The principal legislation through which Singapore corporate law is enforced is the Singapore Companies Act 1963. The Accounting and Regulatory Authority of Singapore (ACRA) is the regulatory body to enforce this law and governs companies, businesses and certified public accountants.

Singapore’s legal system is based on UK common law. Its transparent legal system and constitution, which strongly supports rule of law and the protection of intellectual property rights, is one of the factors in the country’s ranking as the world’s 2nd-freest economy in the Heritage Organisation’s 2008 Index of Economic Freedom.

Because of 2. above, foreign investors starting a business in Singapore expect to encounter low levels of corruption. To illustrate this, Singapore is rated the world’s 4th least corrupt country in the 2007 Corruption Perceptions Index by Transparency International. The index is a measure of corruption amongst public officials and politicians.  

The Corrupt Practices Investigation Bureau is responsible for safeguarding the integrity of public services and encouraging corruption-free transactions in the private sector. It is also responsible for checking on malpractices by public officers and reporting such cases to the appropriate government departments and public bodies for disciplinary action.

Every Singapore company is required to have a Singapore resident director. When starting a business in Singapore, there are no limits placed on investors on the number of directors. Corporate directors are not allowed, however. Furthermore, a Singapore company requires only one shareholder, who may be either an individual and body corporate. A private limited company must not have more than 50 shareholders, however. The minimum authorised share capital for a Singapore company is S$1. Director and shareholder details are, however, available for viewing on a public register via ACRA's BizFile website.

Annual financial statements must be submitted to both ACRA and the Inland Revenue Authority of Singapore (IRAS). After starting a business in Singapore, every Singapore company (with the exception of a Representative Office) is required to submit an annual tax return to the IRAS.