Singapore: Where advanced infrastructure meets business-friendly policies
Singapore is a global financial hub and one of the most business-friendly countries in the world. It offers unparalleled opportunities for companies looking to expand in Asia. With its strategic location, robust legal framework, and attractive tax incentives, this country is a top choice for businesses seeking growth and stability.
Registering a company in Singapore helps you set up a local subsidiary and opens the door to big opportunities, but the process can take time and effort to get right.
This guide uncovers the compelling benefits of establishing your business in Singapore. Learn the step-by-step process of company registration, and explore alternative strategies like leveraging an Employer of Record (EOR) for simplified market entry.
The business benefits of a subsidiary in Singapore
Singapore is an ideal hub for startups and multinational corporations seeking growth and expansion.
Here are some of the key advantages:
Access to global markets
Singapore’s strategic location in Southeast Asia means access to over 650 million consumers in the region. It is the regional headquarters for many businesses expanding into Malaysia, Indonesia, Thailand, and Vietnam. The nation’s extensive network of Free Trade Agreements (FTAs) provides preferential access to markets in Asia, Europe, and the Americas.
Favorable tax regime
Singapore boasts a flat corporate income tax rate of 17%, one of the lowest globally.
Additionally, it provides numerous tax incentives and exemptions, especially for startups and businesses engaged in innovation, research and development, and internationalization.
Ease of doing business
Singapore government agencies are known for their efficiency, transparency, and minimal bureaucracy. The country consistently ranked high in the World Bank’s “Ease of Doing Business” index (now the Business Ready (B-READY) reports)
Skilled workforce
Singapore has a highly educated and skilled workforce proficient in STEM. English is the main business language, and people here are often proficient in multiple languages like Mandarin, facilitating communication with regional and global partners.
While Singapore’s business landscape is attractive for global companies, navigating incorporation, taxation, and compliance requirements can be complex. To set up a subsidiary in Singapore:
- You need at least one director who is a Singapore resident.
- Missing deadlines or filing errors can result in fines and reputational risk.
But not if you partner with an EOR. In the next sections, we explore how an Employer of Record (EOR) mitigates your risks and reduces your administrative responsibilities.
The difference between company registration and an EOR
Businesses can choose between standard company registration or partnering with an EOR when expanding to Singapore.
Here’s a comparison:
Aspect | Standard registration | EOR |
Purpose | Establish a legal entity in Singapore | Operate without setting up a local entity |
Control | Full control over operations | EOR manages compliance and payroll |
Cost | High setup and maintenance costs | Low, predictable fees |
Compliance | Ongoing responsibility | Handled by the EOR |
Setup time | Weeks to months | Days to weeks |
Scalability | Requires entity restructuring | Easily scalable |
An EOR is an ideal solution for businesses seeking quick market entry without the complexities of entity setup.
How EOR simplifies Singapore company registration
As highlighted above, an EOR like Multiplier handles payroll, compliance, and hiring, eliminating setup headaches and legal risk. It becomes the legal employer on paper, though you still manage the employee’s day-to-day work.
Some of the benefits include:
- Sidestep registration: You avoid incorporation, office setup, legal structuring, and banking formalities, saving months of work and thousands in admin costs.
- Compliance assurance: The EOR handles monthly social contributions, IRAS tax filings, itemized payslips, statutory leave and benefits, so you comply with Singapore laws.
- Hassle-free hiring and onboarding: Source and manage talent effortlessly as the EOR handles recruitment, onboarding, and employment contracts.
- Minimal legal exposure: Reduce legal risks by letting the EOR handle employee-related liabilities and compliance obligations.
An EOR like Multiplier offers a fast and low-risk path into Singapore by streamlining hiring, compliance, and setup. But if you’re considering setting up a local entity, here’s what the traditional process looks like.
A step-by-step guide to registering a company in Singapore
Singapore’s efficient and transparent business environment makes company registration a relatively straightforward process. Here’s a breakdown of the key steps involved:
Choose a business structure
Singapore has made the process of selecting a business structure easy by providing access to resources online through the Accounting and Corporate Regulatory Authority (ACRA).
Here’s a quick brief about the different types you can register as in the market:
- Limited Liability Company (LLC) or a subsidiary: This is the most common structure for foreign businesses. A subsidiary is a locally incorporated private limited company that’s majority- or wholly-owned by a foreign parent company.
- Branch office: An extension of a foreign company. The parent company remains liable for the branch’s obligations.
- Representative office: Primarily for market research and liaison activities. Cannot engage in direct revenue-generating activities.
Reserve a company name
Log in to ACRA’s BizFile+ portal to check the availability of your desired company name. Ensure it adheres to ACRA’s naming guidelines, which restrict names that are identical to existing businesses or contain prohibited or offensive words.
Prepare required documents
To register a company in Singapore, you must submit the following: the Company Constitution, details of directors and shareholders, a local registered address, and identification documents for all stakeholders.
Obtain certificate of incorporation
After you submit your application and required documents through BizFile+ and pay the fees, ACRA will issue a Certificate of Incorporation, officially registering your company.
Register for taxes
Register your company with the Inland Revenue Authority of Singapore (IRAS) for Goods and Services Tax (GST) and corporate income tax. You will then obtain a Unique Entity Number (UEN).
Open a corporate bank account
To open a corporate bank account in Singapore, provide the required documents to a local bank. These typically include the Certificate of Incorporation, Unique Entity Number (UEN), Company Constitution, board resolution authorizing the account opening, and identification documents of the directors and authorized signatories.
Register employees
To operate a business in Singapore, you must adhere to local employment laws and regulations, including obtaining valid work passes for foreign employees. Additionally, you must register your local employees with the Central Provident Fund (CPF), Singapore’s mandatory social security savings scheme.
Registering your company or setting up a subsidiary in Singapore is just the first step. After that, companies must ensure compliance. Singapore has strict rules around:
- Monthly CPF (social security) contributions
- IRAS tax filings
- Statutory leave and benefits
- Itemized payslips, contribution timelines, and more.
An EOR handles all of this in line with Singapore’s Employment Act and tax rules, so you stay compliant. It lets you sidestep many of the responsibilities and costs of registering your business in Singapore.
Real cost of registering a business in Singapore
Accurate cost estimation is essential for informed business planning. Here’s a closer look at the expenses involved in registering a company in Singapore:
- Company name reservation: ACRA usually charges SGD 15 for this process.
- Company incorporation: The standard cost of incorporating a company is SGD 300
- Legal services: Costs vary significantly based on the complexity of your business structure and the legal expertise required. An estimated range of costs can be SGD 500 to SGD 2,000, or even higher.
- Share capital: The minimum paid-up capital for a private limited company is SGD 1. However, this is just the base amount.
- Accounting and tax filing: Costs vary based on your business’s complexity and transaction volume. This price can range from SGD 500 to SGD 5,000 per year
- Annual General Meetings (AGMs): AGMs vary by business size and structure. Costs may include shareholder accommodation and travel, scheduling costs, and annual filing costs.
- License renewals: If your business requires licenses, factor in renewal fees. License fees for a business can cost approximately SGD 50 to SGD 200.
- Registered office address: If you don’t have a physical office, you’ll need to rent a registered office address. Depending on the location and size of the office, your rent could go up to SGD 3000
Cost comparison: Standard registration vs. EOR
Cost category | Standard registration | EOR |
Setup costs | SGD 315 | Low |
Legal compliance | SGD 500 – SGD 2000 | Fully managed |
Accounting | SGD 500 – SGD 5,000 | Included |
Payroll | Ongoing, separate fees | Included |
Time to market | Typically 1-2 weeks | Just a few days |
Note: The costs outlined above are indicative and may vary depending on your specific business needs. For a customized estimate aligned with your expansion plans, our experts at Multiplier are here to help—reach out for personalized guidance.
Take the stress out of your Singapore expansion with Multiplier
Expanding to Singapore doesn’t have to be complicated. Multiplier, the gold standard for global EORs, will handle compliance, payroll, and HR tasks, allowing you to focus on growing your business. With Multiplier, you can enter the Singapore market quickly and efficiently without the need to set up a local entity or navigate complex regulations.
What Multiplier delivers in Singapore:
- Locally compliant employment contracts
Hire top-tier talent confidently with contracts aligned to Singapore’s labor laws, backed by smooth and legally sound onboarding processes. - Reliable payroll management
Run accurate, timely, and transparent payroll—without the administrative burden. - Full-spectrum HR support
From onboarding and expense management to time-off tracking, we cover your day-to-day HR needs. - Competitive employee benefits
Offer localized, attractive benefits packages that help you hire and retain the best talent in Singapore’s competitive market. - Work permits and visas
An EOR like Multiplier, as your legal employer in Singapore, can sponsor work visas, Employment Passes, or S Passes, on your behalf, so you can hire the right talent—even if they’re not local.
Global expansion needn’t be risky or complicated. Multiplier helps you test the market or hire a few employees in Singapore without committing to entity setup, and is ideal for lean expansion or pilot teams.
Book a demo with Multiplier today and take the first step toward hassle-free global growth.
