Outline
In short: Singapore sits at the south of the Strait of Malacca, one of the world’s busiest shipping lanes, within about seven hours’ flight of much of Asia. Its free trade agreements, including RCEP (15 countries, about 30% of world GDP) and CPTPP, together with 96 tax treaties, make it a common base for regional headquarters. A foreign company can own 100% of a Singapore subsidiary. Paul Hype Page incorporates it for S$800 plus the S$315 ACRA fee, and founders can sign documents remotely.
What makes Singapore's location strategic?
- Sea: it sits on the Strait of Malacca, linking the Indian Ocean and the South China Sea. The Port of Singapore is one of the world’s busiest transhipment hubs.
- Air: Changi Airport connects to most Asian capitals within about 7 hours.
- Time zone: UTC+8, the same business day as China, Hong Kong and much of ASEAN, with overlap with Europe in the afternoon.
- Neutral, stable base: English common law, an independent judiciary and a stable currency.
Trade and tax agreements
- RCEP: 15 Asia-Pacific economies, about 30% of global GDP.
- CPTPP, plus bilateral FTAs with major partners such as China, the US and the EU.
- Tax treaties: 96 comprehensive DTAs (IRAS). To use them, a company generally needs a Certificate of Residence.
- Grants: EnterpriseSG’s EDGE support for overseas expansion needs at least 30% local shareholding, so a 100% foreign-owned company usually won’t qualify.
Setting up a regional base: subsidiary or branch?
| Subsidiary (Pte Ltd) | Branch | |
|---|---|---|
| Separate legal entity | Yes | No, part of the parent |
| Liability | Limited to the subsidiary | The parent is liable |
| Tax | 17%, with start-up and partial exemptions | 17%, no start-up exemption |
| PHP price | S$800 + S$315 ACRA | S$2,800 |
Most foreign groups choose a subsidiary for its limited liability and treaty access.
How Paul Hype Page helps
We incorporate the company, act as corporate secretary (S$600 a year), help open a corporate bank account (S$1,500) and apply for your regional manager’s Employment Pass. Paul Hype Page has a 96% EP success rate (PHP internal records, 1,000+ applications), offers a free EP eligibility check, and if MOM rejects your EP, we appeal for free. See the full setup cost for foreigners.
Paul Hype Page has helped more than 2,000 companies set up in Singapore since 2008.
FAQ
Why is Singapore's location good for business?
It sits on the Strait of Malacca shipping lane, has a major transhipment port and air hub, shares a time zone with China and ASEAN, and has a wide network of trade and tax agreements.
Is Singapore part of RCEP?
Yes. RCEP covers 15 Asia-Pacific economies and about 30% of global GDP.
Can a foreign company set up a 100% owned subsidiary in Singapore?
Yes. It needs at least one locally resident director, a company secretary and a local registered address.
Can a foreign-owned company get EnterpriseSG's EDGE grant?
Usually not. It needs at least 30% local shareholding.
Questions about your company? WhatsApp us or contact us. Free EP eligibility check, and you can sign documents remotely.
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