How to Set Up a Company in Singapore as a Foreigner (2026)

Why founders choose Singapore

Singapore is the most strategically located business hub in the world for Asia-Pacific operations. It sits at the intersection of ASEAN (670 million people), South Asia, and China. It has:

• 17% corporate tax with a generous startup exemption (effective rate ~4–5% in the first three years for new companies on the first SGD 200,000 of income)
• 90+ double tax treaties including India, China, Indonesia, Thailand, Vietnam, Australia, USA, UK
• 0% capital gains tax — there is no capital gains tax in Singapore
• 0% dividend withholding tax — Singapore uses a one-tier tax system; dividends paid from taxed profits carry no further tax
• Territorial tax system — foreign-source income received in Singapore is generally exempt from Singapore CT if it has been taxed in the source country at 15%+

For founders targeting Asian markets, raising from Asian VCs, or wanting a prestigious, trusted address for enterprise clients across the Asia-Pacific region, Singapore is often the clear answer.

The friction: you need a locally-resident director, and it costs more than the UK or Georgia in annual compliance.

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Step 1: Understand the locally-resident director requirement

• Singapore's Companies Act requires every private company to have at least one director who is "ordinarily resident in Singapore." This means:
• A Singapore citizen, or
• A Singapore Permanent Resident (PR), or
• A holder of a valid Employment Pass, EntrePass, or Dependant's Pass

If you don't live in Singapore, you need a nominee director — a person who is ordinarily resident in Singapore and who agrees to be listed as a director of your company. This is a legally recognised and widely used arrangement.

Nominee director services are provided by corporate secretarial firms in Singapore. Cost: SGD 1,200–3,600/year (SGD 100–300/month). The nominee director signs a letter of resignation and indemnity at the outset — meaning they step down immediately if instructed to by the real owner. They also typically require a personal guarantee or security deposit.

Important: The nominee director does not actually control your company. You maintain control as the sole or majority shareholder. The nominee is a compliance requirement, not a business partner.

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Step 2: Choose a corporate secretary

• A mandatory corporate secretary must be appointed within 6 months of incorporation. The secretary:
• Manages ACRA (Accounting and Corporate Regulatory Authority) filings
• Prepares directors' and shareholders' resolutions
• Maintains the company's statutory registers
• Handles annual return filing

Cost: SGD 600–1,200/year for basic services. Many firms bundle corporate secretary + nominee director for SGD 2,000–4,000/year.

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Step 3: Incorporate via ACRA BizFile+

• Requirements for incorporation:
• Company name (check availability at bizfile.acra.gov.sg)
• Registered office address in Singapore (must be a physical address — cannot be a PO box)
• At least one director ordinarily resident in Singapore
• At least one shareholder (can be you as a non-resident)
• At least one share issued (minimum SGD 1 paid-up capital; no practical minimum)
• Appointed or pending corporate secretary

Process: 1. Your corporate secretary submits the incorporation application via BizFile+ 2. ACRA typically approves within 1–2 business days (sometimes same day for straightforward applications) 3. You receive a UEN (Unique Entity Number) — the Singaporean equivalent of a company registration number

Government fee: SGD 315 (incorporation registration fee)

Registered office: Your corporate secretary's address typically serves as the registered office. Some offer standalone registered office services at SGD 300–600/year.

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Step 4: Obtain a bank account

Without visiting Singapore:

With a Singapore visit:

DBS, OCBC, and UOB — Singapore's three largest banks — open accounts for Pte Ltd companies with non-resident shareholders when the authorised signatory visits a branch. Typical approval after in-person meeting: 1–2 weeks.

Recommendation: Open Aspire (online, no visit) immediately. Plan a Singapore trip within 6 months to establish a DBS or OCBC relationship if you expect significant SGD cash flows or need trade finance.

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Step 5: Understand the Startup Tax Exemption

Singapore's tax authority (IRAS) offers a generous startup tax exemption for qualifying new companies for their first three years of assessment:

After the first three years, a partial tax exemption applies (different rates).

• Effective tax rate in Year 1 on SGD 200,000 profit:
• First SGD 100,000: 17% × SGD 25,000 = SGD 4,250 (4.25% effective)
• Next SGD 100,000: 17% × SGD 50,000 = SGD 8,500 (8.5% effective)
• Combined: SGD 12,750 on SGD 200,000 = 6.375% effective rate

Qualifying conditions: company must not be a property developer or investment holding company; must not have more than 20 shareholders with at least one individual shareholder holding ≥10%.

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Step 6: Annual compliance obligations

Audit exemption: Companies exempt if they meet two of three criteria for two consecutive years: revenue ≤SGD 10M, assets ≤SGD 10M, employees ≤50.

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Real total cost (Year 1)

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Common mistakes

Mistake 1: Appointing a nominee director without a proper agreement The nominee agreement must clearly define: nominee's duties, resignation trigger, director's indemnity, security deposit, fee schedule. Use a reputable firm with standard terms.

Mistake 2: Missing the ECI deadline IRAS imposes estimated assessments (which can be higher than actual income) on companies that miss the 3-month ECI deadline. Not catastrophic but avoidable.

Mistake 3: Thinking a Singapore company means Singapore tax for all your income Territorial tax system: only Singapore-source income and received foreign-source income (in some cases) is taxable. Genuine offshore income that is not remitted to Singapore may be outside the Singapore tax net entirely. Get specific advice for your situation.