This section acts as a manual to understand the procedural requirements, as well as the support facilities in place for Singapore-based entrepreneurs.

Decide the early structure of your company, be it a sole propietorship, partnership or company. There are many good reasons for choosing one over the other, and you should bear in mind that you can move from one kind to another in the future, as your firm grows. 

Setting up a business in Singapore may be done almost wholly online, as well as changing details and type of business later on. All the information you require is available on websites, and regulation will not likely stymie your need to get up and running. However, some businesses do require more due diligence than others.

There are 4 main types of business structures to choose from. They are:

• by individuals or companies committing to supporting a visa recipient
• by government departments supporting the licensing of a business enterprise
  
  

You may need a license or permit to operate your business, according to the nature of our business. These licenses must be applied for while registering the business. All the licenses you might require are on LicenceOne: https://licence1.business.gov.sg

This online service doubles as an online catalog of licenses required for certain business activities, and allows you to jump to the step of registering a business (BizFile) once you have chosen your business type.

Alternatively, you may engage a third party corporate service provider to assist you in setting up.

The average tertiary level educated or professionally experienced applicant should experience no issues whatsoever in applying for residence in Singapore. Hiring other foreigners is another matter, and can pose some awkward procedural constraints, though usually not showstoppers.
In theory, everyone within Singapore’s borders, except short-stay tourists, should have a pass which suits their reason for being in the country, especially when it is for business reasons. Although checks are not enforced, the process for getting a pass is so straightforward and usually quick, that there is little reason not to comply with regulations.

Employment Pass: 
For foreign professionals, managers and executives. Candidates need to earn at least $3,600 a month and have acceptable qualifications.

EntrePass:
For eligible foreign entrepreneurs wanting to start and operate a new business in Singapore.

Personalised Employment Pass:
For high-earning existing Employment Pass holders or overseas foreign professionals. The PEP offers greater flexibility than an Employment Pass.

S Pass:
For mid-level skilled staff. Candidates need to earn at least $2,300 a month and meet the assessment criteria.

Dependant's Pass:
For spouses and children of eligible Employment Pass or S Pass holders.

Long Term Visit Pass:
For parents, common-law spouses, step-children or handicapped children of eligible Employment Pass or S Pass holders.

For more Visa Types, visit the MOM website here: https://www.mom.gov.sg/passes-and-permits

For the purposes of registering a business, if the founders are not "ordinarily resident" in Singapore, meaning they cannot stay in Singapore for a long period of time, or do not have a local address, then someone else must be found to register the business, and act as manager. Undischarged bankrupts should seek legal advice before attempting to register a business in Singapore. 

Different grades of Employment Visas are issued to foreign employees depending on the nature of their work and the salary ranges. Visa types according to salaries are computed based on monthly pay, not bonuses, or other allowances. 

Generally, students on a student visa may not earn money in Singapore without the written permission of the Controller of Immigration in Singapore. Exceptions are made for foreign undergraduates of Universities and Polytechnics, allowing them to work up to 16 hours per week without permission.

Simply be aware of your requirements. The Government will be a steadfast partner to enterprise in Singapore, but you must ensure that you play by the rules. 

As an employer, you are obligated to make payments into the CPF (a type of social insurance) for each employee. The monies paid into the fund are allotted in three broad areas: 

• Ordinary Account : Basic savings account
• Special Account : For old age, and retirement-based investment
• Medisave Account : For hospitalization expenses and approved medical insurance

All Singapore Citizens and Permanent Residents are required to contribute to CPF. The purpose of the CPF is to take care of basic needs in old age, after retirement. Foreigners on Employment Pass are not entitled, or required, to contribute to CPF.

Self-employed (not under contract of service, though earning money) Singapore Citizens and Permanent residents are not required to pay into the Ordinary or Special accounts but must pay MediSave contributions.

Minimum amounts must be kept topped up in each type of account. However, you may contribute above the amount, as well as withdraw sums keeping the minimum amount in place. The Ordinary account is basically a savings account, which can be used, for example, to pay off a mortgage.

If you are a sole proprietor or a partner in a partnership, you may be considered "self-employed" and adhere to the tax regulations as specified in the link above. You must provide at least a Balance Sheet, and Trading Profit and Loss account as certified (by you) accounts.

For businesses with turnover of less than 100,000 SGD turnover / annum, you need only report Turnover and Adjusted Profit / Loss. For businesses with turnover of greater than 100,000 SGD / annum, your returns to IRAS must contain the following information in a 4-line statement of accounts:

Singaporean corporate taxation rates are 20%. More importantly, dividends paid to shareholders are exempt from tax once tax has been paid by the company on its earnings. Hence, a business person can set up a company as the only shareholder, bill all revenues to the company itself, not to the individual, pay corporate tax on the company’s earnings, and then declare a tax-free dividend to himself.

Note, however, that personal income tax is considerably lower than corporate income tax. Hence an individual wishing to defer earnings by allowing them rest in the firm will pay more tax than a sole proprietor whose income tax is based on the firm’s income. For a summary of the basics of corporate tax in Singapore, see Corporate Tax Basics.

In order to steer economic development to high value add, hi-tech, products and services, firms which qualify as Pioneering Firms, those that introduce high-tech skills to the economy, are fully exempted from corporate income tax for 5-15 years.

Generally, tax incentives exist for startup firms whose number of shareholders number less than 20, and each of whom is an individual. Furthermore, certain R&D expenses can be deducted twice ("double deduction") from profits for the purposes of tax calculation. Visit the Inland Revenue Authority of Singapore for more on tax issues.

Virtual Offices are useful to startups that wish to have a prestigious office address in the central business district, with full meeting/conference facilities, postal address services, a permanent phone number (with call forwarding), all at a tiny fraction of the cost of maintaining a physical office.

• Independent office work space not used by other tenants in a shared office.
• Separate telecommunications facilities like email, phone and fax in a shared office.

The home office concept allows an entrepreneur or entrepreneurs to run their business from their home while registered as a business. A maximum of two non-residents (of that address) can be employed in this business.

In order to allow businesses to be run from the owner's home address, the Home Office scheme allows the business owner to register one's home address as the business address for a fee. There is currently a 3 year approval period, meaning that after three years the license must be renewed. 

Visit the Urban Redevelopment Authority website here.

Certain types of businesses which are considered to be likely to threaten harmony of the neighbourhood are disallowed. Knowledge-based industries such as private consulting practices or software development are favoured. 

Licensing is required, and the LicenceOne service will describe all the appropriate ones required, as well as allow you to purchase them.