As we approach 2024, Singapore continues to solidify its position as one of the world’s most attractive destinations for setting up a holding company, particularly for foreign entrepreneurs, investors, and multinational businesses. With its strategic location at the heart of Asia, business-friendly tax framework, robust legal and regulatory environment, and excellent digital infrastructure, Singapore remains a global hub for holding structures.
Whether you are an international entrepreneur diversifying your portfolio, a private investor looking to centralize your assets, or a corporation aiming to streamline worldwide operations, this comprehensive 2024 guide to setting up a holding company in Singapore will walk you through everything you need to know — from benefits and tax incentives to step-by-step registration and compliance.

Holding Company Overview

A holding company in Singapore is an entity formed primarily to hold and manage equity in other companies, also known as subsidiaries. Unlike operational businesses, a holding company does not engage in day-to-day commercial activities. Instead, it:

• Owns and manages shares in other companies
• Provides strategic oversight and control
• Reduces investor risk through diversification
• Streamlines global operations under a single corporate structure
• This structure is particularly popular among foreign investors who wish to expand regionally across Asia while maintaining centralized control from Singapore.

Benefits of Setting Up a Holding Company in Singapore (2024)

1. Favorable Corporate Tax Rates

Singapore offers one of the lowest corporate tax rates in the world — capped at 17%. Even more attractive is the fact that Singapore does not impose capital gains tax, making it highly beneficial for holding companies that generate profits through share disposals or reinvestments.

2. Attractive Tax Incentives

Foreign investors setting up holding companies in Singapore gain access to numerous tax schemes, including:

• Start-Up Tax Exemption Scheme (SUTE): Up to 75% tax exemption on the first S$100,000 of chargeable income for the first three years.
• Global Trader Programme (GTP): Special tax concessions for companies engaged in international trading activities.

3. Strong Legal and Regulatory Environment

Singapore’s regulatory framework is transparent, reliable, and globally recognized. With ACRA (Accounting and Corporate Regulatory Authority) overseeing company registration and IRAS (Inland Revenue Authority of Singapore) managing taxation, investors can rely on a solid system that ensures smooth business operations.

4. Strategic Location in Asia

Located at the crossroads of Asia-Pacific markets, Singapore serves as a gateway to China, India, and ASEAN countries. Holding companies based in Singapore enjoy easier access to emerging economies and can efficiently manage subsidiaries across borders.

5. Ease of Doing Business

Singapore consistently ranks among the top countries worldwide for ease of doing business. By 2024, further advancements in digital services for company registration, corporate governance, and banking have simplified the process for international investors. Most incorporation procedures are now completed entirely online.

2024 Updates: Key Trends in Singapore’s Holding Company Landscape

Digital Transformation for Holding Companies

The adoption of digital platforms has transformed how holding companies are managed. Many foreign-owned entities now use digital solutions for governance, accounting, risk management, and compliance. These tools allow international investors to manage subsidiaries in Singapore and abroad seamlessly, even without being physically present.

ESG Compliance (Environmental, Social, and Governance)

Singapore places increasing emphasis on sustainability and ESG standards. By 2024, holding companies that prioritize ESG compliance — such as investing in green sectors or maintaining responsible business practices — gain access to incentives and enhanced reputation benefits in the market.

Post-COVID Business Climate

Post-pandemic, Singapore has introduced reforms aimed at making the business environment more resilient and supportive of foreign investors. Reduced bureaucratic hurdles, incentives for digital-first companies, and initiatives to attract international capital make 2024 one of the most favorable years to establish a holding company in Singapore.

Step-by-Step Guide: How to Set Up a Holding Company in Singapore

Setting up a holding company in Singapore is a relatively straightforward process, even for foreigners. Below are the essential steps:

Step 1: Choose a Business Structure

Foreigners must first select a suitable business structure. The Private Limited Company (Pte Ltd) is the most common choice for holding companies in Singapore. Benefits include:

• Limited liability protection for shareholders
• Greater flexibility in ownership and operations
• Access to local tax exemptions and treaties

Step 2: Register Your Company with ACRA

All companies must be registered with ACRA (Accounting and Corporate Regulatory Authority). Key requirements include:

• Company Name: Must be unique and approved by ACRA.
• Company Constitution: Governs the company’s rules and management.
• Directors and Shareholders: At least one director must be a Singapore resident (local nominee directors can be appointed).
• Registered Office Address: A local office address in Singapore is required.
• Company Secretary: A Singapore-based company secretary must be appointed within six months.
• Most holding companies can be incorporated in one business day through ACRA’s BizFile+ portal.

Step 3: Submit Documents to ACRA

Documents required for registration include:

• Company Constitution
• Proof of residential addresses and identification of directors/shareholders
• Proof of registered office address in Singapore
• Additional documentation for foreign-owned entities (e.g., parent company certificates)

Step 4: Open a Corporate Bank Account

Foreign investors must open a corporate bank account in Singapore to manage finances separately. Required documents include:

• Certificate of incorporation
• Company Constitution
• Identification details of directors and shareholders

By 2024, most banks in Singapore offer digital banking services, enabling foreign investors to manage accounts remotely.

Tax Benefits for Foreign-Owned Holding Companies in Singapore

Singapore’s tax regime is one of the main reasons why foreign investors choose to set up a holding company here. Key benefits include:

• Corporate Tax Rate: Fixed at 17% — among the lowest globally.
• No Capital Gains Tax: Profits from the sale of assets or shares are tax-free.
• Start-Up Tax Exemption (SUTE): Up to 75% exemption on the first S$100,000 of chargeable income.
• Global Trader Programme (GTP): Special reduced tax rates for global trade activities.
• Double Taxation Agreements (DTAs): Singapore has signed over 90 DTAs, reducing withholding taxes on dividends, royalties, and interest payments across multiple jurisdictions.

Setting Up Subsidiary Companies Under a Holding Company

A Singapore holding company can own multiple subsidiaries locally and globally. Advantages include:

• Centralized management under the parent company
• Reduced risks when entering new markets
• Flexibility in sector diversification
• Subsidiary structures make it easier for foreign investors to expand into new industries while keeping financial risks contained.

Common Challenges and Solutions for Foreign Investors

1. Compliance with Local Regulations

Singapore’s regulatory framework requires companies to:

• Maintain accurate accounting records
• File annual returns with ACRA
• Comply with the Companies Act

Failure to meet requirements may result in penalties or deregistration.
Solution: Work with corporate service providers or law firms in Singapore to ensure full compliance.

2. Resident Director Requirement

ACRA mandates that every company must appoint at least one Singapore-resident director. This can be a citizen, permanent resident, or Employment Pass (EP) holder.

Solution:

• Hire a nominee director service for compliance
• Or apply for an Employment Pass (EP) if you wish to act as director yourself

3. Visa Regulations for Key Staff

Foreign investors relocating to Singapore must comply with work visa requirements:

• Employment Pass (EP): For skilled professionals and executives.
• EntrePass: For entrepreneurs and business owners building innovative businesses.
• S Pass & PEP (Personalised Employment Pass): For mid-level staff or highly skilled employees.
• Visa applications can be complex, and processing times vary. Solution: Engage a corporate service provider or immigration consultant for assistance.

Conclusion

Establishing a holding company in Singapore in 2024 provides unmatched opportunities for international investors. With its favorable tax regime, world-class legal framework, digital-first business environment, and strong connectivity across Asia, Singapore is the ideal location for consolidating global assets and subsidiaries.
By leveraging professional corporate services, complying with ACRA/IRAS regulations, and taking advantage of Singapore’s tax incentives and DTAs, foreign entrepreneurs can confidently set up a holding company and maximize their returns in one of the world’s most trusted financial hubs.