Instructions on the process and procedures for establishing a company in Singapore to do business in software technology

• Transparent legal system: Singapore has a stable, transparent and business-friendly legal system, helping startups minimize legal risks.
• Cpreferential tax policy: The Singapore government applies many preferential tax policies for startups, especially in the technology sector, helping startups reduce financial burdens.
• Modern infrastructure: Singapore has world-class communications and technology infrastructure, facilitating online business activities and technology product development.
• Singapore consistently tops the rankings for ease of doing business. Specifically, according to the World Bank's Doing Business 2022 report, Singapore has held the position 2nd out of 190 economies be evaluated.

• Gateway to Asian Markets: Singapore is centrally located in Southeast Asia, a gateway to the region's large and rapidly growing consumer market.
• Open diplomatic relations: Singapore has good diplomatic relations with many countries around the world, creating favorable conditions for startups to expand their business to the international market.

• Strong startup community: Singapore has a vibrant startup community with many events, workshops and support programs for startups.
• Investors support: There are many venture capital funds and angel investors willing to provide financial support to potential startups.

• Startup support programs: The Singapore government has many programs to support financial support, training and networking for startups.
• Business support agencies: Agencies such as the Economic Development Board (EDB) provide a range of support services to businesses, helping startups quickly stabilize and grow.

Singapore has been consistently recognized for the quality and effectiveness of its intellectual property protection system: 

• Global Competitiveness Report 2019: Ranked second in the world and first in Asia in intellectual property protection.
• International Property Rights Index 2022: Second in the world for strength of intellectual property protection regime.
• World Trademark Review IP Office Innovation Ranking 2024: Ranked fifth among the world's top 50 intellectual property offices for innovation and creativity.

• Diverse workforce: Singapore attracts a large number of tech talent from around the world, creating a high-quality and diverse skill set workforce.
• Advanced education system: Singapore's education system focuses on science, technology, engineering and mathematics, providing high-quality human resources for startups.

Choosing the right type of company depends on many factors such as the size and nature of the business, the number of owners, liability protection and tax consequences.

You can learn more through the article. Types of companies in Singapore or Contact GLA's team of experts to make the right decision.

The following are GLA's suggestions for starting out in the software engineering field in Singapore.

• Private limited liability company (Pte.Ltd.)
  • Limited liability protection for shareholders.
  • Get priority in receiving financial support from the government.
  • Suitable for large and established businesses.
• Partnership
  • Simple to set up and manage.
• Limited Liability Partnerships (LLP)
  • Provides limited liability protection for owners.
  • Allows profit sharing between partners.

• Charter Capital: There is no minimum requirement for charter capital, however, the charter capital should be appropriate to the size and business activities of the company.
• Capital contribution: Shareholders must contribute capital according to the commitment in the company charter.

• Director: The company must have at least one nominee director. The director can be a foreigner but must have a valid work permit.
• Company Secretary: Must have one Singapore company secretary, usually an individual or a service company.

• The company must have a registered address in Singapore.

• The company name must be unique and not similar to the name of any company registered in Singapore.
• The company name must comply with Singapore company name regulations.

Depending on the type of business, the company may need to apply for additional business licenses.

For example, if a company wants to develop finance-related software, it needs to apply for a license from the Monetary Authority of Singapore (MAS).

• Companies in Singapore must pay Corporate income tax at current tax rates.
• In addition, the company must also pay other taxes such as tGoods and Services Tax (GST), property taxes, etc.

Object: For startup founders, senior technology professionals with experience working in leading technology companies or having founded successful startups.

Advantage:

• Fast application process.
• Flexible length of stay, up to 5 years.
• Allows the holder to freely travel and work in Singapore.
• No requirement for employers to demonstrate recruitment needs.

Condition: To be enough Tech Pass conditions, applicants must meet at least two of the following criteria:

• Have at least 5 years of cumulative experience in a leadership role at a technology company with a minimum valuation/market capitalization of $500 million or that has raised at least $30 million in investment capital.
• Or have at least 5 years of cumulative experience in a leadership role in developing a technology product with at least 100.000 monthly active users or achieving at least $100 million in annual revenue.
• Have a fixed monthly salary (in the most recent year) of at least SGD 22.500.

EntrePass Visa is a type of work permit for experienced entrepreneurs, innovators or investors who want to run a business in Singapore.

To qualify for this visa, a business must be backed by venture capital or possess innovative technology.

EntrePass is open to all nationalities and citizens. To be eligible for an EntrePass, an Individual must meet both of the following conditions:

• Have established or intend to establish a private limited liability company registered with ACRA (license holder must hold at least 30% of the shares of the registered company).
• Backed by venture capital or owns innovative technology.
• Individuals must also meet at least one of the following criteria:
  • Raised capital for a previous or current business.
  • Supported by a government-recognized or internationally renowned incubator or accelerator.
  • Founded and sold a technology business.
  • Intellectual property rights ownership.
  • Has research collaboration in Singapore.

Appropriate for: Employment Pass for professionals, managers, CEOs recruited by companies in Singapore for positions with high requirements for skills and experience.

Condition:

• Minimum salary is SGD 5,000/month in non-financial sector and SGD 5,500/month in financial sector.
• Have a college degree or higher.
• Have relevant work experience for the position.
• Employers must demonstrate their need for employment and their ability to pay workers.

• Register with ACRA: This is the first and most important step. ACRA (Accounting and Corporate Regulatory Authority) is the regulatory body for businesses in Singapore. 
• Other licenses: Depending on the type of software product and service provided, the Enterprise may need additional licenses, such as:
  • Payment service provision license (related to online payments);
  • License to operate in the financial sector (developing fintech solutions);
  • Insurance license (providing insurance related products).

• PDPA: The Personal Data Protection Act strictly regulates the collection, use, and protection of personal data. Software businesses need to ensure PDPA compliance in all customer data processing activities.
• Computer Abuse and Cybersecurity Act: This law aims to protect computer systems and networks from cyberattacks and unauthorized access. Businesses are required to implement appropriate security measures to protect their own and their customers' data.
• ISO 27001 Certification: This certification certifies that a company's information security management system meets international standards. Having an ISO 27001 certification will help businesses increase the trust of customers and partners.

• GST: Goods and Services Tax is an indirect tax levied on most goods and services supplied in Singapore. Businesses with annual turnover exceeding S$1 million are required to register for GST.
• Accounting: Businesses need to comply with accounting regulations in Singapore, including preparing periodic financial statements and paying taxes on time.

• Labor Law: When recruiting employees, businesses need to comply with Singapore's labor laws, including regulations on labor contracts, wages, social insurance, and other employee benefits.
• Intellectual Property: Businesses need to protect their intellectual property rights by registering copyrights, trademarks or patents for software products. At the same time, they need to ensure that the use of third-party software tools complies with licensing terms.
• Information Technology Laws: Compliance with laws on personal data protection (such as the PDP Act) and cybersecurity (such as the Computer Misuse and Cybersecurity Act) is of utmost importance for any IT project in Singapore.

• Financial Industry: Businesses providing financial technology solutions need to comply with the regulations of the Monetary Authority of Singapore (MAS).
• Other industries: Depending on the field of operation, businesses may be required to comply with specific regulations of industry regulatory agencies.

• Favorable business environment: Transparent legal system, preferential tax policies, modern infrastructure.
• High-quality human resources: Diverse workforce, advanced education system.
• Favorable geographical location: Gateway to Asian market.
• Vibrant startup ecosystem: Large startup community, many investors.
• Government support: Startup support programs, business support agencies.
• Good intellectual property protection.

• Private Limited Company (Pte. Ltd.): Suitable for most businesses.
• Partnership: Suitable for small businesses.
• Limited Liability Partnership (LLP): Combines the advantages of the above two types.

• Copyright: Source code and user interface protection.
• Brand: Protect brand name, logo.
• Patent: Protects creative ideas and unique technical solutions.
• File an application with the Intellectual Property Office of Singapore (IPOS).

Depending on the type of software product and service provided. For example: license to provide payment services, license to operate in the financial sector.