Managing a business in Singapore

As an established financial hub, Singapore houses several local and foreign banks. The city-state is home to Oversea-Chinese Banking Corporation (OCBC), Development Bank of Singapore (DBS), United Overseas Bank (UOB), Standard Chartered, Citibank, and Maybank, to name just a few.  

Some banks charge a set-up fee for opening a corporate bank account which varies from bank to bank.  

As part of the increasing regulation to counter money laundering and terrorist financing, the banks in Singapore go through stringent ‘know your customer’ (KYC) measures. It’s worth noting, the evolving rules and sanctions of various countries and global governing bodies may impact the eligibility and timeframes of opening a bank account in Singapore. 

There are several options when it comes to opening a corporate bank account in Singapore. Most banks offer features such as multi-currency accounts, internet banking, trade financing, freedom to move funds across countries, and much more.  

In general, most banks require that the account signatories and majority directors are physically present in Singapore for paperwork signing at the time of opening the corporate bank account. Some banks may accept the signing of documents at one of their overseas branches, or in front of a Notary Public. 

Typically, banks will request several documents including the certificate of incorporation, board of directors' resolution, company business profile, copy of passport (or Singapore identity card), and residential address proof of the directors. Note that documents relating to the ultimate beneficial owners are particularly important.  

Additional documents may be required on a case-by-case basis. Approval for opening a corporate bank account is usually granted, provided the required paperwork is complete and satisfies the bank’s internal due diligence criteria. 

For starters, you may decide to rent a conventional office space from a building landlord. The common practice for the duration of a lease agreement in Singapore is between two to three years, with longer leases available for up to six years if you intend to occupy a larger space. At the end of your lease term, most landlords offer the option to renew for a further term. 

An office in Singapore usually comes with standard fittings. If you need to customise the office to suit your preferences, you may do so in accordance with the terms and conditions stipulated by the landlord. In such cases, it may be possible to negotiate a rent-free period for renovation. 

For businesses seeking a short-term solution, serviced offices or business centres are professional, ready-to-use office spaces that are available for rent on an immediate basis. Managed by specialised companies and located mostly in Singapore’s Central Business District (CBD), these offices offer a prestigious business address, a choice of different sizes of suites, and a flexible duration of tenancy. 

You can benefit from an individual office suite within a managed facility that offers access to amenities such as reception, utility rooms, meeting rooms and advanced IT infrastructure. Rental fees are typically inclusive of the base rent, utilities, security and office furniture. The only additional costs incurred are for add-on services on a per usage basis. 

Virtual offices offer an office experience without the physical space. A typical virtual office package in Singapore will provide your business with the use of a corporate business address, dedicated phone/fax numbers, personalised telephone answering, mail handling, and the use of meeting rooms on an ad-hoc basis. 

Virtual offices may cater to different business needs. For example, startups located in budget-friendly areas can use a virtual office gain a prestigious business address and elevate their corporate image. Similarly, home-based entrepreneurs may gain an official address through a virtual office, enhancing their credibility, as well as being able to make use of meeting rooms for in-person meetings.

If your business operates on a smaller scale, you may wish to consider working from home. Singapore’s Home Office Scheme allows people living in a Housing & Development Board (HDB) flat or private residential property to conduct small-scale businesses within their homes, as long as the business activity is permitted.

To run a home office, you must be the owner or tenant of a home or be authorised to stay in the home. It cannot facilitate more than two persons who are engaged in the operation of the office and who are not residents in those premises.

Registration with the HDB or Urban Redevelopment Authority (URA) is required to use your living quarters as a home office in Singapore.  

The Employment Act is Singapore’s all-encompassing statute relating to labour and employment issues. It lays down specific regulations regarding the basic terms and conditions of employment and the rights, duties and responsibilities of employers and employees.  

Your first step is to know whether your employees are protected by the Employment Act. If so, the terms you draw out in their employment contracts cannot be less favourable than what is mentioned in the Employment Act. 

If your employees are not covered by the Act, the terms and conditions of employment can be negotiated between both parties. Once finalised, they must be clearly stated in the employment contract. The contract will bind both of the parties. 

The Employment Act covers local and foreign employees, except the following: 

• Domestic worker 
• Seafarer 
• Statutory board employee or civil servant 

An employment contract is an agreement between an employee and employer that specifies the terms and conditions of employment. It is advisable to have a written employment contract in Singapore. A violation of one or more of the terms by either an employee or employer is considered breach of contract.  

Most contracts include several important clauses such as appointment position, duration of employment, remuneration, and hours of work.  

For employees that are Singapore citizens or Permanent Residents (PRs), the employer is required to make contributions to the Central Provident Fund (CPF) fund. Monthly contributions are made by both the employee and employer. The maximum CPF contribution rate for employer and employee is 17% and 20% respectively. This can be lower based on the employee’s age and permanent resident status. 

The employer is responsible for sending the monthly payment, which includes both the employer’s and the employee’s respective contributions, by the 14th of the following month. The employee’s portion is then deducted from the salary.  

There is no CPF contribution for foreign employees in Singapore. 

Under the Employment Act, employees who are not Singapore citizens or PRs must have a valid work pass to be able to work in Singapore. These will need to be obtained before they can start work. It is important to note that certain work passes come with restrictions or quotas on the number of foreign employees you can hire. 

For details of the types of work passes available for foreign employees, please see our Singapore immigration guide. 

The Intellectual Property Office of Singapore (IPOS) is responsible for examining each trademark application to decide whether the trademark is registrable. The registration process can take up to 12 months, depending on whether there are objections or other technicalities. 

The steps involved in Singapore trademark registration are outlined below. 

Before applying, you will need to identify the specific goods and services to trademark. These are classified from classes 1 to 45 under the International Classification of Goods and Services (ICGS).

Conduct a search on existing trademarks via the IPOS Digital Hub platform. This is to ensure that there is no prior trademark that is identical or similar to the one you intend to use. 

The estimated filing fee for registration of a trademark on a per mark per class basis is SG$280 with the IPOS. It’s worth noting that the application fee is not refundable. 

It’s important to make sure your application is filed under the correct class. It will be necessary to file applications in more than one class if your business deals in a wide range of goods or services. 

Once the trademark application has been received, the IPOS will review it.

If the requirements for registration are not met, you will receive an examination report outlining the objections and the specific goods or services in question. You must respond within four months.

Upon acceptance, the application will be published for opposition purposes in the Trade Marks Journal.  

Any interested party may oppose the registration of the mark within two months of the publication. The applicant will be notified and must respond with a counterstatement to resolve the objection. A decision on the application will be made after hearing both parties.

If there were no objections from any party, or if all the objections were resolved in favour of the applicant, the trademark will be registered and a registration certificate will be issued. 

The registration of a trademark is valid for ten years from the date of application. It can be renewed repeatably, for 10 years at a time, by paying the applicable renewal fee. 

As a trademark owner, you may authorise another entity to use your registered trademark by signing a trademark licence contract. Typically, the licence is granted through a formal written agreement with a detailed description of the scope of authority, along with terms and conditions of use. A typical trademark licence agreement can include the following: 

• Scope and terms of usage 
• Duration 
• Fees payable 
• Exclusivity 
• Permission to sub-licence the trademark 

Alternatively, you may register for a trademark licence with the IPOS Digital Hub.