Evidently, a multiplicity of factors position Singapore as the best business hub for Malaysian entrepreneurs.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
In Singapore, businesses need to pay a GST of 9%.
No, dividends paid to shareholders are not taxed in Singapore.
No, you need not be a Singaporean resident or citizen to get your company registered in the country.
Corporate Solutions 
IMC Group