Legal Entity Setup & Back-Office Services in Singapore

Complete Singapore Entity Incorporation with Ongoing HR, Payroll, Accounting, Tax, and Compliance Support

Last Updated: July 23, 2025
The iconic Merlion fountain symbolizes Cerity Global’s presence in Singapore.

Country Overview

Singapore is a premier global financial and logistics hub known for its stable government, pro-business policies, and strong IP protection. Ranked among the easiest places to do business globally, Singapore is ideal for companies expanding into Southeast Asia. Its economy is driven by services, trade, and high-value industries like fintech, biotech, and advanced manufacturing. As of 2024, Singapore’s GDP stood at approximately USD 500 billion, with forecasted growth of 2.4% in 2025 

Capital City

Singapore

Language

English, Mandarin, Malay, Tamil

Currency

Singapore Dollar (SGD)

Business Hubs

Singapore (nationwide)

Expand Your Business in Singapore

Unlock growth opportunities in Singapore with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Singapore’s often complex regulatory landscape with clarity and efficiency. 

From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business. 

Need to hire quickly before your entity is set up? We offer interim EOR services in Singapore, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance. 

Our experts stay ahead of regulatory changes to keep your operations aligned with Singapore’s employment and tax laws, helping you scale confidently and compliantly. 

Legal Entity Setup

Types of legal entity setups for international expansion in Singapore

Private Limited Company (Pte. Ltd.)

The most common entity type in Singapore, a private limited company offers limited liability protection, ease of transferability, and tax incentives. It can be 100% foreign owned and requires a minimum of one shareholder and one resident director. 

Branch Office

A branch office is an extension of a foreign company; not a separate legal entity. It can conduct profit-generating business in Singapore.  

Representative Office

A representative office is a temporary setup for non-commercial activity such as market research or liaison purposes. This type of entity structure cannot generate revenue or enter contracts and is valid for up to three years. 

Resident Director Requirements

Private Limited Company (Pte. Ltd.)

Must appoint at least one director who is a resident of Singapore. This can be a Singapore citizen, permanent resident, or EntrePass/Singapore Employment Pass holder. 

Branch Office

Must appoint one authorized representative who is a Singapore resident. 

Representative Office

Must appoint a Chief Representative residing in Singapore under an eligible work pass. 

Bank Account Setup

Singapore bank account setup requires specific documentation and follows strict regulatory compliance procedures: 

Bank Account Setup in Singapore: What’s Possible and When 

Before Incorporation: 

  • Most banks require the entity to be fully incorporated before opening a corporate bank account. 

After Incorporation: 

  • Full corporate account setup available within 1–3 weeks. 
  • In-person KYC may be required (some banks allow remote onboarding via video). 
  • Integration with FAST (instant domestic payments) and GIRO. 

Note: 

Singapore banks adhere to strict AML/CFT and MAS (Monetary Authority of Singapore) compliance requirements. 

Required documents include business profile, constitution, proof of registered address, directors’ ID, and tax registration (CorpPass/UEN). 

Why choose Cerity Global's Legal Entity Setup Service?

Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank. 

Human Resources

Employment in Singapore is primarily governed by the following laws: 

  • Employment Act (Cap. 91) 
  • Central Provident Fund (CPF) Act 
  • Work Injury Compensation Act 
  • Industrial Relations Act 

Employment contracts should be in written form, though verbal contracts are legally valid for certain circumstances.

Some of the standard details mentioned in the written contract include: 

  • Job details 
  • Remuneration 
  • Benefits 
  • Termination and notice period 
  • Confidentiality agreements 
  • Non-compete clauses 
  • and more 

Types of employment relationships

The different types of employment relationships are: 

Permanent Employment 

Permanent employment provides full-time employees with long-term contracts and access to full statutory benefits including CPF, paid leave, and job protection measures. 

Part-Time Employment 

In part-time employments, employees working fewer than 35 hours per week are entitled to pro-rated statutory benefits. 

Fixed-Term Employment 

Fixed-term employment contracts are for a specific period or project and statutory protections apply depending on the length and terms of employment. 

In Singapore, a probationary period typically ranges from three to six months. 

The regular working hours in Singapore are 44 hours a week. 

Overtime  

The maximum allowable overtime is 72 hours per month unless exempted by MOM. 

  • The Progressive Wage Model (PWM) in Singapore sets minimum wages for specific job roles and sectors rather than a nationwide minimum wage. 
  • Overtime pay is usually 1.5 times their usual hourly rate. 

Notice periods vary based on length of service:  

  • Less than 26 weeks: 1 day 
  • 26 weeks to <2 years: 1 week 
  • 2 to <5 years: 2 weeks 
  • 5 years and above: 4 weeks 

Retrenchment benefits are not mandated but guided by Tripartite Guidelines. Employers may offer severance pay for redundancy cases. 

Foreign nationals require appropriate work authorization to work in Singapore. Singaporean citizens and permanent residents can work freely without restrictions. 

Work Visa & Permit Options in Singapore 

1. Employment Pass (EP)  

For professionals, managers, and executives sponsored by Singaporean employers.  

  • Validity: 1–2 years, renewable 
  • Salary requirement: Minimum SGD 5,000/month (as of 2025) 
  • Degree and relevant experience typically required 
  • No quota, but subject to COMPASS assessment (points-based framework) 

2. S Pass 

For mid-skilled technical workers in approved sectors. 

  • Validity: Up to 2 years, renewable 
  • Salary requirement: Minimum SGD 3,150/month (as of 2025) 
  • Quota system applies (limited % per company) 
  • Employer must pay monthly foreign worker levy 

3. EntrePass 

For foreign entrepreneurs starting innovative businesses in Singapore. 

  • No minimum salary 
  • Must submit detailed business plan 
  • Only eligible for businesses in innovation or tech sectors 
  • Renewable annually based on business milestones 

4. Work Permit 

For semi-skilled or unskilled workers in construction, marine, manufacturing, and services. 

  • Validity: Typically up to 2 years, renewable 
  • No minimum salary, but quota and levy apply 
  • Subject to source country and sector-specific restrictions 
  • Employers must provide medical insurance and housing 
  1. Employer applies for relevant work pass (EP, S Pass, Work Permit, or EntrePass). 
  2. MOM reviews qualifications, salary, business plan, and role requirements. 
  3. In-principle approval issued if successful. 
  4. Visa holder travels to Singapore and registers fingerprints. 
  5.  Pass is issued and tied to the employer. 
  6. Health insurance, CPF (if applicable), and employer obligations are fulfilled. 

Key Notes: 

  • Valid passport and supporting documents 
  • Employer must be registered in Singapore 
  • Medical examination may be required for some passes 
  • Work passes are employer-specific—new sponsorship needed to switch jobs 
  • Some visa holders (e.g., EP) may sponsor family members under Dependant Pass or Long-Term Visit Pass 

Visa options and eligibility criteria are regularly updated by Singapore’s Ministry of Manpower; ensure you consult the latest requirements before proceeding. 

Leave Entitlements and Employee Benefits

Annual Leave

Employees receive a minimum of 7 days after 12 months of service, increasing by one day per year of service, up to 14 days. 

Female employees receive 16 weeks for working mothers who are Singapore citizens. Non-citizens may receive 12 weeks depending on eligibility. 

Male employees receive 2 weeks of government-paid paternity leave. 

Employees receive 14 days paid sick leave and up to 60 days with hospitalization (after 3 months of service). 

The following statutory national holidays are observed in Singapore: 

  • New Year’s Day 
  • Chinese New Year (2 days) 
  • Good Friday 
  • Hari Raya Puasa 
  • Labour Day 
  • Vesak Day 
  • Hari Raya Haji 
  • National Day 
  • Deepavali 
  • Christmas Day 

Payroll

Payroll frequency in Singapore is typically monthly with payment made within 7 days after the end of the salary period. Itemized payslips are mandatory.  

Mandatory Bonus

There is no legal requirement for a 13th month salary or bonus. However, Annual Wage Supplement (AWS) and performance bonuses are common practices in Singapore. 

Benefits

The Singapore employment system includes mandatory social security and statutory contributions. 

The mandatory benefits in Singapore include: 

  • CPF contributions (up to 37% combined employer and employee) for citizens/PRs 
  • Skills Development Levy (SDL) 
  • Work Injury Compensation Insurance 
  • Foreign Worker Levy (for Work Permit and S Pass holders) 

Note: CPF applies only to Singapore citizens and permanent residents, not to EP/S Pass holders. 

Additional voluntary benefits may be provided by employers 

Accounting Standards

Singapore accounting follows Singapore Financial Reporting Standards (SFRS) based on IFRS, administered by the Accounting and Corporate Regulatory Authority (ACRA).

Reporting Requirements and Thresholds

All Singapore-incorporated companies must file annual returns and tax returns. 

  • Filing deadline: Within 7 months after the financial year-end for corporate tax and annual returns must be filed within 30 days of AGM. 
  • Financial statements must include: 
  • Statement of financial position (balance sheet) 
  • Statement of profit or loss and other comprehensive income 
  • Statement of changes in equity 
  • Statement of cash flows 
  • Notes to the financial statements 
  • Directors’ statement 
  • Electronic filing is mandatory through BizFile and IRAS portals. 

Audit Requirements and Thresholds

Audit exemption applies to small companies that meet any 2 of the following: 

  • Total annual revenue ≤ SGD 10 million 
  • Total assets ≤ SGD 10 million 
  • Number of employees ≤ 50 

Audits must be performed by a public accountant registered with ACRA. 

Taxes and Contributions

Corporate Tax

The standard corporate tax rate is 17%.

GST

The GST rate in Singapore is 9% on most goods and services.

 Filing Dates

Corporate tax returns for the Year of Assessment (YA) must be filed by November 30 (paper) or December 15 (e-filing) of the following year.

Penalties

Non-compliance penalties range from monetary fines to prosecution. Late filing penalties may range from SGD 200 to SGD 1,000.

Transfer Pricing

Singapore has comprehensive transfer pricing rules aligned with OECD guidelines: 

  • Arm’s length principle applies to related party international dealings. 
  • Documentation requirements for taxpayers with international related party dealings. 
  • Transfer pricing methods include CUP, Resale Price Method, Cost Plus Method, Profit Split Method, and Transactional Net Margin Method. 

Country by Country Reporting

Singapore implements CbC reporting requirements: 

  • Applicable to: Groups with annual consolidated revenue of SGD 1.125 billion or more 
  • Filing deadline: 12 months after the end of the financial year 
  • Electronic filing required through the IRAS e-Submission portal 

Master File and Local File Requirements and Thresholds

Transfer pricing documentation is required for Singaporean entities that are part of multinational groups above certain thresholds. 

Master File 

  • Required if the ultimate parent entity of the group has annual consolidated revenue of SGD 1.125 billion or more 
  • Must include: 
  • Organizational structure and ownership 
  • Description of business operations 
  • Controlled transactions, financial and tax position 
  • Applied transfer pricing rulings 

Local File 

  • Required if gross revenue exceeds SGD 10 million and total value of related party transactions exceeds: 
  • SGD 15 million (purchase/sale of goods) 
  • SGD 1 million (loan/interest), or 
  • SGD 1 million (other transactions) 
  • Must include: 
  • Local entity information 
  • Controlled transactions 
  • Financial information 
  • Transfer pricing method and analysis 

Deadline: Documentation must be prepared by the due date for filing the corporate income tax return and submitted to the Inland Revenue Authority of Singapore (IRAS) within 30 days of request. 

Data Protection & AML Compliance

General Data Protection Act

Singapore’s privacy framework is governed by the Personal Data Protection Act (PDPA).

AML (Anti-Money Laundering)

Singapore’s AML framework is governed by the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, Terrorism (Suppression of Financing) Act, and the Monetary Authority of Singapore (MAS) Notices and Guidelines. 

Obligated entities: Banks, finance companies, insurance providers, securities brokers, fund managers, money changers, and other designated financial institutions. 

Key requirements: 

  • Customer identification and verification procedures 
  • Ongoing customer due diligence (CDD) 
  • Suspicious transaction reporting to the Suspicious Transaction Reporting Office (STRO) 
  • Record keeping requirements (minimum 5 years) 
  • AML compliance programs and staff training 
  • Beneficial ownership identification for corporate accounts 

Penalties: Regulatory breaches can result in fines of up to SGD 1 million per breach and, in serious cases, criminal prosecution including imprisonment for responsible individuals. 

Why Singapore?

Reasons you should setup legal entity in Singapore:  

  • One of the easiest countries in Asia to do business 
  • World-class financial and legal infrastructure 
  • Robust intellectual property protections 
  • English-speaking, highly skilled workforce 
  • Regional gateway to ASEAN and Asia-Pacific 
  • Extensive free trade agreements and tax treaties 
  • Stable political environment and digital readiness 

Cerity Global ensures your business expansion in Singapore is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks. 

Economic figures are subject to change based on quarterly reports and market conditions. 

Cerity Global as your legal entity setup partner in Singapore

Cerity Global combines deep local knowledge with proven expertise to make your Singapore business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Singapore. 
 

Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location. 

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