ACRA Revealed Why Global Companies Flock to Singapore?

Why Global Companies Are Rushing to Set Up in Singapore

In recent years, Singapore has increasingly solidified its position on the global business map. From startups to multinational giants, companies are choosing Singapore as their regional headquarters or operational hub. According to the latest data released by the Accounting and Corporate Regulatory Authority ACRA, the number of newly registered companies in Singapore grew by nearly 12% year-on-year in 2025, setting a new record. This trend reflects Singapore’s comprehensive strengths in business environment, policy support, and financial infrastructure.

1. An Efficient and Transparent Business Registration System

Singapore’s business registration process is known for its efficiency and transparency, making it a key factor in attracting foreign investment. According to the World Bank’s 2025 Doing Business report, Singapore has consistently ranked among the top three economies out of 190 globally for several years. The average time to register a company is only 1-3 days, and the entire process is digitalized, significantly reducing both time and administrative costs.

The Accounting and Corporate Regulatory Authority ACRA, as the centralized regulatory body, consolidates functions previously spread across multiple agencies, offering one-stop services. Entrepreneurs can complete company registration, tax registration, and business licensing through ACRA’s online platform, BusinessFile, greatly improving administrative efficiency.

Regulation in Singapore is not one-size-fits-all. Instead, it follows a risk-based approach. This means compliant businesses enjoy greater autonomy, while high-risk entities face stricter scrutiny. This flexible yet rigorous regulatory framework ensures market order while creating a favorable environment for business operations.

2. A Stable Economic Environment and Robust Legal System

In a time of increasing global economic uncertainty, political stability and a strong legal system have become critical factors for business location decisions. Singapore has earned the trust of global investors through its efficient, clean governance, stable policy environment, and comprehensive legal system.

In 2025, Standard Poor’s SP reaffirmed Singapore’s sovereign credit rating at AAA with a stable outlook-an achievement that is rare worldwide. The rating agency highlighted Singapore’s strong fiscal position, low external debt, and ample foreign exchange reserves, which together reflect its strong resilience to external shocks.

At the same time, Singapore’s legal system, based on English common law, offers both flexibility and predictability. For multinational corporations, this legal environment helps reduce legal risks related to contract disputes and intellectual property protection.

3. Tax Advantages and Fiscal Incentives

Singapore’s tax system is known for its low rates and simplicity, making it a major draw for multinational companies. The maximum corporate income tax rate is just 17%, significantly lower than in many Western countries. Moreover, Singapore follows a territorial tax system-taxing only income sourced locally, while foreign-sourced income is either tax-exempt or eligible for relief.

The government has introduced a range of fiscal incentives to support businesses at different stages of development. For example, the Pioneer Enterprise Incentive and the Financial and Treasury Center FTC Incentive offer tax exemptions for up to 5-10 years to key sectors such as technology, finance, and manufacturing.

In August 2025, the Monetary Authority of Singapore MAS announced an expansion of the Global-Asia Innovation Corridor initiative, encouraging more tech companies to establish RD centers in Singapore. Under the program, qualifying firms can receive subsidies covering up to 50% of their RD expenses. This move further strengthens Singapore’s position as a regional innovation hub.

4. A Strategic Hub Connecting Asia and the World

Geographically, Singapore sits at the heart of Southeast Asia, serving as a strategic gateway between Asia and the rest of the world. As one of the world’s busiest ports and a key aviation hub, Singapore offers efficient logistics networks and world-class infrastructure, enabling businesses to operate regionally and globally.

With the rapid economic growth in the Asia-Pacific region, more and more multinational corporations are setting up their regional headquarters in Singapore to access fast-growing markets such as China, Southeast Asia, and India. For example, in June 2025, U.S. tech giant Meta announced an investment of over USD 1 billion to expand its data center and RD facilities in Singapore, supporting its expansion in Southeast Asia.

At the same time, Singapore remains one of the world’s leading financial centers. According to the Global Financial Centres Index GFCI 36 released in September 2025, Singapore ranks fourth globally, behind only New York, London, and Hong Kong. This ranking reflects its open financial markets, strong regulatory framework, and diverse financial services.

5. A Talented Workforce and International Business Environment

Singapore boasts a highly skilled and multilingual workforce, which is crucial for attracting and retaining global talent. The country places a strong emphasis on education and talent acquisition, with well-established mechanisms for immigration and work visas. Programs such as the Employment Pass and Tech.Pass provide streamlined pathways for high-skilled professionals.

As a highly internationalized city-state, Singapore uses English as an official language and promotes multicultural coexistence, fostering an inclusive and open society. For multinational corporations, this helps reduce cultural friction and improve management efficiency.

Conclusion

In today’s rapidly changing global economic landscape, Singapore has emerged as a top destination for global businesses due to its efficient business registration system, stable legal and economic environment, tax advantages, strategic location, and strong talent pool. Looking ahead, as emerging sectors such as digitalization and green economy continue to grow, Singapore is well-positioned to strengthen its role as a global business hub and attract even more companies to establish a long-term presence there.