In-depth Analysis of Singapore Accounting Firms Why Companies Are Rushing to Set Up Here?

A Comprehensive Insight into Accounting Firms in Singapore Why Establish Here?

In today's evolving global economic landscape, business location and operational strategies increasingly emphasize stability and sustainability. As one of Asia’s leading financial hubs, Singapore has attracted a multitude of international businesses and professional service providers with its efficient business environment, transparent regulatory system, and strategic geographical location. Among these, accounting firms have particularly flourished, becoming a vital part of Singapore’s financial services industry and offering high-quality, internationally recognized financial and audit services to businesses.

I. Overview of the Accounting Industry in Singapore

Singapore’s accounting industry has a long history and a well-developed service ecosystem. According to data from the Accounting and Corporate Regulatory Authority ACRA, as of the end of 2025, more than 2,000 certified accounting firms operate in the country. This includes the Big Four accounting firms-Deloitte, Ernst Young, KPMG, and PricewaterhouseCoopers-all of which have established branches in Singapore. In addition, numerous mid-sized and boutique firms serve both local SMEs and multinational corporations.

The industry is governed by the Accountants Act and the Public Accountants Act, and is uniformly regulated by ACRA. All certified public accountants must obtain accreditation through the Institute of Singapore Chartered Accountants ISCA and undergo continuous professional development to ensure their expertise aligns with international standards.

II. Why Set Up an Accounting Firm in Singapore?

1. A Favorable Business Environment

Singapore has consistently ranked highly in global ease-of-doing-business indexes. According to the World Bank’s 2025 Doing Business Report, the country excels in areas such as contract enforcement, cross-border trade, and tax administration. This stable institutional environment provides a solid foundation for accounting firms to operate effectively.

2. International Legal and Tax System

Singapore follows a common law system closely aligned with those of the U.S. and the U.K., facilitating the operations of international firms. Additionally, Singapore maintains a competitive corporate tax rate capped at 17%, with tax exemptions for newly established companies in their first three years. These tax advantages have attracted numerous multinational corporations to set up regional headquarters in Singapore, thereby increasing demand for professional accounting services.

3. Strategic Location and Talent Pool

Situated at the heart of Southeast Asia, Singapore serves as a crucial gateway between Eastern and Western markets. With the advancement of ASEAN economic integration, many companies are using Singapore as a springboard to enter the Southeast Asian market. At the same time, Singapore places great emphasis on education and talent acquisition. Local universities such as the National University of Singapore NUS and Nanyang Technological University NTU produce a steady stream of high-caliber accounting and finance professionals. Complemented by flexible visa policies that attract overseas professionals, this further enhances the competitiveness of the local accounting industry.

4. Digitalization and Innovation Support

Singapore actively promotes its Smart Nation initiative and strongly supports digital transformation in the financial and professional services sectors. For example, ACRA has launched an e-registration system and online audit platforms to improve industry efficiency. The Monetary Authority of Singapore MAS also encourages the adoption of emerging technologies such as blockchain and artificial intelligence to enhance the accuracy and transparency of accounting services.

III. Recent Developments Emerging Trends in Singapore’s Accounting Industry

At the end of 2025, the Singapore Ministry of Finance released a white paper titled Enhancing Competitiveness in the Professional Services Sector, which highlighted increased support for industries such as accounting, law, and consulting. The paper outlined future plans to streamline regulatory processes, enhance training standards, and promote mutual recognition of cross-border professional qualifications-aiming to solidify Singapore’s role as Asia's premier professional services hub.

In early 2025, ACRA announced the signing of memoranda of understanding with multiple international regulatory bodies to establish mutual recognition mechanisms for cross-border audit reports. This not only elevates the global recognition of Singapore’s accounting services but also facilitates local firms in expanding overseas.

Moreover, as ESG Environmental, Social, and Governance issues gain prominence, Singapore’s accounting firms are increasingly investing in sustainable finance and ESG reporting. For instance, Deloitte Singapore launched a dedicated ESG advisory division in 2025 to assist companies with carbon accounting and sustainability disclosures. This trend signals a broader, more forward-looking transformation within the accounting industry.

IV. Challenges and Outlook

Despite its many strengths, Singapore’s accounting industry also faces challenges. The rise of artificial intelligence and automation is reshaping traditional audit and accounting models. Firms must balance efficiency with quality to remain competitive. Meanwhile, the global regulatory landscape is becoming increasingly complex, particularly in areas such as anti-money laundering AML, tax transparency, and data privacy. Accounting firms in Singapore must continuously enhance their compliance capabilities.

To meet these evolving demands, many firms are investing in staff training and upgrading technological infrastructure. Looking ahead, Singapore’s position as a global professional services hub is expected to remain strong. With the continued expansion of the Belt and Road Initiative and the growing openness of Southeast Asian markets, Singapore’s accounting firms are poised to play a more central role in regional economic integration.

Conclusion

Singapore has become an ideal destination for accounting firms thanks to its stable environment, efficient legal framework, open market policies, and robust talent pool. Amid increasing global economic uncertainty, Singapore offers a platform that combines security with dynamism, enabling professional service providers to thrive and deliver superior value to their clients.