Starting a Company in Singapore: What Founders Often Overlook

06 January 2026

Editor: ET

Starting a company in Singapore? Discover what founders often overlook, from tax planning and compliance to accounting and governance, and how to build a strong foundation for long-term growth.

Singapore is widely recognised as one of the best places in the world to start a business. With its pro-business environment, transparent regulations, competitive tax system, and strong global reputation, it is no surprise that many founders choose Singapore as their launchpad. However, while company incorporation in Singapore is relatively straightforward, many founders overlook critical aspects that can significantly impact their long-term success.

Drawing insights from practical experience and advisory perspectives such as those shared by Expede Tech, this article highlights what founders often miss when starting a company in Singapore and how addressing these areas early can create a stronger foundation for sustainable growth.

Further Reading: How Expede Helps Singapore Businesses Thrive in the New Year

Understanding Incorporation Is Only the First Step

Many founders focus heavily on the incorporation process itself, such as choosing a company name, appointing directors, and issuing shares. While these steps are essential, incorporation is merely the beginning. Running a compliant and scalable business requires ongoing attention to regulatory, financial, and governance responsibilities that extend far beyond registration with ACRA.

Failing to plan for post-incorporation obligations often leads to rushed decisions, compliance stress, and missed opportunities for optimisation.

Early Tax Planning Matters More Than You Think

One of the most commonly overlooked areas is tax planning from day one. Singapore’s tax framework offers various incentives, exemptions, and rebates for startups, but these benefits must be properly planned and applied to be fully utilised.

Founders sometimes assume tax matters can be dealt with later, once the business is profitable. In reality, early decisions such as financial year-end selection, revenue recognition, and expense classification can affect eligibility for startup tax exemptions and future tax efficiency. Thoughtful tax structuring early on helps businesses remain compliant while maximising available benefits.

Corporate Secretarial Compliance Is Ongoing, Not One-Off

Another area founders often underestimate is corporate secretarial compliance. Maintaining statutory registers, filing annual returns, holding Annual General Meetings (AGMs), and passing resolutions are not optional tasks. These obligations are required to keep the company in good standing with ACRA.

Missed deadlines or incomplete records may lead to penalties or enforcement actions that distract founders from growing their business. Engaging proper corporate secretarial support ensures that governance requirements are handled professionally, allowing founders to focus on strategy and execution.

Cash Flow Management Is Different from Profitability

Many new founders equate profitability with financial health, but cash flow tells a more accurate story. A company can appear profitable on paper while struggling to pay suppliers or staff due to timing mismatches in cash inflows and outflows.

Overlooking cash flow forecasting, payment terms, and working capital management can quickly put pressure on operations. Setting up proper accounting systems early and regularly reviewing cash flow helps founders make informed decisions and avoid unnecessary financial stress.

Accounting Systems Should Grow with the Business

Some founders delay setting up structured accounting systems, relying instead on spreadsheets or basic tools during the early stages. While this may work temporarily, it often becomes inefficient and risky as the business scales.

Accurate bookkeeping supports timely financial reporting, tax compliance, and strategic planning. Well-maintained records also make it easier to secure funding, apply for grants, or undergo audits when required. Establishing a scalable accounting framework early provides clarity and confidence as the business grows.

Employment and CPF Obligations Are Often Underestimated

Hiring employees in Singapore comes with clear statutory obligations, including Central Provident Fund (CPF) contributions, employment contracts, and compliance with labour regulations. Founders unfamiliar with local employment rules may unintentionally make errors that lead to penalties or employee disputes.

Proper payroll setup, CPF compliance, and understanding employment obligations protect both the business and its people. Clear processes also help foster trust and professionalism within the team.

Licences and Industry-Specific Regulations

Not all businesses in Singapore operate under the same regulatory framework. Certain industries require specific licences or approvals before operations can begin. Founders sometimes assume that incorporation alone grants permission to trade, only to discover later that additional approvals are required.

Understanding industry-specific requirements early prevents delays, compliance risks, and potential reputational damage. This is especially important for businesses in finance, food and beverage, education, and professional services.

Governance and Shareholder Arrangements Need Clarity

Many startups begin with informal agreements between founders, especially when relationships are built on trust. However, unclear shareholder arrangements, decision-making authority, or exit plans can lead to conflicts later.

Documenting shareholder agreements, defining roles, and establishing governance structures early helps protect relationships and ensure alignment as the business evolves. Clear governance also enhances credibility with investors and partners.

Professional Support Is an Investment, Not a Cost

A common misconception among founders is that professional services are only necessary once the business becomes large. In reality, early engagement with experienced accounting, tax, and corporate advisory professionals can prevent costly mistakes and unlock strategic advantages.

Firms like Expede Tech work closely with Singapore-based founders to ensure compliance, clarity, and confidence from the very beginning. This proactive approach allows founders to build strong foundations while staying focused on innovation and growth.

Further Reading: Corporate Secretaries’ Year-End Checklist for Compliance and Growth

Building for the Long Term

Starting a company in Singapore is an exciting journey, but long-term success depends on more than a smooth incorporation process. Founders who pay attention to compliance, financial planning, governance, and systems early are better positioned to scale sustainably and seize opportunities.

By addressing what is often overlooked, founders can transform potential risks into strategic strengths and build businesses that are resilient, credible, and ready for growth in Singapore’s dynamic business landscape.