Is Singapore a Good Place to Start a Business? A 2025 Guide for Entrepreneurs

As a small business owner or aspiring entrepreneur, choosing where to register your company is one of the most important decisions you’ll make. In 2025, Singapore remains one of the most attractive destinations for company incorporation, thanks to its pro-business policies, low corporate tax rates, and efficient digital infrastructure. But is it the right fit for your business goals?

This guide explores what makes Singapore stand out for new businesses, from its streamlined incorporation process to its growing support for startups and SMEs.

1. Fast and Simple Company Incorporation

Singapore makes it easy to set up a business:

• Incorporation can be done online in 1–2 working days
  
• No local shareholders required — foreigners can own 100% of the company
  
• Only one director, one shareholder, and a local registered address are needed
  

Tip: Most entrepreneurs set up a Private Limited Company (Pte Ltd) for tax efficiency and credibility.

2. Attractive Tax Environment

Singapore offers one of the lowest corporate tax rates in the world:

• 17% flat corporate tax rate
  
• Startups get up to 75% tax exemption on the first S$100,000 of chargeable income for the first 3 years
  
• No capital gains tax
  
• No dividend tax
  

This tax structure gives SMEs more room to reinvest in growth, hiring, or tech.

3. Government Support and Grants for SMEs

Singapore actively supports business innovation and digital transformation through funding:

• Enterprise Innovation Scheme (EIS) – Convert qualifying expenses into cash payouts
  
• SkillsFuture Enterprise Credit (SFEC) – Up to S$10,000 to offset training and transformation
  
• Productivity Solutions Grant (PSG) – Co-funds software and equipment upgrades
  

These schemes help reduce startup costs and accelerate business capabilities.

✅ Our expert team streamlines your business journey, from company incorporation to tax filing. We offer transparent pricing, dedicated support, and industry expertise for your peace of mind. Discover our all-inclusive incorporation packages here.

4. Strategic Global Location

Located in the heart of Southeast Asia:

• Singapore is a gateway to ASEAN and the wider Asia-Pacific market
  
• Excellent logistics, shipping, and air freight connectivity
  
• Strong trade relationships and free trade agreements
  

It’s ideal for startups targeting regional expansion.

5. Stable, Transparent Business Environment

Singapore offers:

• A strong legal framework
  
• Enforceable contracts
  
• Low corruption and high regulatory transparency
  

Foreign founders and investors are more confident operating in a stable and secure legal environment.

6. Skilled Talent and Modern Infrastructure

Entrepreneurs benefit from:

• A highly educated, bilingual workforce
  
• Access to a deep pool of finance, tech, and creative professionals
  
• Reliable, fast internet and co-working spaces tailored for startups
  

You also gain access to innovation hubs like LaunchPad, Block71, and PIXEL.

Summary

If you’re wondering whether Singapore is a good place to start a business, the answer is a clear yes. With fast incorporation, low taxes, solid grants, and an ecosystem that supports innovation, it’s built for entrepreneurs who want to move fast and build something lasting.

Whether you’re launching a solo venture or scaling a digital business, Singapore gives you the infrastructure and support to do it right.

Using a Company Incorporation Service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.

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