Why Singapore Is the Top Choice for HNWIs to Establish Subsidiaries?

Singapore Emerges as a Preferred Destination for High-Net-Worth Individuals and Multinational Enterprises

Against the backdrop of continuous shifts in the global economic landscape, an increasing number of high-net-worth individuals HNWIs and multinational corporations are seeking more strategically advantageous investment destinations. Among the many available options, Singapore has gradually emerged as the top choice for establishing subsidiaries or family offices, thanks to its stable environment, strategic geographical location, mature financial system, and highly open market policies.

Stable and Transparent Business Environment

Singapore is known for its long-standing political stability and excellent public safety, which form a solid foundation for attracting foreign investment. According to the World Bank’s 2025 Doing Business Report, Singapore consistently ranks among the top economies out of 190 countries and regions globally, particularly excelling in areas such as contract enforcement and cross-border trade facilitation. This efficient and transparent business environment means lower legal risks and higher operational efficiency for high-net-worth individuals.

Regulation in Singapore is relatively lenient yet well-structured. For example, procedures related to company registration, tax filing, and fund remittance are straightforward, with minimal restrictions on foreign shareholders and directors. This enables international investors to set up businesses and commence operations with relative ease.

Strategic Location and Regional Connectivity

As a global hub connecting East and West, Singapore sits at the heart of Southeast Asia and serves as an ideal gateway to the markets of China, India, and ASEAN countries. In recent years, as Asia’s economic center continues to shift eastward-particularly with the rise of emerging markets in Southeast Asia-Singapore’s strategic importance has become even more pronounced.

In the technology sector, for instance, many Chinese startups have chosen Singapore as their regional base to expand into Southeast Asia. According to reports by the South China Morning Post, several Chinese artificial intelligence and fintech companies established regional headquarters in Singapore in early 2025. Leveraging local infrastructure and talent resources, these firms are now expanding their influence across neighboring countries.

Competitive Tax Regime and Incentive Policies

One of the core reasons Singapore attracts high-net-worth individuals is its favorable tax regime. The maximum corporate income tax rate in Singapore is only 17%, while personal income tax follows a progressive structure, with the highest marginal rate capped at 24%. Compared to major Western economies-such as the United States, where the federal corporate tax rate stands at 21% with some states imposing additional levies, and European countries, where rates often exceed 30%-Singapore offers a significantly more attractive fiscal environment.

Moreover, Singapore practices a territorial tax system, meaning it taxes only income sourced within its borders, while income earned overseas is generally exempt from taxation. This policy holds strong appeal for multinational enterprises and international investors. Additionally, Singapore has signed more than 80 Avoidance of Double Taxation Agreements DTAs with countries worldwide, enhancing flexibility in international tax planning.

The government also offers a series of tax incentive programs tailored to high-net-worth individuals and innovative enterprises. Notably, the Section 13O and 13U tax incentive schemes allow eligible family offices and fund management companies to enjoy extremely low effective corporate tax rates-sometimes close to zero-for a specified period. These initiatives have greatly strengthened Singapore’s competitiveness in the global wealth management arena.

World-Class Talent and Infrastructure

Beyond a robust legal framework and efficient administrative services, Singapore also boasts world-class standards in education, healthcare, and transportation-factors that play a crucial role in attracting top-tier global talent. Statistics show that Singapore annually draws large numbers of professionals from around the world, especially in fields like finance, technology, and law, offering companies a steady supply of high-quality human capital.

Simultaneously, Singapore ranks among the world leaders in infrastructure development. Its ports, airports, and telecommunications networks are all state-of-the-art, providing strong support for business operations. For example, Changi Airport is one of the busiest aviation hubs globally, facilitating seamless travel for executives of multinational corporations.

Rise of Family Offices

In recent years, as global wealth becomes increasingly concentrated, more affluent families have begun setting up family offices to manage their assets. Singapore has become one of the biggest beneficiaries of this trend. According to Bloomberg, by the end of 2025, over 1,000 family offices had been registered in Singapore-a nearly threefold increase compared to three years earlier. Many of these offices belong to billionaire families from various Asian countries.

Singapore’s rapid emergence as a leading hub for family offices is not only due to its tax incentives and business environment but also attributable to its stringent privacy protection mechanisms and mature professional service ecosystem. The country hosts a large pool of experienced lawyers, accountants, and trust advisors who can provide customized solutions for wealth management and succession planning tailored to the needs of HNWIs.

Conclusion

In summary, Singapore’s growing appeal as an ideal location for high-net-worth individuals to establish subsidiaries stems from a combination of factors a stable and efficient business system, a strategic geographic position, a competitive tax regime, and a rapidly maturing wealth management ecosystem. In an era marked by heightened global uncertainty, Singapore offers a high-quality platform that balances security with growth potential for both individuals and enterprises.