How a Canadian Can Set Up a Company in Singapore

Singapore is one of the world’s top destinations for global entrepreneurs who wish to build a business in Asia. Its reputation for efficiency, transparent regulations, and low tax regime continues to attract foreign investors. For Canadian entrepreneurs aiming to explore the dynamic markets of Southeast Asia, Singapore stands out as a prime launchpad.

This comprehensive guide explains everything Canadians need to know about setting up a company in Singapore — from incorporation requirements and step-by-step registration to post-setup obligations and tax advantages.

1. Why Singapore Is Attractive to Canadian Entrepreneurs

Before starting the registration process, it helps to understand why so many Canadians choose Singapore as their base of operations in Asia.

1.1 Business-Friendly Ecosystem

Singapore has consistently ranked among the easiest places in the world to start and operate a business. The incorporation process is quick, paperless, and managed by the Accounting and Corporate Regulatory Authority (ACRA). Most new entities can be formed within one or two business days, making it ideal for entrepreneurs who value efficiency.

1.2 Strategic Geographic Location

Located in the heart of Southeast Asia, Singapore serves as a gateway to emerging markets in ASEAN — a region with more than 650 million consumers. For Canadian companies that want access to Asian clients, manufacturing partners, or distributors, Singapore offers unmatched connectivity through world-class air and sea hubs.

1.3 Competitive Tax System and Canada-Singapore Treaty

Singapore’s corporate income tax rate is a flat 17 percent, among the lowest globally. In addition, Singapore and Canada have signed a Double Taxation Agreement (DTA), ensuring that business profits are not taxed twice. This treaty allows Canadian companies to repatriate earnings with minimal tax leakage.

1.4 Legal Transparency and Political Stability

With a reputation for zero tolerance toward corruption, Singapore offers a secure and predictable environment for foreign investment. Canadian entrepreneurs can operate with confidence, knowing that contracts are enforceable and intellectual property is well-protected.

1.5 Skilled, Multicultural Workforce

Singapore’s diverse, well-educated talent pool is another major advantage. English is the main language of business, making communication easy for Canadians while allowing them to tap into the linguistic diversity of Asia.

2. Incorporation Requirements for Canadians

To form a company in Singapore, Canadians must meet several key requirements that are clearly defined under local law.

2.1 Choosing a Business Structure

The most popular structure for foreign investors is the Private Limited Company (Pte. Ltd.). It is a separate legal entity, meaning shareholders’ liability is limited to their investment.

Other available options include:

• Branch Office – an extension of a Canadian parent company that conducts the same line of business.

• Representative Office – a temporary setup used for research or networking; it cannot generate revenue.

2.2 Local Director Requirement

Singapore requires every company to have at least one local resident director. This person must be a Singapore citizen, permanent resident, or holder of a valid Employment Pass or EntrePass.

While Canadians can own 100 percent of the shares, they need a local director to comply with the law. Many foreign investors fulfill this through a nominee director arrangement offered by licensed corporate service providers.

2.3 Shareholder and Capital Rules

Only one shareholder is required, and it can be either an individual or a corporation. The minimum paid-up capital is just S$1, though many companies start with S$1,000 or more for practical reasons. There are no restrictions on full foreign ownership.

2.4 Company Secretary

Every Singapore-registered company must appoint a qualified company secretary within six months of incorporation. The secretary must be a local resident and is responsible for maintaining statutory registers and filing mandatory returns with ACRA.

2.5 Registered Business Address

All companies must maintain a registered local address (P.O. boxes are not accepted). Foreign investors can use a virtual office service if they do not need a physical workspace initially.

3. Step-by-Step Guide to Incorporating a Company in Singapore

The process for Canadians to start a business in Singapore is straightforward and can be completed largely online.

Step 1: Reserve Your Company Name

Choose a distinct company name and submit it for approval via the BizFile+ portal operated by ACRA. The name should not be identical or similar to existing businesses, contain offensive language, or violate trademarks. Once approved, the name is reserved for 120 days.

Step 2: Prepare the Required Documents

You’ll need to provide:

• The approved company name

• A brief description of business activities (according to Singapore’s SSIC codes)

• Details of all directors, shareholders, and the company secretary

• The registered office address

• The company’s constitution (formerly the Memorandum & Articles of Association)

• Copies of passports and proof of residential address for all foreign individuals

If the shareholder is a corporation, you must also provide a Certificate of Incorporation and a Board Resolution authorizing investment in the Singapore entity.

Step 3: Appoint the Local Director and Company Secretary

Foreign investors who do not reside in Singapore can appoint a nominee director through a corporate services provider. The same firm can often provide a company secretary, ensuring full compliance.

Step 4: Submit the Incorporation Application

Once all details are in order, your service provider will submit the incorporation through BizFile+. In most cases, approval is granted within one business day.

You’ll then receive:

• A Certificate of Incorporation

• A Unique Entity Number (UEN)

• A Business Profile confirming your company’s registration details

These documents officially recognize your company as a legal entity in Singapore.

Step 5: Open a Corporate Bank Account

After incorporation, you’ll need a corporate bank account to handle business transactions. Leading banks in Singapore include DBS, OCBC, UOB, HSBC, and Standard Chartered.

Some banks may require directors to attend an in-person verification session, while others allow remote onboarding, depending on the company’s profile and shareholder structure.

Step 6: Apply for a Work Pass (if relocating)

If you intend to live in Singapore to run your business, you’ll need a valid work visa such as:

• Employment Pass (EP) – For professionals or company directors earning at least S$5,000 monthly and meeting qualification criteria.

• EntrePass – For entrepreneurs setting up venture-backed, technology-driven, or innovative businesses.

Once granted, you may serve as the company’s resident director.

Step 7: Register for GST

If your company’s annual turnover exceeds S$1 million, registration for Goods and Services Tax (GST) is mandatory. Businesses under this threshold can register voluntarily to claim input tax credits.

4. Post-Incorporation Obligations

Setting up the company is only the beginning. To stay compliant, you must observe ongoing statutory requirements.

4.1 Accounting and Record-Keeping

Companies must maintain accurate accounting records, invoices, and financial statements for at least five years. Most businesses engage professional accountants to ensure compliance with the Singapore Financial Reporting Standards (SFRS).

4.2 Annual General Meeting (AGM)

An AGM must be conducted within six months after the financial year-end unless the company qualifies for an exemption. During the meeting, directors present the audited or unaudited financial statements to shareholders.

4.3 Annual Return (AR)

Every company must file an Annual Return with ACRA within seven months after the financial year-end. This filing updates ACRA with current company information.

4.4 Corporate Income Tax Filing

Two main filings are required each year with the Inland Revenue Authority of Singapore (IRAS):

1. Estimated Chargeable Income (ECI) – within three months of the financial year-end.

2. Form C or C-S – the official income tax return.

Singapore offers a Start-Up Tax Exemption Scheme (SUTE) where new companies can enjoy tax exemptions of up to S$125,000 on their first S$200,000 of chargeable income during the first three years.

4.5 Employment Regulations

If you hire Singaporean or permanent-resident staff, you must make monthly Central Provident Fund (CPF) contributions. Employers must also comply with the Employment Act covering wages, leave, and working conditions.

5. Work Visa Options for Canadians

If you plan to manage your business in Singapore directly, you can choose from several visa schemes:

• Employment Pass (EP): Ideal for owners or key executives. Renewable every one or two years.

• EntrePass: Designed for startup founders in innovation-driven or venture-funded businesses.

• Dependant’s Pass: Allows immediate family members to join you once your EP or EntrePass is approved.

These passes are issued by the Ministry of Manpower (MOM), and having a properly incorporated company strengthens your visa application.

6. Understanding the Tax Advantages

Singapore’s tax framework is one of its strongest attractions for Canadians.

6.1 Low Corporate Tax Rate

The flat 17 percent corporate tax rate applies to both local and foreign-owned firms. However, with exemptions, the effective tax rate for small and new businesses often falls below 10 percent.

6.2 No Capital Gains Tax

Profits from selling shares, property, or other capital assets are not subject to tax. This policy allows entrepreneurs to reinvest or exit without extra tax costs.

6.3 Canada-Singapore Double Taxation Agreement (DTA)

Under the DTA, income earned in Singapore can be exempted or credited against Canadian tax, avoiding double taxation. Canadians benefit from reduced withholding tax rates on dividends, interest, and royalties.

6.4 Tax Incentives for Startups and SMEs

New companies may qualify for additional government incentives, especially in technology, manufacturing, or sustainability sectors. These may include R&D tax deductions and grants to encourage innovation.

7. Building and Expanding the Singapore Entity

After incorporation, Canadian entrepreneurs can focus on growth.

7.1 Hiring Local and Foreign Employees

Singapore’s labor market is efficient and flexible. You can hire local professionals or apply for S Passes and Work Permits to bring in foreign talent, depending on skill level and salary.

7.2 Setting Up Operations

Many startups begin with a virtual office or co-working space to minimize overheads before committing to permanent premises. This setup satisfies the local address requirement while providing administrative support.

7.3 Scaling Across ASEAN

Once established in Singapore, companies can easily expand into neighboring countries such as Malaysia, Indonesia, Thailand, and Vietnam through free-trade agreements and cross-border partnerships.

8. Working with a Corporate Service Provider

Although the process is streamlined, dealing with regulatory filings, nominee directors, and compliance can be complex for foreigners. Engaging a corporate service provider (CSP) simplifies the entire journey.

A professional CSP can handle:

• Company registration and nominee director services

• Company secretarial work and statutory filings

• Accounting and tax submission

• Employment Pass or EntrePass applications

Partnering with a reputable firm ensures your business remains compliant while you focus on operations and growth.

9. Final Thoughts

For Canadians looking to establish a presence in Asia, Singapore offers a stable, transparent, and profitable environment. With 100 percent foreign ownership allowed, low taxes, and an efficient incorporation system, it’s one of the most straightforward places in the world to start a business.

By engaging local professionals, adhering to compliance requirements, and leveraging Singapore’s trade networks, Canadian entrepreneurs can seamlessly transform their business vision into reality and use Singapore as a springboard to reach the wider Asian market.