Singapore Dropshipping Business Guide
- Roger Pay
- 24 hours ago
- 7 min read
Dropshipping Business Inquiry Assistance Singapore
Singapore Dropshipping Business Guide
Starting a dropshipping business in Singapore is a popular way to enter e-commerce because of the country's high digital literacy and pro-business environment. However, there are specific legal and tax frameworks you must follow to stay compliant in 2026.
Here is a comprehensive guide to navigating your inquiry and setting up your business correctly.
1. Legal Requirements & Registration
To operate legally, every dropshipping business in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
Business Structure: * Sole Proprietorship: Easiest and cheapest to set up, but you are personally liable for all debts.
Private Limited (Pte Ltd): Most common for scaling. It is a separate legal entity, protecting your personal assets, and offers better tax incentives (like the Tax Exemption Scheme for New Start-Ups).
The Process: 1. Choose a unique business name and register it via BizFile+. 2. The registration fee is typically S$315 (S15fornameapplication+S300 for incorporation). 3. You will receive a Unique Entity Number (UEN), which you must display on all invoices and your website.
2. Taxation (IRAS Compliance)
Taxation in Singapore is straightforward but strict. You need to monitor two main types:
Income Tax: Personal income tax applies to Sole Proprietorships (progressive rates), while a corporate tax rate of 17% applies to companies (often with significant exemptions for the first S$100,000–S$200,000 in profit).
GST (Goods and Services Tax): * Registration Threshold: You are only required to register for GST if your annual taxable turnover exceeds S$1 million.
Import GST: Since 2023, GST applies to all low-value goods (under S$400) imported into Singapore via air or post. If your supplier is overseas, you may need to account for this via the Overseas Vendor Registration (OVR) regime if your global turnover is high.
3. Top Suppliers for the Singapore Market
Finding suppliers with fast shipping to Singapore is critical to avoid long wait times that frustrate local customers.
Supplier | Best For | Integration |
CJ Dropshipping | Sourcing & fast shipping from China | Shopify, WooCommerce, Shopee |
AliExpress / DSers | Wide variety & low cost | Shopify, Wix |
Printify / Printful | Print-on-Demand (Custom apparel/tech) | Direct API to most platforms |
Spocket | Vetted US/EU/Global suppliers | High-quality, fast shipping |
Shein Singapore | Fashion & Accessories | Manual (No direct app integration) |
4. Key Considerations for Success
Payment Gateways: Ensure you use gateways that support local preferences. Stripe, PayPal, and HitPay (which supports PayLah! and PayNow) are the most popular choices.
Prohibited Items: Singapore has strict laws. Do not attempt to dropship chewing gum, e-cigarettes (vapes), or any items infringing on Intellectual Property (counterfeits).
Niche Selection: High-performing niches in Singapore for 2026 include Smart Home accessories, Eco-friendly lifestyle products, and Pet care.
Step-by-step checklist for your ACRA registration
Registering your dropshipping business with the Accounting and Corporate Regulatory Authority (ACRA) is a streamlined digital process. In 2026, all registrations must be done via the BizFile+ portal.
Here is your step-by-step checklist to ensure a smooth incorporation.
Phase 1: Pre-Registration Requirements
Before logging in, ensure you have these five pillars ready.
[ ] Business Structure: Decide between a Sole Proprietorship (simplest) or Private Limited (Pte Ltd) (recommended for dropshipping to limit personal liability).
[ ] SSIC Code: Identify your primary business activity code. For dropshipping, the common codes are:
47910: Retail sale via internet (General e-commerce).
46900: General wholesale trade.
[ ] Company Officers: * At least one Resident Director (Singapore Citizen, PR, or EntrePass holder).
At least one Shareholder (can be the same as the director).
A Company Secretary (must be appointed within 6 months of incorporation).
[ ] Registered Office Address: Must be a physical Singapore address (no P.O. Boxes).
Note: You can use your residential address under the Home Office Scheme, provided you get prior approval from HDB or URA.
[ ] Capital: Minimum initial paid-up capital of S$1.
Phase 2: The ACRA Registration Process
This phase is split into two distinct filings on BizFile+.
Step 1: Name Reservation (S$15)
[ ] Log in to BizFile+ using your Singpass.
[ ] Submit your proposed business name.
[ ] Ensure the name is unique and does not infringe on existing trademarks.
[ ] Validity: Once approved, the name is reserved for 120 days. You will receive a transaction number needed for the next step.
Step 2: Entity Incorporation (S$300)
[ ] Select "Start a New Business" and enter your Name Reservation transaction number.
[ ] Upload Constitution: You can use the "ACRA Model Constitution" (standard and easiest) or upload a customized version.
[ ] Input Details: Enter the particulars (NRIC/Passport) of all directors, shareholders, and the company secretary.
[ ] Endorsements: All appointed officers will receive an email/notification to log in to BizFile+ and formally endorse their consent to act in their roles.
[ ] Payment: Pay the incorporation fee (Total for name + registration is usually S$315).
Phase 3: Immediate Post-Registration (The "First 30 Days")
Once ACRA approves your application (usually within 15 minutes to 3 days):
[ ] Download Business Profile: You will receive a free electronic Business Profile and a Unique Entity Number (UEN).
[ ] Open a Corporate Bank Account: Most Singapore banks (DBS, OCBC, UOB) or digital banks (Aspire, Airwallex) require your UEN and Business Profile to open an account.
[ ] Register for CorpPass: This is your "digital identity" for the business to access government services like IRAS (Tax) and CPF (if hiring staff).
[ ] Setup Payment Gateways: Link your UEN to Stripe or PayPal to begin accepting customer payments.
Important Reminder for 2026
Medisave Compliance: If you are a Singapore Citizen or PR registering as a Sole Proprietor, ensure your CPF Medisave contributions are up to date. ACRA may block your registration if there are outstanding liabilities.
Comparing the Costs of e-commerce Platforms (Shopify vs. WooCommerce) for Your Store
Choosing between Shopify and WooCommerce for a Singapore-based dropshipping store in 2026 involves balancing predictability against flexibility. While WooCommerce often has a lower entry cost, the "hidden" costs of maintaining a high-performance site can make it more expensive as you scale.
Here is the 2026 cost and feature comparison tailored for the Singapore market.
1. Cost Comparison Overview (S$ Estimates)
Expense Category | Shopify (Basic Plan) | WooCommerce (Self-Hosted) |
Monthly Fee | ~39(S52) | $0 (Plugin is free) |
Hosting | Included | S15–S60/mo (Managed WP) |
Domain (.com) | ~S$22/year | ~S$18/year |
Transaction Fees | 0% if using Shopify Payments* | 0% (Platform level) |
Credit Card Fees | 2.9% + S$0.50 (approx.) | 2.9% + S$0.50 (via Stripe/Razorpay) |
SSL / Security | Included | Often included in hosting |
Maintenance | $0 (Hands-off) | S50–S200/mo (if outsourced) |
Total Start-up | ~S$75 | ~S35−S100 |
*Note: If you use an external gateway (like HitPay for PayNow) on Shopify without Shopify Payments, they charge an additional 2% transaction fee.
2. Platform Deep Dive
Shopify: The "All-in-One" Choice
Shopify is the industry standard for dropshipping because it handles the technical "heavy lifting."
Pros: * Speed to Market: You can go from zero to a live store in one afternoon.
Support: 24/7 customer support is invaluable when a payment fails or an app breaks.
Singapore Readiness: Native integration with Shopify Payments and easy setup for PayNow via third-party providers.
Cons:
Monthly "Rent": You never own the platform; if you stop paying, your store vanishes.
App Costs: Many essential dropshipping apps (for reviews, upsells) carry monthly fees that can quickly add S50–S100 to your bill.
WooCommerce: The "Total Control" Choice
Built on WordPress, this is for those who want to own their "digital real estate" and avoid monthly subscription hikes.
Pros:
No Monthly Subscription: You only pay for hosting and the specific tools you need.
Customization: You have 100% control over the code. This is better for unique brand designs.
SEO: Generally considered superior for content marketing and blogging to drive "free" organic traffic.
Cons:
Maintenance: You are responsible for security updates and backups. If a plugin update breaks your checkout, you (or a developer) must fix it.
Complexity: It has a steeper learning curve. Setting up a fast-loading site in Singapore requires choosing a host with local servers (like SiteGround or Exabytes).
3. Which should you choose for Singapore?
Choose Shopify if: You have a budget of at least S$100/month and want to focus 100% on marketing and sales rather than fixing website bugs. It is the best choice for beginners.
Choose WooCommerce if: You are tech-savvy, already familiar with WordPress, or want to build a long-term brand where you want to keep costs to an absolute minimum in the early stages.
Summary Recommendation for 2026
For a new dropshipping venture in Singapore, Shopify is usually the safer bet. The time you save on technical maintenance is better spent on finding winning products and running TikTok/Meta ads—which are the real drivers of success in 2026.
How Bestar Singapore can Help
Singapore Dropshipping Business Guide
To maximize your dropshipping business in 2026, Bestar Singapore acts as a professional bridge between your creative marketing and the strict regulatory environment of Singapore.
While we aren't a marketing agency, we provide the corporate stability required for high-performance. Here is how we can specifically help you:
1. Establishing Search Engine Trust
In 2026, prioritize Verified Entities.
ACRA Incorporation: Bestar handles your full registration. A "Live" status on the ACRA registry is a primary trust signal.
Registered Office Address: We provide a professional physical address (not a P.O. Box), which is essential for "Local SEO" and appearing in "near me" search results in Singapore.
Trademark Protection: Bestar can advise on IP protection, ensuring competitors don't "hijack" your branded keywords or product names.
2. Boosting Conversion Rates
Trust is the highest-converting factor for Singaporean shoppers. Bestar helps you look "local" and legitimate:
Local Payment Gateway Setup: To offer PayNow (a massive booster in SG), you need a corporate bank account. Bestar assists in opening these accounts with local banks like DBS or digital players like Aspire.
Legal Transparency: We help draft legally compliant Refund Policies and Terms of Service. When customers see a Singapore UEN and clear legal terms, they are significantly more likely to complete a purchase.
GST Advisory: If you scale past S$1M, Bestar manages your GST registration. Correctly displaying tax-inclusive pricing prevents cart abandonment at the final stage.
3. Authority
Data about your brand across the web must be consistent, factual.
Corporate Secretarial Services: By keeping your annual filings and statutory records up-to-date, Bestar ensures that the "data footprint" official sources remains 100% accurate.
Compliance for Merchant Centers: Google and TikTok Merchant Centers often require proof of business registration. Bestar provides the Business Profiles and documents needed to pass these audits instantly.
Summary of Bestar’s Support Tiers
Service | Impact on Your Store | 2026 Importance |
Incorporation | Legal foundation to run ads & collect payments. | Mandatory |
Tax & Accounting | Optimizes cash flow; ensures you keep your profits. | High |
Business Advisory | Strategies for scaling from SG to the rest of Asia. | Strategic |
HR & Payroll | Helps you legally hire VAs or local staff as you grow. | Growth-Phase |
Why this matters for Dropshippers
In 2026, "fly-by-night" dropshipping stores are being filtered out by search engines. By partnering with a firm like Bestar, you transition from being a "website owner" to a "Singapore-registered Brand," which is the only way to sustain long-term traffic and sales.
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