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Starting In Singapore: A Guide for New Builders
Once predominantly anchored to Western markets, the Web3 industry is now experiencing a pivotal transformation, decentralising in terms of both its user base and the geographic distribution of companies actively developing in this space.
This shift is driven by a combination of push and pull factors. On one hand, regulatory uncertainties and a less welcoming environment in some Western countries have pushed companies to look elsewhere. On the other hand, Asia's progressive regulatory frameworks, burgeoning talent pool, and increasing market opportunities are significant pull factors.
Four Key things to consider when setting up in Singapore
DOWNLOAD PDFSingapore offers a wealth of resources designed to support businesses, especially in their initial stages. From government agencies to private sector initiatives, the support network is extensive and readily accessible, particularly for companies navigating the crucial 0-1 phase.
Business Structure & Registration
Before registering a business in Singapore, it's important to learn the appropriate business structure, as each structure comes with distinct statutory obligations and registration requirements.
The preferred choice for startups that wish to scale rapidly and seek investment due to its limited liability protection, scalability, and flexibility.
An alternative structure that provides flexibility but is generally better suited for smaller-scale ventures.
Talent
Hiring the right talent is critical for the success of any startup, especially in Web3. Singapore’s growing and diverse tech community offers a strong talent pool, supported by government initiatives that facilitate hiring both locally and internationally.
From graduates of leading local institutes to mid-career professionals, Singapore provides a wide range of talent options, including specialized recruitment platforms.
Tax Incentives and Support
Singapore’s corporate income tax (CIT) is set at a competitive flat rate of 17%, the lowest in ASEAN. Under the single-tier tax system, businesses are taxed only on their chargeable income (profits), with dividends exempt from further taxation.
Additionally, new companies receive significant tax breaks during their initial years, coupled with a network of free trade agreements and Avoidance of Double Taxation Agreements, easing international trade complexities.
Licensing, Regulatory Compliance
It is crucial to understand the regulatory landscape governing Digital Payment Token (DPT) services in Singapore. The primary law regulating crypto-related businesses is the Payment Services Act (PSA), introduced in 2019 to establish streamlined regulations for licensing and exemptions.
As outlined in Section 2.3, any service involving digital payment tokens, such as facilitating DPT exchanges or operating DPT platforms, falls under the scope of the PSA.
More recently, the Monetary Authority of Singapore (MAS) has clarified that exemptions for certain entities will cease after a specified period unless the entity submits a licence application under the PS Act along with an external auditor attestation, as required by the Transitional Regulations 2024.
A recent study by Astute Analytica indicated that South-East Asia's Web3 market is on track to reach a valuation of US$2.9 billion by 2032, growing at a robust CAGR of 40.1% from 2024 to 2032.
This reorientation towards Asia is not just about numbers but also the quality and innovation coming from the region, making it a new frontier for Web3 development and adoption. Singapore, particularly, maintains its role as a hub, drawing in a diverse ecosystem of Web3 companies due to its robust regulatory framework, favorable business environment, abundance of venture funds, and vibrant Web3 community.
Navigating Visas & Employment Passes
Singapore's position as a global hub for both Web3 and the broader FinTech industry makes it a magnet for top talent. A key factor in attracting these brightest minds, particularly in the dynamic Web3 space, is Singapore's approach to visas and employment passes. Here's a snapshot of the most popular options facilitating the influx of global Web3 talent:
Employment Pass (EP)
The most common pass for foreign professionals, managers, and executives to work in Singapore. Similar to the United States’ H1-B Visa.
SGD $5,000
- First-time candidates: up to 2 years
- Renewals: up to 3 years
- Experienced tech professionals may be eligible for 5-year pass
S Pass
For skilled workers who may not meet the EP criteria
SGD $3,150
($3,650 for finance sector)
- First-time candidates: up to 2 years
- Renewals: up to 3 years
Tech.pass
Administered by the Singapore Economic Development Board (EDB), the Tech.Pass is geared toward top tech talent without the need for local employment sponsorship, offering more freedom to work and innovate.
SGD$22,500 or
- Have >5 years cumulative experience in a leading role in a tech company with a valuation or market capitalisation of at least US$500m or at least US$30m funding raised or
- Have >5 years cumulative experience in a leading role in the development of a tech product that has at least 100,000 monthly active users or at least US$100mil annual revenue.
To be eligible for a two-year renewal, the pass holder must fulfill either criteria (1) or (2) and (3)
- Have earned at least S$270,000 in assessable income based on the latest Notice of Assessment from the Inland Revenue Authority of Singapore
- Demonstrate total annual business spending of at least S$100,000 and employ at least 1 local PME1 or 3 LQS2
- At the time of renewal, be performing at least two of the following roles, at least one of which must be in Category (A)
Personal Employment Pass (PEP)
For high-earning foreign professionals, the PEP allows for greater job flexibility than other work passes.
$22,500
The PEP is only issued once and is not subject to renewal.
- An Employment Pass holder under the sponsorship scheme.
- A freelancer or foreigner who intends to work on a freelance-basis.
- A sole proprietor, partner or where a director is also a shareholder in an ACRA-registered company.
Overseas Networks & Expertise Pass (ONE Pass)
The Overseas Networks & Expertise Pass is a personalised pass for top talent in all sectors, such as business, arts and culture, sports, academia and research. It provides flexibility to concurrently start, operate and work for multiple companies at any one time, with availability of passes for eligible family members.
$30,000
- First-time candidates: Up to 5 years
- Subsequent renewals: Up to 5 years
Considering Business Banking and Payment Solutions
It’s no secret that Traditional banks and payment solutions have some reservations when it comes to onboarding clients that deal with digital assets - not just in Singapore, but globally. However, local Web3 companies still have a plethora of custody solutions they can choose from, across both their traditional FIAT holdings and business operations, as well as for their digital assets.
Recent partnerships, such as DBS's collaboration with Paxos and Standard Chartered's support for Coinbase, also signal a positive shift in banking sentiment and demonstrate a growing willingness to engage with the Web3 sector.
Personal Employment Pass (PEP)
- Examples of traditional banks:OCBC, POSB, DBS, Maybank, Standard Chartered, Greenlink
If you're a Web3 startup looking to get started quickly and scale rapidly, it may be more advantageous to explore neo-banks.They often have a more agile and technology-driven approach, which can make them more receptive to serving fast-moving industries.
Most Neobanks in Singapore also work alongside traditional banks to ensure that all funds are safeguarded.
Examples of Neobanks in Singapore: Aspire, Revolut, Wise, YouTrip
Personal Employment Pass (PEP)
The ability to conduct payments - whether in fiat or digital assets, is crucial for any business. This is particularly true when it comes to Web3 companies, who typically have their treasury onchain while needing to pay in fiat for service providers, payroll, and more.
Fortunately, Singapore excels in facilitating such payments, as well as enabling direct crypto payments, evidenced in the city-state’s record levels of merchant adoption and payment volumes for digital assets in 2024.
- StraitsX/Fazz
- Mercuryo
- Independent Reserve (IR)
- DTC Pay
- Triple-A
- Headquarters (HQ.xyz)
- BasedApp (retail-focused card only at the moment)
- AlchemyPay
- Wind.app
Personal Employment Pass (PEP)
The importance of securely managing your onchain funds cannot be overstated - whether you are a startup beginning to scale, or a large institution managing billions in digital assets.
Singapore is home to a wide range of custody solutions, including Multi-Party Computation (MPC) and Hardware Security Modules (HSMs), among others, ensuring that whether you're looking for self-custodial options or comprehensive third-party custody, there's a solution tailored to your needs.
- SafeHeron
- Fireblocks
- Zodia Custody
- Cobo
- DDEX
- Sygnum Singapore
- Rakkar Digital
Joining Communities
While often overlooked, thriving communities are the lifeblood of any industry, especially in a dynamic industry like Web3. Singapore benefits from a vibrant and active Web3 community, regularly engaging in meetups, hackathons, and workshops,driving innovation, fostering new projects, and providing access to key resources and networks.
Recognizing and nurturing the power of these communities is what sets Singapore's Web3 ecosystem apart and positions it for continued growth, engagement, and leadership in the space.
SG Builders
SG Builders, also known SGbuidl, is a pivotal community in Singapore focused on fostering the growth and collaboration of Web3 builders, founders, and innovators. Dedicated to building a stronger Web3 presence in Singapore, the SG Builders facilitates networking, hackathons, and access to essential resources to empower its 450+ strong community.
“The core of SG Builders has been to provide community and support for web3 builders and founders in Singapore and attract more builders to Singapore. The key advantage that SG Builders provides is the community itself; a gated community of solid builders and founders who have been vetted, a community that has a culture of giving and helping. Projects have found talents, build strategic partnerships, gain valuable insights, feedbacks and ideas through the community.”
Mikyeong Kim
Co-Founder of SG Builders
Whitepaper Reading Club (WPRC)
The Whitepaper Reading Club is a non-profit dedicated to analyzing Web3 projects together in an open, roundtable format. Since its founding two years ago, the group has hosted over 30 discussions covering topics such as blockchain architecture, security vulnerabilities, and stablecoin mechanics. It’s grown to 350+ engineers, researchers, students, investors and core contributors, and the club holds summits with researchers from Cornell University, Polygon Labs, and Uniswap Labs and many more. It is now expanding this vision across Southeast Asia.
“The whitepaper reading club only works because of the incredible people that helped organize, create summaries, and donate space for every session. As a result, it’s become one of the most intellectually nourishing communities in web3. Shoutout to everyone that made this group what it is today - here’s to more readings and debates in the future!
The top Web3 projects—Bitcoin, Ethereum, Solana, Uniswap, Coinbase, and Tether—all have key technical or product breakthrough: Nakamoto Consensus, smart contracts, parallel execution, crypto purchases via credit card, constant product market making, and the first USD-backed stablecoin. Understanding these technical foundations gives you an edge and deeper access”
Rongxin Zhang
Co-Founder of Whitepaper Reading Club
Superteam SG
Superteam SG is a dynamic and influential community in Singapore dedicated to the growth and acceleration of projects within the Solana blockchain ecosystem. As part of a broader Superteam initiative present in multiple countries, Superteam SG focuses on connecting talent, fostering innovation, and providing support to Solana-based initiatives in Southeast Asia's most vibrant crypto hub.
“Superteam Singapore was launched with a mission of building the startup hub of Asia on Solana in Singapore. It has two main objectives which are:
1. To grow the number of founders and projects being built on Solana and based in Singapore
2. To support existing founders and projects in Singapore to flourish and grow”
Nick Tong
Co-Founder of Superteam Singapore