mercer’s Cost of Living Survey 2024, Singapore is the second most expensive city for expatriates globally and the priciest in Asia after Tokyo and Osaka. The key cost factors include:
- Housing – Private condominiums and subsidised HDB flats are available
- Transportation – Car ownership is costly, but Singapore has an efficient public transport system
- Education – International schools can be expensive for expatriate families
Checklist for New Arrivals in Singapore
Upon arrival, expatriates and business owners should complete the following:
✔ Get your Employment Pass (EP) or relevant visa endorsed
✔ Search for housing options (condos, HDB flats)
✔ Open a bank account with DBS, OCBC, UOB, or Citibank
✔ Apply for a credit card
✔ Register for telecommunications services (StarHub, Singtel, M1)
✔ Sign up for essential government services
✔ Familiarise yourself with Singapore’s transport system
Why Singapore is the Best Place to Start and Grow Your Business?
Singapore is consistently ranked as one of the top global business destinations due to its business-friendly policies, low taxes, political stability, and high quality of life. Here’s why setting up a company in Singapore is a strategic move for entrepreneurs and global corporations:
- Rated #1 in the world by the World Bank for ease of doing business. You can easily set up a company in Singapore without a physical presence.
- Rated #1 as the most politically stable country in Asia
- Rated #1 as the best labour force in the world
- Rated #1 in Asia for quality of life
- Ranked the third wealthiest nation in the world by Forbes Magazine
- Ranked #1 most globalised economy among 60 of the world’s largest economies in the Globalisation Index.
- Low corporate tax rates: about 4.25 per cent up to $100K profits, 8.5 per cent for the second $200K profits and a flat 17 per cent thereafter. In addition, new Singapore set-up companies enjoy a 75 per cent tax exemption on the first $100K of normal chargeable income for their first three consecutive years of operation.
- There are no dividend or capital gains taxes in Singapore
- There is no estate/death/inheritance tax in Singapore
- Low personal tax rates start at zero per cent and max out at 22 per cent above $320K. There is no capital gain or inheritance tax. Individuals are taxed only on the income earned in Singapore.
- Government grants, covering up to 70 per cent of costs, are available to companies in certain industries that are keen to adopt IT solutions and equipment to enhance their business processes.
- No auditing is required for a company that qualifies as a small company.
- Singapore has no restrictions on foreign business ownership. The repatriation of profits and the import of capital are permitted without restriction. Shareholders, including investors who receive dividends from a company’s profits, are exempt from Singaporean tax. Singapore is one of the best places to establish a company and operate your business.
Ready to set up a company in Singapore and want to know more about how to set up a business in Singapore? Click ‘Singapore Company Incorporation’ to start the registration process and obtain more information about setting up a Singapore company.
