A Deep Dive into Setting Up a Subsidiary in Singapore - Your Smooth Path to Going Global

In recent years, an increasing number of Chinese companies have turned their eyes overseas in search of broader growth opportunities. Among the many international destinations, Singapore has emerged as a top choice-the go-to springboard for businesses going global. Thanks to its stable environment, well-established legal system, strategic location, and strong openness to international commerce, Singapore is no longer just an option but a practical first step for companies aiming to expand across Southeast Asia and the wider Asia-Pacific region.

Take one well-known new energy vehicle brand, for example-it set up its regional headquarters in Singapore last year, not only to serve the local market but also to reach across ASEAN. Stories like this are becoming more and more common.

In fact, recent reports from Lianhe Zaobao show that foreign direct investment FDI in Singapore continued strong growth in 2025, with investments from China rising notably-especially in tech, financial services, and green energy sectors. This trend reflects a clear reality more and more Chinese enterprises are choosing to plant roots in Singapore.

So, for a Chinese company looking to take its first step into international markets, how exactly do you set up a subsidiary in Singapore? The process isn’t as complicated as it might seem. With the right planning and understanding of key steps, the journey can be smooth and efficient.

Step 1 Decide on Company Type and Business Scope

The most common structure for foreign companies in Singapore is the Private Limited Company. It offers limited liability, strong credibility, and is investor-friendly-ideal for fundraising and future expansion. When registering, you’ll need to decide on your company name, business activities classified by SIC code, authorized capital which can start at just 1 SGD, and details of shareholders and directors.

One important requirement Singapore law mandates at least one resident director-a natural person who holds legal residency in the country. If the founder can’t relocate permanently, many firms opt to engage local compliance providers for nominee director services. However, this must be done carefully and legally to avoid future risks.

Step 2 Prepare Documents and File the Application

The paperwork is straightforward identification and address proofs for directors and shareholders, plus the company’s constitution Memorandum Articles of Association. Today, almost everything is done online through BizFile+, the platform run by the Accounting and Corporate Regulatory Authority ACRA. Approval usually comes within 1-2 working days. Once registered, your company receives a Unique Entity Number UEN-essentially its official ID in Singapore.

Step 3 Open a Bank Account and Complete Tax Registration

After incorporation, the next step is opening a corporate bank account. Major banks like DBS, OCBC, and UOB support foreign-owned businesses, but their due diligence is strict. You’ll typically need a director or shareholder to appear in person for the account sign-up, bringing documents such as the company registration papers, business plan, and even proof of operations from the parent company in China.

It’s wise to schedule appointments early and prepare thoroughly-this greatly improves your chances of approval.

At the same time, you must register with the Inland Revenue Authority of Singapore IRAS for Goods and Services Tax GST, similar to VAT and corporate income tax. Singapore’s corporate tax rate stands at 17%, with generous partial exemptions for the first 300,000 SGD of taxable income-making it relatively business-friendly. What’s more, Singapore has double taxation avoidance agreements with numerous countries, including China, which helps ease the burden for cross-border operations.

Step 4 Ensure Compliance and Embrace Localized Management

Incorporation is just the beginning. The real challenge lies in ongoing compliance. Singapore enforces strict rules on financial reporting, annual returns, and tax filings. Companies must submit audited financial statements each year though small companies may qualify for exemption and complete annual renewals on time.

If you hire local staff, you’ll also need to comply with employment laws, including contributions to the Central Provident Fund CPF and other social security schemes.

Many first-time exporters underestimate cultural nuances and the importance of localization. While English is the official business language, Singapore’s population is majority ethnic Chinese, and business culture values both efficiency and relationship-building. Building a team familiar with the local market-or partnering with trusted local players-can significantly speed up market entry.

On a positive note, Singapore actively supports innovative startups and growing enterprises. New companies can benefit from the Start-Up Tax Exemption Scheme, enjoying substantial tax relief in their first three years. Meanwhile, firms joining the Global Trader Programme may qualify for customs duty incentives and other perks.

Setting up a subsidiary in Singapore isn’t just about geography-it’s a strategic upgrade in management, vision, and global mindset. It’s like a key unlocking access to a market of over 600 million people across Southeast Asia. And with the Regional Comprehensive Economic Partnership RCEP agreement deepening integration, trade barriers are falling, further cementing Singapore’s role as a vital regional hub.

If you’re thinking about taking your business global, consider starting in Singapore. Here, there’s no bureaucratic maze, no political instability-just a transparent, efficient, and open business ecosystem. Take that first step confidently, and the path ahead will only get wider.