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Quick guide to investing in Singapore

Quick guide to investing in Singapore

Located at the heart of Southeast Asia, Singapore is one of the top trade and financial hubs in the region. The country remains the largest recipient of Foreign Direct Investments (FDI) in ASEAN, and is recognised for its ease in doing business, developed infrastructure and stable sociopolitical climate.

Top exports

Machinery and equipment

Machinery and equipment

Electronics

Electronics

Optical and medical apparatus

Optical and medical apparatus

Integrated circuits

Integrated circuits

Pharmaceuticals

Pharmaceuticals

Chemicals and chemical products

Chemicals and chemical products

How to set up a business in Singapore

Note: Only applicable to businesses interested in incentive schemes
  • Steps
  • Details
Steps Details
Choose a business structure and register with the Accounting and Corporate Regulatory Authority (ACRA)

Submit a company name application via ACRA’s online business registration and filing portal Bizfile+.

Proceed to incorporate your company once your application is approved.

Required documents for incorporation:

  • Brief description of activities and Singapore Standard Industrial Classification (SSIC) Code
  • Details of shareholders and Know Your Customers (KYC) information
  • Details of directors and KYC information
  • Registered Singaporean Business Address
  • Share capital details
  • Details of Company Constitution

Notes:

  • Proposed company name cannot be identical to an existing name or contain prohibited and undesirable words
  • Approved name applications are reserved for 120 days
Address key business needs and prepare business plan for incentive and schemes (Optional)

Recruitment, financing, and property acquisition.

Business plan includes assistance required, corporate profile and business goals.
Application for visas

EntrePass: Enables eligible foreign entrepreneurs to start and operate a new business.

Global Investor Programme (GIP): Grants Singapore permanent resident (PR) status to investors with a substantial business track record, with an intention of driving investment growth.
Start business

Commence business upon approval.
Steps
Choose a business structure and register with the Accounting and Corporate Regulatory Authority (ACRA)
Address key business needs and prepare business plan for incentive and schemes (Optional)
Application for visas
Start business

Taxes and incentives

Taxes
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In Singapore, non-residents are subjected to an interest withholding tax rate of 15%, whereas for residents, the rate stands at 0%.

 

In term of standard corporate tax, the rate is at 17%.

Incentives that businesses receive are based on sectors, locations and company size – in various amounts and periods of time. Some of these incentives include:

International Headquarters (IHQ) Award, Pioneer Certificate Incentive (PC), and Development and Expansion Incentive (DEI)

  • Corporate tax exemption of 5%
  • Concessionary tax rate of 10%
  • Applicable on income derived from headquarters/qualifying activities



Finance and Treasury Centre Incentive

  • Reduced 8% corporate tax rate on qualifying income (for example, income from qualifying activities and services)



Intellectual Property (IP) Development Incentive (IDI)

  • Reduced corporate tax rate of either 5% or 10% on a percentage of qualifying IP income during the incentive period
  • Concessionary tax rate will also increase by 0.5% at regular intervals



Global Trader Programme

  • Reduced corporate tax rate of 5% or 10% on qualifying trading income for three or five years
  • Qualifying trading income includes income from physical trading, brokering of physical trades and derivative trading income

Global Trader Programme

Qualifying criteria
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  • Substantial physical trade
  • Significant local business spending
  • Sizable employment of trading professionals
  • Strategic headquarters functions
  • Energy commodities and products
  • Agricultural commodities and bulk edible products
  • Building and industrial materials
  • Consumer products
  • Industrial products
  • Machinery components
  • Minerals
  • Electronic and electrical products
  • Profits from principal trades of physical goods
  • Commissions earned from brokering physical trades
  • Profits from trading derivatives

Further resources

Relevant government agencies
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Singapore Economic Development Board (EDB)
The Singapore Economic Development Board (EDB), a government agency under the Ministry of Trade and Industry, is responsible for strategies that enhance Singapore’s position as a global centre for business, innovation, and talent.

Visit the EDB website

Enterprise Singapore (ESG)
Enterprise Singapore is a statutory board under the Ministry of Trade and Industry of the Government of Singapore championing enterprise development.

Visit the Enterprise Singapore website

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.