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Creating an IT Company in Singapore

Creating an IT Company in Singapore

Electronics is one of the industries sustaining Singapore’s economy, significantly contributing to the country’s annual Gross Domestic Product. One of the branches of the electronics industry is IT which on an annual basis attracts most of the foreign enterprisers, accounting for 14% of the total investments. Employment in the IT sector is also one of the highest in Singapore, having created approximately 80,000 jobs during the last years. Among the most successful businesses in the Singapore IT industry are the computer parts manufacturing companies, but also Internet service providers have started to develop. Opening an IT company in Singapore nowadays has become quite simple due to the simplified company registration and licensing procedures.

The video below shows the main steps to open a company in Singapore in the IT field:

If you need help for setting up an IT company you can ask for the services of our company formation agents in Singapore who can also help you with IT services in other countries, through our local partners.

Registering an IT company in Singapore

The first step in opening an IT company in Singapore in 2024 is the registration procedure which is the same for all types of companies. Once one has selected the appropriate type of business structure must apply for the company name approval and reservation with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. Once the name is approved, the founders must draft and notarize the IT company’s Memorandum and Articles of Association, appoint a manager, select the company’s office and submit all the relevant documents with ACRA. Once ACRA releases the Certificate or Registration, the owners must apply for an Internet service license with the Media Development Authority in Singapore.

Internet license application in Singapore – a process explained by our experts who can help you open a company in Singapore

Depending on the profile of the Singapore IT company, one must apply for an Internet service and content provider license. There are four types of an Internet and content provider license:

  • a facilities-based operator or service-based operator license,
  • localized and non-localized Internet service resellers offering computer online services,
  • audio text service providers license,
  • Internet content providers.

The facilities-based operator license application must be submitted to the Infocomm Development Authority in Singapore.

Governmental programs supporting the Singapore IT industry

Present in all other major areas of investments in Singapore, the IT industry benefits from great support from the government which has enabled various grants, incentives and programs meant to help IT businesses. Among these are:

  • the Infocomm Local Industry Upgrading Program which encourages partnerships between private small and medium-sized enterprises and multinational companies operating in Singapore;
  • the iSPRINT Program which is developed by the Infocomm Authority and offers subsidies of up to 200,000 SGD to IT companies purchasing equipment;
  • the ISO 27001 Certification Grant Scheme which is an international standard related to security protocols used by IT companies all over the world;
  • the Critical Infocomm Technology Resource Program which provides for grants of up to 70% of the costs incurred by IT companies with the trainings of their employees.

Apart from these programs, Singapore companies can also access various loans developed by local banks and dedicated to startups. This is because the number of startups activating in the IT industry has grown considerably in the last several years. Venture funding and angel investor schemes are also good options for IT companies seeking equity for their activities.

Information technology sector projections for 2024 and further

IT and electronics production are two of the most important economic sectors in Singapore. For the first one, IT services are one of the largest income generators. Specifically:

  • the revenue in the services market is expected to conclude 2024 at USD 12.20 billion;
  • IT outsourcing is another branch projected to have a great market volume of USD 4.66 billion by the end of 2024;
  • IT companies spend USD 33,000 on average per employee in the services sector;
  • by 2029, the revenue of the entire industry is expected to grow by 5.84% annually and reach a total market volume of USD 16.20 billion.

For detailed information about the Internet licensing application procedure, please contact our specialists who can also help you open a company in Singapore or in other countries, such as Romania.