Singapore incorporation for fintech and payment companies
Singapore is the regulated fintech capital of Asia. We handle the Pte Ltd incorporation; we'll point you to the right MAS licensing pathway (PSA, CMS, sandbox) before you raise.
Most fintechs incorporate a Singapore Pte Ltd first, then apply to MAS for the relevant licence. The Payment Services Act (PSA) covers most payment, e-money, and digital token activities. Capital Markets Services (CMS) licence covers wealth, brokerage, and fund management. The Regulatory Sandbox lets you test live for up to 12 months under relaxed conditions. Incorporation is 1–3 business days; licensing is 4–12 months depending on activity.
Why founders choose Singapore for fintech
MAS - a regulator that engages
MAS publishes clear guidance, runs an active fintech office, and engages with founders pre-application. The Sandbox and Sandbox Express let you test live with relaxed requirements while applying for full licensing.
Predictable licensing pathways
PSA covers payment services, e-money, digital tokens, cross-border money transfer, and merchant acquisition. CMS covers fund management, dealing in capital markets products. Each activity has a defined application path.
Capital and talent gravity
Singapore concentrates more fintech VC dry powder than any other Asia hub. Tech.Pass, ONE Pass, and EP routes for senior compliance, risk, and engineering talent.
Tax incentives at scale
Financial Sector Incentive (FSI) schemes can lower tax on qualifying activities to 5%, 10%, or 13.5%. Section 13O and 13U cover funds. Most fintechs benefit from the standard 17% with Startup Tax Exemption first.
The recommended structure
A typical Fintech setup. Specific choices depend on your investors, jurisdictions you serve, and exit plans.
Default Fintech stack
- EntitySingapore Pte Ltd (mandatory for MAS-licensed activities)
- Share capitalS$1 to incorporate; PSA Standard Payment Institution requires S$100K base capital, Major Payment Institution requires S$250K
- Directors≥1 ordinary resident director; for MAS-licensed entities, fit-and-proper test applies to all directors and key officers
- ComplianceCompliance officer (often part-time outsourced for early stage), AML/CFT framework, transaction monitoring
- BankDBS or OCBC strongly preferred for licensed entities; Aspire and Wise can work pre-licensing
- Pre-licensingEngage MAS via fintech office; consider Sandbox Express for narrowly-defined live tests
Common SSIC codes
SSIC 2020 codes most often used at incorporation. Click any code to look it up in our search tool.
What to plan for
The four things that most often surprise Fintech founders setting up in Singapore.
Picking the right MAS licence
Activities map to specific licences: account issuance → e-money issuance under PSA; cross-border remittance → cross-border money transfer service under PSA; fund management → CMS licence. Don't incorporate before you've identified the licence - capital and structuring requirements differ.
Capital lock-in
PSA Standard Payment Institution requires S$100K base capital that must remain ring-fenced; Major Payment Institution requires S$250K. CMS capital ranges from S$250K to S$5M depending on activity. Karman flags this before you fund.
Compliance and AML overhead
Licensed fintechs need an AML/CFT framework, transaction monitoring, periodic reporting, and at least one nominated compliance officer. Plan for S$60K–S$200K/year of compliance overhead even at early stage.
Bank account opening for licensed entities
DBS, OCBC, and UOB are the practical options for MAS-licensed fintechs. Account opening can take 4–8 weeks and requires a clean licence and clean source-of-funds documentation.
Frequently asked questions
Do I need a MAS licence to incorporate a fintech in Singapore?
No - you can incorporate a Pte Ltd without any licence. You only need a MAS licence to actually carry on a regulated activity (payment services, fund management, capital markets dealing, etc.). Many fintechs incorporate first, build a prototype, then apply for the relevant licence with a working product. The Sandbox and Sandbox Express let you test live for limited periods under relaxed conditions.
Which MAS licence do I need?
Depends on your activity. PSA covers payment services (account issuance, domestic transfers, cross-border transfers, e-money issuance, digital token services, merchant acquisition). CMS covers capital markets activities (fund management, dealing in securities, advising on corporate finance). Insurance broking has its own regime. We'll help you map your business model to the right licence pre-incorporation.
How long does MAS licensing take?
PSA Standard Payment Institution: typically 4–6 months. PSA Major Payment Institution: 6–12 months. CMS: 6–12 months. Sandbox approvals can be faster (1–3 months) but are time-limited and scope-limited. The clock starts once MAS deems your application substantively complete - incomplete submissions add months.
How much capital do I need for a Payment Services licence?
Standard Payment Institution: S$100K base capital. Major Payment Institution: S$250K. Money-Changing licence: S$100K. Capital must be unimpaired and ring-fenced. There are also security deposit requirements for cross-border money transfer. Karman's fintech onboarding flow walks you through capital structuring before you fund.
Can I do crypto in Singapore?
Digital Token Service Providers (DTSPs) are regulated under the PSA. As of 2026, MAS has tightened the regime for crypto firms serving overseas customers from Singapore - the bar for licensing has risen substantially. Realistic assessment: only well-capitalised, compliance-mature crypto businesses get licensed. We can advise on whether your model is viable before you incorporate.
Related Karman tools, templates, and definitions
Free resources to plan your Fintech setup.
Ready to set up your Fintech entity?
Karman is an ACRA-registered filing agent. We handle incorporation, corporate secretary, accounting, GST, and EP applications - all in one place. Most Fintech founders are operational within 2 weeks.
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