General Business Questions

Common questions about general business questions in Singapore, answered by the team at E&H Corporate Services.

Why establish a business in Singapore?Singapore is a magnet for businesses and high net worth individuals (HNWIs) seeking to make the most of all that Asia has to offer. It is widely recognised as a leading financial centre with a pro-business environment. The city-state acts as a strategic hub for the region and has a highly skilled workforce, global connectivity, and world- class infrastructure.What is ACRA?ACRA stands for Accounting and Corporate Regulatory Authority of Singapore. ACRA is the national regulator of business registration, financial reporting, public accountants and corporate services providers.What is ACRA BizFile?BizFile is ACRA's official portal for business filings. Once incorporated, your company has an ACRA profile viewable through BizFile, and your annual returns and company changes are filed there.What is IRAS?IRAS stands for The Inland Revenue Authority of Singapore. IRAS administers and enforces the collection of income tax, goods and services tax (GST, or also known as VAT in some jurisdiction) and various other taxes.What is the difference between the various Singapore entity types?The major difference between the various business entities is the legal status and taxation of each entity. Click here to read about each entity.Can a foreigner own 100% of a Singapore company?Yes. Singapore allows 100% foreign shareholding . You do not need to have a local Singaporean partner or shareholder. You only need a local resident director (which can be a Nominee) and a local address.Does Singapore have any restrictions on foreign ownership?No general restrictions — foreigners can own 100% of a Singapore company, including as sole shareholder and director (with a resident director). Only a few regulated sectors (e.g. media, broadcasting, retail banking, law) have foreign ownership limits.Can a foreigner be a company secretary?The company secretary has to be a natural person and locally resident in Singapore.What are the different types of work passes available in Singapore?There are various types of work passes in Singapore, including Employment Pass (EP), S Pass, Work Permit, EntrePass, Personalised Employment Pass (PEP), and Letter of Consent (LOC).What is a Singpass?Singpass is Singapore's national digital identity for citizens, PRs and work pass holders — used to access government and private services online, including ACRA BizFile+, IRAS, MOM and CPF portals.Do I need a Singpass for online company registration?For ACRA BizFile+ filings, company registration is normally done by an authorised filing agent or a director using Singpass/CorpPass. Foreign directors without Singpass can be verified using their foreign passport details through the filing agent, who files on their behalf — you do not need a Singpass yourself if you engage a corporate service provider.What are the funding options for new companies in Singapore?Options include: founder equity, angel investors, venture capital, government grants (e.g. Startup SG, Enterprise Singapore grants), bank loans and trade financing, crowdfunding, and incubator/accelerator funding.What kind of financing can I apply for in Singapore?Depending on your stage, you can apply for: Startup SG grants, Enterprise Development Grant (EDG), SME Working Capital Loan, Enterprise Financing Scheme loans, venture debt, and equity funding from angel investors or VCs.What is equity fundraising and what are the pros and cons?Equity fundraising means selling shares to investors in exchange for capital. Pros: no repayment pressure, investor expertise and networks. Cons: dilution of ownership, loss of control, and reporting obligations to investors.What are private funds?Private funds are pooled investment vehicles for accredited or institutional investors — commonly structured in Singapore as Variable Capital Companies (VCCs) or limited partnerships, with managers licensed or registered with MAS.What are angel investors?Angel investors are high-net-worth individuals who invest their own money in early-stage startups in exchange for equity, typically providing seed funding of S$50,000–S$500,000, often alongside mentorship and networks.Can Osome assist with business loans or funding?Corporate service providers like Osome typically introduce funding partners (e.g. licensed lenders, grant consultants) rather than lending directly. Banks and MAS-licensed lenders remain the primary sources of business loans.Can I get an APEC card through a corporate services provider?Yes — corporate services providers can assist with Business Travel Card (APEC BTC) applications for business owners and frequent travellers, which grants expedited immigration clearance across participating APEC economies.What is an Employee Stock Option Plan (ESOP)?An ESOP is a scheme that grants employees options to buy company shares at a fixed price in the future, aligning staff incentives with company growth. Singapore offers tax concessions under the ESOP scheme for qualifying plans.What is the Data Protection Officer (DPO) requirement in Singapore?Under the PDPA, every organisation (including companies) must designate at least one Data Protection Officer to ensure compliance with the Personal Data Protection Act, and register the DPO's business contact details with the PDPC.Is appointing a DPO mandatory?Yes — every organisation that handles personal data in Singapore must appoint at least one DPO. It is not a full-time role by default; a company can designate an existing staff member, an external consultant, or a service provider.Does the DPO need to be an employee of the company?No. The DPO can be an employee, a director, or an external third-party service provider — the PDPA requires a designated individual or team accountable for data protection, not necessarily an in-house hire.Is it mandatory for a holding company with no employees to appoint a DPO?All personal data that is in a company's possession or under its management must be handled responsibly. This could apply to personal information about clients or stockholders as well as information about staff. According to the PDPA, a company must appoint one or more people to be in charge of making sure the law is followed.What is the Annual Report requirement?The BVI exempts businesses from annual reporting and tax filing requirements, although there is an annual cost to maintain the company's good standing.What are the reasons for business failure?Common reasons include: poor cash flow management, lack of market demand, insufficient capital, weak pricing, failure to comply with regulations, loss of key staff, and lack of strategic planning — many of which can be mitigated with proper accounting and compliance support.What is a business profile and how is it used?A business profile is an official ACRA report of a company's registered particulars — name, UEN, incorporation date, status, registered address, directors, shareholders, secretary, and share capital. It is used by banks, landlords, investors and counterparties for due diligence, and is available for a small fee via BizFile+.What is the difference between a resident and non-resident company?A tax-resident company has its control and management exercised in Singapore. Resident companies enjoy the foreign-sourced income exemption, tax treaty benefits, and SUTE; non-resident companies are taxed on all Singapore-sourced income without these benefits.What are the requirements for a company to be exempted from preparing financial statements when dormant?To be exempted from submitting financial statements and holding AGMs, the following requirements must be met: The company is not a listed company or a subsidiary of a listed company It holds less than S$500,000 in asset It has been dormant since the formation of the end of its previous financial year What is the difference between a report by the company's director and audited accounts?The directors' report is a statutory narrative of the company's affairs prepared by directors, while audited accounts are financial statements independently examined by an auditor. Small and exempt private companies may prepare only unaudited accounts and simplified disclosures.Does Singapore permit consolidated financial statements?Yes — Singapore Financial Reporting Standards (SFRS) require parent companies to prepare consolidated financial statements covering subsidiaries, subject to the small company exemptions under the Companies Act.What are the SFRS (Singapore Financial Reporting Standards)?SFRS are Singapore's accounting standards for financial reporting, converged with IFRS. They govern how companies recognise, measure and disclose transactions, and are mandatory for companies preparing statutory financial statements.How many SFRS are there?SFRS comprises a framework plus over 40 standards (SFRS 1–41 and related interpretations). Singapore also has SFRS(I) for listed companies, converged with IFRS, and SFRS for Small Entities for qualifying small companies.What basis of accounting is used in SFRS?SFRS uses the accrual basis of accounting — transactions are recorded when they occur, not when cash changes hands — applied on a going-concern basis, with recognition and measurement principles aligned to IFRS.What are the Singapore Financial Reporting Standards (International)?SFRS(I) are Singapore accounting standards that are identical to IFRS as issued by the IASB, applied by listed companies and those with public accountability in Singapore.Is it safe to put clients' passports and NRICs into cloud software?In CorpSec AI every document and uploaded file is locked in its own encrypted envelope before it is saved, with a key that is not kept in the database — so a stolen database is unreadable. The concern is reasonable, and the honest way to answer it is to say exactly what happens to the file. When a document or scanned ID enters CorpSec AI, it is sealed in its own individual encrypted envelope before it is written to storage. Each file gets a unique, single-use key; that key is then locked with a key belonging only to your firm; and your firm's key is derived from a master key held outside the database entirely. Someone who obtained a full copy of the database and the file store would hold scrambled bytes, not a passport. The envelope is also bound to your firm and to that file's own fingerprint, so a sealed file lifted into another firm's account will not open. If the key is ever unavailable, the system refuses to save the file rather than storing it unprotected. It is also worth comparing against the real alternative: identity documents arriving by WhatsApp and sitting in a laptop folder are unencrypted, uncontrolled, and leave no record of who opened them.What is the annual reporting requirement?The BVI exempts businesses from annual reporting and tax filing requirements, although there is an annual cost to maintain the company's good standing.Can I upgrade or downgrade my plan?Yes, you can upgrade or downgrade your plan at any time. Please contact your in-charge for assistance.Can I engage you for just one service, like tax filing?Yes. We offer both bundled packages and standalone services, so you can start with one area and add others as your business grows.Will you be able to review and advise me on the agreement?Please note that we are not a law firm and the templates generated do not cater for every situation. Businesses using such templates may need to consult their lawyer to ensure that it is appropriate for use. We are providing this service to assist SMEs who wish to have awesome templates at reasonable prices.

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