How Much Do You Know About Setting Up a Foreign Company in Singapore?

What You Need to Know About Setting Up a Foreign-Invested Company in Singapore?

In recent years, with the continuous development of the global economy and the acceleration of internationalization, an increasing number of companies have chosen to establish branches overseas to expand their markets, optimize resource allocation, or mitigate risks. As the financial center and trade hub of Southeast Asia, Singapore has become the preferred choice for many enterprises looking to expand internationally due to its advantageous geographical location, stable environment, and open business policies. However, for many Chinese companies venturing into the Singapore market for the first time, successfully registering a foreign-invested company presents a significant challenge. This article will analyze the key points of setting up a foreign-invested company in Singapore by combining recent news developments.

I. Why Has Singapore Become a Fertile Ground for Foreign Enterprises?

Singapore's unique competitive advantages have captured global attention. According to the 2025 World Competitiveness Yearbook, Singapore has ranked first as the most competitive economy in the world for five consecutive years. This honor is attributed to its efficient and transparent governance, robust legal system, and strong support for innovation and technological development. Singapore also boasts one of the lowest tax rates in the world, with a corporate income tax rate of only 17%, and no value-added tax VAT or capital gains tax.

From an operational perspective, Singapore offers a convenient company registration process. According to recent reports, the Singapore Enterprise Development Agency ESG has recently announced further simplification of the registration procedures for foreign enterprises, including the launch of an online service platform, allowing applicants to complete all necessary approval procedures in a shorter time. This efficient administrative management not only reduces operating costs for businesses but also significantly improves efficiency.

II. Basic Conditions for Registering a Foreign-Invested Company in Singapore

To register a foreign-invested company in Singapore, certain basic requirements must first be met. According to regulations set by the Accounting and Corporate Regulatory Authority of Singapore ACRA, any foreign entity wishing to conduct business locally must submit a registration application through a designated local service provider and provide the following materials

The company name and proposed scope of operations;

At least one director who is a Singapore citizen or permanent resident;

Proof of registered address;

Identity documents of shareholders and directors.

It is worth noting that while Singapore allows single-person ownership and imposes no minimum capital requirement, it is recommended to have at least two directors, one of whom must reside in Singapore, to ensure the legality and stability of the enterprise. If involving specific industries such as financial services or healthcare, additional permits from relevant regulatory authorities are required.

III. Recent Hotspots Opportunities for Foreign Enterprises in Singapore's Fintech Sector

Recently, Singapore has made remarkable progress in the fintech sector. According to Bloomberg reports, the Monetary Authority of Singapore MAS launched a project called Project Orchid earlier this year, aimed at promoting the compliant development of digital asset service providers such as cryptocurrency exchanges. This undoubtedly creates new opportunities for foreign enterprises interested in entering this industry.

For example, a blockchain startup headquartered in Hong Kong quickly decided to relocate its Asian headquarters to Singapore after learning about the relaxed regulations, successfully completing the registration process. The company founder mentioned in an interview that Singapore not only has a sound legal framework but also provides a safe and reliable operational platform for us.

IV. Tax Incentives and Support Measures

In addition to the aforementioned conveniences, Singapore offers various tax incentives for different types of enterprises. For instance, the Regional Headquarters RHT program allows eligible multinational corporations to concentrate some functions in Singapore and enjoy up to 50% corporate income tax reduction; while the Pioneer Certificate is specifically designed for high-tech manufacturing or RD enterprises, offering up to ten years of exemption from corporate income tax.

It is noteworthy that Singapore also places great emphasis on environmental issues. According to the latest Green Plan 2030, Singapore has committed to investing substantial funds over the next decade to support sustainable development projects. This means that foreign enterprises dedicated to developing new energy solutions or environmental protection technologies will have the opportunity to receive more resource support.

V. Conclusion and Outlook

In summary, Singapore’s unique advantages make it an ideal place for foreign enterprises to register. Whether it's the convenient registration process, friendly business environment, or diverse incentive measures, they are sufficient to enable enterprises to stabilize their position and achieve rapid development in a short period. However, before deciding to settle in, enterprises still need to carefully assess their own needs and seek professional assistance to ensure success.

Looking ahead, as Singapore continues to deepen its international strategy, it can be expected that more enterprises from different industries will choose to take root here. For those enterprises already on or about to embark on this path, seizing every policy dividend is undoubtedly the way to success.