How Australian Business Owners Can Practically Set Up a Company in Singapore

Expanding a business overseas is a major decision, and for many Australian entrepreneurs, Singapore stands out as one of the most attractive destinations. While the benefits of incorporating in Singapore are clear—low taxes, strong trade ties, strategic location—the process of setting up a company there requires careful planning and understanding of the local legal, regulatory, and business environment.

This guide provides a step-by-step, practical approach for Australian business owners looking to establish a company in Singapore.

1. Determine Your Business Objectives and Structure

Before diving into paperwork, it’s essential to clarify your goals. Ask yourself:

• Is the company for regional expansion, investment holding, or trading?

• Will you relocate to Singapore or run it remotely from Australia?

• Will it be a joint venture with Singaporean partners or wholly foreign-owned?

Most Australian businesses choose the Private Limited Company (Pte. Ltd.) structure because it:

• Limits shareholders’ liability to their investment amount

• Offers tax incentives and exemptions for new companies

• Projects credibility to clients, investors, and partners

Other options include a Branch Office (extension of your Australian company) or a Representative Office (for market research without profit-making activities). However, the Private Limited Company is the most flexible for long-term growth.

2. Meet Singapore’s Incorporation Requirements

To register a company in Singapore, you’ll need to satisfy certain statutory requirements:

• At Least One Local Director – Must be a Singapore citizen, permanent resident, or holder of an EntrePass/Employment Pass.

• Minimum One Shareholder – Can be an individual or corporate entity; 100% foreign ownership is allowed.

• Company Secretary – Must be appointed within six months of incorporation and be a Singapore resident.

• Registered Office Address – A physical address in Singapore (P.O. boxes not permitted).

• Paid-Up Capital – Minimum of SGD 1, though you can increase this for credibility with banks and suppliers.
  

3. Choose and Reserve Your Company Name

The first formal step is to secure your company name via ACRA (Accounting and Corporate Regulatory Authority):

• The name must be unique, not infringe on existing trademarks, and be free of obscene or prohibited words.

• If your business is in a regulated sector (e.g., finance, education, healthcare), additional government approvals may be needed before name approval.

• Once approved, the name is reserved for 120 days.
  

4. Prepare and File Incorporation Documents

You’ll need to file key documents with ACRA, including:

• Company Constitution (formerly Memorandum & Articles of Association)

• Details of Shareholders, Directors, and Company Secretary

• Registered Address

• Description of Business Activities (using Singapore’s SSIC code system)

• Identification Documents – Passport and proof of residential address for foreign directors/shareholders

Most foreign entrepreneurs engage a Corporate Service Provider (CSP) in Singapore to handle this process. This ensures compliance and speeds up approval—often within 1–2 working days.

5. Open a Corporate Bank Account

Singapore’s banking sector is world-class and home to major local and international banks. To open a corporate account, you’ll typically need:

• Certified copies of incorporation documents

• Directors’ and authorised signatories’ identification

• Business plan (for certain industries)

• Proof of address

Many banks require an in-person meeting with directors and signatories. Some digital banks and fintech platforms may allow remote account opening, but most Australian business owners opt for a traditional bank to gain credibility.

6. Understand Your Tax Obligations

Singapore offers generous tax incentives, but you still need to comply with Inland Revenue Authority of Singapore (IRAS) rules:

• Corporate Tax – Flat 17%, with exemptions for the first SGD 200,000 of profits for eligible start-ups in the first three years.

• GST (Goods & Services Tax) – Currently 9% (as of 2024) and mandatory if your annual turnover exceeds SGD 1 million.

• No Capital Gains Tax – Profits from asset sales are not taxed.

• Double Taxation Agreement (DTA) with Australia – Prevents you from being taxed twice on the same income.

An accountant or tax advisor familiar with cross-border Australian–Singapore tax planning is invaluable for maximising benefits.

7. Secure the Right Work Pass or Visa

If you plan to relocate to Singapore to manage your company, you’ll need the appropriate visa:

• Employment Pass (EP) – For professionals, managers, and executives; requires a job offer from your Singapore company and meets salary thresholds.

• EntrePass – For entrepreneurs starting innovative businesses in certain sectors.

• Dependent Pass – For eligible family members accompanying you.

If you prefer to remain in Australia, you can appoint a local nominee director to fulfil statutory requirements while you oversee operations remotely.

8. Register for Relevant Licences and Permits

Depending on your business activity, you may need additional approvals from Singapore authorities:

• Food and Beverage – Singapore Food Agency (SFA) licences

• Finance & Banking – Monetary Authority of Singapore (MAS) approval

• Education – Ministry of Education (MOE) registration

• Import/Export – Singapore Customs permits

Applying early helps avoid operational delays.

9. Set Up Business Operations

Once the legal framework is in place, focus on operational setup:

• Hire Staff – Tap into Singapore’s highly skilled workforce or bring in Australian talent via EPs.

• Office Space – Options range from co-working spaces to leased commercial premises.

• Technology & Infrastructure – Leverage Singapore’s advanced IT infrastructure for seamless communication and operations.

• Marketing & Networking – Join chambers of commerce such as the Australian Chamber of Commerce (AustCham Singapore) to build connections.
  

10. Take Advantage of Government Support

Singapore actively encourages foreign businesses to invest and expand:

• Enterprise Development Grant (EDG) – Supports projects in innovation, productivity, and market expansion.

• Market Readiness Assistance (MRA) Grant – Covers up to 70% of eligible costs for overseas market entry.

• Startup SG – Offers funding, mentorship, and networking opportunities for new businesses.

These schemes can significantly offset your setup and expansion costs.

11. Maintain Compliance After Incorporation

Ongoing compliance is critical to avoid fines or legal issues:

• Annual General Meeting (AGM) – Required unless exempted under specific conditions.

• Annual Returns Filing – Submit to ACRA within 7 months of financial year-end.

• Corporate Tax Filing – File Estimated Chargeable Income (ECI) within 3 months of financial year-end and Form C/C-S annually.

• Bookkeeping & Accounting – Maintain accurate records in accordance with Singapore Financial Reporting Standards (SFRS).

Engaging a reliable corporate secretary and accountant ensures you remain compliant without disrupting day-to-day business.

12. Leveraging Singapore as a Regional Hub

Once your Singapore company is running smoothly, you can use it as a base to:

• Expand into ASEAN markets such as Indonesia, Malaysia, and Vietnam

• Manage regional distribution and logistics

• Centralise R&D for Asian markets

• Access a wider investor base

This long-term strategy can transform your Singapore entity from a simple overseas branch into your Asia-Pacific headquarters.

Conclusion

Setting up a company in Singapore as an Australian business owner is a straightforward yet strategic process. By following the right steps—choosing the optimal structure, fulfilling statutory requirements, securing the right licences, and tapping into Singapore’s pro-business environment—you can establish a strong foothold in Asia.

With professional guidance and proper planning, your Singapore company can not only serve as a profitable venture in its own right but also as a springboard for broader regional expansion.