A Quick Start Guide to Setting Up a Subsidiary in Singapore From Zero to Launch

How to Successfully Establish a Subsidiary in Singapore A Practical Guide from Scratch

In the context of global economic integration, Singapore has become the preferred destination for many companies expanding overseas, thanks to its strategic geographical location, stable environment, and highly open market. For companies aiming to establish a foothold in Southeast Asia, successfully setting up a subsidiary in Singapore is not only a crucial strategic move but also a key step toward long-term growth.

1. Understand Singapore’s Business Environment

Singapore is one of the world’s most competitive economies, consistently ranking at the top of global business environment indexes. According to the World Bank’s 2025 Doing Business report, Singapore excels in areas such as business incorporation, contract enforcement, and cross-border trade, offering a highly efficient and transparent business environment.

The country actively attracts foreign investment and offers various tax incentives, such as the Start-Up Tax Exemption SUTE scheme for newly incorporated companies and the Financial and Treasury Center FTC Incentive Scheme, which supports financial operations. Recently, the Monetary Authority of Singapore MAS announced plans to further streamline the process for foreign companies setting up financial subsidiaries, signaling its ongoing openness to international capital. This policy adjustment undoubtedly facilitates market entry for foreign enterprises.

2. Determine the Company Structure and Entity Type

Before establishing a subsidiary in Singapore, companies must decide on the appropriate legal structure. Common options include Private Limited Company Pte Ltd, Branch Office, and Representative Office. Among these, the Private Limited Company is the most common and recommended structure.

A Private Limited Company is a separate legal entity, offering limited liability protection to shareholders and greater flexibility in securing bank loans and government grants. There is no minimum capital requirement for foreign investors setting up a Pte Ltd, and the registration process is relatively straightforward.

In recent years, more and more tech startups have chosen this structure. For example, in Q3 2025, the Chinese AI company Zhisuan Technology officially established a subsidiary in Singapore to focus on promoting intelligent customer service solutions in the Southeast Asian market. Choosing a Private Limited structure ensured legal independence and provided flexibility for future fundraising and business expansion.

3. Complete Company Registration and Compliance Procedures

Once the company structure is decided, the next step is to complete the registration process. Companies can submit applications via the Accounting and Corporate Regulatory Authority ACRA online portal, and registration typically takes 1-2 business days.

During the registration process, the following information is required

Company name must be approved by ACRA

Local Singapore address as the registered office

At least one director aged 18 or above can be a foreigner

Shareholder details individual or corporate

A company secretary who must be a Singapore resident

Standard Industry Classification SIC code outlining business activities

Additionally, depending on the nature of the business, companies may need to apply for relevant licenses or permits from regulatory bodies. For example, financial, healthcare, or education-related businesses must apply with the respective authorities.

In October 2025, Enterprise Singapore updated its foreign business registration guidelines, further simplifying approval procedures for certain industries and improving overall efficiency in company setup.

4. Recruitment and Team Building

Building a capable team is essential when establishing a subsidiary in Singapore. While the country offers a pool of high-quality talent, labor costs are relatively high. Companies should develop a strategic recruitment plan based on business needs.

It is advisable to prioritize hiring for key roles-such as finance, legal, and operations-during the early stages to ensure compliance and smooth operations. Companies can utilize local recruitment agencies or platforms such as JobsCentral and LinkedIn to identify suitable candidates.

Singapore encourages the hiring of high-skilled foreign talent and offers the Employment Pass EP for professionals. In 2025, the Ministry of Manpower MOM revised the EP application criteria, raising the salary threshold to ensure that only internationally competitive talents are admitted.

5. Financial Management and Tax Planning

Singapore’s tax system is simple and transparent, with a flat corporate tax rate of 17%. Additionally, the first SGD 100,000 of annual profits are tax-exempt. Singapore has signed double taxation agreements with over 80 countries, helping companies optimize their global tax structure.

Early establishment of a robust financial framework is crucial. This includes opening a corporate bank account, setting up accounting systems, and implementing tax compliance mechanisms. Engaging a professional accountant or financial advisor is highly recommended to ensure compliance and maximize available tax incentives.

In September 2025, the Inland Revenue Authority of Singapore IRAS launched an integrated digital tax platform, enabling businesses to complete tax filings and payments online, significantly improving tax administration efficiency.

6. Market Expansion and Localized Operations

After successfully setting up the subsidiary, companies need to quickly enter the market and build brand awareness. Although Singapore’s domestic market is small, it serves as a gateway to Southeast Asia, with a diverse and highly international consumer base.

Companies should tailor their products or services to meet local demand. In recent years, many Chinese companies have adopted a dual strategy of localization and digitalization when entering the Southeast Asian market through Singapore, achieving strong results.

For instance, in 2025, the Chinese cross-border e-commerce platform Yungou established a subsidiary in Singapore and rapidly partnered with local logistics and payment platforms to offer customized services. This strategy enabled the company to successfully penetrate the local market and expand into neighboring countries such as Malaysia and Indonesia.

7. Continuous Optimization and Long-Term Development

Establishing a subsidiary is not a one-time effort but a continuous process of improvement. Companies should regularly evaluate market performance, team efficiency, and financial health, adjusting strategies as needed.

Additionally, it is important to actively integrate into Singapore’s business ecosystem by participating in industry events, support programs, or trade associations. This helps enhance brand visibility and industry standing.

As a key hub connecting East and West, Singapore continues to emerge as a strategic base for global enterprises. Whether a startup or an established company, with thorough preparation, adherence to compliance procedures, and alignment with local market needs, any business can achieve stable and sustainable growth in this vibrant market.