Guide to Company Registration in Singapore Key Requirements and Process for Chinese Investors

Setting Up a Company in Singapore Essential Conditions and Procedures for Chinese Investors

In recent years, as the global economic landscape continues to evolve and trade ties between China and Southeast Asian countries deepen, an increasing number of Chinese investors are turning their attention to Singapore. As one of the world's most competitive business hubs, Singapore offers a stable environment, a highly efficient financial system, and a strategic geographical location, making it a popular destination for Chinese companies seeking global expansion. According to the latest data from the Accounting and Corporate Regulatory Authority ACRA, foreign company registrations in Singapore increased by more than 12% year-on-year in the first quarter of 2025, with a significant rise in investments from China, reflecting continued confidence in the Singaporean market.

For Chinese investors considering setting up a business in Singapore, understanding the local registration requirements and procedures is the first crucial step toward success.

1. Advantages of Company Registration in Singapore

Singapore’s appeal to Chinese investors stems largely from the following key advantages

1. Favorable Tax Policies

The corporate income tax rate in Singapore is 17%, with tax exemptions available on the first S$1 million of annual profits. Singapore has also signed double taxation avoidance agreements with numerous countries and regions, helping to reduce cross-border tax burdens.

2. Open Financial System

Singapore features a highly open foreign exchange market, allowing free inflow and outflow of capital, which facilitates international transactions and fund management.

3. Efficient Services

Government agencies operate efficiently, and the company registration process is straightforward, typically completed within 1-3 days.

4. Strong Business Environment

According to the World Bank’s 2025 Ease of Doing Business report, Singapore ranks second globally, just behind New Zealand, for the consecutive years.

2. Basic Requirements for Foreigners Registering a Company

Although Singapore welcomes foreign investment, there are specific requirements for foreigners setting up a company

1. At Least One Local Director

Every private limited company Pte Ltd registered in Singapore must have at least one director who is a Singapore citizen, permanent resident PR, or a foreigner holding a valid work pass e.g., Employment Pass or S Pass. If Chinese investors do not reside in Singapore long-term, they often hire a local resident as a nominee director.

2. Low Minimum Capital Requirement

There is no minimum capital requirement for company registration in Singapore. Investors may determine the share capital freely, although potential tax implications should be considered.

3. Company Secretary

A company secretary must be appointed within six months of registration. The secretary must be a Singapore resident with relevant legal knowledge.

4. Registered Office Address

A physical office address in Singapore is required-P.O. Box addresses are not acceptable.

3. Step-by-Step Registration Process

For Chinese investors, the process of setting up a company in Singapore typically involves the following steps

1. Determine Company Structure and Name

The most common structure is a Private Limited Company. The company name must be checked for availability via ACRA's website to ensure it hasn’t already been registered.

2. Prepare Required Documents

These include identity documents, passport copies, proof of address, and draft copies of the company’s constitution for shareholders and directors.

3. Submit Registration Application

Applications can be submitted online through ACRA’s BizFile+ system, with fees ranging from S$300 to S$500.

4. Open a Corporate Bank Account

After successful registration, investors can open a corporate bank account with local banks such as DBS, OCBC, or UOB to facilitate business operations.

5. Apply for a Work Visa if applicable

If the Chinese investor intends to work in Singapore long-term, they may apply for an Employment Pass or an Entrepreneur Pass.

4. Tax and Compliance Considerations

While Singapore’s tax system is relatively transparent, compliance is crucial

1. Corporate Income Tax

Singapore follows a territorial tax system, meaning only income sourced in Singapore is taxed.

2. Annual Filing and Audits

Companies must file an Annual Return and submit financial statements and tax returns to the Inland Revenue Authority of Singapore IRAS each year.

3. Mandatory Audits

Companies with annual revenues exceeding S$1 million are required to undergo annual audits. It is advisable to plan financial strategies in advance.

5. Common Choices and Recommendations for Chinese Investors

In practice, many Chinese investors opt to work with professional incorporation agencies to ensure compliance and save time. Some also consider setting up a subsidiary or a representative office, depending on their stage of business development.

Notably, with deepening Sino-Singaporean economic cooperation, the Monetary Authority of Singapore MAS and the People's Bank of China have been advancing financial integration. For example, in June 2025, both sides signed a memorandum of understanding on fintech cooperation, further facilitating the growth of Chinese fintech companies in Singapore.

For investors in technology, trade, logistics, and other sectors, Singapore serves not only as a gateway to Southeast Asia but also as a key hub for global capital connectivity.

Conclusion

For Chinese investors seeking to expand internationally, Singapore presents a highly attractive option. By understanding the local registration conditions and procedures, aligning them with business needs, and strategically planning company structure and operations, investors can establish a strong foundation and pursue long-term success in the Singaporean market.