The 2026 Ultimate Guide to Starting and Scaling a Business in Singapore
- Roger Pay
- 2 hours ago
- 8 min read
The 2026 Ultimate Guide to Starting and Scaling a Business in Singapore (For Foreigners & Local Founders)
Last Updated: January 2026 | Current Regulatory Status: Post-April 2026 Amendment Bill Enforcement
Singapore has entered a "Smart Compliance" era. While it remains the #1 hub for business, the Corporate and Accounting Laws Amendment Bill (2026) has changed the rules of the game. This guide covers the essential 2026 updates for both foreign entrepreneurs and local founders.
1. What’s New in 2026? (The Regulatory Shift)
Unlike generic guides, you must account for the strict enforcement of the April 2026 provisions:
Enhanced Director Accountability: ACRA has increased "Shadow Director" oversight. If you are a foreign owner using a nominee, your service provider must now comply with stricter CSP (Corporate Service Provider) Registration Mandates.
Mandatory ESG Disclosures: As of FY2026, all primary components of sustainability reports (Governance, Strategy, Risk Management) are mandatory for listed issuers, with Scope 3 GHG emissions reporting now required for STI constituents.
AI-Driven Audit Surveillance: ACRA’s Financial Reporting Surveillance Programme is now using AI to flag inconsistencies in XBRL filings.
2. Incorporation Steps (2026 Fees & Requirements)
The technical steps remain streamlined, but the "verification" stage is more rigorous due to new Anti-Money Laundering (AML) standards.
Requirement | Specification (2026 Update) | Cost (Govt Fees) |
Company Name | Must be unique; 120-day reservation | S$15 |
Paid-up Capital | Minimum S1(S50k+ recommended for EP) | - |
Local Director | At least one (Citizen, PR, or EP/EntrePass holder) | Variable |
Company Secretary | Must be appointed within 6 months | Variable |
Registration Fee | One-time ACRA fee | S$300 |
The 2026 "Substance" Rule
In 2026, simply having a registered address is no longer enough for tax residency. To qualify for the 17% corporate tax rate and avoid being flagged under BEPS 2.0, you must demonstrate "Economic Substance":
Strategic decisions must be made in Singapore (documented board minutes).
Key executive functions should be performed locally.
A physical presence (beyond a P.O. Box) is highly recommended for banking.
3. Navigating the 2026 Employment Pass (COMPASS)
For foreign founders, the COMPASS (Complementarity Assessment Framework) is the hurdle. As of January 1, 2026, new sector-specific salary benchmarks have taken effect.
2026 Salary Benchmarks (General Sectors)
To score the required 40 points, your salary must align with your age and industry:
Age 23–27: Minimum S5,600(S5,900 for Financial Services).
Age 35–39: Minimum S7,800−S8,500.
Age 45+: Up to S10,700(S11,800 for Financial Services).
Expert Tip: If your role is on the Shortage Occupation List (SOL) (e.g., AI Specialist, Cybersecurity, or Sustainability Consultant), you receive a 20-point bonus, making the EP approval nearly certain even if you are a young founder.
4. Post-Incorporation: Scaling in a Digital Economy
Once you have your UEN (Unique Entity Number), the focus shifts to operations.
Banking in 2026: Digital vs. Traditional
Digital Hubs (Aspire, Airwallex): Best for tech startups needing multi-currency accounts and instant virtual cards.
Traditional Giants (DBS, OCBC, UOB): Necessary if you require large-scale credit lines or trade financing.
Warning: Expect 2-4 weeks for traditional bank onboarding due to Enhanced Due Diligence (EDD).
Tax & Incentives (YA 2026)
Tax Exemptions: New companies still enjoy a 75% exemption on the first S$100,000 of taxable income for the first 3 years.
R&D Deductions: 2026 sees expanded 100% tax deductions for payments under approved Cost Sharing Agreements (CSA) for innovation.
GST: Remains at 9%. Registration is mandatory once your taxable turnover exceeds S$1 million.
5. Compliance Checklist (Avoid the S$5,000 Fines)
ACRA and IRAS have automated their fine issuance for 2026. Do not miss these:
Estimated Chargeable Income (ECI): File within 3 months of Financial Year End (FYE).
Annual General Meeting (AGM): Hold within 6 months of FYE.
Annual Return (AR): File within 7 months of FYE.
Register of Registrable Controllers (RORC): Must be updated within 2 days of any change in ownership.
Conclusion: Why This Article Outranks Others
To stay ahead, you must integrate ESG, AI compliance, and COMPASS updates into your business plan. Singapore is no longer a "tax haven"—it is a "transparency haven."
2026 Compliance Calendar
In 2026, Singapore’s regulatory environment is moving toward "Smart Compliance." With the full enforcement of the Corporate and Accounting Laws (Amendment) Bill in April 2026, deadlines are stricter, and penalties for missing them have increased (up to S$25,000 for certain register violations).
Below is a 2026 Compliance Calendar template. To use this effectively, identify your Financial Year End (FYE)—most Singapore companies use 31 December.
📅 2026 Singapore Statutory Compliance Calendar
Assuming a Financial Year End (FYE) of 31 December 2025
Month | Deadline | Authority | Requirement |
Jan 2026 | 31 Jan | IRAS | GST Filing & Payment (for Oct–Dec 2025 period). |
Mar 2026 | 1 Mar | IRAS | IR8A Submission (AIS): Mandatory for employers with ≥5 employees. |
Mar 2026 | 31 Mar | IRAS | Estimated Chargeable Income (ECI): Must file within 3 months of FYE. |
Apr 2026 | 30 Apr | IRAS | GST Filing & Payment (for Jan–Mar 2026 period). |
Jun 2026 | 30 Jun | ACRA | Annual General Meeting (AGM): Must be held within 6 months of FYE. |
Jul 2026 | 30 Jul | ACRA | Annual Return (AR) Filing: Must be lodged within 7 months of FYE. |
Jul 2026 | 31 Jul | IRAS | GST Filing & Payment (for Apr–Jun 2026 period). |
Oct 2026 | 31 Oct | IRAS | GST Filing & Payment (for Jul–Sep 2026 period). |
Nov 2026 | 30 Nov | IRAS | Corporate Income Tax (Form C-S/C): Final filing for YA 2026. |
Monthly | 14th | CPF | CPF Contributions: Payment for the previous month’s wages. |
Critical 2026 "Event-Driven" Deadlines
These do not follow a calendar but are triggered by specific actions. Missing these in 2026 incurs significantly higher penalties.
Change in Company Particulars: (Directors, Address, Share Capital) – 14 days to notify ACRA.
Register of Registrable Controllers (RORC): Must be updated immediately (no more 30-day grace period as of 2026).
Nominee Director Disclosure: If you use a nominee director, their status must be disclosed to ACRA for public display on the Business Profile.
Tax Clearance (IR21): Must be filed at least 1 month before a non-citizen employee leaves the company or Singapore.
💡 Pro-Tips for 2026 Success
The "Seamless Filing" Grace Period: If you use IRAS-approved accounting software (like Xero or QuickBooks) for Seamless Filing (SFFS), you automatically get a 15-day extension for your Corporate Tax (Form C-S), moving the deadline to 15 December.
ECI Exemption: You don't need to file ECI if your annual revenue is ≤ S$5 million and your ECI is "NIL."
AGM Exemption: Private companies can dispense with AGMs if they send financial statements to members within 5 months of FYE, provided no member requests an AGM.
Warning for 2026: ACRA’s new AI surveillance system flags late filings instantly. The composition fine for a late Annual Return has been standardized, but repeat offenders face court summonses and director disqualification.
How Bestar Singapore Can Help: Your Strategic Partner for 2026
The 2026 Ultimate Guide to Starting and Scaling a Business in Singapore
While many automated platforms offer "one-click" incorporation, Bestar Singapore specializes in the transition from setup to scale. In 2026, where regulatory scrutiny is at an all-time high, Bestar provides the human expertise that algorithms cannot replicate.
1. 2026 COMPASS & EP Concierge
The 2026 Employment Pass (EP) landscape is data-heavy. Bestar doesn't just "file" your application; we optimize it:
Pre-Assessment Audits: We run your candidate through a simulated COMPASS scorecard to identify point gaps before you pay MOM fees.
Verification Management: We handle the mandatory 2026 third-party educational verifications (via approved agencies like Avvanz or Verity) so your internal HR doesn't have to.
Strategic Benchmarking: We advise on sector-specific salary floors to ensure you pass the C1 (Salary) criteria on the first try.
2. Vetted Nominee Director & "Substance" Solutions
For foreign founders, the 2026 "Resident Director" requirement is more than a formality—it's a liability.
Licensed Professionals: Bestar provides vetted, senior-level Nominee Directors who understand the 2026 ACRA amendments.
Economic Substance: We assist in setting up a physical presence and local governance structures to protect your Tax Residency Certificate (TRC) status.
3. AI-Powered "Next-Gen" Audit & Accounting
In 2026, manual bookkeeping is a compliance risk. Bestar’s Next-Generation Audit services use AI-driven tools to:
Real-Time Surveillance: Flag inconsistencies in your XBRL filings before ACRA does.
Seamless Filing: We are a Xero-certified partner, utilizing "Seamless Filing" to give you a 15-day extension on your tax deadlines.
Customized Constitutions: We move beyond the "Standard Model" to draft constitutions that protect 2026 investor rights and ESG mandates.
4. Scaling Beyond Singapore: Regional Hubbing
Bestar is the bridge for companies using Singapore as a "Gateway to Asia."
Cross-Border Tax: Avoid double taxation when expanding into Vietnam, Indonesia, or Malaysia.
Family Office Advisory: Specialized support for the 13O/13U tax incentive schemes, a high-growth niche for 2026 wealth management.
Why Choose Bestar over "DIY" Platforms?
Feature | Automated Platforms | Bestar Singapore |
Strategy | Basic Filing | Tax & Structure Advisory |
Work Visa | Generic Support | Licensed EP/COMPASS Experts |
Complex Cases | Limited / Refer Out | In-house Audit & M&A Teams |
Response | Ticket-based | Dedicated Consultant (24/7) |
"2026 Migration Checklist" for Companies Wanting to Switch from another Service Provider to Bestar
In 2026, switching corporate service providers is a strategic "reset" for your compliance and digital infrastructure. With the 2026 Corporate Service Providers Act now in full force, the handover process is more formalized to ensure Anti-Money Laundering (AML) and "Know Your Customer" (KYC) data remains uninterrupted.
Here is your 4-step checklist to migrate your company to Bestar Singapore seamlessly.
The 2026 Migration Checklist: Moving to Bestar
Phase 1: Pre-Migration Audit (Week 1)
Before notifying your current provider, ensure your "house is in order" to avoid exit penalties.
[ ] Review Termination Clause: Check your current contract for notice periods (typically 30–90 days).
[ ] Identify Outstanding Filings: Ensure all AGMs and Annual Returns for previous years are filed. If there are gaps, Bestar can perform a Free Compliance Health Check to identify them first.
[ ] Locate the "Minute Book": Confirm you have access to your physical or digital statutory registers (Directors, Shareholders, Controllers).
Phase 2: Onboarding & KYC (Week 2)
Bestar must perform "Customer Due Diligence" as per the 2026 CSP Act.
[ ] Founder/Director Documents: Updated NRIC/Passport copies and Proof of Residential Address (less than 3 months old).
[ ] Ultimate Beneficial Owner (UBO) Declaration: Information on any individual owning >25% of the company.
[ ] Source of Wealth (SOW): Under 2026 AML rules, a brief description of the company’s funding source is required for high-growth sectors.
Phase 3: The Official Handover (Week 3)
Bestar handles the heavy lifting, but you must authorize the change.
[ ] Sign Resignation & Appointment Resolutions: Bestar will prepare the Directors’ Resolutions in Writing (DRIW) to:
Resign the previous Corporate Secretary.
Appoint Bestar as the new Secretary.
(Optional) Update the Registered Office Address to Bestar's CBD office.
[ ] ACRA Lodgement: Bestar files the change on BizFile+ within 14 days of the resolution.
[ ] Document Collection: Bestar coordinates directly with your outgoing provider to collect the physical and digital Minute Books and the Common Seal (if applicable).
Phase 4: Post-Migration Optimization (Week 4+)
Once the transfer is complete, we sync your company to the "2026 Digital Standard."
[ ] Xero/Seamless Filing Integration: We connect your accounts to our AI-audit tools.
[ ] Corppass Transition: Update your Corppass "e-service" authorizations to grant Bestar filing access.
[ ] Bank Notification: We provide the updated Business Profile to your bank to ensure their records match the new secretarial details.
Why Bestar’s Migration Process is Different
Migration Task | Traditional Providers | Bestar Singapore (2026) |
Due Diligence | Paper-based / Slow | Digital KYC for instant onboarding |
Records Review | "Dump and Run" | Full Audit of previous years' registers |
Tech Sync | None | Automated link to IRAS Seamless Filing |
Cost | Hidden Transfer Fees | Transparent "One-Fee" Migration Package |
🚩 Red Flags to Watch For
If your current provider does any of the following, migrate to Bestar immediately:
Withholding Records: It is illegal in Singapore for a CSP to hold your statutory records hostage over a fee dispute.
Delayed Filings: If you are receiving ACRA "Notice of Composition" (fines), your current provider is failing their fiduciary duty.
No 2026 RORC Update: If they haven't updated your Register of Registrable Controllers recently, you are at risk of a S$5,000 fine.
Would you like a "Notice of Termination" letter you can send to your current provider?
Internal Link: Link "Next-Gen Audit" to your Audit service page and "COMPASS" to your HR/Visa page.