Singapore: Operating a Business

Private limited company

Number of partners: Minimum 1, maximum 50.
Capital (max/min): SGD 1
Shareholders and liability: Liability is limited to the amount of guarantees

Public limited company

Number of partners: Minimum 50 shareholder.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is limited to the portion of the company’s share capital taken up.

Public limited company by guarantee

Number of partners: Minimum 3 shareholders.
Capital (max/min): Minimum SGD 1.
Shareholders and liability: Liability is limited to the amount contributed.

Limited Partnership

Number of partners: Minimum 2 partners with a maximum of 20. At least one general partner and one limited partner.
Capital (max/min): No minimum capital required.
Shareholders and liability: At least one person has an unlimited liability (active partner). Sleeping partners' liability is limited to the amount they contributed.

Sole Proprietorship

Number of partners: 1 person.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited.

Business Setup Procedures

The Competent Organisation

The Accounting and Corporate Regulatory Authority of Singapore.

For Further Information

Consult the Doing Business Website, to know about procedures to start a Business in Singapore.
Accounting and Corporate Regulatory Authority

Financial Information Directories

ACRA Register - Directory of registered entities on the Accounting and Corporate Regulatory Authority

Dun & Bradstreet - Worldwide directory with financial information on businesses

Recovery Procedures

Principle

As a company declares bankruptcy, an Official Assignee takes over to manage the process.
The bankrupt would be subject to several restrictions, one of which is that he/she may not travel out of the country without the Official Assignee's permission.
The bankrupt would also be automatically disqualified from acting as a Director of a company or from taking part in the management of a business, whether directly or indirectly.
Certain provisions in the Bankruptcy Act may be invoked to “claw back” assets given away or transferred by the bankrupt within qualifying periods before his/her bankruptcy. The assets clawed back would be used to repay creditors.
Provisions may seem less severe for foreign companies, since they are not required to guarantee debt in the original registration. A company may be reorganized through a scheme or arrangement, or by applying to the court for an order for the company to be placed in judicial management.
For more details, visit: Insolvency and Public Trustee' Office (PTO Online)

Minimum Debt-to-Capital Ratio Triggering Liquidation

There is no minimum debt-to-capital ratio that triggers recapitalization or liquidation. In many cases, however, foreign shareholders recapitalize in order to continue business or liquidate in order to withdraw business without dispute with local creditors.

Bankruptcy Laws

Read the Bankruptcy Act

Reorganization and Rehabilitation Laws

A company can be re-organized after applying to the court for judicial management. For more details, consult Bankruptcy Law.

For Further Statistics

Ministry of Manpower

For Further Information About the Labour Market

Statistics, Labour, Employment and Wages

Opening Hours

 

• Legal Weekly Duration

8 hours per day and 40 hours per week with one-hour lunch break.

• Maximum Duration

44 hours

• Night Hours

11 pm – 7 am

Working Rest Day

As per the Employment Act, an employee is entitled to a rest day comprising one whole day (midnight to midnight) every week. The rest day can be on a Sunday or any other day.

Paid Annual Vacation

The Employment Act specifies that all workers are entitled to seven days of paid annual vacation during their first year of service and an additional day of paid leave for every year after that. This implies a maximum of 14 extra days, or 21 days total.

Retirement Age

62 years

Child Labour and Minimum Age For Employment

Employment Act prohibits the employment of children under the age of 12.

Informal Labour Market

Because of a higher demand for foreigners working in Singapore, a huge informal sector of illegal foreign workers exists in the country.

Pay

Minimum Wage

As a matter of national policy, the Ministry of Manpower does not prescribe minimum wages.

Average Wage

According to data from the Ministry of Manpower, the average monthly wage for full-time resident employees was SGD 4,680 in 2021.

Other Forms of Pay

• Pay For Overtime

1,5 times the normal hourly rate.

• Pay For Rest Days Worked

Twice the normal hourly rate.

Social Security Costs

The Areas Covered

The Central Provident Fund (CPF) covers retirement, housing and healthcare.

Contributions

Contributions Paid By the Employer: Employers contribute up to 17%, capped at a maximum average monthly salary of SGD 6,000 (contributions are payable by Singapore citizens and permanent residents only).
Reduced rates apply for employees who are earning less than SGD 750 per month as well as for those above 55 years of age.
Contributions Paid By the Employee: Only employees who are Singaporean citizens or permanent residents must contribute 20% income to the CPF, with graduated rates available for the first three years of an employee's permanent residency.

Competent Organization

Singapore Provident Fund Board

Recruitment

Method of Recruitment

Advertising, educational institutions, direct recruitment.

Recruitment Agencies

Employment Agencies (Private), Labor Contractors (Private).

Recruitment Websites

Association of Employment Agencies (Singapore)
Singapore Jobs Directory
Singapore Job Market

The Contract

Dispute Settlement

Social Partners

Employer Associations

SNEF - Singapore National Employers Federation
SICC - Singapore International Chamber of Commerce 
SNEF - Singapore National Employers Federation
SBF - Singapore Business Federation

Social Dialogue and Involvement of Social Partners

Trade Union Act does not allow the unionisation of government employees and uniformed personnel. The act also restricts the Trade Unions' right to select the leader and whom to employ.

Most of the Trade Unions are part of National Trade Union Congress (NTUC) which is closely associated with the government. The government grants renewable licences to trade unions on a yearly basis and strictly controls them.

Unionisation Rate

24%

Labour Unions

National Trade Union Congress (NTUC)

Regulation Bodies

Ministry of Manpower
Singapore National Employers' Federation (SNEF)