Planning to start an SME in Singapore? Here’s a Step-by-step registration guide for 2025

Starting a small and medium-sized enterprise (SME) in Singapore is one of the most rewarding paths for entrepreneurs looking to tap into Southeast Asia’s thriving business ecosystem. With its strong legal infrastructure, low tax rates, and extensive government support, Singapore offers one of the most SME-friendly environments globally.

However, before launching operations, it’s critical to understand the legal, financial, and operational steps to register your SME properly. This guide will walk you through how to start an SME in Singapore in 2025—from registering with ACRA to obtaining the right licenses and meeting key compliance requirements.

What is an SME in Singapore?

In Singapore, SMEs are defined by Enterprise Singapore as companies with:

• Annual gross revenue must not exceed S$100 million, or
• Not more than 200 employees.
  ‍

SMEs make up 99% of all enterprises, contribute nearly half of the country’s GDP, and employ over 70% of the workforce. To explore more on classifications and types of SMEs, check out this breakdown on what is SME.

For a foundational overview, you can also visit this excellent resource: sme singapore

Step 1: Register Your Business with ACRA

Every business operating in Singapore is required to be formally incorporated through the Accounting and Corporate Regulatory Authority (ACRA). The registration process is completed digitally through ACRA’s BizFile+ system.

Key steps to prepare:

• Company Name: Ensure it's available and doesn’t violate trademark laws.
• Business Structure: Decide on your legal entity. Options include:
  • Sole Proprietorship
  • Partnership
  • Private Limited (Pte Ltd) — often the preferred choice for SMEs because it offers limited liability and boosts business credibility.
• Directors & Shareholders: Must appoint at least one resident director.
• Company Secretary: Must be assigned within six months of incorporation.
• Registered Business Address: Required for official correspondence.
  ‍

Need help making the right choices at this stage? Get expert support through Business Management and Consultancy in Singapore, a service from JBC designed for SMEs just like yours.

Step 2: Apply for Business Licenses and Permits

After your SME is incorporated, you must verify if your planned activities require specific regulatory approvals.

Here are some examples of industries and corresponding requirements:

Food & Beverage

Planning to operate a restaurant, food stall, or café? You must obtain a Food Shop License from the Singapore Food Agency (SFA) before opening your doors.

Retail

Retail businesses, particularly those in HDB or URA properties, often need to apply for Business Use Approval to ensure proper zoning.

Private Education

If you intend to provide structured learning, certifications, or enrichment programs, registration with the Committee for Private Education (CPE) is required.

Financial Services

Companies involved in fund management or trading securities may require a Capital Markets Services License from the Monetary Authority of Singapore (MAS).

Pro Tip: Unsure which permits you need? Use the GoBusiness Licensing Portal to identify the exact requirements for your business activity.

If you want hands-on guidance, JBC's Business Management and Consultancy in Singapore also includes license planning, submission support, and government liaison.

Step 3: Set Up Your Financial Infrastructure

Once your business entity is registered, your financial operations must be structured in compliance with Singapore regulations:

• Corporate Bank Account: This is mandatory and separates personal from business funds.
• Accounting System: Use software like Xero or QuickBooks to ensure proper bookkeeping that meets IRAS standards.
• Goods and Services Tax (GST) Registration: Becomes compulsory once your company’s taxable turnover surpasses S$1 million in a 12-month period.
• CPF Contributions: Employers must make monthly contributions to Singaporean and Permanent Resident employees under the Central Provident Fund.
  ‍

Want to strengthen your company’s financial strategy? We highly recommend reviewing this guide on financial planning for SME in Singapore.

Step 4: Secure an Operational Setup

Beyond compliance, you'll also need a clear plan to manage your daily business operations effectively.

Key operational steps include:

• Business Address or Workspace: Ensure it matches your ACRA filing and is zoned for your activity.
• Hiring Employees: Local hires must receive CPF; foreign workers require Employment Passes or other MOM-issued permits.
• Business Insurance: While not always mandatory, it’s highly recommended for risk management.
• Marketing Tools: Set up your website, Google Business Profile, and digital channels to reach your target audience early.
  ‍

As you scale, JBC offers dedicated Business Growth & Expansion Strategies in Singapore to help SMEs grow regionally or access overseas markets with tailored go-to-market and funding solutions.

Step 5: Tap Into Government Support for SMEs

Singapore’s government offers a wide array of financial assistance and development programs tailored to SMEs:

• Enterprise Development Grant (EDG): Supports SMEs aiming to innovate, modernize operations, or venture into new markets.
• Productivity Solutions Grant (PSG): Offers financial support for SMEs adopting pre-approved IT systems and productivity-enhancing technologies.
• Startup SG: Funds and mentors early-stage companies with high-growth potential.
• Market Readiness Assistance (MRA): Assists SMEs that plan to expand beyond Singapore.
  ‍

To be eligible, your company must meet the core sme singapore qualifications—such as being a locally registered company with at least 30% local shareholding.

To better understand how to maximize these schemes while navigating rising costs and digital transformation, we also recommend this guide on Challenges Faced by SMEs in Singapore.

Starting an SME in Singapore goes beyond paperwork—it's about laying a strong legal, financial, and operational foundation that enables long-term growth. With the right structure, compliance, and tools in place, your SME can thrive in one of Asia’s most business-friendly landscapes.

To stay updated on Singapore’s latest SME regulations, grant announcements, and scaling strategies, subscribe to JBC’s newsletter.

‍