How to incorporate a FinTech company in Singapore

Singapore’s rise as a global FinTech hub is supported by a robust ecosystem favourable for financial technology innovations. This guide details the process of incorporating a fintech company in Singapore, highlighting the unique requirements and benefits of the regulatory environment.

Singapore as a Fintech Hub

Growth and Support:

Singapore’s financial sector, backed by the Monetary Authority of Singapore (MAS), has made significant investments to nurture the FinTech landscape. Initiatives like the S$225 million investment and the creation of a 100,000 square feet innovation hub underscore the commitment to fostering fintech growth.

Collaboration and Innovation:

The synergy between traditional financial institutions and FinTech firms in Singapore emphasises a collaborative environment where FinTech is seen as an enabler rather than a disruptor. This supportive backdrop is crucial for new fintech ventures looking to establish or expand their operations in Asia.

Incorporating a Fintech Company in Singapore

Standard vs. Fintech Incorporation:

While the general process of incorporating a company in Singapore is straightforward, FinTech companies face additional layers of regulatory considerations, primarily due to the financial services they intend to provide.

Regulatory Sandbox:

MAS has established a regulatory sandbox that allows FinTech companies to experiment with innovative financial products in a controlled environment with regulatory relaxation. This sandbox is designed to encourage innovation while managing risk, providing fintech companies the freedom to test and adapt their business models.

Steps to Incorporate a Fintech Company

1. Company Registration:

• Choose a Business Structure: Commonly, FinTech companies register as private limited companies.
• Reserve a Company Name: Secure a unique name through the Accounting and Corporate Regulatory Authority (ACRA).
• Appoint Directors and Shareholders: At least one director must be a resident of Singapore.

2. Regulatory Requirements:

• MAS Licensing: Depending on the financial services offered, fintech companies may need to obtain specific licences, such as a Major Payment Institution License or a Standard Payment Institution License.
• Sandbox Application: If applicable, register for the MAS regulatory sandbox to navigate through initial development and deployment stages with eased regulations. To register for the sandbox, download the necessary registration forms from the dedicated MAS portal here.

3. Operational Setup:

• Office Space: Utilise facilities like the FinTech innovation hub for office and collaboration spaces.
• Bank Account: Open a corporate bank account in Singapore.

Key Regulatory Considerations

• Asset and Management Requirements: FinTech companies must meet specific criteria related to asset maintenance, board composition, financial soundness, and more.
• Ongoing Compliance: Once operational, firms must adhere to stringent MAS guidelines concerning technology risk management and outsourcing.

Benefits of Incorporating in Singapore

• Strategic Location: Positioned at the heart of Southeast Asia, Singapore offers access to a rapidly growing economic region.
• Tax Incentives: Attractive tax incentives like the 250% tax deduction for qualifying expenditure on eligible research and development (R&D) activities conducted in Singapore
• Talent Availability: Access to a skilled workforce in both financial and tech sectors is a significant advantage.

~ At Counto, we prioritise your savings and efficiency over hefty fees. Our team of seasoned compliance professionals expertly handles everything from company registration to tax filing at unbeatable rates. Discover more about our cost-effective incorporation packages here

Challenges and Considerations

• Regulatory Navigation: Understanding and complying with MAS regulations can be complex, especially for new entrants.
• Market Competition: While the environment is collaborative, the increasing number of FinTech startups means heightened competition.

Summary

Setting up a FinTech company in Singapore involves navigating a unique set of regulatory and operational challenges. However, the supportive ecosystem, comprehensive incentives, and strategic geographic benefits make Singapore an attractive location for entrepreneurs.

Using an incorporation service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.

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