Is Registering a Company in Singapore a Blessing or a Curse? Unveiling the Truth Behind Proxy Registration!

Is Registering a Company in Singapore a Blessing or a Curse? Uncovering the Truth Behind Proxy Registration Services

In recent years, as global economic integration has accelerated, more and more Chinese companies and individuals have turned their attention to overseas markets in search of new paths for international development. As one of Asia’s most competitive business hubs, Singapore has attracted a large number of foreign investors with its stable political and economic environment, efficient legal system, and favorable tax policies.

Singapore has become a top destination for companies venturing abroad, especially in cross-border trade, tech startups, and financial services. However, beneath this growing trend lies an increasing number of disputes surrounding proxy registration services for Singaporean companies. Some intermediaries promote zero-barrier and fast-track company setup, drawing in entrepreneurs who are new to overseas expansion. But how reliable are these services? Is registering a company in Singapore truly an opportunity - or could it be a trap?

This article explores the truth behind Singapore's booming proxy registration market based on recent developments and insights.

Singapore’s Business Environment Strengths and Appeal

According to the World Bank’s 2025 Doing Business report, Singapore ranks second globally among 190 economies, just behind New Zealand, maintaining a top position for several consecutive years. Its efficient approval processes, robust intellectual property protection mechanisms, and highly internationalized financial system make it an ideal location for multinational corporations setting up regional headquarters.

Singapore’s corporate tax policies are also highly attractive. For newly established companies, the first S$300,000 approximately RMB 1.5 million of taxable income over the first three years is eligible for tax exemption. For companies with annual profits below S$1 million, the effective tax rate does not exceed 9%. Combined with the absence of capital gains tax and dividend tax, Singapore appears as a tax haven for many entrepreneurs.

The Rise of Proxy Registration Services Convenience with Hidden Risks

Faced with such promising market prospects, many Chinese businesses and individuals are considering establishing a presence in Singapore. However, due to differences in language, culture, and legal systems, many opt for third-party service providers to assist with registration. These agencies often promise full-service packages covering everything from company name approval and shareholder registration to director appointments and bank account opening - all supposedly achievable within days.

However, recent media reports have exposed problems with some proxy registration platforms, including exaggerated advertising, unclear pricing structures, and even alleged violations of regulations. For example, certain platforms claim that no personal appearance or identity verification is required - a direct contradiction of guidelines set by Singapore’s Accounting and Corporate Regulatory Authority ACRA.

Under local law, every company must have at least one director who is a Singapore citizen, permanent resident, or holder of a valid work pass, and all directors must be at least 18 years old. If proxy registrars conceal critical information, it may result in failed registrations or even legal disputes.

Worse still, some unscrupulous intermediaries exploit investors' lack of familiarity with Singaporean law, charging high fees without delivering promised services - and sometimes disappearing altogether after collecting payments. Such cases are frequently reported on social media and industry forums, serving as a warning to prospective investors.

Real Stories Success and Failure Compared

Take Ms. Li, an e-commerce entrepreneur, for instance. With the help of a reputable law firm, she successfully registered a private limited company in Singapore at the end of 2025 and opened a local bank account. Leveraging Singapore’s free trade environment, her company achieved stable supply chain operations across Southeast Asia within six months, with net profit growth exceeding 40%. She remarked, Although the initial investment was high, Singapore’s overall business environment is definitely worth it.

In contrast, Mr. Zhang’s experience was far less positive. He paid nearly RMB 20,000 for a so-called one-stop service through an online platform, only to find that the provider failed to complete the registration and eventually disappeared after repeated follow-ups. He had to seek out a compliant agent, spending additional time and money to rectify the situation.

Key Considerations When Registering a Company in Singapore

Despite its many advantages, deciding to register a company in Singapore should not be taken lightly. Here are some practical suggestions

1. Clarify Your Business Objectives Do you really need an overseas entity? Is it for market expansion, fundraising, or other purposes? Clear goals can prevent blind following of trends.

2. Understand Local Regulations Familiarize yourself with Singapore’s Companies Act, tax laws, and regulatory requirements to avoid unintentional legal breaches.

3. Choose Reputable Service Providers Prioritize licensed law firms, accounting firms, or certified secretarial companies. Sign formal contracts and keep transaction records.

4. Budget for Ongoing Costs In addition to registration fees, consider recurring expenses such as annual audits, tax filings, and office space to avoid cash flow issues.

5. Plan for Long-Term Growth While Singapore is suitable for SMEs in their early stages, those planning to expand into Western markets should develop a global strategy in advance.

Conclusion

Registering a company in Singapore is not a spontaneous decision akin to taking a casual trip abroad. It can open doors to international opportunities, but it can also lead to serious setbacks if approached without proper preparation. Amid the flood of proxy registration services available today, investors must maintain rational judgment, conduct thorough research, and resist the temptation of short-term convenience.

Only by fully understanding Singapore’s business ecosystem and making informed decisions based on individual circumstances can one truly succeed in this vibrant market.