Exempt Private Company (EPC) in Singapore — Proprietary Trading Firm Formation Guide
Choose a jurisdiction with 0% capital gains tax and clear regulations on trading your own funds. Ensure the country has crypto-friendly banking if you trade digital assets.
Last verified: June 13, 2026
Corporate Tax
17.0%
State Tax
0.0%
Formation Cost
$245
Annual Fee
$47
Forming a Exempt Private Company (EPC) in Singapore as a Proprietary Trading Firm means a total tax burden of 17.0% and an official formation cost of $245. The minimum capital requirement is 1 USD. Standard formation takes 1-3 business days, or 1 business day expedited. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $2,883
Ongoing (per year)
≈ $2,695
Why Exempt Private Company (EPC) for Proprietary Trading Firm?
A proprietary trading (prop) firm trades financial instruments like stocks, forex, commodities, or cryptocurrencies using its own corporate capital rather than client funds, keeping 100% of the profits.
Ideal for
- Algorithmic traders
- Quantitative analysts
- Crypto investors
- Forex traders
Challenges to watch
- Opening corporate brokerage accounts
- Navigating complex tax classifications for trading income
- Securing reliable banking for crypto-to-fiat off-ramps
Key decision criteria
- Corporate tax vs. capital gains tax rates
- Whether trading own funds triggers licensing requirements
- Availability of high-leverage institutional accounts
- Local substance requirements
Exempt Private Company (EPC) formation requirements
Minimum capital
1 USD
Standard timeline
1-3 business days
Expedited timeline
1 business day
Local director
Required
Registered office
Virtual office allowed
Notarization
Not required
Foreign founders must hire a resident Nominee Director.
Estimated breakdown (based on avg. $500,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 9%. Registration threshold: 1,000,000 SGD. 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.
Banking & payments for Proprietary Trading Firm
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.
Supported payment gateways
Remote-friendly accounts
Aspire
Top choice for modern startups and non-residents, offering fully remote onboarding, multi-currency accounts, and seamless integration with accounting software.
Airwallex
Great for e-commerce and global businesses needing virtual cards, payment links, and low-cost cross-border transfers.
Wise Business
Ideal for holding multiple currencies and paying international contractors with transparent, mid-market exchange rates.
Singapore incentives & advantages
Start-Up Tax Exemption (SUTE)
75% exemption on the first S$100,000 of normal chargeable income; 50% exemption on the next S$100,000.
Partial Tax Exemption (PTE)
75% exemption on the first S$10,000 of normal chargeable income; 50% exemption on the next S$190,000.
Exempt Private Company (EPC) 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.
Proprietary Trading Firm FAQ
Do I need a financial license to trade my company's own capital?
In most jurisdictions, trading your own corporate funds does not require a financial services license. However, if you accept outside capital or engage in high-frequency market making, licensing may be triggered.
Which jurisdictions are best for a prop trading firm?
Tax-neutral jurisdictions like the BVI, Cayman Islands, and UAE (Dubai DMCC) are highly popular due to zero capital gains tax and established frameworks for proprietary trading.
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Related guides
Complete Exempt Private Company (EPC) guide
Taxes, requirements, banking, compliance
Exempt Private Company (EPC) cost calculator
One-time and annual cost breakdown
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