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How to Incorporate a Company in Singapore
  • ARTICLE,SINGAPORE

How To Incorporate a Company in Singapore – Your 2025 Guide

Singapore has established itself as one of the leading business destinations globally. With its strategic geographic location, strong regulatory framework, and business-friendly environment, it continues to attract entrepreneurs and corporations. Whether you are a startup founder or an established business seeking to expand, incorporating in Singapore offers numerous advantages. This guide will examine the key benefits, competitive landscape, challenges, and costs associated with setting up a company in Singapore in 2025.

The Competitive Edge of Incorporating in Singapore

Singapore’s corporate ecosystem thrives due to its stable economy, strong governance, and global connectivity. It consistently ranks among the top global economies in business efficiency and innovation. The city-state provides a pro-business climate, making it an attractive hub for foreign investors. The country’s corporate tax structure is one of the lowest in the world, and its government provides numerous incentives to startups and SMEs.

Incorporating in Singapore offers several distinct advantages:

  • Favourable Tax Structure: Singapore maintains a competitive corporate tax rate of 17%. To support entrepreneurship, the Start-up Tax Exemption Scheme provides new companies with tax exemptions on their initial profits for the first three years. Additionally, the Partial Tax Exemption Scheme offers further tax relief to qualifying companies.
  • Robust Innovation Ecosystem: Singapore has been recognized as the world’s most innovative country, topping the Global Innovation Scorecard. This reflects its strong business environment, transparent data policies, and support for startups and small businesses.
  • Strategic Location and Connectivity: Singapore offers unparalleled access to key markets across Asia and beyond at the crossroads of major trade routes. Its world-class infrastructure and connectivity make it an ideal base for companies aiming to expand their regional and global reach.
  • Pro-Business Environment: Singapore consistently ranks high in global business efficiency and innovation indices. The government offers various incentives, such as the Development and Expansion Incentive, which provides tax breaks for companies investing in projects that add significant value to key industries.
  • Comprehensive Support for Startups and SMEs: Beyond tax incentives, Singapore offers a range of support measures for startups and small to medium-sized enterprises, including grants, financing schemes, and access to a vibrant network of investors and industry partners.
These factors collectively make Singapore an attractive destination for entrepreneurs and corporations looking to establish or expand their regional presence.

Comparing Singapore with Other Business Hubs

When comparing Singapore to other major business destinations like Hong Kong, the United States, and the United Kingdom, several key distinctions emerge. Although Hong Kong has long been considered a strong competitor, growing political and regulatory uncertainty has shifted the advantage towards Singapore. While the U.S. and UK provide large markets, their higher tax rates and complex regulations make Singapore a more appealing choice for international businesses.

Here’s a comparative overview of key business incorporation features across Singapore, Hong Kong, the United States, and the United Kingdom:

Feature Singapore Hong Kong United States United Kingdom
Corporate Tax Rate 17% 16.5% 21% 19%
Full Foreign Ownership Yes Yes Varies Yes
Time to Incorporate 1-2 Days 3-5 Days 5-7 Days 5-7 Days
Government Grants Yes Limited No Limited
Ease of Banking High Medium Medium High
These factors contribute to Singapore’s continued rise as a preferred incorporation destination for businesses worldwide.

Business Environment and Growth Potential

Singapore offers a business-friendly environment that allows foreign entrepreneurs to operate with minimal restrictions. The government has proactively introduced incentives, funding schemes, and tax benefits to promote business growth. Additionally, the availability of a skilled workforce, a robust legal system, and access to international markets make Singapore an ideal location for conducting business.

Startup and SME Support

The Singapore government offers various grants and assistance schemes such as:

  • Startup SG Founder Grant – Provides funding and mentorship for new businesses.
  • Enterprise Development Grant (EDG) – Supports innovation and market expansion.
  • Productivity Solutions Grant (PSG) – Helps businesses adopt IT solutions to enhance productivity.
These initiatives foster a thriving startup ecosystem, attracting venture capitalists and private equity investors.

Access to Global Markets

Singapore’s Free Trade Agreements (FTAs) with more than 180 countries allow businesses to efficiently access global markets. The nation’s strategic location further boosts its role as a logistics and financial hub, connecting companies to key markets in Asia, Europe, and North America.

Common Challenges in Company Incorporation in Singapore

While Singapore offers a favourable business environment, entrepreneurs may still face challenges. These include regulatory compliance, banking difficulties, and high operational costs.

1. Regulatory Compliance

Singapore has strict compliance regulations that businesses must adhere to. Annual tax filings, financial reporting, and corporate governance standards must be maintained. Companies must ensure timely compliance to avoid penalties.

Solution: Engaging corporate service providers or accounting firms can help businesses manage compliance requirements efficiently. They handle regulatory filings, tax obligations, and financial reporting, reducing administrative burdens. This allows companies to focus on operations while avoiding legal risks.

2. Banking Challenges

Opening a corporate bank account in Singapore has become more stringent due to anti-money laundering regulations. Traditional banks have rigorous Know Your Customer (KYC) processes, which can delay account setup.

Solution: Businesses can explore digital banking alternatives offering streamlined onboarding and cross-border payment solutions. These solutions reduce paperwork, speed up processing, and provide greater financial flexibility.

3. High Operational Costs

While Singapore has a low corporate tax rate, operational costs such as office rent, salaries, and regulatory fees can be high compared to some neighbouring countries.

Solution: Businesses can leverage remote work policies, co-working spaces, and automation tools to reduce expenses. These approaches help minimize office expenses, streamline operations, and improve efficiency without compromising productivity.

Incorporation Costs and Breakdown (2025)

Understanding the cost implications of incorporating a company in Singapore is essential for business planning.

Here’s a breakdown of the estimated costs associated with incorporating a company in Singapore:

Expense Estimated Cost (SGD)
ACRA Incorporation Fee S$300
Name Reservation Fee S$15
Nominee Director (if required) S$1,800 per year
Company Secretary Service S$600 per year
Registered Address Service S$300 per year
Corporate Bank Account Setup Free – S$500
Total Estimated Cost S$1,500 – S$3,000
These costs remain competitive compared to other financial hubs.
Why Singapore Continues to Lead in 2025?
Singapore’s regulatory landscape remains adaptive to global business trends. Singapore remains a top business hub in 2025, driven by its forward-thinking regulatory framework. The government consistently updates policies to align with global shifts, ensuring a stable and competitive market. Strong financial regulations, strategic trade agreements, and pro-business initiatives attract global investors. Advanced digital infrastructure and a skilled workforce further reinforce its leadership. These factors position Singapore as a key player in international commerce and innovation.
Three major factors solidify its dominance:
  1. Pro-Business Governance – The government actively supports innovation through policies and funding.
  2. Financial Stability – Singapore remains a global financial powerhouse, providing businesses access to funding and investment opportunities.
  3. Technological Advancement – The nation’s digital economy and smart infrastructure encourage fintech, e-commerce, and artificial intelligence growth.

Singapore continues to be a top choice for business incorporation, thanks to its robust legal framework, attractive tax benefits, and excellent global connectivity. Entrepreneurs aiming to establish a presence in Asia should consider Singapore as their gateway to international success. While the incorporation process can be complex, it becomes straightforward and efficient with the right partner. By collaborating with us, you can establish your Singapore company confidently and effectively, benefiting from our expertise and comprehensive support services.

This guide will help entrepreneurs navigate the process of incorporating a company in Singapore successfully in 2025. If you need assistance with integrating your business in Singapore, don’t hesitate to reach out to IMC company formation advisory services for a smooth setup!

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How Businesses Can Adapt and Thrive Amidst Accounting Head
  • ARTICLE,SINGAPORE

How Businesses Can Adapt and Thrive Amidst Accounting Shortage

Global businesses on the growth trajectory persistently face challenges due to the shortage of qualified accountants. Regardless of the industry, organizations require accurate financial oversight, regulatory compliance, and timely reporting. A professional hand in managing business finances ensures financial resilience and compliance for these firms. Particularly, businesses in Singapore are experiencing a shortage of qualified teams of accountants. With a decline in accounting graduates, outsourcing accounting services has turned out to be a viable solution for businesses.

Organizations failing to address this shortage may face operational disruptions. In order to address issues like compliance risks and financial inefficiencies, a significant number of companies are seeking outsourced accounting solutions.

Along with this, the adoption of technology and strategic workforce development can define the way to success for Singaporean firms.

4 Reasons Businesses are Struggling to Find Qualified Accountants

The accounting profession is facing a wide range of crises that have been affecting the industry.

Declining Interest in Accounting Careers

Over the last five years, the number of students pursuing accounting careers has witnessed a 10% decline. This led to a shortage of fresh talent entering the workforce. According to estimates, companies in Singapore will need around 7,000 qualified accountants in 2025.

2

High Burnout and Turnover Rates

Stress and burnout are among the key reasons leading to a shortage of accountants. Around 55% of accountants are quitting their jobs due to high stress levels. Naturally, this leads to a scarcity of qualified accountants.

3

Retirement of Senior Accountants

A significant portion of experienced accountants are reaching retirement age. This is leaving a gnawing gap in expertise that junior professionals find difficult to fulfil.

4

Rising Demand for Financial Experts

As organizations in Singapore scale up, they face more stringent regulations. This is yet another reason for the spike in the number of qualified accountants.

All these factors are leading to mounting challenges for businesses, like:
  • Delays in financial reporting
  • Compliance risks
  • Inefficient cash flow management

Outsourcing accounting services can help in mitigating these issues.

Why outsource finance and accounting services?

Outsourcing financial accounting services is one of the most effective solutions to address the shortage of skilled professionals. Entrusting accounting services to reputed teams of experts brings several advantages to the table.

Access to Expert Talent

Working with third-party accounting firms, businesses can gain access to accomplished accounting teams. Experienced professionals in these organizations specialize in different areas like regulatory compliance, tax planning, and financial reporting.

Cost Efficiency

Companies often struggle to hire in-house accountants due to their limited financial abilities. Outsourcing accounting services eliminates expenses like employee insurance and other perks. It serves as a cost-effective alternative without compromising quality.

Scalability and Flexibility

One of the best benefits of outsourcing accounting services is the ability to meet specific needs. Businesses can seek full-service financial management or assistance with particular functions like payroll and tax filing.

Mitigating Risk

Leading financial outsourcing firms stay abreast with the latest financial regulations. This reduces the risk of non-compliance and penalties for companies in Singapore.

Both new and established companies know why outsource finance and accounting services. Considering the holistic range of benefits, they entrust established third parties with their business finances.

Technological Edge of Accounting Outsourcing Solutions

One of the most strategic ways to address the shortage of skilled accountants is to automate services through digital technologies. Leading firms in Singapore that provide outsourced accounting services stay abreast of advancements in financial technology (FinTech). This significantly helps businesses to streamline their accounting processes, reducing their dependency on manual labor.

Some of the key technologies include:

Artificial Intelligence (AI) and Machine Learning

Artificial Intelligence (AI) and Machine Learning

AI-powered accounting software can automate data entry, financial reconciliation, and fraud detection. This significantly improves the accuracy and efficiency of accounting.

Cloud-based accounting solutions

Cloud-based accounting solutions

Cloud platforms provide real-time access to financial data. This enables better collaboration between teams and outsourced service providers.

Robotic Process Automation (RPA)

Robotic Process Automation (RPA)

With RPA, accounting teams can reduce the burden of repetitive tasks like processing invoices. They can focus on strategic decision-making, which streamlines your financial operations.

No wonder, why outsourcing accounting solutions is a great way to optimize your workflow amidst the scarcity of qualified accountants.

Outsourced Accounting Services in Singapore

The shortage of skilled accountants in Singapore isn’t just a temporary hurdle. The trend of outsourcing accounting services marks a transformative shift in the industry. Businesses from various verticals are embracing advanced technologies through outsourcing. Successful organizations in Singapore are working closely with established outsourced accounting service providers like the IMC Group. With professional accounting solutions, companies can safeguard their financial health and maintain compliance.

As accounting tasks continue to evolve, organizations must remain agile and innovative. Outsourcing accounting tasks is a strategic decision for businesses in Singapore as they overcome challenges like the shortage of accountants. Adaptation and long-term planning of business finances ensure resilience amidst the competitive business environment.

Authors

Pankaj Kumar
Partner – IMC Singapore
[email protected]

Mohammed Hezri
Manager – Business Development
[email protected]

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Everything You Need to Know About the Singapore ONE Pass Visa
  • ARTICLE,SINGAPORE

Everything You Need to Know About the Singapore ONE Pass Visa

Singapore continues to be a global hub for economic growth, thanks to its political stability and modern infrastructure. Its strategic positioning as a focal point of business makes it a prime destination for professionals looking for lucrative opportunities.

The country, recognized for its safety and high standard of living, consistently attracts top-tier talent from all around the globe. The Ministry of Manpower (MOM) in Singapore introduced the Overseas Networks and Expertise Pass (ONE Pass), a groundbreaking work visa program, to streamline its initiatives to acquire global talent. Naturally, forward-thinking professionals seek immigration and visa services in Singapore from established teams to ensure hassle-free processing of their ONE Pass.

In this article, we have detailed the eligibility, benefits, and application process of the ONE Pass. Read on to know the unique advantages of this visa, which has been designed to empower highly skilled individuals contribute to the country’s economy.

What Is the Singapore ONE Pass Visa?

The ONE Pass, effective from 1st January 2023, is a specialized work visa that aims to attract global talent to Singapore. While traditional work permits are tied to a specific employer, the ONE Pass offers a greater degree of flexibility. Professionals holding this pass can simultaneously work for multiple organizations.

Thus, this pass offers greater mobility in career compared to the Employment Pass (EP) with its individual-centric nature. While changing employers, professionals need not re-apply for a visa in Singapore.

Eligibility Criteria for the ONE Pass

Individuals applying for the ONE Pass must meet stringent criteria to be a part of the country’s workforce.

  • Salary-Based Eligibility: An applicant for the ONE Pass must earn a fixed monthly salary of at least S$30,000 over the past 12 months. Overseas applicants must demonstrate their employment with a reputable international organization for at least one year.
  • Working in an Established company with annual revenue of 200 million or 500 million capitalisation OR
  • Exceptional Achievements: Applicants who do not meet salary criteria can still qualify based on outstanding accomplishments in arts and culture, sports, science and technology, and academia and research. These candidates can qualify for the Overseas Networks & Expertise Pass without meeting the salary criterion, showcasing Singapore’s commitment to diverse fields of excellence.

MOM thoroughly evaluates each application, ensuring that the selected candidates bring exceptional value to the economy and society of Singapore.

Validity and Renewal Process

Initially, the ONE Pass remains valid for five years. The renewal eligibility depends on certain factors and the pass holder must meet one of the following:

  • Maintaining an average fixed monthly salary of at least S$30,000 in Singapore over five years
  • Started and is operating a Singapore-based company that employs at least 5 locals, each earning a fixed monthly salary of at least S$5,000

Benefits of the ONE Pass

The ONE Pass offers a comprehensive suite of benefits to professionals that make it an outstanding choice among global visas.
  • Flexibility in employment: ONE Pass holders can work for multiple employees without acquiring additional approvals. This significantly fosters their career growth and helps them diversify.
  • Rights To Run A Singapore-Based Company: One of the primary benefits of holding a ONE Pass is the ability to start and operate multiple companies in Singapore concurrently.
  • Duration of Stay: Valid for up to five years, renewable after that.
  • Eligibility for Family Members: Eligible for dependents, including spouses and children, to reside in Singapore.

How Much Does It Cost to Apply for the ONE Pass?

  • Upon submission of the application, applicants must pay S$105 for each pass.
  • When the pass is issued, they must pay another S$225 for each pass and S$30 for each Multiple Journey Visa, if applicable.

How to Apply for the ONE Pass?

Applicants or their authorized representatives can follow these steps to apply for the ONE Pass.
  • Application Submission: Fill out the submission form and pay a fee S$105. Typically, the application process takes up to four weeks, and additional time may be required to evaluate the profiles of candidates with exceptional achievements.
  • Approval and IPA Letter: Once successful, applicants receive an In-Principle Approval (IPA) letter, which serves as a temporary work visa and allows them to enter Singapore for six months.
  • Enter Singapore: Applicants must make sure they comply with the vaccination-based travel criteria to enter Singapore.
  • Entry and EPSC Appointment: Next, the applicant needs to schedule an appointment with the EPSC (Employment Pass Services Centre) and submit the necessary documents:
    • Letter of In-Principle Approval (IPA)
    • Original passport
    • Contact information (local cell phone number and email address)
    • Residential address in Singapore
    • Existing immigration or short-term visit permit details
    • Signed Medical Declaration Form (if applicable)
    • The issuing requires a payment of S$225
  • Notification letter: Professionals then receive the notification letter which remains valid for one month, which allows them to work in Singapore while the ONE Pass is being processed.
  • Fingerprint and photo registration (if applicable)
Within two weeks of receiving their ONE Pass, candidates who haven’t registered in the past five years and new applicants must register their fingerprints and get their pictures taken. To schedule an appointment, candidates must contact the Employment Pass Services Center (EPSC).
  • Issuance of the card: Once applicants complete their biometric registration, they receive their ONE Pass within five working days.

Documentation Requirements

Applicants need to furnish the following documents to ensure a smooth processing of their ONE Pass.

  • Valid copies of passport
  • Income proof like payslips and tax statements and documents supporting other income sources other than fixed monthly salary
  • Employment verification documents
  • A detailed CV and supporting evidence for exceptional achievements
  • Additional documents as requested

Appeal and Cancellation

In case the authorities reject the ONE Pass application of a candidate, the person can appeal for the same within three months. However, it’s imperative to address the reasons for rejection with fresh information.

Most appeals will be processed within 4 weeks.

In case the candidate no longer remains employed, the pass must be cancelled at least one week before departure to comply with tax obligations.

Professional Immigration and Visa Services in Singapore

The launch of the ONE Pass Visa program in Singapore serves as a testament to its forward-thinking immigration strategy. While professionals experience unprecedented flexibility and inclusivity, applying for the Pass successfully remains a challenge.

Successful candidates often seek professional immigration and visa services from the IMC Group to obtain an employment pass in Singapore. Skilled professionals and entrepreneurs can consult the experts to acquire the ONE Pass successfully and tap the tremendous career opportunities in Singapore.

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A Comprehensive Guide to Starting a Company in Singapore as a German
  • ARTICLE,SINGAPORE

A Comprehensive Guide to Starting a Company in Singapore as a German

Forward-thinking entrepreneurs in Germany look to establish their businesses in Singapore, as the country offers a host of commercial opportunities. Singapore continues to enjoy its reputation as a global business hub. The strategic location of Singapore, strong legal framework, and robust ties with Germany make it a lucrative destination for German businesses.

However, the process of company setup in Singapore is simple and requires entities to understand the legal compliances. In this article, we have comprehensively discussed the process of establishing your business in Singapore.

5 Reasons Why German Companies Look to Start a Company in Singapore

As a German entrepreneur, here are five reasons why you should expand your operations to Singapore.

1. Strategic location

The strategic location of Singapore in Southeast Asia draws established firms and startups from Germany. The country is positioned as a gateway to the Asia-Pacific region and offers seamless access to fast-growing markets like India, China, and the ASEAN countries.

Singapore is a central hub for global trade, with some of the busiest sea and air routes in the world. Thus, German businesses can efficiently manage supply chains, distribution networks, and logistics operations across Asia.

2. Business-friendly environment

Singapore consistently ranks as one of the most favorable places in the world for carrying out business. With its efficient administration, regulatory framework, and pro-business policies, the process of foreign company registration in Singapore is simple. The Singaporean government supports the innovation and growth of German enterprises. Thus, the entities enjoy a smooth entry into the market with minimal administrative hurdles.

3. Robust legal framework

The robust legal infrastructure in Singapore is one of its key strengths. It protects the intellectual rights of German brands, assuring that their innovations, trademarks, and patents remain secure. The legal framework in Singapore is aligned with international standards. The country has witnessed the signing of several IP treaties over the years. Naturally, this sound legal infrastructure motivates investors and entrepreneurs to choose Singapore as a preferred business destination.

4. Attractive tax system

German businesses can take advantage of various tax incentives like the Pioneer Certificate Incentive and the Development and Expansion Incentive. This significantly reduces the effective tax rate for qualifying companies.

Most importantly, businesses in Singapore need not pay any capital gains tax. The government has signed numerous double taxation treaties, including one with Germany.

5. Hub for innovation and technology

Singapore is a leading innovation and technology hub in Asia, attracting German brands known for their research and development. Thanks to the Smart Nation initiative of the government and support for sectors like clean energy, biotech, and fintech crafts an environment conducive to the growth of foreign businesses.

German companies are primarily known for their excellence in engineering and technology. They can collaborate with local and regional partners, access government grants and incentives for R&D, and stay at the forefront of technological developments in their industry.

A Step-By-Step Guide for German Enterprises to Set Up a Business Singapore

Check out the detailed process of company formation in Singapore as a German.

1. Choose the right business structure

At the outset, German entities need to choose the most appropriate business structure in Singapore. A private limited company is the most popular choice for foreign enterprises, including Germans. This type of company is a separate legal entity. Thus, it limits the liability of its shareholders and directors to their investments. A private limited company can have 1-50 shareholders, with at least one director who must be a resident of Singapore.

With this structure, German entrepreneurs enjoy flexibility in ownership and management, besides remaining protected in terms of liabilities. Depending on your business needs, you might also consider other structures like a limited liability partnership or sole proprietorship, though these come with different risk profiles and obligations.

2. Appoint a local agent

Foreign entrepreneurs, including Germans, need to appoint a local rate service provider or a registered filing agent to incorporate a business in Singapore. For non-residents, there is no option for self-registration in the country.

Working closely with a local agent, German companies can streamline the incorporation process, fulfilling all the legal and regulatory requirements. The agent will help you file the necessary documents, comply with the Companies Act, and maintain statutory records. Besides incorporation, the local agent can provide valuable assistance with key tasks like opening a corporate bank account and applying for business licenses and permits. Reputed professionals like the IMC Group also coordinate with German enterprises to manage ongoing compliance like filing tax and annual returns.

3. Apply for a work pass

If you plan to relocate to Singapore to manage your business, you to obtain a valid work pass. In this regard, the Employment Pass and the EntrePass are the most common options.

The Employment Pass is designed for foreign professionals with managerial, executive, or specialized skills. It requires a minimum salary threshold and is generally easier to obtain if you have strong qualifications and experience.

On the other hand, the EntrePass is tailored for entrepreneurs with innovative and scalable business ideas. This pass has specific criteria related to your business plan, innovation, and potential economic contribution to Singapore.

4. Take advantage of bilateral and regional ties

Germany and Singapore have a strong economic partnership. With professional guidance from leading consultants, German companies can take advantage of these treaties. Both countries are signatories to the European Union-Singapore Free Trade Agreement (EUSFTA). Thus, you can take advantage of tariff elimination, reduced non-tariff barriers, and enhanced market access for goods and services.

Both Singapore and Germany are members of the ASEAN-EU Business Council. Naturally, this promotes trade and investment opportunities between the regions. German entrepreneurs can also tap into support from organizations like the Singaporean-German Chamber of Industry and Commerce, the German Centre for Industry and Trade, and the German Embassy in Singapore. These institutions offer networking opportunities, market insights, and guidance tailored to German companies operating in Singapore.

Consult Business Setup Experts for Comprehensive Assistance

For German entrepreneurs and businesses looking to expand into Asia, Singapore offers several strategic advantages. Successful companies expanding to Singapore can consult business setup experts like the IMC Group for seamless company formation in Singapore. From company formation to market entry strategies, this team of experts offer holistic assistance to German enterprises expanding to Singapore. With professional consultation from these experts, businesses can seamlessly integrate into the thriving business ecosystem in Singapore.

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How can Indonesian Entrepreneurs Start a Business in Singapore?
  • ARTICLE,SINGAPORE

How can Indonesian Entrepreneurs Start a Business in Singapore?

Indonesia and Singapore, both prominent members of ASEAN, share strong economic ties and opportunities for cross-border business ventures. For Indonesian entrepreneurs looking to expand their business horizons, Singapore continues to be a top choice. With a conducive environment for business free from corruption, a favorable tax regime, and an agile workforce available in the country, it makes sense to expand to Singapore.

Here’s a step-by-step guide Indonesia business to incorporate in Singapore that will streamline your business. We have comprehensively discussed the regulatory framework and incorporation process, along with expanding your presence to Singapore.

Why Are Indonesians Registering Their Companies In Singapore?

Singapore is the home to more than 200,000 Indonesians. Like any foreigner, Indonesians can hold a 100% stake in a company incorporated in Singapore. Thousands of Indonesians are incorporating their companies in Singapore every year, eyeing several strategic benefits.

1. Easy Connectivity and Strategic Location

Singapore is strategically located in Southeast Asia, making it a focal point for global businesses. Indonesian entrepreneurs enjoy the excellent connectivity to Singapore, leveraging the direct access to ASEAN markers that are rapidly evolving. The combined population of this lucrative market is more than 650 million people. Therefore, Singapore company incorporation opens up the door to this tremendous opportunity for Indonesian businesses.

2. Favorable Business Environment

Singapore is undoubtedly one of the best countries for entrepreneurs, considering its ‘ease of doing business’. The latest report from the World Bank, released in February 2024 positions Singapore in the second place among all the countries. With a robust commercial infrastructure and connectivity to Indonesia, Singapore continues to be the preferred destination for entrepreneurs.

Singapore is also the only country in Asia to hold an AAA credit rating from the leading agencies across the globe.

The business registration process in Singapore is easy and involves minimal bureaucratic hurdles. This enables foreign companies to set up their businesses in Singapore in just 1 to 3 days.

Guide to Incorporating Your Business in Singapore: Essential Checklist

Download Checklist

3. Favorable Tax Regime

Indonesian businesses are choosing Singapore as their preferred commercial hub to capitalize on its favorable tax regime. At 17%, Singapore’s corporate tax rate is one of the lowest in the world. Moreover, foreign businesses can enjoy several tax exemptions and incentives in Singapore to reduce their overall tax liabilities.

Singapore has also signed a double tax treaty with Indonesia and several other countries. This secures Indonesian businesses from unnecessary tax liabilities while expanding internationally.

Tax Rates for Indonesian entrepreneurs in Singapore
Tax Type Rates in Singapore Approximate Equivalent in Rupiahs
Corporate Tax Progressive: 4.25% to 17% Rp 1,050,000,000 to Rp 105,000,000,000
Goods and Services Tax 9% (if turnover exceeds S$1,000,000) Rp 10,500,000,000
0% (if exporting goods abroad)
Tax on Dividends 0%
Personal Income Tax Progressive: 0% to 22%
Example:
Salary S$120,000: 6.6%
Salary S$250,000: 12.3%		 Varies based on salary
Example:
Rp 83,500,000 for a salary of Rp 1,260,400,000
Rp 320,000,000 for a salary of Rp 2,630,000,000

4. Robust Legal Framework

Singapore boasts a robust legal framework that minimizes corruption. It is known for its strong IP (intellectual property) protection. This enables Indonesian businesses to secure their investments and innovations. Particularly, businesses in the pharmaceuticals and technology sectors benefit from the strong protocols in place.

5. Strong Workforce

The highly skilled and flexible workforce in Singapore makes it a preferred business hub for Indonesian businesses. This workforce serves as a valuable resource for ventures expanding to Singapore. Therefore, Indonesian businesses can capitalize on the talented workforce of Singapore to innovate and foster better R&D. While accessing a dynamic global market, they can improve their products significantly.

Singapore has a strict immigration policy in place. This ensures that highly skilled and qualified foreign workers can find a place in the country. This boosts the overall quality of human resources in the country.

6. Financial Services and Funding

Singapore offers several sources of funding to global businesses. Indonesian enterprises can take advantage of the local and international banks in Singapore for funding. Besides, the country has numerous venture capital firms and private equity investors to finance expansions.

In Singapore, the financial ecosystem is well-regulated. Its strong credit ratings make it simpler for businesses to obtain financial privileges like loans at competitive rates.

7. Strong Support from Government

The pro-business policies of the government in Singapore offer strong support to foreign companies. Government agencies like the Economic Development Board (EDB) and Enterprise Singapore assist Indonesian companies expand their ventures.

Working with these agencies can help Indonesian entrepreneurs with professional advice, support, financial assistance, and access to valuable business resources.

How To Register a Foreign Company In Singapore?
Let’s check how to register a foreign company in Singapore as an Indonesian entrepreneur. To register your company in Singapore, foreign nationals need a local address, a resident director, and a corporate secretary. The corporate secretary is responsible for lodging and filing the necessary documents, as per the legal requirements. For Indonesians launching their companies in Singapore, having at least one local director is mandatory. Your business can have as many directors as you want. As a new business expanding to Singapore, you may not have someone ready to serve as a resident director. In these cases, it’s advisable to hire a nominee director. In case you decide to obtain an employment pass and move to Singapore, you need to appoint the nominee director for 3 – 6 months. On completing the formalities, you can be the director of your company in Singapore.
How Much Does Company Formation In Singapore Cost?
Indonesians can start a company in Singapore with a minimal paid-up capital of $1. Here’s an overview of the costs associated with forming a company in Singapore.
Cost Category Estimated Range in SGD Estimated Range in IDR
Incorporation Services S$2,550 (Bonanza Package) Rp 26,800,000
Necessary Services (1st Year) Included in Bonanza Pack Included in Bonanza Pack
Nominee Director Service S$0 – S$2,550 Rp 0 – Rp 26,800,000
Employment Pass S$800 Rp 8,400,000
Dependant Passes S$400 Rp 4,200,000
Licenses/Permits (Industry Dependent) S$50 – S$500 Rp 525,000 – Rp 5,250,000
Monthly Office Rent S$550 – S$800 Rp 5,800,000 – Rp 8,400,000
Employee Salaries (Software Engineer) S$4,000 Rp 42,000,000
Employee Salaries (Security Guard) S$1,700 Rp 18,000,000
FAQs
Why is Singapore an attractive destination for Indonesian entrepreneurs?
Singapore continues to be an attractive business destination for Indonesian companies due to its favorable tax rates, easy process of business incorporation, and opportunities for 100% foreign ownership of companies. Besides, its strategic location and business-friendly policies appeal to Indonesian entrepreneurs.
Do I have to be present in Singapore to run a business as an Indonesian citizen?
No, you can set up your business in Singapore online and run it from your home country. However, it’s essential to visit Singapore at least once to open your bank account.
After starting my business, can I move to Singapore?

Yes, you can. For this, you need to obtain an Employment Pass, a special type of visa, which is generally processed within 3 to 6 months. The minimum eligibility criterion to obtain this pass is to earn a salary of S$5,000 at least. This is a standard salary for all university graduates in Singapore. Mature business owners should be earning around S$6,000-S$8,000 (Rp 63,000,000-84,000,000), particularly if they want to bring their family to Singapore under Dependant Passes.

Do I have to hire employees in Singapore to run my business?
No, Indonesian businesses don’t need to hire employees in Singapore. You can remotely operate your business in Singapore from Indonesia as long as there’s a resident director and corporate secretary to fulfill legal obligations.
Fast-Track Your Company Formation in Singapore with Professional Assistance

Forward-thinking businesses in Indonesia prefer consulting professionals to streamline the process of company formation in Singapore. The IMC Group is one of the first choices for foreign players eyeing an expansion to this country. With professional support from seasoned experts, Indonesian entrepreneurs can incorporate their business in Singapore without legal hassles. It’s logical to have an experienced group of advisors on your side as you drive your ambitions overseas.

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How can Malaysian Entrepreneurs Start a Business in Singapore
  • ARTICLE,SINGAPORE

How can Malaysian Entrepreneurs Start a Business in Singapore?

For Malaysian entrepreneurs keen to expand overseas, Singapore happens to be the first choice. Do you know that over 4,000 Malaysians expand their businesses to Singapore ever year? With a favorable tax regime, strategic proximity, robust infrastructure, and a conducive regulatory environment, Singapore is one of the best places to start your business. In this comprehensive guide, we have discussed how to start a business in Singapore for Malaysian entrepreneurs. Singapore boasts a formidable labor force and global industry experts, significantly contributing to your resources. Any foreigner aged over 18 can launch their business in Singapore, even without physically being present in the country! As a Malaysian, if you are interested in expanding your venture to Singapore but aren’t sure how to register a foreign company in Singapore, this guide will help you.

An Overview of Singapore as a Global Business Hub

Singapore continues to be the largest trading partner of Malaysia, with Malaysian exports hitting $48.09 billion in 2023. Moreover, Singapore is the home to more than half a million Malaysians.

Malaysia, on the other hand, ranks third in terms of the largest trading partners of Singapore. More than 300,000 Malaysians navigate the Causeway and the Second Link, two of the border crossings to reach Singapore for study and work opportunities.

Here are some facts that will give you an overview of the popularity of Singapore among Malaysian entrepreneurs.

  • Singapore continues to be a global business center without political disturbance. It currently hosts around 37,000 international businesses, out of which 700 are MNCs
  • Malay is the national language of Singapore, a country known for its multi-lingual society
  • A strong commercial infrastructure and transparent regulatory processes in Singapore make it a preferred business destination for Malaysians
  • Malaysians need to provide just one local or resident director for company formation in Singapore.
  • Foreigners, including Malaysians, can hold 100% shares in Singaporean companies without any official permission. On the other hand, foreigners doing business in Malaysia can own only 30% of shares in their companies. Beyond this limit, they need the approval of the investment committee
  • The favorable tax regime in Singapore, with corporate tax rates ranging between 0% and 17% fosters a productive business ecosystem for Malaysians. In Malaysia, the minimum corporate tax rate starts from 18% and can be as high as 25%
  • Singapore stands tall among all Asian countries as per the 2021 Corruption Perceptions Index Report with minimal corruption. Scoring 85/100, Singapore stands in the second position globally, along with Norway and Sweden
  • Malaysia imposes capital gains tax in certain fields that can be as high as 30%. Singapore, on the other hand, doesn’t require businesses to pay any capital gains tax
  • Thanks to the Malaysia-Singapore DTA, Malaysians running their business in Singapore enjoy tax relief and grow their ventures to maximize profits
Evidently, a multiplicity of factors position Singapore as the best business hub for Malaysian entrepreneurs.

Why Are Malaysian Entrepreneurs Registering Companies in Singapore?

Before exploring how to start a business in Singapore for Malaysian entrepreneurs, let’s take a look at the conducive business ecosystem in Singapore.

Ease of Doing Business

In February 2024, The World Bank placed Singapore in the second position among the top global nations in terms of ‘ease of doing business’. Malaysia is currently ranked in the 23rd position. Singapore continues to attract entrepreneurs from Malaysia, with its seamless access to capital and credit. In Singapore, businesses can resolve insolvencies effectively. Besides, it happens to be the only Asian country to hold an AAA credit rating from all the three lending agencies of the world.

Seamless Business Registration

Entrepreneurs habitually prioritize the ease of setting up an entity in a foreign country. Foreign companies incorporated in Singapore need just 1 – 3 days to complete the formalities. With just two steps involved, the process is surprisingly easy. On the other hand, setting up a business in Malaysia involves 9 processes, and the process takes around 11 days to be completed. In Singapore, businesses can register themselves online after fulfilling the requirements. The country hosts hundreds of business parks, easing up the process of finding a suitable office for foreign businesses.

Guide to Incorporating Your Business in Singapore: Essential Checklist

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Seamless Access to Financing

Being a startup, you’d prioritize getting access to funds to achieve your maximum potential, particularly while operating in a foreign country. Even seasoned entrepreneurs cannot succeed in hostile business environments and stride toward growth. In Singapore, Malaysian entities enjoy better access to financing.

For companies incorporated in Singapore, the government provides various incentives. Malaysian entrepreneurs can qualify for a grant of up to S$6 million, apart from a tax deduction of a maximum amount of S$10 million. Moreover, businesses receive non-financial incentives for development through training programs in Singapore.

In Malaysia, the lack of financing continues to bother entrepreneurs. The Global Competitiveness Report published by the World Economic Forum places Singapore in the second position out of 138 countries, while Singapore ranks 25th.

Robust Legal Infrastructure

Singapore is a former British colony and features a formidable legal system. Here, registered businesses need to adhere to comprehensive legal and institutional policies, along with supervisory frameworks. Transparent policies, and robust legal infrastructure make Singapore a preferred commercial hub in Southeast Asia.

Seamless Access to Emerging Economies

Emerging economies like Malaysia, Indonesia, and Thailand enjoy seamless access to Singapore. The booming startup environment in Singapore is a result of its seamless connectivity to these countries. For Malaysian entrepreneurs, expanding to international markets like Singapore in the early stages is easy.

Tax Benefits of Company Formation in Singapore

As a Malaysian business entity, tax benefits in Singapore look lucrative. Have a detailed insight into the tax benefits in Singapore before registering your company in this country. The income tax rate is 17%. One of the biggest benefits of registering a company in Singapore is that you are not required to pay taxes on capital gains.

Double Taxation Agreement (DTA)

Singapore and Malaysia share a double taxation agreement that limits withholding taxes on dividends from overseas holdings. This makes it favorable for holding company operations. Dividends from a Malaysian subsidiary to a Singapore Holding are not subject to withholding tax in Malaysia. Qualifying dividends may be exempted from tax under the foreign-sourced income exemption scheme in Singapore.

Foreign Tax Credit (FTC) Scheme

Malaysian companies operating in Singapore can claim relief under the FTC scheme to credit tax paid in Malaysia against Singapore tax on the same income. This is known as Double Tax Relief (DTR).

Other Tax Benefits

  • Singapore offers a low corporate income tax rate of 17%, compared to around 25% in Malaysia
  • In Singapore, interest income is taxed at 10% in the country of origin, with a similar tax in the recipient country
  • Royalties are taxed at 8% and technical fees at 5% based on the provisions of the DTA in Singapore
  • Newly incorporated companies in Singapore may qualify for tax exemptions up to 100% on chargeable income for the first three consecutive tax years
  • Under Singapore’s Corporate Tax Rebate scheme, a rebate of 50% on tax payable is available for Malaysian companies
  • The FTC Pooling System in Singapore, introduced in 2011, reduces tax payable on foreign-sourced income for companies in Singapore on meeting certain conditions

Taxation in Singapore for Businesses and Individuals

  • Corporate Tax: For SMEs, corporate tax is progressive, starting at 4.25% on the first S$100,000 of income and rising to 17% beyond S$10,000,000
  • GST: Once your turnover exceeds S$1,000,000, you need to register and pay GST at 9%. This rule applies unless you export goods abroad, where the applicable GST is 0%
  • Personal Income Tax: Personal income tax in Singapore ranges from 0% to 22% and it is progressive in nature.

Key Requirements to Register a Business in Singapore from Malaysia

  • A minimal capital of S$1 (capital can be in USD or SGD)
  • At least one stakeholder even 100% foreign shareholding is allowed
  • A minimum of one resident or local director
  • One Company Secretary at least
  • A registered local address

If you wish to serve as the resident director, apply for an EP (employment pass) in Singapore. However, you can also run your business from Malaysia by hiring a resident director in Singapore. As long as your company has one resident director, there’s no restriction on the number of directors for the company. If you aren’t sure how to appoint a resident director, the IMC Group can help you hire a nominee director.

Malaysian entrepreneurs would need the service of the nominee director for 3 to 6 months while they prepare the employment pass. Once you obtain it, you can serve as the director of the company. In the meantime, the nominee director will hold the position of director without having any actual power to make decisions or run the company. On paper, the person would be appointed as an officer to fulfill legal obligations.

How to Start a Business in Singapore for Malaysian Entrepreneurs?

In this section, we will discuss the two stages of company formation in Singapore. These steps are:
  • Getting your company name approved from ACRA (Accounting and Corporate Regulatory Authority)
  • Applying for business registration to the ACRA
Company Name Approval
Firstly, you need to visit the website of ACRA to verify whether the proposed business name is available for use. It’s advisable to propose around 5 alternative names for your business. Once you pay the fee of SGD 15/- to ACRA, you can register your business under the available name.
Registering Your Company

The next step involves applying to ACRA to register your Malaysian company in Singapore. At this stage, entities need to pay a fee of S$300 to ACRA and furnish their incorporation documents.

ACRA approves the application at the time of filing the same. In few cases ACRA needs time to review the application only if if it gets referred to higher authorities for some reason, the process can take from 14 days to to 2 months.

Documents Required for Company Formation in Singapore
  • The name of your company approved by ACRA
  • A brief summary of the operations of the company
  • Details of shareholders
  • Details of Directors
  • Registered address
  • Details of the shareholders
  • Information about the company’s secretary
  • MOA and AOA
List of Expenses to Register a Company in Singapore from Malaysia
Now that you know how to start a business in Singapore for Malaysian entrepreneurs, check out this table to get a realistic idea of the expenses involved in the process.
Category Estimated Range of Costs
Incorporation Services S$2,600 – S$5,000
Nominee Director Service S$1,800 – S$2,000 (Deposit)
Annual Retainer S$2,500 – S$5,000
Employment Pass (EP) S$800 – S$1,500
Dependant Passes S$400 – S$600
Licenses/Permits S$50 – S$500
Monthly Office Rent S$550 – S$800
FAQs
Is it necessary for me to visit Singapore from Malaysia to run my business?
No, entrepreneurs in Malaysia need not visit to register their businesses as the process can be completed online. However, you need to come to Singapore once while opening a bank account in the country. Successful Malaysian businesses work with established professionals like the IMC group who take care of everything else.
Can I relocate to Singapore after launching my business?
Yes, Malaysian nationals can relocate to Singapore after registering their business. Simply obtain your employment pass (EP), for which you need to earn a minimum wage of S$ 5,000. For graduates in Singapore, this is the minimum salary requirement. Experienced people earn salaries between S$6000-S$8000. You may also get Dependant Passes if you wish to bring your family members to Singapore.
Is it mandatory to hire employees for my company in Singapore?
No, you need not hire employees for your business in Singapore. To meet the ACRA formalities, you will need a local director and secretary. Once you fulfill this requirement, you can run your business in Singapore from Malaysia without hiring any employees.
What is the GST rate in Singapore?
In Singapore, businesses need to pay a GST of 9%.
Are dividends paid to shareholders taxed in Singapore?
No, dividends paid to shareholders are not taxed in Singapore.
Do I have to be a resident or citizen to register a company in Singapore?
No, you need not be a Singaporean resident or citizen to get your company registered in the country.
Streamline Your Company Registration in Singapore with Professional Help

Planning to start a business in Singapore? While Malaysian entrepreneurs have plenty of perks to benefit from, it’s crucial to be on the right track.

The IMC Group continues to be a trusted partner for Malaysian companies expanding to Singapore. Whether you are a seasoned business owner or just planning to launch a startup in Singapore, having professionals on your side can streamline your company incorporation process.

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