Singapore

Introduction Singapore is one of the world’s best places to start and run a business. Known for its stable economy, low taxes, and pro-business policies, it allows individuals — whether residents or foreigners — to set up and run a company with only one shareholder and one director. Though Singapore does not officially use the term “One Person Company” (OPC) like India does, the functional equivalent is the Private Limited Company (Pte Ltd). This structure allows a single person to own and manage a business legally and efficiently. 1. What is a One Person Company in Singapore? In the Singaporean context, a One Person Company is essentially a Private Limited Company (Pte Ltd) with: It is fully legal to form and operate a company in Singapore with just one person, whether you’re a Singaporean, Permanent Resident, or foreigner (with some conditions). 2. Key Features of Singapore One Person Company Feature Details Type Private Limited Company (Pte Ltd) Shareholder Minimum 1 (can be a person or a company) Director Minimum 1 (at least 1 must be a local resident) Liability Limited to company assets Legal Entity Separate from owner Tax 17% flat corporate tax, with exemptions for startups Registration With ACRA (Accounting and Corporate Regulatory Authority) 3. Benefits of Registering a One Person Company in Singapore ✅ 3.1 Limited Liability Protection As the owner, your personal assets are not at risk if the business incurs debt or lawsuits. ✅ 3.2 Global Credibility Singapore companies enjoy high trust internationally, especially in banking and finance sectors. ✅ 3.3 Low Corporate Taxes Corporate tax is capped at 17%, and new companies enjoy significant tax exemptions for the first 3 years. ✅ 3.4 Government Grants Locally owned companies may qualify for various grants, such as the Startup SG Founder Grant, EDG, and more. ✅ 3.5 No Capital Gains or Dividend Tax Singapore does not tax dividends or capital gains, making it attractive for business owners. ✅ 3.6 100% Foreign Ownership Allowed You don’t need a Singaporean partner. Foreigners can own 100% of shares. 4. Requirements for Setting Up a One Person Company Requirement Description Director At least 1 local resident (Singapore citizen, PR, or EntrePass holder) Shareholder At least 1 (can be local or foreign) Company Secretary Mandatory (must be appointed within 6 months of incorporation) Registered Address Must be in Singapore (no PO Box allowed) Paid-up Capital Minimum SGD 1 Note: If you are a foreigner and want to be the sole director, you must appoint a local nominee director or relocate under an EntrePass. 5. Step-by-Step Process to Register a One Person Company Step 1: Choose a Company Name Step 2: Appoint Company Roles Step 3: Prepare Incorporation Documents Step 4: Register with ACRA Step 5: Receive Incorporation Certificate Upon approval (usually within 1 day), you will get: 6. Post-Incorporation Tasks ✅ 6.1 Open a Corporate Bank Account Options include: ✅ 6.2 Appoint Auditor (if needed) Companies with revenue > SGD 10 million or total assets > SGD 10 million must appoint an auditor. ✅ 6.3 Apply for Necessary Licenses Depending on the business activity (e.g., food, finance, education), you may need additional licenses. 7. Taxation of One Person Company in Singapore Tax Type Rate Corporate Tax 17% flat Start-up Tax Exemption 75% off first SGD 100,000 profit; 50% off next SGD 100,000 (for first 3 years) GST (VAT) 9% (only if turnover > SGD 1 million/year) Dividend Tax 0% Capital Gains Tax 0% 8. Comparison: One Person Company vs Sole Proprietor Feature Private Limited (OPC) Sole Proprietorship Legal Status Separate entity Not separate Liability Limited Unlimited Ownership 1 person 1 person Image Highly credible Less formal Tax Benefits Yes Taxed at personal income rates Complexity Medium Simple to start 9. Can Foreigners Start a One Person Company? Yes, but you must: Many foreign entrepreneurs use company formation firms that offer: Common providers: 10. Responsibilities of the Sole Director Even if you’re the only director and shareholder, you must: Failing to meet these duties can result in penalties, fines, or company striking off. Conclusion A One Person Company in Singapore offers incredible advantages for solopreneurs: Whether you’re a freelancer, startup founder, or global digital nomad, setting up a Private Limited Company in Singapore allows you to operate legally, scale globally, and protect your assets — even if you are the only person in the business.