Singapore has become one of the most attractive destinations for businesses worldwide. With strong government support, competitive corporate tax rates, and a business-friendly environment, many entrepreneurs are considering relocating their companies to Singapore.
While this move can offer great benefits, the process involves legal, financial, and operational steps. If not done correctly, businesses may face unnecessary delays, legal issues, or financial losses. That’s why proper planning and execution are crucial for a smooth transition.
Why Do Foreign Businesses Relocate to Singapore?
From the strong support from the Singapore government for business through grants and tax benefits to competitive corporate tax rates. There are many reasons why foreign companies choose to relocate to Singapore. Find all the benefits that an entrepreneur can get by incorporating their business in Singapore here.
Step-by-Step Process to Relocate a Foreign Company to Singapore
Step 1: Choose the Right Business Structure
Before relocating your business, it’s important to decide on the right company structure. In Singapore, foreign businesses have three main options:
- Subsidiary Company: A private limited company registered in Singapore, with a foreign company as its shareholder. This structure provides liability protection and tax benefits.
- Branch Office: An extension of the parent company. It is not considered a separate legal entity, meaning the parent company is responsible for all its debts and liabilities.
- Redomiciliation: This allows foreign companies to transfer their registration to Singapore while keeping the same legal identity.
Choosing the right structure depends on your business goals and the levels of control you want over the company.
Step 2: Register the Company with ACRA
All companies in Singapore, whether local or foreign, must be registered with the Accounting and Corporate Regulatory Authority (ACRA). ACRA is the government body responsible for overseeing company registration and compliance.
To register your company with ACRA, you will need:
- A unique company name
- Details of directors and shareholders
- A registered business address in Singapore
- A company secretary
You can submit your application through BizFile+, ACRA’s online portal. Once approved, you will receive a business registration number, allowing you to operate legally. But do keep in mind that any future business changes, such as adding new shareholders or changing the company structure, will also require ACRA’s approval.
Step 3: Open a Corporate Bank Account
A corporate bank account is essential for managing business finances, handling transactions, and separating personal and company funds. Different banks in Singapore offer various types of accounts based on your business needs. Find the guide on how to open a corporate bank in Singapore here.
Step 4: Apply for Work Passes and Visas
If you or your employees plan to work in Singapore, you need to apply for the right visas. The most common work passes are the Employment Pass (EP) and EntrePass. Each visa type has specific requirements, so it is important to ensure compliance before relocation.
Read more: Types of Work Passes in Singapore and their Requirements.
Step 5: Secure Office Space
A business address is required for company registration, but you also need an office space for operations. In Singapore, businesses can choose from serviced offices, co-working spaces, and commercial properties. The choice will depend on your business size and budget.
Step 6: Set Up Accounting and Tax Compliance
Singapore has strict tax regulations, so all companies must maintain proper financial records. If you plan to relocate to Singapore, this is very important to keep in mind. You need to stay compliant and do these things:
- File annual financial statements
- Pay corporate taxes on time
- Keep records of income and expenses
Proper accounting ensures smooth operation and will help you avoid penalties. Do keep in mind that you should also make sure whether your business needs to register for Goods and Services Tax (GST) or not.
Step 7: Comply with Employment Laws
If you’re planning to hire local staff, your companies must follow Singapore’s employment laws, including fair wages, working conditions, and benefits.
A key requirement is registering for Central Provident Fund (CPF) contributions, which is a social security savings plan for employees. Employers must contribute a portion of their employees’ salaries to CPF.
Step 8: Establish Business Operations
Lastly, after getting all the necessary licenses and permits, the business operation can be immediately started. You can go to the final step, from setting up marketing strategies and organizing logistics and supply chain management to establishing customer service for smooth operation.
After completing all of these steps that we’ve mentioned, your company can fully function in Singapore!
Planning to Relocate the Company to Singapore?
While Singapore has a simple business incorporation process, relocating a foreign company can still be complex. Ensuring proper compliance and handling legal paperwork can be overwhelming.
To make the process easier, WealthBridge offers incorporation services to help businesses relocate smoothly. From company registration to tax compliance, our experts handle everything so you can focus on growing your business.
Start your business journey in Singapore with WealthBridge!