Singapore has long been one of the most attractive business hubs globally, supported by its pro-business policies, transparent regulatory framework, and stable economic environment. Companies from around the world continue to choose Singapore as the base for their operational headquarters, holding structures, and regional subsidiaries serving Asian markets. In December 2025 alone, approximately 4,500 new companies were incorporated, reflecting the sustained confidence of global founders and investors.
To remain a competitive international hub, Singapore continually reviews and updates its regulatory landscape to address emerging business needs and maintain high standards of governance, tax administration, and digital compliance. In this December 2025 regulatory roundup, we highlight the key developments that may be relevant for entrepreneurs operating a Singapore company or planning to establish one in the months ahead.
Company Law
Growing Demand for Redomiciliation to Singapore Amid Shifting Regional Business Landscape
December market reporting indicates that Singapore continues to attract a rising number of foreign companies exploring relocation or establishing holding structures in the country. Heightened regulatory scrutiny in major regional economies, together with Singapore’s stable legal environment and transparent corporate framework, has contributed to growing interest in shifting corporate domicile. This trend influences incorporation activity, compliance planning, and demand for Singapore corporate governance services.
ACRA Strengthens SME Reporting Expectations Ahead of the 2026 Enforcement Cycle
ACRA has issued updated guidance highlighting tougher expectations for the accuracy and completeness of SME financial reporting as companies close their FY2025 accounts. While certain disclosures under the simplified framework are reduced, ACRA stresses that underlying documentation, supporting schedules, consolidation analyses, and governance records must be robust. The regulator signaled that 2026 will see a more assertive enforcement approach, with SMEs expected to tighten internal controls early to avoid compliance issues.
Source: https://www.paulhypepage.com/guides/acras-2025-reporting-changes-for-2026/
ACRA Officers Empowered to Prosecute LLP Offences, Marking More Assertive Enforcement of LLP Compliance
ACRA has formally empowered its officers to prosecute Limited Liability Partnership offences, reinforcing the agency’s focus on improving compliance standards across all business structures. This move is intended to streamline enforcement actions against LLPs that fail to meet filing, reporting, or statutory register obligations, and signals that prosecution will be used more actively where LLP breaches persist.
Source: https://assets.egazette.gov.sg/2025/Government%20Gazette/Notices%20under%20other%20Acts/5966.pdf
Tax and Accounting Law
IRAS and IMDA Announce GST InvoiceNow Requirement and Launch Compliance Webinar for Businesses
IRAS and IMDA opened registration for an upcoming webinar on the mandatory GST InvoiceNow Requirement, which will take effect in 2026. GST-registered businesses will be required to transmit invoice data to IRAS using InvoiceNow-Ready Solutions through Singapore’s national e-invoicing network. The session explains the implementation timeline, data transmission process, security requirements, and the types of invoice data that must be submitted.
Source: https://www.iras.gov.sg/news-events/events/adopting-gst-invoicenow-requirement
Immigration Law
Permanent Resident Re-Entry Permit (REP) Revisions Took Effect on 1 December 2025
Revised rules governing Singapore Permanent Resident Re-Entry Permits (REPs) came into effect on 1 December 2025. Under the updated framework, PRs who remain overseas without a valid REP now have a 180-day grace period to apply for renewal or risk losing their PR status. This change significantly impacts PRs who travel frequently or reside abroad for extended periods and requires closer monitoring of REP validity to avoid unintentional lapses.
Licensing and Regulatory Compliance
Singapore Suspends 10 Travel Agent Licenses, Underscoring Importance of Compliance with Mandatory Regulatory Filings
On 17 December 2025, the Singapore Tourism Board (STB) suspended ten travel agent licenses after the agencies failed to submit their required Audited Statement of Accounts (AA) and Annual Business Profile Returns (ABPR) under the Travel Agents Regulations 2017. The case highlights the critical importance of meeting statutory filing requirements for all regulated entities, especially those operating under sectoral licensing regimes. During the six-month suspension period, these agencies must fulfil existing obligations to customers but cannot accept new bookings. STB reiterated that accepting new bookings during a suspension constitutes a breach and will trigger enforcement action.
Singapore and China Announce New RMB and Capital Market Initiatives at JCBC Meeting
On 15 December 2025, the Monetary Authority of Singapore (MAS) introduced several new initiatives to enhance financial cooperation with China during the 21st Joint Council for Bilateral Cooperation (JCBC) meeting. Key points include appointing DBS as Singapore’s second Renminbi (RMB) clearing bank, enabling secondary listings of Chinese A-share companies on SGX (Singapore Exchange), and launching an e-CNY (digital yuan) pilot for Singapore travellers. These developments aim to strengthen Singapore’s role as a regional financial and capital-markets hub.
Funding and Startup Ecosystem
Galatek Raises US$30 Million Series A to Scale AI and Automation Solutions
Galatek, a Singapore-based deeptech startup focused on automating life sciences labs and advanced semiconductor manufacturing processes, secured US$30 million in Series A funding. The investment will support scaling of its AI-powered automation systems, expansion of manufacturing capabilities, and market growth in key global sectors. The round reflects ongoing investor confidence in Singapore’s deeptech innovation ecosystem.
Source: https://www.dealstreetasia.com/stories/galatek-series-a-467215
Mixx Technologies Secures US$33 Million in Funding Led by Singapore’s ICM HPQC Fund
Mixx Technologies, a deeptech startup with operations in Singapore, raised US$33 million in a funding round led by the Singapore-based ICM HPQC Fund, with participation from TDK Ventures, SystemIQ Capital, and others. The fresh capital will accelerate product development and commercial deployment of its advanced materials and climate-tech solutions.
Maritime Electrification Startup Pyxis Raises S$13 Million in Early-Stage Funding
Pyxis, a Singapore startup advancing maritime electrification, secured S$13 million (approximately US$9.7 million) in the first stage of its current financing round. The funding will be used to expand electric vessel technology, charging infrastructure, and deployment across Asian ports. The investment highlights the growing momentum behind Singapore’s green maritime and sustainability sectors.
Source: https://vir.com.vn/pyxis-raises-13-million-for-asia-maritime-electrification-push-143441.html
Regional Data Shows Increased Startup Funding Activity in December
Southeast Asia’s startup ecosystem recorded strengthening capital flows in December, with funding volumes rising and investor participation expanding across the region. Although not limited to Singapore, this upward trend provides useful context for Singapore-based founders planning capital raises or market expansion.
Tech and Digital Law
PDPC Requires Companies Hit by Cyber Incidents to Implement Mandatory Remedial Actions
On 4 December 2025, the Personal Data Protection Commission (PDPC) released new enforcement actions against organisations affected by ransomware intrusions and compromised administrator accounts. Instead of imposing financial penalties, PDPC directed these companies to complete a set of mandatory remedial actions. These actions require strengthening access controls, improving cybersecurity monitoring, updating internal policies, and enhancing incident response capabilities. The update reflects PDPC’s continued focus on raising cyber hygiene standards across Singapore businesses.
Source: https://www.pdpc.gov.sg/news-and-events/announcements/2025/12/new-undertakings-on-4-december-2025
December 2025 Marks One Year Since Singapore’s Mandatory DPO Requirement Took Effect
December 2025 marks one year since Singapore’s mandatory Data Protection Officer (DPO) requirement came into force, and new compliance patterns are emerging across organisations. Many businesses have strengthened their internal governance and reporting structures, but SMEs still face challenges in operationalising PDPA obligations, including formalising data protection policies, managing third-party risks, and ensuring consistent implementation across departments. The first-year milestone highlights the ongoing need for sustained compliance efforts as regulatory expectations evolve.
How We Can Help
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If you are ready to set up your Singapore company or need expert guidance on local requirements, reach out to us today.