Launching a Financial Services or Fintech Business in Singapore: What Foreign Investors Need to Know

Singapore remains one of Asia’s leading financial centers and continues to attract foreign investment in banking, asset management, payments, fintech, and digital financial services. The financial and insurance services sector contributes around 14 percent of Singapore’s GDP, employs approximately 200,000 people, and Singapore managed S$6.7 trillion (US$5.2 trillion) in assets under management at the end of 2025. For foreign investors, the first market-entry decision is whether their proposed activities fall within Singapore’s financial regulatory framework, as this determines both licensing requirements and the appropriate legal structure.

Determine whether your business activities require an MAS License

Before establishing a business in Singapore, foreign investors should determine whether their proposed activities fall within one or more of Singapore’s financial regulatory regimes. MAS regulates financial services based on the activities performed rather than whether a business identifies as a fintech company or a traditional financial institution. As a result, companies using innovative technology may still be subject to the same licensing requirements as established financial institutions if they undertake regulated activities.

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The Payment Services Act 2019 (PSA) governs businesses providing payment services such as merchant acquisition, domestic and cross-border money transfers, account issuance, e-money issuance, digital payment token services, and money-changing services. Depending on the scale and nature of the activities, businesses may require either a Standard Payment Institution license or a Major Payment Institution license.

Investment-related businesses are primarily regulated under the Securities and Futures Act 2001 (SFA). Companies intending to conduct activities such as fund management, dealing in capital markets products, or providing custodial services may require a Capital Markets Services (CMS) license unless an exemption applies. Businesses providing investment advice or financial planning services may also require licensing under the Financial Advisers Act 2001 (FAA).

Consider a foreign fintech company launching a digital platform that allows customers to hold e-money, transfer funds internationally, purchase investment products, and receive automated investment recommendations. Although presented as a single commercial offering, the payment services could fall under the Payment Services Act, while the investment and advisory functions may be regulated under the Securities and Futures Act and the Financial Advisers Act.

Choose the right business structure

Once foreign investors have identified the regulatory framework governing their proposed activities, they can determine the most appropriate legal vehicle for establishing operations in Singapore. The choice between a subsidiary, branch office, or representative office affects licensing eligibility, legal liability, tax treatment, and the scope of activities the Singapore entity can undertake. Licensing requirements under the applicable MAS regulatory regime often determine which corporate structure is suitable for conducting regulated financial services activities.

For most foreign investors seeking to conduct regulated financial services activities, a subsidiary is the structure most used when applying for MAS licenses. Branch offices remain available for certain overseas financial institutions where the applicable regulatory framework permits, while representative offices are restricted to non-commercial activities and cannot undertake regulated financial services.

Capital commitments depend on your business model

Financial commitment is another factor influencing market entry. MAS applies different prudential requirements depending on the regulated activities undertaken, meaning capital requirements vary across different financial services business models.

For example, a Singapore-incorporated Standard Payment Institution (SPI) must maintain minimum base capital of S$100,000 (US$78,000), while a Major Payment Institution (MPI) must maintain minimum base capital of S$250,000 (US$195,000). Companies applying for a Capital Markets Services (CMS) license are subject to separate base capital and ongoing financial resource requirements that vary according to the regulated activity, such as fund management, dealing in capital markets products, or custodial services.

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These differences influence the level of capital foreign investors should commit at market entry. A business launching as a payment institution may require a different capital structure from one establishing a regulated fund management or securities business, even where both operate within Singapore’s financial services sector.

Contact Dezan Shira & Associates for Singapore financial services market entry

Dezan Shira & Associates supports foreign investors establishing financial services and fintech businesses in Singapore through corporate structuring, MAS regulatory advisory, licensing support, and broader ASEAN market entry services. Contact Dezan Shira & Associates to discuss your Singapore market entry strategy.

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