If you’re hiring foreign workers on a Work Permit, the quota you’re allowed and the levy you pay depend entirely on which of Singapore’s five approved sectors your business falls under: Construction, Manufacturing, Marine Shipyard, Process, or Services. Each sector has its own rules, its own levy table, and often its own unique requirements on top of the general Work Permit conditions.

This guide breaks down all five, so you can find the exact figures for your sector without digging through five separate MOM pages.

Jump to:
Construction | Manufacturing | Marine Shipyard | Process | Services | Security bond (applies to all sectors)

Construction

Business classification: based on your registered principal business activity in this sector.

Quota: 5 Work Permit holders for every local employee earning the Local Qualifying Salary.

Levy (effective 1 January 2024):

Workers without the required certification are charged an “Unskilled” levy of $900, regardless of source country.

Minimum Higher-Skilled ratio: at least 10% of your construction Work Permit holders must be Higher-Skilled (R1) before you can hire new Basic-Skilled (R2) workers or renew existing R2 permits. Excess R2 permits beyond this ratio are revoked.

Levy bond: a separate deposit required if your workers’ permits were revoked for unpaid levies, you’ve had 3+ late levy payments in 12 months, your sole proprietorship changed ownership, or you’re a new business entity (sole proprietorship, partnership, or incorporated company with paid-up capital under $50,000). Amount: $600 per skilled worker, $2,000 per unskilled worker, held for 12 months (6 months for new companies), with any late payment extending the monitoring period by another 12 months.

Safety and registration: non-Malaysian workers attend the Settling-in Programme (if new or returning) and complete a construction safety course (CSOC or equivalent) within 2 weeks of arrival — refreshed every 2 years (6 years or less in the sector) or every 4 years (beyond 6 years). Your company must also be registered with BCA’s Contractors Registration System (CRS).

Application order: apply for IPA → buy security bond (non-Malaysian workers) → buy medical insurance and the Primary Care Plan.

Manufacturing

Classification: requires a valid factory notification/registration, use of machinery to produce goods from raw materials, and operation in a designated industrial area (food processors also need an SFA licence). Workers must be deployed only at that industrial address — using them in retail or F&B settings requires a separate services account.

Quota and levy:

From 2028, Tiers 1 and 2 merge into $470 (basic-skilled) and $300 (higher-skilled). Date not yet announced.

Source countries: Malaysia, PRC, North Asian Sources (Hong Kong, Macau, South Korea, Taiwan), and a restricted occupation list for Non-Traditional Sources.

Higher-skilled routes: recognised academic qualifications by source country, ITE SET Level 1/Nitec, the Composite Assessment for Generic Manufacturing, or the Market-Based Skills Recognition Framework (S$1,600+ monthly salary and 4+ years as a Work Permit holder here).

Safety: first-time non-Malaysian workers attend the Settling-in Programme; those handling metals/machinery in metalworking also need a safety course (MSOC or equivalent) within 2 weeks of arrival, refreshed on the same 2-year/4-year schedule as Construction.

Marine Shipyard

Classification: requires shipbuilding or ship repair as your principal business activity, plus registration as a shipyard or shipyard-sponsored contractor (sponsoring shipyard, non-sponsoring shipyard, resident contractor, or common contractor — each with different Work Permit application rights).

Quota: unlike the other sectors’ percentage-based DRC, this is a ratio — up to 3 Work Permit holders per local employee earning the Local Qualifying Salary.

Levy:

From 2028, basic-skilled rises from $500 to $600 (date not yet announced).

Source countries: Malaysia, PRC, North Asian Sources, and Non-Traditional Sources (India, Sri Lanka, Thailand, Bangladesh, Myanmar, Philippines, Bhutan, Cambodia, Laos).

Safety: workers complete the Settling-in Programme (first-timers/certain returning workers) and a shipyard safety course within 2 weeks of arrival, refreshed every 2 years (6 years or less in the sector) or every 4 years beyond that.

Process

Company requirements: PCM (Process Construction and Maintenance) contractors must be a corporate member of ASPRI (Association of the Process Industry), endorsed by ASPRI, and on the PCM Controlled List before hiring foreign PCM workers.

Quota: 5 Work Permit holders per local employee earning the Local Qualifying Salary.

Levy:

From 2028: Malaysia/NAS/PRC basic-skilled rises from $450 to $600; NTS basic-skilled rises from $650 to $800.

Worker scope: PCM workers may only perform construction and maintenance on plant equipment — not plant operations or peripheral services. Work is limited to 13 defined skill sets. NTS and PRC workers may only be employed as Process Maintenance and Construction Worker, its cum-Driver variant, or Driver (Process).

Safety: all Process workers complete the Oil Petroleum Safety Orientation Course (OPSOC); those doing plant construction also need the Construction Safety Orientation Course (CSOC).

Application order: IPA → security bond (non-Malaysian workers) → medical insurance and Primary Care Plan.

Services

Classification: your principal business activity must be registered as one of: financial/insurance/real estate/infocomm/business services; transport, storage and communications; commerce (retail/wholesale); community, social and personal services (excluding domestic workers); hotels; or restaurants, coffee shops, food courts and approved food establishments (excluding hawker stalls, and requiring a Singapore Food Agency licence under the company’s own name).

Quota: DRC of 35% of total workforce.

Levy:

From 2028, Tiers 1 and 2 merge into $600 (basic-skilled) and $400 (higher-skilled).

Source countries: Malaysia, PRC, North Asian Sources, and a restricted occupation list for Non-Traditional Sources.

Higher-skilled routes: recognised academic qualifications by source country, ITE SET Level 1/Nitec, industry-specific WSQ certificates (landscape, nursery, and from December 2026, community care), or the Market-Based Skills Recognition Framework (S$1,600+ salary and 4+ years here). Non-Malaysian workers in hotel, retail and F&B also need WPLN Level 4 listening/speaking assessment.

Job Flexibility Scheme: lets Services Work Permit holders multi-task across occupations — doesn’t apply to performing artistes, Household Services Scheme workers, or NTS Occupation List workers.

Security bond

This applies across all five sectors, not just one.

Employers must buy a $5,000 security bond for every non-Malaysian Work Permit holder before the worker arrives in Singapore — Malaysian workers are exempt, and the cost cannot be passed to the worker. If the bond isn’t active on arrival, immigration won’t admit the worker, and MOM cannot backdate it. The bond is discharged roughly a week after a worker’s Work Permit is cancelled and they’ve returned home, provided no conditions were breached. See our full Security Bond glossary entry for discharge and forfeiture details.

Navigating quota, levy and compliance requirements across sectors can be complex, especially with the 2028 rate changes on the horizon. HeySara’s work pass service can help manage your Work Permit applications and ongoing compliance.

For entrepreneurs deciding where to establish a business in Asia, Singapore and Hong Kong are two of the most established options. Both are international business centres with strong financial sectors, relatively straightforward incorporation processes, and access to international markets.

However, the better choice depends on your business goals.

Changes in Hong Kong’s political and regulatory environment in recent years have also encouraged some businesses to consider diversifying their operations across Asia. The UK government’s current assessment notes that Hong Kong’s political landscape has changed significantly and that businesses continue to report uncertainty about the longer-term impact of subsequent national-security legislation.

For Hong Kong entrepreneurs who want to reduce their reliance on a single market or establish a second Asian base, Singapore can be a practical option.

So, Singapore vs Hong Kong: which is better for incorporating a company in 2026?

Let’s compare the two jurisdictions across ownership, incorporation requirements, taxation, regional access, compliance, and business considerations.

Singapore vs Hong Kong at a Glance

Tax rates and statutory requirements can change, so businesses should confirm their position with the relevant authorities before incorporation. Singapore’s corporate income tax rate is currently 17%, while Hong Kong applies a two-tiered profits tax regime for corporations.

1. Business Environment:

Singapore vs Hong Kong
Both Singapore and Hong Kong have developed economies, strong financial systems, and extensive international business networks. The key difference is often market positioning.

Singapore is particularly well positioned for companies targeting Southeast Asia. Its location and business ecosystem make it a popular base for companies expanding into Malaysia, Indonesia, Thailand, Vietnam, and other ASEAN markets.

Hong Kong, meanwhile, continues to be an important gateway to Mainland China and is deeply integrated with the Greater Bay Area and Chinese markets. Therefore, your target market should play an important role in your decision.

If your primary customers and suppliers are in Mainland China, Hong Kong may offer advantages. If your strategy involves building a Southeast Asian regional presence, Singapore may be the more suitable base.

2. Political and Regulatory Environment

Political and regulatory stability can play an important role when entrepreneurs decide where to incorporate a company, particularly when they are looking for a jurisdiction to support long-term growth.

Hong Kong has experienced significant political and legal changes in recent years. The Hong Kong National Security Law came into effect in 2020, followed by the Safeguarding National Security Ordinance in 2024. These developments have significantly changed Hong Kong’s legal and regulatory environment. While the Hong Kong Government maintains that these measures strengthen stability and protect national security, the changes have also attracted international attention and led some businesses to reassess their exposure to Hong Kong.

Singapore offers a different environment for businesses. Its political system and government institutions have provided a relatively high degree of continuity in economic and commercial policy. The country also has an established regulatory framework covering company incorporation, taxation, corporate governance and business compliance.

For entrepreneurs, this predictability can be valuable. Incorporating a company is generally a long-term decision, and businesses need to consider not only the regulations that apply today but also how confidently they can plan investments, operations and expansion over the coming years. Singapore’s consistent approach to business regulation can provide greater certainty for entrepreneurs establishing a regional base.

Singapore as a Base for Southeast Asian Businesses

The comparison becomes particularly relevant for entrepreneurs who are starting a new business with Southeast Asia as their target market. While Hong Kong has strong connections with Mainland China and remains an important international financial centre, Singapore is geographically positioned within Southeast Asia and has developed into a major regional business and financial hub.

For a business whose growth strategy is centred on markets such as Malaysia, Indonesia, Thailand, Vietnam, the Philippines and other ASEAN economies, incorporating in Singapore can provide a practical starting point. Singapore offers access to the wider Southeast Asian market while providing an established legal, financial and regulatory environment for international businesses.

Political stability is an important part of this consideration. Businesses entering a new region typically need to make long-term decisions about hiring, investment, partnerships, regional headquarters and infrastructure. Having these operations based in a jurisdiction with a relatively predictable political and regulatory environment can make long-term planning easier.

This does not mean that Hong Kong is unsuitable for Southeast Asian businesses. Hong Kong continues to be an established international business and financial centre. However, when the primary objective is to build a new business around Southeast Asian markets, Singapore may offer a more directly aligned base because of its location, ASEAN connectivity and established business ecosystem.

The same consideration applies to Hong Kong entrepreneurs who are looking to diversify their operations. Rather than completely moving an existing business out of Hong Kong, they can incorporate a Singapore company while continuing their Hong Kong operations. This allows them to maintain access to the Hong Kong and Greater China markets while establishing a separate base for Southeast Asian expansion.

For entrepreneurs deciding between Singapore and Hong Kong for a new incorporation, the intended market therefore matters. Businesses primarily focused on Southeast Asia may find Singapore’s political stability, regulatory predictability and regional positioning particularly relevant when selecting where to establish their company.

3. Company Ownership

Both jurisdictions are generally friendly towards foreign ownership. In Singapore, a foreign entrepreneur can generally own 100% of a private limited company. However, the company must meet local requirements, including having at least one ordinarily resident director. Foreigners must also engage a Corporate Service Provider (CSP) in Singapore to reserve a name and register a business structure in Singapore.

Hong Kong also permits foreign ownership, making it possible for international entrepreneurs to establish companies without necessarily having a local shareholder. For Hong Kong entrepreneurs considering Singapore, this means you do not necessarily need a Singaporean business partner simply to establish a company.

4. Resident Director Requirement

This is one of the important differences Hong Kong entrepreneurs should understand. A Singapore-incorporated company must have at least one ordinarily resident director in Singapore. The requirement ensures that there is someone in Singapore responsible for the company’s statutory obligations.

If you are a Hong Kong entrepreneur living in Hong Kong and do not meet Singapore’s residency requirements, you may need to arrange for a qualifying nominee director through a CSP. Hong Kong does not impose the same general requirement for a Hong Kong-resident director.

Therefore, from a compliance perspective, Hong Kong may be simpler for an entrepreneur who intends to remain entirely outside Singapore. However, if you are planning to establish a genuine Singapore operation, the local director requirement is usually manageable with appropriate professional support.

5. Company Secretary and Registered Office

Both Singapore and Hong Kong require companies to maintain certain local corporate infrastructure.

In Singapore, a company must appoint a company secretary within six months of incorporation. The secretary must meet the relevant residency and eligibility requirements. A Singapore company must also maintain a registered office in Singapore.

Hong Kong companies similarly require a registered office and company secretary. For an overseas entrepreneur, these requirements mean that incorporating a company is not simply a one-time registration exercise. You will need to maintain the company and comply with ongoing statutory requirements.

6. Corporate Tax: Singapore vs Hong Kong

Tax is often one of the first considerations when entrepreneurs compare Singapore and Hong Kong.

Singapore

Singapore has a headline corporate income tax rate of 17%. However, eligible newly incorporated companies may benefit from the Start-Up Tax Exemption (SUTE) during their first three Years of Assessment. Under this scheme, qualifying companies can receive a 75% exemption on the first S$100,000 of normal chargeable income and a 50% exemption on the next S$100,000.

This means that qualifying start-ups may have a lower effective tax burden during their initial years of operation. Eligibility is subject to specific conditions, including requirements relating to the company’s tax residency and shareholding structure.

Beyond the start-up exemption, Singapore offers various other tax deductions, exemptions and incentives that may apply depending on the company’s activities, industry and circumstances.

Singapore companies may also need to register for Goods and Services Tax (GST) once they meet the applicable registration requirements. The current GST rate is 9%.

Hong Kong

Hong Kong uses a territorial tax system and applies a two-tiered profits tax rate. For corporations, the first HK$2 million of assessable profits is generally taxed at 8.25%, while profits above HK$2 million are taxed at 16.5%, subject to the applicable rules.

Hong Kong does not have a general VAT or GST system comparable to Singapore’s GST. This means Hong Kong can appear more attractive from a headline tax perspective, particularly for certain businesses.

However, entrepreneurs should not choose a jurisdiction based solely on the headline corporate tax rate. Tax residency, source of income, business activities, ownership, transfer pricing, double-taxation agreements, and where management actually takes place can all affect the company’s tax position.

7. Incorporation Costs

Singapore’s current government fees for incorporating a company are relatively straightforward. The ACRA fee is S$15 for the name application and S$300 for registering the business entity, for a total of S$315 in government fees. Professional service costs are additional and may include:

• Company incorporation
• Company secretary
• Registered office
• Nominee director
• Accounting and tax services

Hong Kong also has government fees associated with incorporation and business registration. The Companies Registry publishes the applicable fees for company-related filings and services. The actual cost of setting up either type of company will therefore depend on whether you are incorporating independently or using professional services.

8. Access to Southeast Asian Markets

This is an area where Singapore can have a strong advantage for companies with regional expansion plans. Singapore is centrally located within Southeast Asia and has extensive connections with ASEAN economies.

A Singapore company can be used as a regional headquarters for operations across countries such as:

• Malaysia
• Indonesia
• Thailand
• Vietnam
• Philippines
• Cambodia

For Hong Kong entrepreneurs who already have a successful business in Hong Kong but want to expand beyond Greater China, Singapore can therefore provide a convenient platform for entering Southeast Asian markets.

9. Access to Mainland China and Greater China

Hong Kong’s close relationship with Mainland China remains one of its key advantages. For businesses whose customers, suppliers, investors or core operations are primarily located in Mainland China, Hong Kong continues to offer an established financial and commercial environment with strong connections to the Chinese market.

However, Singapore can also be a suitable base for businesses that want to serve the China market while maintaining a broader international or Southeast Asian presence. Singapore has strong economic and business links with China and is home to many Chinese companies and international businesses with operations across both markets.

For entrepreneurs who do not want their business strategy to be limited to a single market, Singapore can provide a different proposition. A Singapore-incorporated company can serve as a regional headquarters or holding structure while the business develops relationships with customers, suppliers and partners in both China and Southeast Asia.

This can be particularly useful for businesses that plan to operate across multiple Asian markets. For example, a company could use Singapore as its regional base, maintain commercial relationships with Chinese partners and customers, and simultaneously expand into markets such as Malaysia, Indonesia, Thailand and Vietnam.

Therefore, the choice does not necessarily have to be Singapore for Southeast Asia or Hong Kong for China. Businesses with a broader Asian strategy may consider Singapore because it provides a base from which they can pursue opportunities in both China and Southeast Asia.

For a business focused almost exclusively on Mainland China, Hong Kong’s established China-facing ecosystem may remain highly relevant. However, for entrepreneurs looking for a broader Asian base that combines access to China with Southeast Asian expansion, Singapore can be a compelling option.

10. Banking and Financial Services

Both Singapore and Hong Kong have sophisticated banking and financial sectors. However, opening a corporate bank account is not automatically guaranteed simply because a company has been incorporated. Banks may assess:

• Business activities
• Ownership structure
• Source of funds
• Expected transaction volumes
• Customer and supplier locations
• Directors and shareholders
• Proof of business operations

For Hong Kong entrepreneurs incorporating in Singapore, it is important to prepare a clear explanation of why the Singapore company is being established and how it will operate. A well-prepared business profile and supporting documentation can help make the account-opening process smoother.

Which Is Better for Foreign Entrepreneurs?

There is no universal answer.

Singapore may be better if you:

• Want to expand into Southeast Asia
• Plan to establish a regional headquarters
• Want access to ASEAN markets
• Are building a technology or services business for regional customers
• Want to diversify your operations outside Hong Kong
• Plan to hire employees and develop operations in Singapore
• Want to establish a second Asian business base

Hong Kong may be better if you:

• Primarily serve Mainland Chinese customers
• Have suppliers or business partners in China
• Want to focus on Greater China
• Already have established Hong Kong operations
• Want to benefit from Hong Kong’s established China-facing financial ecosystem

Singapore vs Hong Kong: Which One Should You Choose?

The right choice ultimately depends on where you want your business to go over the next few years.

Singapore can be particularly attractive for Hong Kong entrepreneurs who want to diversify their operations and expand into Southeast Asia. Its strong infrastructure, political stability, regional connectivity, and established business environment make it a practical base for regional expansion.

Hong Kong, meanwhile, continues to offer significant advantages for businesses focused on Mainland China and Greater China. You also do not necessarily have to choose only one.

A Hong Kong business could retain its existing Hong Kong entity while establishing a Singapore company to manage Southeast Asian operations. This can allow the business to maintain its existing market while building a second regional base.

However, using two companies also creates additional accounting, tax, and compliance obligations. The structure should therefore be planned carefully based on your business activities.

How Can HeySara Help?

If you are a Hong Kong entrepreneur considering incorporating a company in Singapore, the incorporation process can involve more than simply registering a company.

You may need to arrange a Singapore-resident director, registered office, company secretary, accounting support, and ongoing corporate compliance. HeySara can help foreign entrepreneurs establish and manage their Singapore companies, providing support with incorporation, corporate secretarial services, accounting, and other essential business requirements.

For entrepreneurs based overseas, opening a corporate bank account can also be an important part of setting up a Singapore business. Through HeySara’s established relationships with banks, eligible clients may have access to remote corporate account-opening options, which can reduce the need to travel to Singapore solely to complete the banking process. The exact requirements and approval remain subject to the respective bank’s due diligence and policies.

With HeySara supporting both the incorporation and post-incorporation requirements, Hong Kong entrepreneurs can establish a Singapore presence while continuing to operate their existing Hong Kong business. This can provide a more streamlined way to build a second base for accessing Southeast Asian markets and growing their regional operations.

Singapore is a popular destination for Malaysian entrepreneurs looking to expand their businesses, reach a wider customer base, and establish a presence in a leading international business hub. While Malaysia and Singapore share close geographical proximity and many cultural similarities, their business environments differ in several important ways.

Singapore’s strategic location, strong infrastructure, business-friendly policies, robust regulatory framework, and access to regional and international markets make it an attractive choice for Malaysian business owners looking to grow beyond Malaysia.

If you are a Malaysian entrepreneur considering starting a business in Singapore, this guide explains the incorporation process, requirements, costs, work pass considerations, and ongoing compliance obligations you should know about.

Requirements for a Malaysian to Incorporate a Company in Singapore

Singapore’s Accounting and Corporate Regulatory Authority (ACRA) allows foreigners to establish local companies, but foreigners generally need to engage a registered Corporate Service Provider (CSP) to handle the incorporation process.

Before starting the incorporation process, you should understand the basic requirements.

1. At Least One Shareholder

A Singapore private company must have at least one shareholder. The shareholder can be an individual or a corporate entity, and foreign ownership is generally permitted.

This means a Malaysian entrepreneur can potentially own 100% of the shares in their Singapore company.

The exact shareholder structure will depend on your business plans, investment arrangements, and whether you have other shareholders or investors.

2. At Least One Locally Resident Director

One of the most important requirements for a Malaysian incorporating a Singapore company is the requirement for at least one director who meets Singapore’s local residency rules.

If you are a Malaysian living in Malaysia and do not meet Singapore’s local residency requirements, you may need to appoint a qualifying local resident director. This can be a Singapore citizen, permanent resident, or an individual holding a valid Singapore-issued pass, such as an Employment Pass, EntrePass, or Dependant’s Pass.

A nominee director arrangement may be available through a corporate service provider, subject to the provider’s requirements and applicable laws.

It is important to understand that a nominee director is not simply a name on paper. Directors have legal responsibilities and duties under Singapore law.

3. A Singapore Registered Office Address

Every Singapore company needs a registered office address in Singapore.

The registered office is where official communications, notices, and company records can be maintained. It does not necessarily have to be the location where you conduct your day-to-day business activities.

For Malaysian entrepreneurs who do not yet have a physical office in Singapore, a corporate service provider may be able to provide a suitable registered office address as part of its services.

4. A Company Secretary

A Singapore company must appoint a company secretary within six months of incorporation. The company secretary must meet the applicable requirements under Singapore’s Companies Act.

The company secretary plays an important role in helping the company maintain statutory records and meet corporate compliance requirements.

ACRA’s post-registration guidance also highlights the requirement to appoint a company secretary within six months of registration.

5. Share Capital

You will need to determine the company’s share capital and the number of shares to be issued.

Your paid-up capital should reflect your business requirements and planned operations. The appropriate amount may depend on factors such as your industry, business model, banking requirements and immigration or work pass considerations.

A corporate service provider can help you determine an appropriate incorporation structure based on your circumstances.

6. Company Constitution

Your company also needs a constitution. This document sets out rules relating to how the company is operated and the rights and responsibilities of its directors and shareholders.

ACRA allows companies to adopt a model constitution or use a customised constitution where appropriate.

Step-by-Step: How to Incorporate a Company in Singapore as a Malaysian

Once you understand the requirements, the incorporation process is relatively straightforward.

Step 1: Decide on Your Business Structure

For many entrepreneurs, a Private Company Limited by Shares (Pte. Ltd.) is a popular business structure in Singapore. For Malaysian entrepreneurs with operations in both countries, another option to consider is a Singapore holding company (Holdco) with a Malaysia Sdn Bhd as the operating company.

This dual-company structure can allow businesses to leverage Singapore’s strong financial and corporate framework while maintaining cost-effective operations and access to the Malaysian market.

Core Structure

• Singapore Holdco (Parent Company): The Singapore company acts as the parent entity and may hold intellectual property (IP), raise venture capital or institutional funding, enter into contracts with international clients, and own all or a majority of the Malaysian subsidiary.
• Malaysia Sdn Bhd (Operating Company/Subsidiary): The Malaysian entity manages local business activities, hires employees and regional talent, handles physical supply chains, and serves customers in the Malaysian market.

Why Use This Dual Structure?

The right structure will depend on factors such as the nature of the business, ownership arrangements, where revenue is generated, where employees are based, intellectual property ownership, tax considerations, and future expansion plans.

Choosing the appropriate structure at the beginning can help minimise unnecessary restructuring and administrative costs as the business grows.

Step 2: Choose and Reserve Your Company Name

The next step is to choose a company name and submit it for approval through ACRA’s BizFile system. The name should be available and must comply with Singapore’s naming requirements.

The current ACRA fee for a new business entity name application is S$15. An approved name can generally be reserved for up to 120 days.

It is advisable to prepare several alternative names in case your preferred name is unavailable or requires further review.

Step 3: Prepare the Required Information

You will need to provide information such as:

• Proposed company name
• Business activities
• Registered office address
• Shareholders’ details
• Directors’ details
• Share capital
• Company constitution
• Details of registrable controllers and, where applicable, nominee arrangements

ACRA’s current BizFile incorporation process includes entering company details, adding directors and shareholders, providing controller information, specifying share capital, and submitting the constitution.

For a foreign entrepreneur, identity and supporting documents may also be required as part of the incorporation and due diligence process.

Step 4: Appoint a Local Resident Director

If you are a Malaysian entrepreneur who does not meet Singapore’s local residency requirement for directors, you will need to arrange for a qualifying local resident director. This is one of the most important considerations when incorporating a Singapore company from Malaysia.

A professional corporate service provider can explain the available options and the responsibilities of a nominee or resident director.

Step 5: Appoint a Registered Office and Company Secretary

You will need a Singapore registered office address. You should also ensure that the company has an eligible company secretary appointed within the required timeframe.

Working with a corporate service provider can make this process easier, particularly if you are managing your Singapore company from Malaysia.

Step 6: Submit the Incorporation Application

Once all the information and documents are ready, the incorporation application can be submitted through BizFile.

ACRA currently charges S$300 to register a new business entity, in addition to the S$15 business name application fee. Most straightforward registrations are approved soon after payment, although complex applications can take longer.

The total amount you spend on incorporating a company in Singapore will be higher than the government filing fees if you engage a corporate service provider, registered office service, nominee director, or other professional services.

Step 7: Receive Your Company Registration Details

Once the application is approved, your Singapore company will receive its Unique Entity Number (UEN) and registration details.

You can then proceed with the next steps required to start operating your business.

Can a Malaysian Own 100% of a Singapore Company?

Yes, a Malaysian entrepreneur can generally hold 100% of the shares in a Singapore private company.

Singapore does not generally require a Singapore citizen or permanent resident to own a percentage of the company’s shares simply because the founder is a foreigner.

However, ownership and management are separate considerations. You may be the sole shareholder while still needing to satisfy requirements relating to a locally resident director, registered office, and other company officers.

This distinction is important for Malaysian entrepreneurs who want full ownership of their Singapore business.

Can a Malaysian Director Live in Malaysia?

A Malaysian can potentially be appointed as a director of a Singapore company, but the company must still meet Singapore’s requirement for at least one director who satisfies the local residency requirement.

Therefore, if all proposed directors live in Malaysia and none meets the applicable Singapore residency criteria, the company will need to make appropriate arrangements to satisfy the requirement.

This is one reason many foreign entrepreneurs need to work with a Singapore corporate service provider when incorporating remotely.

Do You Need a Singapore Work Pass to Own a Company?

Owning shares in a Singapore company and physically working in Singapore are two different matters.

A Malaysian entrepreneur may be able to own shares in a Singapore company without automatically obtaining a Singapore work pass. However, if you intend to relocate to Singapore and actively operate your business, you need to consider the relevant immigration and work pass requirements.

For example, Singapore’s EntrePass is designed for eligible foreign entrepreneurs who want to start and operate businesses that are venture-backed or possess innovative technologies. It is open to all nationalities, subject to the eligibility criteria.

Not every foreign entrepreneur qualifies for an EntrePass. For example, businesses such as certain traditional retail, food and beverage, and other specified activities may not qualify under the EntrePass scheme.

Therefore, if your objective is to relocate to Singapore and manage your business here, you can apply for an Employment Pass, your work pass options, before making incorporation and relocation decisions.

What Happens After Incorporating Your Singapore Company?

Company incorporation is only the beginning. You will also need to manage your company’s ongoing compliance obligations.

Open a Corporate Bank Account

Once your company is incorporated, you can apply for a corporate bank account in Singapore.

Banks may request documents such as:

• Certificate or proof of incorporation
• Company Business Profile
• Constitution
• Board resolutions
• Identification documents
• Information about shareholders and directors
• Information about the company’s business activities

HeySara’s established relationships with banking partners can help make the corporate bank account opening process more convenient for Malaysian entrepreneurs. Depending on the bank’s requirements, company profile, and due diligence assessment, remote account opening may be possible—allowing eligible founders to begin the application process without travelling to Singapore.

However, each bank applies its own onboarding and verification procedures. Incorporating a Singapore company does not automatically guarantee bank account approval, and some applicants may still be required to attend an in-person or video verification session or provide additional documents.

With HeySara’s guidance, Malaysian founders can better understand the available banking options and the documentation needed to support their application.

Register for Corppass

Corppass is used to access many Singapore government digital services on behalf of a business. ACRA notes that businesses can apply for Corppass after obtaining their UEN, with the application available one day after the UEN is issued.

Maintain Company Registers

Singapore companies must maintain the relevant statutory registers and information.

This includes maintaining information relating to registrable controllers and, where applicable, nominee directors and nominee shareholders. Keeping these records updated is an important part of ongoing corporate compliance.

File Annual Returns

Singapore companies have continuing filing obligations with ACRA, including annual returns. Your company may also need to hold an Annual General Meeting depending on the applicable requirements and circumstances.

Using a company secretary or corporate service provider can help ensure that important filing deadlines are monitored.

Manage Corporate Tax

Singapore companies are subject to corporate income tax on their taxable income. The headline corporate income tax rate is currently 17%. Qualifying new companies may benefit from the start-up tax exemption scheme for their first three consecutive Years of Assessment.

Your company may also need to submit its corporate tax filings and Estimated Chargeable Income (ECI), depending on the applicable requirements.

Check Whether GST Registration Is Required

Not every newly incorporated company needs to register for GST immediately.

However, GST registration may become compulsory when the company’s taxable turnover exceeds the applicable threshold. IRAS currently states that compulsory GST registration applies where taxable turnover exceeds S$1 million, subject to the relevant rules and calculations.

You may also consider voluntary GST registration depending on your business circumstances.

How Much Does It Cost to Incorporate a Company in Singapore as a Malaysian?

The government filing fees are relatively straightforward.

ACRA’s current published fees list S$15 for a new business entity name application and S$300 for registering a new business entity.

However, the actual cost for a Malaysian entrepreneur will depend on the professional services you require.

For example, you may need to budget for:

• Corporate service provider fees
• Local resident or nominee director services
• Registered office address
• Company secretary services
• Accounting and bookkeeping
• Corporate tax filing
• Corporate bank account support
• Business licences
• Work pass application, where applicable

Rather than focusing only on the incorporation fee, consider the total cost of maintaining a compliant Singapore company.

Singapore vs Malaysia: Key Factors for Malaysian Entrepreneurs

For Malaysian entrepreneurs deciding where to establish their business, Singapore and Malaysia offer different advantages in terms of incorporation, taxation, funding, talent, and operating costs. Here is a quick comparison of some key factors:

What Does This Mean for Malaysian Founders?

For Malaysian entrepreneurs, the decision between Singapore and Malaysia is not simply about choosing the country with the lower tax rate. The more important question is where each part of the business should be based.

A Singapore company may be attractive for businesses seeking access to international investors, regional headquarters, cross-border clients, and Singapore’s established financial and corporate ecosystem. Singapore also has a headline corporate income tax rate of 17%.

At the same time, Malaysia can offer lower operating costs, access to a large domestic market, and a potentially more cost-effective base for employees, technology development, manufacturing, or back-office functions.

For businesses operating across both countries, a Singapore Holdco + Malaysia Sdn Bhd structure may therefore be worth considering. The Singapore entity can serve as the regional or holding company, while the Malaysian entity manages local operations where appropriate.

Tax treatment can be complex, particularly when a business has cross-border revenue, related-party transactions, intellectual property, employees or directors in different countries. Foreign-sourced income exemptions, withholding taxes, tax treaties and transfer-pricing requirements should therefore be assessed based on the company’s specific circumstances rather than assumed from headline tax rates.

Note: Tax rates, incentives, registration thresholds and eligibility requirements can change. The figures above are intended as a general comparison and should not be treated as tax advice. Malaysian founders should obtain professional advice before choosing a corporate structure or making cross-border tax arrangements.

Incorporate Your Singapore Company With HeySara

For Malaysian entrepreneurs looking to establish a business presence in Singapore, incorporating a company can be a straightforward process when the requirements are properly planned.

From choosing your company structure and reserving a business name to arranging a local resident director, registered office, and company secretary, each step needs to be handled correctly.

HeySara can help simplify the company incorporation process for foreigners and entrepreneurs looking to establish their businesses in Singapore. With the right corporate setup and ongoing compliance support, you can focus on building your business while ensuring that your Singapore company meets its regulatory obligations.

Thinking about starting a company in Singapore from Malaysia? Speak to HeySara to understand the incorporation requirements and find the right setup for your business.

Singapore has always been a popular destination for incorporating a company because of how easy it is to do so. You can register a company in Singapore as a foreigner online within days, and that too from anywhere. By incorporating a company in Singapore, one can gain access to Southeast Asian markets, a business-friendly regulatory environment, and a strong financial ecosystem.

The good news is that Chinese nationals can incorporate a company in Singapore even if they are not Singapore permanent residents. However, foreign entrepreneurs need to meet certain requirements, particularly regarding the appointment of a local resident director and a corporate service provider (CSP) in Singapore.

If you are a Chinese entrepreneur planning to start a business in Singapore, understanding the incorporation process can help you prepare the necessary documents and avoid unnecessary delays.

Can a Chinese National Incorporate a Company in Singapore?

Yes, foreigners can establish a Singapore private limited company, and a foreign shareholder can generally own 100% of the shares.

However, as a foreign entrepreneur, you will need to engage a Corporate Service Provider (CSP) in Singapore, such as HeySara, to help with the company registration process. You will also need to meet Singapore’s local residency requirements, which means your company must have at least one director who is ordinarily resident in Singapore. This could be a Singapore citizen, Permanent Resident, or a foreigner holding an eligible pass that meets the residency requirements.

For many Chinese entrepreneurs, a Singapore private limited company is a popular structure because it offers limited liability and a separate legal identity from its shareholders.

Why Incorporate a Company in Singapore?

Singapore’s strategic location makes it a practical base for businesses targeting Southeast Asia and international markets.

Some potential advantages include:

1. Access to Southeast Asian Markets

Singapore is strategically located in the heart of Southeast Asia and has strong trade and commercial connections with countries such as Malaysia, Indonesia, Thailand, and Vietnam.

For Chinese companies and entrepreneurs looking to expand beyond China, Singapore can serve as a regional headquarters or business hub.

2. Business-Friendly Environment

Singapore has a transparent regulatory framework and a relatively straightforward company incorporation process.

The country also has a strong reputation for protecting intellectual property, enforcing contracts, and maintaining high standards of corporate governance.

3. Attractive Corporate Tax Environment

Singapore’s corporate income tax rate is currently 17% of chargeable income for both local and foreign companies. Qualifying newly incorporated companies may also benefit from applicable tax exemption schemes.

However, tax treatment depends on the company’s circumstances, income sources, and tax residency status. Entrepreneurs should seek professional tax advice when planning their Singapore business structure.

4. Strong Financial Infrastructure

Singapore has a well-developed banking and financial ecosystem, making it easier for eligible businesses to access corporate banking, payment solutions, and other financial services.

5. A Multilingual and Culturally Diverse Business Environment

For Chinese entrepreneurs, another advantage of doing business in Singapore is the country’s multilingual environment. Singapore has four official languages — English, Mandarin, Malay and Tamil — with English commonly used for business and administration.

Mandarin is also widely spoken within the local Chinese community, so Chinese business owners may find it easier to communicate and build relationships with customers, employees and business partners, particularly in Chinese-speaking business circles.

While English remains important for official documents, contracts and most business communications, the availability of Mandarin in everyday life can make settling into Singapore’s business environment feel more familiar for entrepreneurs from China.

Step-by-Step Guide to Incorporating a Company in Singapore as a Chinese National

Step 1: Decide on Your Business Structure

Before setting up your business, it’s important to choose a structure that suits your needs. Consider factors such as your level of personal liability, setup and running costs, and how you plan to grow the business in the future.

As a foreign entrepreneur, you can choose from several business structures in Singapore, including a sole proprietorship, partnership, limited partnership (LP), limited liability partnership (LLP), or a private limited company (Pte Ltd).

For many foreign entrepreneurs starting a new business in Singapore, a private limited company (Pte Ltd) is a popular choice because it offers limited liability, a separate legal identity, and greater flexibility for future growth.

If you are establishing a new business rather than expanding an existing Chinese company, a Singapore private limited company may be worth considering.

Step 2: Choose and Reserve Your Company Name

Your proposed company name must be available and comply with Singapore’s naming requirements. Your Corporate Service Provider can assist with the name reservation process and incorporation application.

It is advisable to prepare several alternative names in case your preferred name is unavailable or requires further review. You should also consider whether the proposed name could create trademark or intellectual property issues.

Step 3: Appoint a Local Resident Director

One of the most important requirements for a Chinese national incorporating a Singapore company is the local residency requirement.

A Singapore company must have at least one director who is ordinarily resident in Singapore. If you live in China and do not have a suitable Singapore-resident director, you may need to arrange an appropriate local resident director through your Corporate Service Provider.

This is an important point to discuss before incorporation because the company cannot simply be registered without satisfying the local residency requirement.

Step 4: Determine Your Shareholders and Share Capital

Foreign entrepreneurs can generally hold shares in a Singapore company. For example, a Chinese entrepreneur may establish a company where they own 100% of the shares, subject to the company’s structure and applicable requirements.

You will need to provide details of the shareholders and the number and type of shares issued. The amount of paid-up capital should be planned according to the nature and requirements of your business.

Step 5: Prepare a Singapore Registered Office Address

Every Singapore company needs a registered office address in Singapore. This is the official address where statutory notices and company correspondence can be sent.

If you are a Chinese entrepreneur who does not have a physical office in Singapore, you may be able to use a registered office service provided by a Corporate Service Provider, subject to the applicable requirements.

Step 6: Appoint a Company Secretary

A Singapore company must appoint a company secretary within six months of incorporation. The company secretary must meet the applicable requirements under Singapore company law.

The secretary plays an important role in helping the company maintain its statutory records and comply with corporate filing obligations. For foreign business owners unfamiliar with Singapore’s corporate requirements, professional corporate secretarial support can be particularly useful.

Step 7: Register the Company

Once you have prepared the necessary information and documents, your Corporate Service Provider can submit the incorporation application through ACRA’s BizFile+ system.

Typical information and documents may include:

• Proposed company name
• Business activities
• Singapore registered office address
• Details of shareholders
• Details of directors
• Share capital information
• Company constitution
• Identification documents
• Residential addresses of relevant individuals

The exact documents required can vary depending on the company’s structure and individuals involved.

Step 8: Open a Corporate Bank Account

Once your company has been successfully incorporated, you can proceed with opening a corporate bank account in Singapore.

Singapore offers a range of local and international banking options. However, banks will carry out their own due diligence and Know Your Customer (KYC) checks before approving an account. Chinese shareholders may be asked to provide additional information about their source of funds, business activities, ownership structure, and expected transactions.

For overseas entrepreneurs, the bank account opening process can sometimes be challenging, especially if you are not based in Singapore. This is where working with an experienced Corporate Service Provider can be helpful. HeySara has established relationships with banks, like OCBC, in Singapore and can assist eligible clients with the corporate bank account opening process, including facilitating remote account opening where supported by the bank. This can make the process more convenient for Chinese entrepreneurs who are setting up their business from overseas.

Having a clear business plan and properly prepared corporate documents can also help make the KYC and account opening process smoother. As banking requirements vary, the final approval remains subject to the bank’s assessment and requirements.

Step 9: Check Whether You Need Business Licences

Company incorporation does not automatically give you permission to conduct every type of business.

Certain industries require specific licences or approvals before operations can begin. These may include businesses in areas such as food and beverage, education, financial services, employment agencies and import/export activities.

ACRA recommends checking whether additional licences or permits are required for your business before commencing operations.

Does a Chinese National Need a Singapore Work Pass?

Incorporating a company and having permission to work in Singapore are two different matters.

A foreigner who is not residing in Singapore does not necessarily need an Employment Pass simply to be registered as a director. MOM states that foreigners who are not residing in Singapore, such as Social Visit Pass holders, do not need an Employment Pass merely to be a registered director.

However, if you intend to move to Singapore and actively operate your business, you need to consider the appropriate immigration or work-pass requirements.

Check with the relevant pass issuer, such as MOM or ICA, to confirm whether you are allowed to register and operate a business under your current pass.

Want to know more about the different passes? Refer to our guide, Employment Pass vs S Pass vs EntrePass: Which Singapore Work Pass Is Right for You in 2026?

Importantly, incorporating a company does not automatically guarantee approval for a work pass.

Ongoing Compliance After Incorporation

Setting up your company is only the beginning. Singapore companies have ongoing corporate compliance obligations.

These may include:

• Maintaining company registers
• Filing annual returns
• Maintaining proper accounting records
• Preparing financial statements where required
• Filing corporate tax returns
• Appointing a company secretary
• Maintaining information on registrable controllers
• Checking applicable licensing requirements

Companies must maintain accurate records of directors, shareholders and other relevant persons. A Register of Registrable Controllers is also required unless an exemption applies.

Depending on the company’s circumstances, an auditor may also need to be appointed within three months of incorporation unless the company qualifies for an audit exemption.

For a business owner based in China, working with a Singapore corporate services provider can make it easier to manage these ongoing requirements without needing to handle every administrative process personally.

Why Work With a Corporate Services Provider?

Setting up a company in Singapore may seem straightforward, but for Chinese entrepreneurs who are unfamiliar with the local rules and regulations, there can be quite a few details to take care of. From registering your company and finding a local resident director to keeping up with annual filings and tax requirements, it can quickly become time-consuming.

Working with a corporate services provider can make the process much easier. They can guide you through the incorporation process and help with important requirements such as:

• Reserving and registering your company name
• Incorporating your Singapore company
• Arranging a local resident director, where required
• Providing a registered office address
• Appointing a company secretary
• Managing ongoing corporate compliance
• Handling accounting and bookkeeping
• Preparing and filing tax returns
• Assisting with corporate bank account applications
• Advising on relevant business licences and permits

Having professional support means you don’t have to navigate Singapore’s corporate requirements on your own. Instead, you can spend more time focusing on your business, customers, and plans for growth, while having greater peace of mind that your company’s administrative and compliance matters are being properly managed.

Start Your Singapore Business With the Right Support

For Chinese entrepreneurs, incorporating a company in Singapore can be an effective way to establish a presence in Southeast Asia and access Singapore’s well-developed business ecosystem. However, foreign founders need to understand requirements relating to local directors, registered addresses, company secretaries, immigration, taxation, and ongoing compliance.

The process doesn’t have to be complicated. With the right information and professional guidance, you can get your company set up properly and focus on what matters most — growing your business.

HeySara can help Chinese entrepreneurs navigate the Singapore company incorporation process and understand the requirements involved in setting up and maintaining a business in Singapore. From incorporation and corporate secretarial services to accounting and compliance support, getting professional guidance from the beginning can help you establish your business on a stronger foundation. We have offices in Shanghai and Hong Kong that can support you in setting up your business in Singapore.

“Best” moment to register is once your name, structure, and documents are ready — the filing itself is quick. This guide walks Singapore citizens and PRs through what’s required before you file, the filing process itself, and what to handle immediately after incorporation.

ACRA Government Fees

Fees are fixed by ACRA regardless of company structure or share capital. Figures current as of 28 August 2026 — confirm against ACRA’s fee schedule before filing.

How Long Does It Take?

Regulated business activities (finance, education, healthcare, etc.) require additional agency review and can add weeks to this timeline.

Below are the steps to register your company if you are a local resident of Singapore:

Before You File: What You Need

1. An approved company name

ACRA must approve your company name before you can incorporate. It must be unique, free of trademark conflicts, and not contain restricted words. Have 2–3 backup names ready. Once approved, the name is reserved for 120 days — incorporate within that window or the reservation lapses.

2. A company structure

Singapore recognises several business structures; the private limited company is the standard choice for most founders, offering limited liability and full compliance flexibility. Compare structures →

3. An SSIC code

Every company must declare its business activity using a Singapore Standard Industrial Classification (SSIC) code. Search SSIC codes →

4. A company constitution

A legal document setting out your company’s governance rules — director/shareholder rights, share capital, and internal procedures. You can draft your own or adopt ACRA’s Model Constitution.

5. At least one resident director

Must be 18+ and ordinarily resident in Singapore (citizen, PR, or eligible pass holder). Non-resident directors are also allowed, provided they hold appropriate documents such as an EntrePass. No cap on the number of directors, resident or otherwise — but each must be free of bankruptcy or disqualification under the Companies Act.

6. At least one shareholder

Minimum 1, maximum depends on company structure. Individuals or corporate entities are both eligible.

7. A company secretary

Must be appointed within 6 months of incorporation. Cannot be the company’s sole director. Read more about the roles and responsibilities of a company secretary →

8. S$1 minimum paid-up capital

Can be increased after incorporation — no upper limit.

9. A registered office address in Singapore

Must be a physical address (no P.O. boxes), accessible to the public for at least 3 hours during business hours daily. Residential addresses are permitted for eligible business types. Check out HeySara’s registered office address services →

Steps to Register Your Company

Step 1: Reserve your company name

Submit your name application on BizFile+ — ACRA‘s online platform — via Singpass, or have your corporate service provider file on your behalf. Cost: S$15. Most straightforward names are approved within hours.

Step 2: Prepare your incorporation documents

Gather: company name approval, SSIC code, registered address details, shareholder and director particulars, company secretary details, and your constitution (or adoption of the Model Constitution).

Step 3: File your incorporation application

Submit via BizFile+ using Singpass (local founders) or through your filing agent. Cost: S$300. You’ll be assigned an auto-generated Unique Entity Number (UEN) — or opt for a customised Special UEN (SUN) at an added cost. Find out how to get your Special UEN →

Step 4: Receive ACRA approval and confirm officer roles

Once approved, every director, shareholder, and company secretary must endorse their appointment in BizFile+ within 60 days, or the application lapses.

Step 5: Receive your Certificate of Incorporation and UEN

Issued electronically once all officers confirm. Your Unique Entity Number (UEN) is used on all official documents going forward. Download your free Business Profile within 60 days — after that, it must be purchased from ACRA.

After You’re Incorporated

• Open a corporate bank account — you’ll need your Certificate of Incorporation, Business Profile, Constitution, and certified copies of director/signatory/shareholder NRICs, plus a Board Resolution sanctioning the account and its signatories. Read more on how to open a corporate bank account in Singapore →
• Appoint an auditor within 3 months, unless your company qualifies for audit exemption.
• Check for required licences — depending on your business activity, you may need sector-specific approval before operating: e.g. Singapore Tourism Board (travel agencies), Ministry of Education (schools), Council for Estate Agencies (real estate), or Board of Architects (architectural services).
• Maintain statutory registers — directors, shareholders, CEOs, secretaries, auditors, controllers/beneficial owners (RORC), and nominee director/shareholder registers (ROND/RONS), updated within 14 days of any change via BizFile+.
• Choose your Financial Year End (FYE) — commonly 31 March, 30 June, 30 September, or 31 December. This sets your annual return and AGM deadlines. Changes are possible but capped at an 18-month financial year, and require Registrar approval if your last change was on or after 31 August 2018 and falls within 5 years of that change. Find out more on choosing your FYE →
• Consider trademark registration — optional, but protects your brand under the Trade Marks Act. Processing takes around 12 months; protection lasts 10 years, renewable.