Why Fuzhou Companies Favor Registering in Singapore Exploring New Cross-Border Business Opportunities!

Why Are Fuzhou Companies Choosing to Register in Singapore? Exploring New Opportunities in Cross-Border Business!

In recent years, an increasing number of Fuzhou-based companies have chosen Singapore as their preferred location for company registration, a trend that has become particularly evident in 2025. From manufacturing to tech firms, and from traditional trade to emerging cross-border e-commerce, Fuzhou businesses are showing unprecedented enthusiasm for going global. Singapore has become their first stop in expanding into international markets. This phenomenon reflects not only the appeal of Singapore’s business environment but also the strategic shift of Fuzhou enterprises in their global layout.

1. Singapore Unique Advantages as an International Business Hub

As one of the world's most competitive economies, Singapore has long attracted global investors with its efficient governance, stable financial system, robust legal framework, and strategic geographical location. According to the World Bank’s 2025 Doing Business report, Singapore ranks second among 190 economies globally, just behind New Zealand. It excels particularly in areas such as business establishment, contract enforcement, and cross-border trade.

Singapore adopts a low-tax policy, with a maximum corporate income tax rate of only 17%, and there are no restrictions on repatriating profits for foreign companies. This tax-friendly environment is highly attractive for Fuzhou companies seeking to expand overseas and optimize their tax structures.

2. Growing Outbound Aspirations of Fuzhou Companies, with Singapore as the Top Choice

As a key economic center in Fujian Province, Fuzhou boasts a solid manufacturing base and a vibrant private economy. In recent years, with increasing domestic market competition and the advancement of the Belt and Road Initiative, Fuzhou companies have become more inclined to expand overseas to access new markets, acquire resources, and enhance brand visibility.

According to data released by the Fujian Provincial Department of Commerce, the number of outbound investment projects approved for Fujian enterprises increased by more than 25% year-on-year in the first half of 2025. Among these, Singapore has emerged as one of the most popular overseas investment destinations for Fuzhou businesses. Numerous local tech, trade, and manufacturing companies have set up subsidiaries or holding companies in Singapore as a gateway to Southeast Asia and global markets.

For example, a well-known Fuzhou-based electronics manufacturing company established a regional headquarters in Singapore in June 2025, with plans to expand further into ASEAN markets through this platform. The company’s executive stated in an interview Singapore offers a mature business environment and serves as a gateway to the Southeast Asian market, helping us efficiently expand our international presence.

3. Policy Support and Deepening Bilateral Cooperation

China and Singapore have maintained strong economic and trade relations over the long term. In 2025, bilateral trade between the two countries reached 1.23 trillion yuan approximately USD 170 billion, representing a year-on-year increase of about 12%. In the same year, the upgraded China-Singapore Free Trade Agreement was further implemented, offering greater convenience in areas such as investment, service trade, and intellectual property protection.

At the same time, Fujian Province has introduced a series of supportive policies to encourage local companies to go global, including financial subsidies, financing support, and risk protection measures. Fuzhou Free Trade Zone has actively engaged with Singaporean resources, facilitating partnerships between local enterprises and Singaporean financial institutions, law firms, and consulting agencies to enhance the success rate and sustainability of outbound ventures.

4. Singapore as a Catalyst for Fuzhou Enterprises' Transformation and Upgrading

Singapore is not merely a destination for investment but also a key partner in Fuzhou companies’ transformation and upgrading. With its strong financial, technological, and educational systems, especially in fintech, green energy, and biomedicine, Singapore offers globally leading expertise and management practices.

Some traditional manufacturing companies in Fuzhou have established RD centers or collaboration platforms in Singapore, introducing advanced technologies and management concepts to transition from traditional manufacturing to smart manufacturing. For example, a Fuzhou-based environmental equipment manufacturer partnered with the National University of Singapore to jointly develop an intelligent water management system, which has since been promoted and applied in Southeast Asian markets.

As one of Asia's leading financial centers, Singapore also provides Fuzhou companies with convenient access to capital. An increasing number of Fuzhou enterprises are raising funds or going public in Singapore’s capital market, injecting fresh momentum into their development.

5. Outlook The Trend of Fuzhou Companies Moving South Will Continue

With shifts in the global economic landscape, Southeast Asia is emerging as a new engine of global growth. As the region’s gateway, Singapore will continue to serve as a crucial bridge for Fuzhou companies going global. During this process, Fuzhou enterprises will accumulate international experience and broaden their global vision, gradually evolving into internationally competitive modern enterprises.

Overall, Fuzhou companies’ decision to register in Singapore reflects a comprehensive consideration of taxation, legal frameworks, and market access, and represents a significant step in their global strategy. Leveraging Singapore as an international platform, Fuzhou enterprises are poised to carve out broader development opportunities in cross-border business and make the leap from regional brands to global players.