Starting an IT Consulting or Software Company in Singapore: SSIC Codes, Who Owns the Code, GST and Hiring

Short answer: To start an IT consulting or software company in Singapore, incorporate a private limited company, choose the right SSIC 2025 code (usually 62011 for software development or 62021 for IT consultancy), get written IP assignments from founders and contractors, watch the S$1 million GST registration threshold, and check work pass eligibility before offering jobs to foreign developers.

Incorporating a software company in Singapore is quick. Problems trace back to four early decisions: an activity code that does not match what you sell, code the company never owns, an unchecked GST position, and a job offer to a developer who cannot get a pass. This guide covers each for software houses, SaaS start-ups and IT consultancies.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

Which SSIC code should an IT consulting or software company choose?

Choose the code that describes how you earn most of your revenue. A company that writes or customises software for clients usually takes 62011, one that designs and integrates computer systems for clients usually takes 62021, and one that develops and sells its own software product usually takes 58202.

The Singapore Standard Industrial Classification (SSIC) is the Department of Statistics’ list of codes for business activities. In the 2025 edition, Section K covers telecommunications, computer programming, consultancy and computing infrastructure, while software publishing sits in Section J. ACRA requires every registered entity to use a 5-digit SSIC code for its primary business activity and, where applicable, one for a secondary activity, and you select them when you reserve the company name on Bizfile. The full structure and definitions are on the SingStat SSIC 2025 page.

SaaS needs care. SingStat’s definition of 58202 excludes “on-line provision of software (application hosting and application service provisioning)” and points those activities to group 6311. If your revenue is mainly subscriptions to a hosted platform you built, compare 58202 with 63119, take the closer one as primary and the other as secondary. Our guide on how to find the right SSIC code walks through the Bizfile search.

How do you set up a software company in Singapore, step by step?

Incorporation is the short part; most of the work is contracts.

1. Decide the shareholders, directors and share split.
2. Reserve the company name on Bizfile and select the primary and secondary SSIC codes.
3. Incorporate the private limited company. We can usually incorporate within 1 business day of receiving complete documents, subject to compliance checks. Our Incorporation of Company Package for a private company is S$450 (one time), and the Annual Corporate Package is S$600 a year, as listed on our packages page.
4. Sign IP assignments with each founder for any code, designs or domain names created before incorporation.
5. Put employment contract and contractor agreement templates in place, each with an IP clause, before anyone writes code for the company.
6. Open the bank account, track turnover against the GST threshold, and check work pass eligibility before making offers.

Who owns the code: the company, the founders or the contractors?

The company owns code its employees write in the course of their employment. It does not automatically own code written by founders before incorporation, or by freelancers and outsourced agencies; that needs a signed written assignment.

Software is protected as a literary work: section 13(1) of the Copyright Act 2021 says a literary work includes a computer program. Section 133 makes the author the default first owner of an authorial work. Section 134 changes this where an employee makes the work in the course of a contract of service: the employer is the first owner, subject to any contrary intention in a written agreement made on or after 21 November 2021. A client who commissions software gets no ownership by default: the commissioned-works rule in section 135 covers only certain works, such as photographs and portraits, under agreements made before 21 November 2021.

Section 140 allows a future copyright to be assigned. A contractor agreement can therefore assign code before it is written, and the copyright vests in the company as soon as the code comes into existence. For a wider view of what copyright protects, see our guide to copyright ownership for Singapore businesses.

What should an IP clause in a developer contract cover?

A workable clause assigns present and future copyright in all deliverables to the company, in writing, signed by the developer. It usually covers:

• Assignment of all IP in source code, documentation and designs.
• Express assignment of future copyright (section 140).
• A licence for the developer’s pre-existing tools.
• Disclosure of open-source components and their licences.
• Delivery of source code and repository access on payment or on termination.

Drafting these clauses is legal work. If the code is your main asset, have the assignments reviewed; you can speak to a lawyer on our panel.

When must a software company register for GST?

You must register when taxable turnover exceeds S$1 million at the end of a calendar year, or when you can reasonably expect it to exceed S$1 million in the next 12 months. Taxable turnover includes zero-rated supplies, so international services supplied to overseas clients count towards the threshold.

The IRAS GST registration guidance sets out two tests:

• Retrospective view: if taxable turnover for 1 January to 31 December exceeded S$1 million, you apply between 1 and 30 January of the following year and are registered from 1 March.
• Prospective view: you apply within 30 days of the date of your forecast and, where the liability arises on or after 1 July 2025, you are registered 2 months from the date of forecast. The forecast must be supported, for example by signed contracts, accepted quotations or confirmed purchase orders.

If you register late, IRAS backdates the registration and you must account for GST on past sales even if you never collected it.

Three further points matter for tech businesses. First, services to overseas customers are zero-rated only if they fall within section 21(3) of the GST Act. Under section 21(3)(j), IRAS requires the services to be provided contractually to an overseas person and to directly benefit either an overseas person who is outside Singapore when the services are performed, or a GST-registered person who belongs in Singapore. Second, if your taxable turnover comes wholly or mainly from zero-rated supplies, you may apply for exemption from registration. Third, you may also become liable to register under the reverse charge regime when you buy services from overseas suppliers. See our guide on compulsory versus voluntary GST registration.

How do you hire foreign developers for a Singapore IT company?

Most foreign software engineers and IT consultants are hired on an Employment Pass (EP). The candidate must meet the EP qualifying salary and, unless exempt, the application must score at least 40 points under COMPASS, the Complementarity Assessment Framework.

The key figures from MOM’s EP eligibility rules are below. The higher salary also applies to renewals of passes expiring from 1 January 2028.

For very senior tech talent, MOM has announced a ONE Pass (Overseas Networks and Expertise Pass) AI and Tech track that opens on 28 January 2027. It requires earnings of at least S$30,000 a month for the 12 months before applying, with at least S$22,500 as fixed monthly salary, and at least 5 years in a founder, C-suite or technical role. It is not yet open on 27 October 2026; see our note on the ONE Pass AI and Tech track. For a cost breakdown, read Employment Pass costs for a small company. Work passes for our clients are handled by our associated MOM-licensed agency, Little Big Employment Agency, at singaporeemploymentagency.com.

Which tax incentives can a software company use?

The Enterprise Innovation Scheme (EIS) is the main incentive for software companies doing qualifying R&D or registering IP. It runs from YA 2024 to YA 2028.

According to IRAS, the EIS gives 400% tax deductions or allowances on up to S$400,000 of qualifying expenditure per year for each of four activities: qualifying R&D undertaken in Singapore, registration of IP, acquisition and licensing of IP rights, and training courses that are eligible for Skills and Workforce Development Agency (SWDA) funding and aligned with the Skills Framework. Budget 2026 added AI adoption as a qualifying activity for YA 2027 and YA 2028, at 400% on up to S$50,000 of expenditure a year, with no cash payout option. Instead of deductions, a business may convert up to S$100,000 of qualifying expenditure per YA into a non-taxable cash payout at 20%, but only if it meets the 3 full-time local employee condition. Our EIS guide explains the claim, and our free tools help with early planning.

Frequently asked questions

Can an IT company have more than one SSIC code?

ACRA allows one primary SSIC code and, where applicable, one secondary code, for example 62011 for custom development and 62021 for IT consultancy.

Does the company own code I wrote before incorporating it?

No. Under section 133 of the Copyright Act 2021 you are the first owner of code you wrote personally. To transfer it to the company you need a written assignment signed by you, as section 138 requires.

If I pay a freelancer to build my app, do I own the code?

Not by default. Paying for the work does not transfer copyright. The freelancer must sign a written assignment, ideally in the contract before work starts.

Does a software company selling only to overseas clients need to register for GST?

Possibly. Zero-rated supplies count towards the S$1 million threshold. If turnover is wholly or mainly zero-rated you may apply for exemption from registration, but each service must still qualify under section 21(3) of the GST Act.

Last reviewed: 27 October 2026. The Editorial Team, Raffles Corporate Services.