Exempt Private Company (EPC) in Singapore

Exempt Private Company · Formation from $245

Last verified: June 13, 2026

Corporate Tax

17.0%

State Tax

0.0%

Formation Cost

$245

Annual Fee

$47

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy4/10

Remote Setup8/10

Banking9/10

Tax Efficiency9/10

Overall Score8/10

Calculate full formation cost

Break down one-time filing fees and recurring costs for any supported entity type.

Who Should Choose This?

Profiles that typically benefit from this entity

Solo founders and small teams (up to 20 individuals) looking for a highly reputable, tax-efficient Asian headquarters.
Startups aiming to maximize early-stage profitability by leveraging Singapore's Start-Up Tax Exemption (SUTE) scheme.
E-commerce and digital service businesses that need seamless access to top-tier global payment gateways like Stripe and PayPal.
Consulting and professional service firms that want to minimize compliance overhead by avoiding full financial statement filings.

Who Should Avoid This?

Scenarios where another structure may be better

Founders who plan to issue shares to a holding company, venture capital firm, or any corporate entity (this breaks EPC status).
Businesses that anticipate having more than 20 shareholders in the near future.
Bootstrapped founders with very tight budgets who cannot afford the ongoing S$2,000+ annual costs for a nominee director and local secretary.

Advantages

+Solvent EPCs are exempt from filing full financial statements with ACRA, significantly reducing annual compliance and accounting costs.
+Eligible for the Start-Up Tax Exemption (SUTE) scheme, which provides substantial tax savings on the first S$200,000 of chargeable income for the first three years.
+Audit exemption is available if the company meets the 'small company' criteria (e.g., revenue and assets under S$10 million).
+Allows 100% foreign ownership, making it an ideal vehicle for international entrepreneurs expanding into Asia.
+Provides robust limited liability protection, separating personal assets from business debts.
+Highly credible corporate structure globally, ensuring excellent access to top-tier banks, payment gateways (like Stripe), and international clients.

Disadvantages

-Strictly prohibits corporate shareholders; all shareholders must be individuals, which prevents holding company or VC structures.
-Limited to a maximum of 20 shareholders, restricting large-scale equity distribution or crowdfunding.
-Requires at least one ordinarily resident director in Singapore, necessitating a costly Nominee Director service for foreign founders.
-Mandatory appointment of a qualified, local Company Secretary within 6 months of incorporation.
-Director and shareholder details are part of the public ACRA business profile, offering limited privacy.

Formation Steps

Step 1: Choose a compliant company name and reserve it via the ACRA BizFile+ portal (S$15 fee).

Step 2: Prepare the incorporation documents, including the company constitution and signed consent forms from the proposed directors and secretary.

Step 3: Appoint at least one resident director (Singapore Citizen, Permanent Resident, or eligible Employment Pass holder). Foreigners typically engage a Nominee Director.

Step 4: Secure a local registered office address in Singapore (P.O. boxes are not permitted).

Step 5: Submit the formal incorporation application and pay the S$300 registration fee to ACRA through a registered corporate service provider.

Step 6: Receive the electronic Certificate of Incorporation and Business Profile from ACRA, usually within 1 to 3 business days.

Step 7: Appoint a qualified Company Secretary within 6 months of incorporation.

Step 8: Open a corporate bank account and register for Goods and Services Tax (GST) if your annual taxable turnover is expected to exceed S$1 million.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
ACRA Name Application Fee	One-time	$11
ACRA Incorporation Fee	One-time	$222
Registered Office Address	Annual	$250
Corporate Secretary	Annual	$400
Nominee Director Fee (for non-residents)	Annual	$2,000
ACRA Annual Return Filing Fee	Annual	$45
First year total		$2,883
Annual ongoing		$2,695

Real-World Examples

Typical use cases for this entity type

A European software developer sets up a Singapore EPC to sell SaaS products across Asia, utilizing the SUTE scheme to pay near-zero corporate tax in the first three years.
A solo e-commerce entrepreneur incorporates an EPC to access Stripe Singapore and global banking, hiring a nominee director to meet local compliance requirements.
A family-owned trading business registers as an EPC to keep its financial statements private from competitors, filing only a solvency declaration with ACRA.

Common Mistakes

Pitfalls to avoid during setup and operations

Assuming 'Exempt' means exempt from all taxes; it actually refers to exemption from filing full financial statements and certain audit requirements.
Issuing shares to a corporate entity (like a foreign LLC or holding company) and unknowingly losing the EPC status and its benefits.
Failing to appoint a qualified Company Secretary within the mandatory 6-month window, leading to ACRA penalties.
Underestimating the ongoing annual maintenance costs, specifically the fees for a Nominee Director and registered address.
Missing the Annual Return filing deadline or failing to hold an Annual General Meeting (AGM) if required, which incurs strict late filing penalties.

Other entity types

Other formation options in Singapore

Private Limited Company (Pte. Ltd.)

Primary

Tax: 17.0%
Formation: $235

Limited Liability Partnership (LLP)

Tax: 0.0%
Formation: $90

Branch Office

Tax: 17.0%
Formation: $245

Representative Office

Tax: 17.0%
Formation: $148

Sole Proprietorship

Tax: 0.0%
Formation: $89

Limited Partnership (LP)

Tax: 0.0%
Formation: $85

Compare with Other Countries

Country / Type	Tax	Formation	Annual
🇸🇬 Exempt Private Company (EPC)(Exempt Private Company)	17.0%	$245	$47

🇸🇬 vs 🇺🇸 United States 🇸🇬 vs 🇪🇪 Estonia 🇸🇬 vs 🇬🇧 United Kingdom 🇸🇬 vs 🇮🇪 Ireland All comparisons →

FAQ

Can a foreigner own 100% of a Singapore EPC?

Yes, 100% foreign ownership is allowed. However, you must appoint at least one ordinarily resident director in Singapore. Most foreign founders use a Nominee Director service to fulfill this requirement.

What is the difference between an EPC and a standard Private Limited (Pte Ltd) company?

An EPC is a specific type of Private Limited company. It is restricted to a maximum of 20 shareholders, and no corporation can hold shares in it. In return, solvent EPCs are exempt from filing full financial statements with ACRA.

Do I need to travel to Singapore to incorporate an EPC?

No, the entire incorporation process can be completed remotely. You must engage a registered filing agent or corporate service provider in Singapore to submit the application on your behalf.

What is the minimum paid-up capital required?

The minimum paid-up capital to register a Singapore EPC is just S$1. You can increase this amount later if needed.

How much does a Nominee Director cost?

For foreign founders, hiring a Nominee Director typically costs between S$1,800 and S$4,000 per year, depending on the service provider and the risk profile of your business.

Is an EPC completely exempt from audits?

Not automatically. An EPC is exempt from audit if it meets the 'small company' criteria for the financial year: it must meet at least two of the following three conditions: revenue ≤ S$10 million, total assets ≤ S$10 million, or employees ≤ 50.

Can an EPC issue shares to another company later?

Yes, but doing so will immediately cause the company to lose its Exempt Private Company status. It will then be reclassified as a standard Private Limited company and lose the EPC-specific filing exemptions.

What taxes do Singapore EPCs pay?

They are subject to a flat 17% corporate tax rate. However, with the Partial Tax Exemption (PTE) or Start-Up Tax Exemption (SUTE), the effective tax rate on the first S$200,000 of profit is significantly lower (often between 4% and 8%).

Detailed Tax Rates

Corporate Income Tax

From	To	Rate
$0	$10,000	4.3%
$10,000	$200,000	8.5%
$200,000	No limit	17.0%

Singapore applies a flat 17% corporate tax rate. However, the Partial Tax Exemption (PTE) scheme effectively lowers the rate to 4.25% on the first S$10,000 and 8.5% on the next S$190,000. Qualifying new startups can enjoy an even higher Start-Up Tax Exemption (SUTE) for their first three years.

Personal Income Tax (Top rate: 24.0%)

From	To	Rate
$0	$20,000	0.0%
$20,000	$30,000	2.0%
$30,000	$40,000	3.5%
$40,000	$80,000	7.0%
$80,000	$120,000	11.5%
$120,000	$160,000	15.0%
$160,000	$200,000	18.0%
$200,000	$240,000	19.0%
$240,000	$280,000	19.5%
$280,000	$320,000	20.0%
$320,000	$500,000	22.0%
$500,000	$1,000,000	23.0%
$1,000,000	No limit	24.0%

Tax residents are taxed at progressive rates ranging from 0% to 24% (for income over S$1,000,000). Non-residents are generally taxed at a flat rate of 24%, or 15% for employment income, whichever yields a higher tax.

Capital Gains Tax

0.0%

Singapore does not levy a general capital gains tax. However, under Section 10L introduced in 2024, gains from the disposal of foreign assets may be taxed if received in Singapore by entities lacking adequate economic substance.

VAT / GST

9.0%

Registration Threshold: SGD1,000,000

The Goods and Services Tax (GST) is 9% as of 2026. Under the Overseas Vendor Registration (OVR) regime, foreign digital service providers must register and charge GST if their global turnover exceeds S$1 million and B2C sales to Singapore exceed S$100,000.

Withholding Tax

Dividends0.0%

Royalties10.0%

Interest15.0%

Singapore has a single-tier tax system, meaning dividends are exempt from withholding tax. Royalties (10%) and interest (15%) paid to non-residents are subject to withholding tax, which can be reduced under Singapore's extensive network of over 90 Double Taxation Agreements (DTAs).

Payroll & Social Security

Employer17.0%

Employee20.0%

Central Provident Fund (CPF) contributions are mandatory for Singapore Citizens and Permanent Residents. For 2026, the Ordinary Wage ceiling is S$8,000/month. Rates shown apply to employees aged 55 and below; rates decrease progressively for older age groups.

Other Taxes

Stamp Duty

Stamp duty is levied on documents relating to immovable property, stocks, and shares. For example, the transfer of shares is subject to a 0.2% stamp duty on the purchase price or market value.

Property Tax

Property tax is levied annually on the Annual Value (AV) of properties. Rates are progressive and differ between owner-occupied (up to 32%) and non-owner-occupied residential properties (up to 36%), while commercial properties face a flat 10% rate.

Incentives & Support

Start-Up Tax Exemption (SUTE)

Tax exemption scheme for qualifying new companies for their first 3 consecutive Years of Assessment.

75% exemption on the first S$100,000 of normal chargeable income; 50% exemption on the next S$100,000.

Eligibility: Incorporated in Singapore, tax resident, max 20 individual shareholders (or at least one individual holding 10%+).

Partial Tax Exemption (PTE)

Tax exemption scheme for all companies that do not qualify for SUTE.

75% exemption on the first S$10,000 of normal chargeable income; 50% exemption on the next S$190,000.

Eligibility: All Singapore tax resident companies.

Formation Requirements

Minimum Capital

USD 1

The minimum paid-up capital is 1 SGD (approx. 1 USD).

Local Director

Required

Foreign founders must hire a resident Nominee Director.

Registered Office

Required

Virtual office allowed. $250 - $400/year

Notarization Required

Power of Attorney (Remote)

Not Required

Not required. Corporate service providers submit the application electronically via the ACRA BizFile+ portal.

Timeline

Standard: 1-3 business days days

Expedited: 1 business day days ($150)

Required Documents

1Passport copy of all directors and shareholders
2Proof of residential address (utility bill or bank statement)
3Company Constitution
4Consent to Act as Director (Form 45)
5Consent to Act as Secretary (Form 45B)

Compliance & Reporting

Annual Filings

Annual Return (AR)

Penalty: Late filing penalty of S$300 to S$600 per breach, plus potential court prosecution.

Within 7 months after Financial Year End (FYE)

Estimated Chargeable Income (ECI)

Penalty: IRAS may issue an estimated Notice of Assessment; loss of installment payment options.

Within 3 months after Financial Year End (FYE)

Corporate Income Tax Return (Form C-S/C)

Penalty: Fines up to S$5,000, potential court summons, and director disqualification.

November 30

Audit Requirement

Not Required

Exempt if meeting 2 of 3 'small company' criteria: Revenue ≤ S$10M, Assets ≤ S$10M, Employees ≤ 50.

Accounting Standard

SFRS (Singapore Financial Reporting Standards)

Tax Return Deadline

November 30

VAT Filing Frequency

Quarterly (if GST registered)

Data Protection

Personal Data Protection Act (PDPA)

Banking & Payments

Aspire

Remote-friendly

Top choice for modern startups and non-residents, offering fully remote onboarding, multi-currency accounts, and seamless integration with accounting software.

DBS Bank

Singapore's largest traditional bank. Excellent global reputation, but typically requires an in-person meeting and extensive documentation for non-resident founders.

Airwallex

Remote-friendly

Great for e-commerce and global businesses needing virtual cards, payment links, and low-cost cross-border transfers.

Wise Business

Remote-friendly

Ideal for holding multiple currencies and paying international contractors with transparent, mid-market exchange rates.

Payment Gateways

Stripe, PayPal, HitPay, Adyen, 2Checkout

Currency

SGD

Multi-Currency: Supported

Account Opening

Opening a traditional bank account (e.g., DBS, OCBC) as a non-resident founder is highly challenging and usually requires an in-person visit to Singapore. However, digital platforms like Aspire, Airwallex, and Wise offer fully remote onboarding for EPCs, provided you pass their strict KYC and compliance checks. Having a clear business model and proof of identity is essential.

Practical Information

Timezone

UTC+8

Business Language

English

Legal System

Common law

Ease of Doing Business

IP Protection

Singapore offers world-class intellectual property protection, consistently ranking top in Asia. The Intellectual Property Office of Singapore (IPOS) provides robust frameworks for patents, trademarks, and copyrights, making it a highly secure hub for tech and R&D.

Double Tax Treaties

90 countries

Notable treaties: United Kingdom, Australia, China, Japan, India, Germany, France

Visa & Residency Options

EntrePass (Entrepreneur Pass)

Designed for foreign entrepreneurs wanting to start a venture-backed or innovative tech startup in Singapore. Requires meeting specific criteria like funding from a recognized VC, holding innovative IP, or partnering with a research institution.

Employment Pass (EP)

A work visa for foreign professionals, managers, and executives. Founders can hire themselves through their EPC if the company has sufficient paid-up capital and the applicant passes the COMPASS points-based framework.

Overseas Networks & Expertise (ONE) Pass

A personalized, 5-year pass for top talent in business, arts, and tech, allowing holders to start, operate, and work for multiple companies in Singapore simultaneously.