Setting up an e-commerce company in Singapore (2025)

Singapore, with its favorable business environment and thriving digital economy, is an attractive destination for many startups and especially e-commerce companies.

This article will guide businesses from A to Z about procedures. set up e-commerce company in singaporee, helping Ca understand the legal procedures, taxes and other important factors to start an online business in one of the most vibrant e-commerce markets in Southeast Asia.

1. The growth of e-commerce in Singapore

E-commerce in Singapore is witnessing growth outstanding (expected 11 billion USD in 2025). Thanks to its modern information technology infrastructure, high internet speed and wide coverage, along with strong government support, Singapore has become one of the most vibrant e-commerce markets in Southeast Asia.

According to the latest report, the size of Singapore's e-commerce market reached US$8,2 billion in 2022 and is expected to continue to grow strongly, reaching US$11 billion in 2025. Computer and telecommunications equipment remained the leading industry, accounting for 47,4% of online sales. In addition, other industries such as fashion, food, cosmetics and personal care, and toys also recorded significant growth.

Best selling onions in Singapore

Nowadays, the opportunity to start and expand business in the field of e-commerce attracts many young entrepreneurs and traditional companies. However, building and developing a successful e-commerce business requires overcoming many challenges, from choosing a business model, capital sources, to legal issues and intellectual property protection.

2. Why should you set up an e-commerce company in Singapore?

Currently, many e-commerce and technology startups in Vietnam have chosen Singapore as their destination to establish their businesses. So what is the reason behind this choice? Let’s take a look at the top 5 reasons why businesses choose Singapore to establish an e-commerce company:

2.1. Easily open payment gateways, multi-currency accounts with Singapore companies

Setting up a company in Singapore allows international businesses to easily open PayPal, Stripe business accounts, open bank accounts with physical banks, online banks with multi-currency functions. These accounts allow for quick receipt of currency from customers, and timely payment to partners and suppliers in any country.

2.2. Favorable business environment

As a vibrant economic hub of Southeast Asia, Singapore has become an attractive destination for many multinational companies. Free trade agreements and preferential investment policies of the government have created an extremely favorable business environment, especially for startups, especially in the fields of technology and e-commerce.

In addition, low corporate tax rates of 17%, modern infrastructure, and high-quality human resources are also factors attracting investors. Long-term political stability has created a solid foundation for the country's economic development.

The Singapore government is known for its efficiency, transparency and business-friendly policies, creating a dynamic and competitive business environment. The vibrant startup ecosystem, supported by many venture capital funds and business networking events, has contributed to the development of startups here.

2.3. Strategic location and connectivity

Singapore’s prime location and excellent connectivity have made it a thriving e-commerce hub in Southeast Asia. Centrally located in the region, Singapore is an important bridge between countries in the region, allowing businesses to easily access a large consumer market.

Singapore's modern, world-class infrastructure, including a convenient transportation network, a bustling international seaport and especially high-speed internet connectivity, has facilitated the transportation of goods and online transactions.

Political stability and a transparent business environment are also factors that attract e-commerce businesses to invest and develop here.

2.4. Brand reputation and expansion opportunities

Brand reputation and intellectual property protection are two outstanding advantages when establishing a company in Singapore. Thanks to strict laws and a transparent business environment, Singaporean businesses are often highly regarded for their reputation, attracting many investors and expanding the market easily.

In particular, strong intellectual property protection helps businesses feel secure in investing and developing new initiatives.

2.5. Vibrant business community

Singapore is one of the most attractive destinations for technology and e-commerce entrepreneurs, ready to share experiences and support new businesses.

In addition, with the vision and desire for Singapore to become a "Smart Nation", Singaporean leaders constantly improve policies, creating many advantages and incentives for e-commerce and technology businesses in this lion island nation.

This is also one of the key points that convinces entrepreneurs who are still wondering which country to put their company and passion in. 

2.6. Government support and encouragement

Startup grants and incentives: The Singapore government offers various grants, tax incentives and support programmes to encourage entrepreneurship and innovation, including in the e-commerce sector: tax exemption for the first 3 years of business establishment in Singapore.

Tech hub: Singapore has a reputation as a tech hub, with many incubators, accelerators and research institutes that can provide valuable resources and networking opportunities.

3. Licenses required when setting up an e-commerce company in Singapore

Although Singapore generally has a business-friendly environment, obtaining the necessary licenses is important to legally operate an e-commerce business. Here are some common licenses that a Business may need:

3.1. General business license

Business Registration: This is the most basic requirement for any Business operating in Singapore. This requirement includes registering the business with the Accounting and Corporate Regulatory Authority (ACRA).

Goods and Services Tax (GST) Registration: If a Business's annual taxable turnover exceeds SGD 1 million, the Business will need to register for GST.

3.2. Licenses specific to e-commerce

Payment Gateway License: If the Business is processing online payments directly, the Business may need a Payment System Operator (PSO) license from the Monetary Authority of Singapore (MAS).

• Data Protection Licence: If a Business processes customers' personal data, it will need to comply with the Personal Data Protection Act (PDPA) and potentially register as a Data Protection Officer (DPO).
• Food and Drug Administration (FDA) Licensing: If the Business is selling food or drugs, the Business will need FDA approval for its products and business operations.
• Register Intellectual Property (IP): If your business has a unique product or brand, consider registering your IP, such as a trademark or patent.

3.3. Industry Licenses

• Retail License: If the Business sells physical products directly to consumers, the Business may need a retail license.
• Import/Export Licenses: If the Business imports or exports goods, the Business will need the appropriate licenses from the relevant Government Agencies.

Important Note: The specific licenses required may vary depending on the nature of your e-commerce business, the products or services you provide, and the legal landscape at the time. It is essential to conduct thorough research or consult with legal or business advisors to determine exactly what licenses you need.

4. Taxes for e-commerce businesses in Singapore

Singapore's tax regime for e-commerce businesses is generally quite straightforward, but it is essential to understand the key aspects to ensure compliance.

4.1. Goods and Services Tax (GST)

• Applicable: GST is applicable to most goods and services sold in Singapore, including products and services provided via e-commerce platforms.
• Obligation: E-commerce businesses with annual turnover exceeding S$1 million are required to register for GST and collect tax from customers.
• Tax Rate: The current GST rate in Singapore is 9%.
• Collecting and Remitting GST: Registered Businesses are required to collect GST from customers and remit it to the Inland Revenue Authority of Singapore (IRAS).

4.2. Corporate income tax

• Taxable Income: Income from e-commerce activities is taxable as part of the total income of the Enterprise.
• Tax Rate: The current corporate income tax rate is 17%.
• Overseas Vendor Registration (OVR).

From 1 January 1, the Overseas Supplier Registration (OVR) regime has been extended to cover low-value goods (LVG). A domestic or overseas supplier making B2023C supplies of LVG goods into Singapore may be required to register for GST and charge GST on such supplies.

4.3. Other tax policies 

Double Taxation Agreements (DTAs): Singapore has DTAs with many countries, which can help reduce double taxation for Businesses with international operations.

Tax Incentives: Depending on the nature of the Business and its location, specific tax incentives may be available: tax relief for the first 3 years of a new company's incorporation in Singapore, tax relief for foreign-sourced income, etc. 

5. Regulations on e-commerce business in Singapore

The Singapore government has strengthened laws and regulations to increase consumer confidence in e-commerce, as demonstrated by the following regulations: 

In short, Singapore is an attractive market for businesses that want to do e-commerce. However, to be successful, businesses need to strictly comply with legal regulations and build an effective business strategy.

6. Procedures for establishing an e-commerce company in Singapore

So where to start to set up an e-commerce and technology company in Singapore?

7. How does Global Links Asia support businesses to set up e-commerce companies in Singapore?

Are you planning to open an e-commerce company in Singapore? Global Links Asia will support you from A to Z, helping you save time, reduce risks and quickly bring your products to market. GLA supports Singapore e-commerce businesses, including: 

• Consulting and support for company establishment in Singapore including types of businesses, registration procedures, taxes and related regulations.
• Open a bank account at reputable banks in Singapore and a PayPal account for convenient international payments.
• Find an office location that fits your company's size and business needs.
• Build a professional e-commerce website, SEO optimized, user-friendly and easy to manage.
• Support recruitment of high quality personnel, meeting the needs of the Enterprise: appointed director, company secretary, etc. 

8. Frequently asked questions about setting up an e-commerce company in Singapore

Highlights

• Singapore is one of the countries to open an e-commerce business to reach international customers.
• Opening an e-commerce company in Singapore allows you to open PayPal, Stripe payment accounts, increase your company's reputation and access international customers and partners and take advantage of tax incentives.
• GLA will support businesses to open companies in Singapore easily, quickly, reliably, effectively with very affordable costs, ensuring long-term, legal company operations.