Singapore is globally recognized as one of the most efficient jurisdictions for business setup, with many company registrations completed in a single day. However, while the initial incorporation process is remarkably fast, the employment compliance expectations that follow are detailed and frequently misunderstood by new entrepreneurs.
This guide provides a comprehensive explanation of the key obligations new employers must satisfy after incorporation, covering essential hiring rules, right-to-work verifications, payroll mandates, and record-keeping responsibilities
Singapore incorporation requirements: what must be in place before hiring
Before a business can legally begin the hiring process, it must be properly incorporated with the Accounting and Corporate Regulatory Authority (ACRA). Once this incorporation is finalized, the business gains its legal status, and its formal employer obligations begin. To be considered “hire-ready,” a company must meet several core requirements:
- appoint at least one local director
- register a Singapore business address
- file a company constitution
- declare the company’s business activity under SSIC codes
- maintain statutory registers (directors, shareholders, significant controllers)
Setting up employer accounts in Singapore
To hire staff legally, an employer must first establish several critical government accounts. These digital gateways are the only way to manage statutory contributions and work passes.
CPF employer account (for local staff)
This account is mandatory for employers to fulfill their legal duty to contribute to the Central Provident Fund (CPF). This includes making contributions to MediSave and, where applicable, Additional Medisave.
MOM employer account (for foreign hiring in Singapore)
If your business strategy involves hiring non-locals, this account is required to apply for Work Permits, S Passes, or Employment Passes. It also serves as the platform for managing pass renewals and cancellations.
CorpPass access for Singapore businesses
CorpPass is the primary tool used to access various government systems. It allows business owners to submit employment-related applications and manage ongoing company compliance filingsi
Right-to-work compliance in Singapore
Before any individual officially starts work, the employer is legally obligated to verify that they are authorized to work in Singapore. This is one of the Ministry of Manpower’s (MOM) most strictly enforced obligations. Employers must meticulously check:
- Singapore citizenship or Permanent Resident status.
- A valid Work Permit, S Pass, or Employment Pass.
- In-Principle Approval (IPA) validity for all foreign applicants.
- Passport details and identity verification.
Failing to verify work authorization can result in severe penalties, including heavy fines, imprisonment in serious cases, and being debarred from hiring foreign workers in the future.
Employment contracts and written key employment terms
Transparency is a legal requirement under Singapore’s Employment Act, which mandates that employers provide written Key Employment Terms (KETs) to all covered staff. Providing this clarity protects both the employer and the employee while ensuring the company is prepared for MOM audits.
A compliant contract or KET must clearly state the job title and duties, salary and allowances, and working hours and overtime rules. Additionally, it should detail the probation period, leave entitlements, notice period, termination clauses, and general workplace policies.
Payroll, CPF & tax obligations
Employers carry several financial and reporting burdens that must be managed with high accuracy to pass potential audits.
CPF contributions
For all local employees, CPF contributions must be paid monthly in accordance with statutory rates.
Itemised payslips
It is a legal requirement to issue itemized payslips. These must include a full salary breakdown, deductions, overtime, bonuses, and allowances.
Employment records
To remain compliant, companies must maintain at least two years of attendance records, payslip receipts, salary payment documentation, and any contract variations.
Tax reporting
Employers are also responsible for filing annual tax forms, including Form IR8A, Appendix 8A / 8B (if applicable), and AIS income information
Workplace safety & mandatory training
Compliance extends to the physical safety of your staff under the Workplace Safety and Health (WSH) Act. Even for office-based businesses, this involves maintaining a safe environment, conducting risk assessments, reporting incidents, and providing basic safety briefings. Certain high-risk industries such as construction, marine, and manufacturing face even stricter rules, including mandatory safety training and industry-specific certifications. Non-compliance can lead to penalties or stop-work orders.
Foreign worker compliance (if hiring non-locals)
Hiring foreign workers introduces a layer of additional complexity. Employers must ensure the correct pass type is utilized and that the salary meets minimum requirements. Furthermore, you must stay within Work Permit quotas and levies, provide acceptable housing for permit holders, and purchase mandatory medical insurance. Managing these processes, including timely pass renewals and security bond obligations, is critical, as mismanagement is a leading cause of company penalties.
Data protection & HR record management in Singapore
Under the Personal Data Protection Act (PDPA), employers have a duty to govern employee data carefully. This requires the appointment of a Data Protection Officer (DPO) and the documentation of clear data-handling policies. Employers must also secure personal information, provide employees with access or correction rights, and ensure all HR systems are designed to protect confidential data.
Preparing for Singapore MOM audits
The Ministry of Manpower (MOM) performs both routine and targeted inspections, with a heavy focus on foreign workforce compliance. To avoid fines, debarment, and reputational damage, employers should maintain an organized file of:
- signed employment contracts
- payslips and salary records
- right-to-work documentation
- job advertisements (if applicable)
- training and safety certificates
- housing documentation for Work Permit holders
A strong HR compliance foundation helps companies avoid fines, debarment and reputational damage.
Navigating the complexities of the COMPASS framework and educational background checks is critical for a successful Employment Pass application. As an MOM-endorsed verification agency, RMI provides seamless, direct-from-source authenticity and accreditation checks that satisfy all regulatory standards. Don’t let compliance hurdles delay your business growth. Get started with our MOM verification services today to ensure your credentials meet all statutory requirements.