Guide to Establishing a Subsidiary in Singapore Step-by-Step to Easily Enter the International Market

How to Establish a Subsidiary in Singapore A Step-by-Step Guide to Easily Kickstart Your Journey into the Global Market

In today’s era of global economic integration, more and more companies are setting their sights on overseas markets. Singapore, with its strategic location, stable political and economic environment, and business-friendly ecosystem, has become a top destination for enterprises looking to expand internationally. In recent years, as Southeast Asia’s market continues to rise, many Chinese companies have chosen to establish subsidiaries in Singapore as a gateway to the ASEAN region and beyond.

1. Why Choose Singapore for Setting Up a Subsidiary?

According to the 2025 World Bank Doing Business Report, Singapore has consistently ranked among the top countries globally in terms of ease of doing business. Its robust legal framework, transparent tax system, and well-developed financial regulations provide an ideal environment for multinational businesses.

Singapore has signed numerous Free Trade Agreements FTAs with other countries, including China, fostering strong economic and trade cooperation and facilitating cross-border business operations. Additionally, the country maintains an open policy toward foreign investment, offering a streamlined incorporation process, quick registration timelines, and no minimum capital requirements for foreign investors.

These advantages make Singapore an excellent starting point for small and medium-sized enterprises SMEs seeking international expansion.

2. Basic Steps to Establish a Subsidiary in Singapore

Step 1 Determine Company Type and Name

The most common structure for establishing a subsidiary in Singapore is a Private Limited Company Pte Ltd. This entity type offers limited liability protection to shareholders and is legally distinct from its owners.

Before proceeding, submit a proposed company name to the Accounting and Corporate Regulatory Authority ACRA to ensure it's available and complies with local naming rules.

Step 2 Prepare Required Documents

Key documents needed for registration include

Company Constitution

Identity proof of shareholders and directors

Proof of registered office address

Appointment letters for initial directors and company secretary

Business activity description using Standard Industry Classification SIC codes

It is important to note that Singapore law requires at least one local resident director-typically a Singapore citizen, permanent resident, or holder of an Employment Pass-and a qualified company secretary must be appointed to handle compliance matters.

Step 3 Submit Registration Application

Use ACRA’s online filing system, BizFile+, to submit your application and pay the required fees. In most cases, incorporation can be completed within hours, after which you will receive a Certificate of Incorporation.

Step 4 Open a Corporate Bank Account

Once incorporated, proceed to open a corporate bank account in Singapore. Major banks such as DBS Bank, OCBC Bank, and UOB offer tailored services for businesses. You will typically need to provide company incorporation documents, director identification, and the company constitution.

Step 5 Apply for Licenses and Permits

Depending on your industry, you may need to apply for specific licenses or permits from relevant authorities. For example

Food-related businesses must obtain a license from the Singapore Food Agency SFA

Construction or engineering firms may need certification from the Building and Construction Authority BCA

Step 6 Tax Registration and Compliance

Within three months of incorporation, register for Goods and Services Tax GST with the Inland Revenue Authority of Singapore IRAS. GST registration becomes mandatory if annual revenue exceeds SGD 1 million. Companies must also file annual financial statements and tax returns to maintain compliance.

3. Preparations Before Setting Up a Subsidiary

Define Market Positioning and Business Plan

Before entering a new market, conduct thorough market research. Understand your target customer base, competition, and regulatory constraints to develop a realistic and effective business strategy.

Seek Professional Support

Due to differences in language, culture, and legal systems, many companies opt to engage professional service providers such as law firms, accounting firms, or business consultants to reduce operational risks and ensure smooth setup.

Plan Financial and Human Resources

Establishing a subsidiary involves initial costs, including registration fees, office rental, and employee salaries. It is advisable to create a detailed budget and decide whether to deploy staff from the parent company or hire locally.

4. Real-Life Case Study

Take the example of a Chinese tech company that decided to set up a subsidiary in Singapore by the end of 2025 to better serve the Southeast Asian market. Within two months, the company completed all necessary steps-including incorporation, bank account opening, and tax registration-and successfully obtained government incentives for innovative technology enterprises. Today, this subsidiary serves as a vital link between the headquarters in China and customers across Southeast Asia, playing a key role in branding, technical support, and after-sales services.

5. Conclusion

Establishing a subsidiary in Singapore marks a significant step toward globalization and offers a powerful way to enhance competitiveness and access new markets. While the process involves various challenges and details, following proper procedures and planning resources strategically can significantly reduce risks and increase the likelihood of success.

For Chinese companies aiming to explore overseas opportunities, Singapore remains a highly favorable and strategic choice.