The Definitive Guide to Setting Up a Cryptocurrency Company in Singapore
- a22162
- Oct 1
- 7 min read
Singapore Crypto Company Setup Guide
The Definitive Guide to Setting Up a Cryptocurrency Company in Singapore
Setting up a cryptocurrency company in Singapore has become one of the most sought-after moves for Web3 entrepreneurs and blockchain innovators globally. Renowned for its regulatory clarity, pro-business environment, and strategic location as an Asian financial hub, Singapore offers an ideal launchpad for digital asset ventures.
This comprehensive guide will walk you through the essential steps, from initial incorporation to navigating the regulatory landscape, ensuring your new crypto business is set up for compliance and success in the Lion City.
Why Choose Singapore for Your Crypto Business?
Singapore’s robust legal framework and supportive government policies make it a premier destination for digital payment token (DPT) service providers and blockchain companies.
Key Advantages:
Regulatory Clarity: The Monetary Authority of Singapore (MAS) provides a clear framework under the Payment Services Act (PSA), specifically regulating Digital Payment Token (DPT) services. This clarity reduces uncertainty for crypto businesses.
Favourable Tax System: Singapore has an attractive corporate tax rate (currently 17%) and generally does not impose a capital gains tax, making it financially advantageous for holding companies and trading platforms.
Ease of Doing Business: The company incorporation process is fast and efficient, often taking less than a day once all documentation is prepared.
Global Financial Hub: Its position as a gateway to Asian markets and a globally respected financial centre enhances the reputation and banking prospects for crypto firms.
Step 1: Singapore Company Incorporation
The first step is establishing a legal entity with the Accounting and Corporate Regulatory Authority (ACRA). The Private Limited Company (Pte. Ltd.) is the most common and recommended structure for crypto businesses.
Mandatory Incorporation Requirements:
Company Name: Must be approved by ACRA.
Minimum of One Shareholder: Can be an individual or a corporate entity (local or foreign).
Minimum of One Resident Director: This director must be an "ordinarily resident" in Singapore (Singapore Citizen, Permanent Resident, or person holding an Employment Pass/Dependant's Pass). Foreign entrepreneurs often engage a corporate service provider for a Nominee Director service to meet this requirement.
One Qualified Company Secretary: Must be a Singapore resident and appointed within six months of incorporation.
Local Registered Office Address: A physical address in Singapore (P.O. boxes are not allowed).
Minimum Paid-up Capital: At least S$1.
The Incorporation Process:
Reserve Company Name: Submit the name for approval via ACRA's BizFile+ portal.
Prepare Documents: Gather the Memorandum & Articles of Association (Company Constitution), director/shareholder particulars, and a description of business activities.
File with ACRA: Submit the application through the BizFile+ portal. Approval is typically very fast.
Receive UEN: Upon successful registration, the company receives a Unique Entity Number.
Step 2: Navigating the Singapore Crypto Licensing Framework
Not all crypto companies require a license, but if your activities involve dealing in or facilitating the exchange of cryptocurrencies, you likely fall under the Payment Services Act (PSA), administered by MAS.
Do You Need a DPT Service License?
The PSA mandates licensing for companies providing Digital Payment Token (DPT) Services. This includes:
DPT Exchange Services: Buying or selling DPTs in exchange for fiat or other DPTs (e.g., crypto exchanges).
DPT Custodial Services: Safeguarding or holding DPTs or the means to control them (e.g., crypto wallets).
Transmitting DPTs: Transferring DPTs from one account to another.
Types of Payment Institution Licenses:
The MAS offers two main tiers for DPT Service Providers:
License Type | Monthly Transaction Threshold | Capital Requirements |
Standard Payment Institution (SPI) | ≤ S$3 million (or S$6 million for two or more services) | N/A (General MAS requirements apply) |
Major Payment Institution (MPI) | > S$3 million (or > S$6 million for two or more services) | Minimum S$100,000 |
Note: The share capital requirement for an MPI license applicant is at least S$100,000, which must be deposited into a corporate bank account before the license is approved.
Key Licensing Requirements for MAS Approval:
MAS conducts thorough due diligence, focusing heavily on governance and risk management. Key requirements often include:
Local Presence: A registered office and adequate local staff.
Fit and Proper Criteria: Directors, CEO, and shareholders must meet MAS’s stringent standards for integrity, competence, and financial soundness.
Robust Compliance Framework: Implementation of comprehensive Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) policies and procedures. This is a critical focus for MAS.
Risk Management: Detailed technology risk management, cybersecurity protocols, and internal audit procedures.
Business Plan: A detailed, viable business plan outlining the service model, target market, and operational structure.
Step 3: Post-Incorporation and Compliance Essentials
Once your company is registered and licensing is underway (if required), ongoing compliance and operational setup are crucial.
Corporate Bank Account Opening
Crypto companies face higher scrutiny from banks. Having a clear business plan, robust AML/CFT policies, and demonstrated regulatory compliance (or In-Principle Approval from MAS) are essential for successfully opening a corporate bank account with a reputable Singaporean bank.
Taxation and Reporting
Corporate Income Tax: Singapore applies a 17% corporate tax rate, with various exemptions for newly incorporated companies.
GST: The Goods and Services Tax (similar to VAT) is generally not applied to the provision of DPTs that function as a medium of exchange.
Annual Filing: All companies must file an Annual Return and audited accounts (unless exempt) with ACRA.
The Importance of AML/CFT Compliance
For all crypto businesses, adhering to MAS’s AML/CFT guidelines is non-negotiable. This involves:
Customer Due Diligence (CDD) / KYC (Know Your Customer).
Suspicious Transaction Reporting (STR).
Ongoing Monitoring of transactions and business relationships.
Conclusion: Your Crypto Future in Singapore
Singapore remains a world leader in creating a structured, innovative environment for the digital asset industry. By following the correct incorporation and licensing procedures, prioritising compliance, and demonstrating a commitment to robust risk management, your venture is well-positioned to thrive in Asia’s foremost financial technology hub.
Ready to launch your fully compliant crypto enterprise? Consult with a Singapore corporate services or expert to streamline your setup process and navigate the licensing landscape with confidence.
Expert Support for Crypto Ventures: How Bestar Singapore Simplifies Your Setup
The Definitive Guide to Setting Up a Cryptocurrency Company in Singapore
Launching a Digital Payment Token (DPT) business in the sophisticated regulatory environment of Singapore requires more than just capital—it demands precision, compliance expertise, and local knowledge. While the Lion City offers unparalleled advantages for crypto companies, successfully navigating the ACRA incorporation and the rigorous MAS licensing process can be complex for foreign and local entrepreneurs alike.
This is where engaging a trusted corporate service provider like Bestar Singapore becomes an invaluable strategic move. Bestar acts as your expert local partner, transforming the complicated setup process into a streamlined path to compliance and operation.
Bestar Singapore: Your Essential Partner for Crypto Company Setup
Bestar Singapore specializes in providing comprehensive corporate support, ensuring your cryptocurrency or Web3 company is built on a foundation of regulatory compliance from day one. By leveraging their expertise, you can focus on your core technology and business strategy.
1. Seamless Singapore Company Incorporation
Setting up a Private Limited Company (Pte. Ltd.) is the required first step. Bestar simplifies this entire process:
ACRA Filing & Documentation: Bestar handles all necessary submissions to the Accounting and Corporate Regulatory Authority (ACRA), ensuring your company constitution and initial documents meet all legal requirements quickly and accurately.
Mandatory Resident Requirements: They provide essential services like a Nominee Director and a Qualified Company Secretary, satisfying the mandatory statutory requirements for having local residents appointed to key roles.
Registered Office Address: Bestar provides a legal, physical registered office address in Singapore, a non-negotiable requirement for incorporation.
2. Expert MAS Licensing Guidance and Support
For businesses providing Digital Payment Token (DPT) services under the Payment Services Act (PSA), obtaining the correct license (SPI or MPI) is the biggest hurdle. Bestar assists with the corporate and administrative preparation crucial for a successful application:
Compliance Framework Preparation: The MAS focuses heavily on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) protocols. Bestar helps draft and implement the robust internal policies, procedures, and controls required by the MAS Notices.
Director & Personnel Requirements: They ensure your key personnel meet the MAS "fit and proper" criteria and assist in documenting the necessary experience and integrity profiles.
Financial & Corporate Structure Readiness: Bestar guides you on the minimum paid-up capital requirements (e.g., S$100,000 for an MPI) and helps structure your company to meet the MAS's governance expectations.
3. Strategic Financial and Compliance Services
Ongoing compliance and financial transparency are vital for any MAS-regulated entity. Bestar provides the complete suite of services required to maintain regulatory standing:
Corporate Bank Account Opening: Given the heightened scrutiny on crypto firms, Bestar leverages its relationships and expertise to assist with the crucial step of opening a corporate bank account, significantly increasing your chances of success.
Accounting and Bookkeeping: They provide expert crypto-aware accounting services to ensure accurate financial reporting that complies with Singapore's financial standards.
Tax Advisory & Filing: Bestar helps you optimize your tax structure, navigate corporate income tax, and file necessary returns with the Inland Revenue Authority of Singapore (IRAS), ensuring you benefit from Singapore’s favorable tax regime (e.g., no capital gains tax).
Statutory Compliance: Beyond initial setup, they manage ongoing statutory obligations like filing Annual Returns and preparing audited financial statements, freeing your team to focus on the technology and the market.
Why Partnering with Bestar is a Strategic Advantage
In the highly competitive and regulated crypto industry, operational efficiency and compliance are key differentiators.
Benefit | Description |
Reduced Risk of Non-Compliance | Expert guidance ensures your structure and processes align with the strict requirements of ACRA and MAS, minimizing the risk of costly delays or penalties. |
Accelerated Setup Timeline | Bestar’s efficient, structured process for incorporation and administrative preparation drastically reduces the time required to establish your legal entity in Singapore. |
Focus on Core Business | Outsourcing complex administrative, compliance, and accounting tasks allows your core team to dedicate their resources to product development and market expansion. |
Local Expertise | You gain access to in-depth knowledge of local laws, regulatory expectations, and best practices essential for long-term viability in Singapore. |
Don't let regulatory complexity slow down your crypto venture. Engage with Bestar Singapore to ensure your foundation is solid, compliant, and ready to capture the opportunities in Asia’s premier digital asset market.
Contact Bestar today to begin your compliant and efficient path to a Singapore Crypto License.
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