How to Open a Company in Singapore as a Foreigner

Singapore remains one of the most straightforward jurisdictions in the world for foreign companies to establish a legal presence, but straightforward is not the same as simple.

Contributing Advisor

David Stepat

Country Director, Operations

The registration process is fast, the costs are predictable, and the regulatory environment is transparent. What trips up foreign investors is rarely the mechanics of registration; it is the choices made before they file.

This briefing is for companies that are already in the consideration phase: you know Singapore is the right market, or the right ASEAN hub, and you are now working through which structure fits your goals, what the real costs look like, and what an advisory firm should help you get right from the outset.

Why are foreign companies still choosing Singapore?

Singapore's appeal is not just about tax rates or political stability, though both matter.

It is the convergence of factors that make it operationally viable as a regional base: strong English-language legal infrastructure, 27 implemented Free Trade Agreements covering access to approximately 85 percent of global GDP, and a business registration process that, in the simplest cases, can be completed within 24 hours.

For companies weighing Singapore against other regional entry points such as Hong Kong, Malaysia, or Indonesia, the decision typically comes down to three factors:

• Legal certainty: Singapore's courts are commercially sophisticated, and its contract enforcement is regarded as among the strongest in Asia.
• Tax efficiency: No capital gains tax, no tax on dividends, and a corporate income tax rate of 17 percent with substantial partial exemptions for the first S$200,000 of chargeable income.
• Talent and infrastructure: Singapore is ranked among the top jurisdictions globally for talent competitiveness and digital infrastructure, both relevant for companies building regional teams.

That said, the structure you register under will determine whether you can access these benefits, or leave them on the table.

What are the main options when you want to open a company in Singapore?

All business entities in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA). For foreign companies, the four most relevant structures are as follows:

For most foreign companies looking to open a company in Singapore, particularly SMEs and regional subsidiaries of multinationals, the private limited company (Pte. Ltd.) incorporated as a subsidiary is the default choice, and with good reason. It is the only structure that qualifies the entity as a Singapore tax resident, making it eligible for the full range of tax incentives, double tax agreement (DTA) benefits, and partial exemption schemes.

Explore the structural trade-offs in more depth in: How Foreign Investors Should Structure Company Formation in Singapore and How Singapore's Pte. Ltd. Structure Supports 100 Percent Foreign Ownership.

Is a branch office ever the right choice for a foreign company in Singapore?

Occasionally. Branch offices are sometimes chosen by large multinationals that need to operate under their global brand name (branch offices must use the parent company's name) and whose global compliance architecture makes a subsidiary structure more complex than it is worth.

However, branch offices are generally treated as non-resident for Singapore tax purposes, meaning they cannot access the startup tax exemption, partial exemption scheme, or most of the DTA benefits available to resident companies. The parent also retains full liability for the branch's obligations, a meaningful commercial exposure.

For most foreign companies evaluating Singapore, a branch office is rarely the optimal starting point.

What does it cost to open a company in Singapore?

The government registration fees themselves are low. What foreign investors need to budget for extends beyond the ACRA filing.

Direct government registration costs:

• Business name application: S$15 (approved within minutes if the name is available)
• Company incorporation fee: S$300
• Total ACRA cost: S$315

What are the tax advantages?

Singapore's corporate tax headline rate is 17 percent, but the effective rate on the first S$200,000 of normal chargeable income is approximately 8 percent, the result of a partial tax exemption scheme that applies to resident companies (75 percent exemption on the first S$10,000, and 50 percent exemption on the next S$190,000).

New startup companies incorporated in Singapore can access an even more favourable scheme for their first three years of assessment: 75 percent exemption on the first S$100,000 and 50 percent exemption on the next S$100,000 of chargeable income.

Additional tax features that foreign investors find particularly relevant:

• No capital gains tax, where gains on asset or share disposals are generally not taxable.
• No withholding tax on dividends, where post-tax dividends paid to foreign shareholders are tax-exempt.
• Extensive DTA network, Singapore has Double Tax Agreements with more than 70 countries, including Japan, China, Indonesia, Malaysia, and the United Kingdom, reducing withholding taxes on cross-border flows.
• Foreign-sourced income exemption, qualifying foreign-sourced dividends, branch profits, and service income received in Singapore may be exempt from tax, subject to conditions.

Where foreign companies misread these benefits: the tax advantages are largely specific to Singapore-resident companies, which means only properly structured subsidiaries, not branch offices, can access the full suite. Additionally, companies operating in regulated sectors (financial services, telecommunications, media) face additional licensing and ownership restrictions that affect how these benefits apply in practice.

What do foreign companies get wrong when registering?

Several recurring issues arise in practice, many of which are avoidable with proper upfront advisory:

• Every Singapore company must have at least one director who is ordinarily resident in Singapore. Foreign companies often appoint a nominee director through their corporate secretarial firm and then ignore the governance implications. Nominee directors carry real legal duties and fiduciary obligations under Singapore law, treating the role as purely administrative creates compliance exposure.
• Companies with annual taxable turnover exceeding S$1 million are required to register for GST (Goods and Services Tax). Foreign companies that scale quickly or structure intercompany billing through Singapore can cross this threshold faster than expected. Retrospective registration and penalties are avoidable with proper forecasting.
• Certain business activities, such as, banking, insurance, financial advisory, and media. Specific licences are required from the Monetary Authority of Singapore (MAS), the Infocomm Media Development Authority (IMDA), or other bodies. Companies that register a Ltd. without checking licensing requirements ahead of time may find their intended business activities are blocked or require a significantly different structure.
• While a Singapore company can legally be incorporated in under 24 hours, this does not mean the company is operationally ready. Opening a corporate bank account, establishing payroll, setting up accounting systems, and ensuring XBRL-compliant financial reporting are all steps that take longer and require more coordination. Companies that treat registration as the finish line, rather than the starting line, often face operational delays.
• Singapore companies must prepare financial statements in compliance with Singapore Financial Reporting Standards (SFRS), which are substantially converged with IFRS. Exempt Private Companies (20 or fewer shareholders, no corporate shareholders) may be exempt from audit if they are below certain revenue thresholds, but the exemption is often misapplied. Read more: How Singapore's Financial Reporting Framework Aligns with IFRS.

Where does local advisory make the difference?

For companies with uncomplicated structures, a single subsidiary, straightforward trading activities, no cross-border IP or treasury arrangements, a quality corporate secretarial firm handles most of the registration logistics competently. The gap becomes visible in three scenarios:

• When the structure is non-standard. Companies using Singapore as an ASEAN holding entity, setting up IP holding arrangements, or planning to repatriate profits upstream need advice that integrates tax structuring with corporate governance from the outset. Getting the shareholding structure, director appointments, and transfer pricing documentation right at incorporation is significantly cheaper than fixing it after the fact.
• When personnel are relocating. Employment Pass applications, compensation structuring, and employer CPF obligations all interact with the company's tax position in ways that aren't obvious without integrated HR and tax advisory.
• When speed matters. Experienced local advisors with established banking relationships can reduce account-opening timelines from months to weeks, a meaningful operational advantage for companies with revenue targets attached to their Singapore launch.

Dezan Shira & Associates' corporate establishment services are designed for exactly this phase, from entity selection and ACRA registration through to banking, tax registration, and ongoing corporate secretarial compliance. For growing companies considering Singapore as an ASEAN hub, virtual CFO services have also become a practical alternative to building an in-house finance function from day one.

Ready to move from consideration to action? Speak with a Dezan Shira & Associates specialist to discuss your structure, timeline, and the most efficient path to a compliant, commercially sound Singapore entity.

Speed of incorporation is the easiest variable to optimize for in Singapore. The right question isn't how fast you can register, it's what you actually need this entity to do.

David Stepat

Country Director, Singapore

Talk to an expert at david.stepat@dezshira.com

Or request a consultation at +65 6789 3256