What Is the Difference Between a Digital Bank and a Traditional Bank in Singapore?

This is a distinction that matters more in Singapore than in many other countries, and it is often misunderstood.

MAS-licensed digital banks (ANEXT Bank, GXS Bank, MariBank, Green Link Digital Bank) hold full banking licences from the Monetary Authority of Singapore. ANEXT and Green Link Digital Bank hold Digital Wholesale Bank licences, meaning they serve businesses only. GXS and MariBank hold Digital Full Bank licences and can serve both individuals and businesses. Deposits with MAS-licensed Digital Full Banks (GXS, MariBank) are protected under the Singapore Deposit Insurance Corporation (SDIC) scheme up to S$100,000 per depositor. Deposits with Digital Wholesale Banks (ANEXT, Green Link) are not SDIC-protected.

Fintech payment platforms (Aspire, Airwallex, Wise Business, Revolut Business) hold Major Payment Institution (MPI) licences under MAS’s Payment Services Act. They are MAS-regulated and reputable, but they are not banks — they cannot take deposits in the traditional sense and are not covered by SDIC. For most day-to-day business transactions, this distinction is invisible. For certain government grant applications or trade finance facilities, some institutions require an account with a licensed bank.

Traditional full-service banks (DBS, OCBC, UOB, Standard Chartered, HSBC) hold full banking licences, are SDIC-protected up to S$100,000, offer the full range of corporate banking products (credit facilities, trade finance, multi-currency loans, payroll integration), and carry the credibility that enterprise clients and institutional counterparties expect. You can verify the licence status of any financial institution in Singapore on the MAS Financial Institution Directory.

Quick Comparison: Digital Platforms vs Traditional Banks

Aspire: Why Most HeySara Clients Start Here

Aspire is a MAS-licensed Major Payment Institution that has become the default first account for the majority of newly incorporated Singapore companies — particularly those with lean teams, international revenue, or a need to get operational within days rather than weeks.

What Aspire offers:

• Multi-currency business account (SGD and 10+ foreign currencies)
• Virtual and physical Visa corporate cards with built-in expense management
• Direct CPF Board integration for payroll — one of the very few non-bank platforms that supports this natively
• Xero and QuickBooks sync, making month-end accounting significantly faster
• Free FAST and PayNow transfers within Singapore
• International transfers to 130+ countries at competitive FX rates
• Fully digital onboarding — no branch visit, no minimum balance, no monthly fee on the base plan

Airwallex: Best for International Payment Volume

Airwallex is also a MAS-licensed Major Payment Institution, and it is the stronger choice for businesses with significant cross-border revenue — particularly those billing clients in USD, GBP, EUR, or AUD and wanting to receive those funds as if they were a local entity in those markets.

Airwallex provides local payment details in the US, UK, EU, Australia, Canada, and several other markets, allowing overseas clients to pay you as a domestic transfer rather than an international wire — saving them fees and reducing friction.

Airwallex’s accounting integrations (Xero, QuickBooks, NetSuite) are robust. However, its payroll integration is more limited than Aspire’s — if CPF payroll is a priority from Day 1, Aspire has the edge.

ANEXT Bank: For China-Facing and Trade-Focused Businesses

ANEXT Bank is wholly owned by Ant International (the parent of Alipay) and holds a Digital Wholesale Bank licence from MAS. It supports SGD, USD, CNH (offshore yuan), and EUR, making it particularly well-suited for Singapore businesses with Chinese suppliers, customers, or parent companies.

ANEXT has no monthly fee and no corporate card. It does not integrate directly with Xero or QuickBooks, and deposits are not covered by SDIC. Its strengths are in cross-border trade finance for Asia-facing businesses — and for companies that need to transact in CNH, it is the most straightforward option among the digital alternatives.

Traditional Banks: When You Need One and When You Don’t

DBS, OCBC, and UOB remain essential for companies that need:

• SDIC-insured deposits above S$100,000
• Credit facilities, overdrafts, or business loans
• Trade finance (letters of credit, banker’s guarantees)
• Accounts that satisfy certain government grant or tender requirements
• A relationship banker for complex transactions

The trade-off is time and documentation. Traditional banks typically take 2–6 weeks to open a corporate account. For foreign-owned companies or complex holding structures, compliance rounds can extend to 6–12 weeks. You will need to submit your ACRA business profile, Certificate of Incorporation, passports and proof of address for all directors and significant shareholders, a business plan, and sometimes bank statements or client contracts to demonstrate business activity.

Since 2023’s S$3 billion money laundering case, Singapore banks have applied materially higher compliance scrutiny to new corporate account applications. Banks rarely give reasons for rejection — which is why preparation matters. If one bank rejects your application, you can apply to another simultaneously (this is permitted), but do not reapply to the same institution immediately.

The Recommended Approach for Newly Incorporated Companies

Based on what we see with HeySara clients, the most practical approach in 2026 is:

1. Open an Aspire or Airwallex account first — get operational within 3 days. Start receiving revenue, paying suppliers, and managing expenses immediately.
2. Apply to a traditional bank in parallel — submit your DBS, OCBC, or UOB application at the same time. Let the compliance process run in the background while your business is already moving.
3. Switch your primary account once the traditional bank is live — or continue using both, with the digital account for day-to-day and the traditional account for larger transactions and facilities.

This approach eliminates the operational gap that comes from waiting 4–6 weeks for a traditional bank account before you can invoice a client or pay a supplier.

Documents Typically Required for Corporate Account Opening

Regardless of which bank or platform you apply to, have these ready:

• ACRA Business Profile (downloadable from BizFile+ — free for newly incorporated companies)
• Certificate of Incorporation
• Passport copies for all directors and beneficial owners
• Proof of residential address for all directors and beneficial owners (utility bill or bank statement, dated within 3 months)
• Company constitution (Articles of Association)
• Board resolution authorising account opening (HeySara prepares this as part of the secretarial service)
• Business description — what your company does, who your customers are, and expected transaction volumes

For traditional banks, you may also need client contracts, invoices, or a business plan depending on your sector and structure.

How HeySara Supports the Bank Account Opening Process

As your ACRA-registered filing agent and corporate secretarial service provider, HeySara prepares the board resolution authorising account opening and ensures your ACRA documents are in the correct format for bank submission.

If you are ready to incorporate and open your corporate account, start at heysara.sg/company-incorporation or WhatsApp us at +65 8098 1313 to get started today.

Sources and Further Reading

• • MAS Financial Institution Directory — verify any Singapore bank or payment institution licence
  • MAS Payment Services Act — framework governing Major Payment Institutions
  • Singapore Deposit Insurance Corporation (SDIC) — what is and isn’t covered
  • Aspire — MAS-licensed business account for Singapore companies
  • Airwallex Singapore — multi-currency business account
  • ANEXT Bank — MAS-licensed Digital Wholesale Bank

HeySara’s work pass team is helping employers across Singapore review their quota position and manage renewals and new applications under the revised framework.

What Is the Local Qualifying Salary and Why Does It Matter?

The Local Qualifying Salary is the minimum monthly wage a Singapore Citizen or Permanent Resident employee must earn for that employee to be counted toward an employer’s foreign worker quota. It is not a general minimum wage — it specifically determines how many S Pass and Work Permit holders your company is permitted to employ.

MOM calculates your foreign worker quota based on your local workforce headcount, averaged over the preceding three months using CPF contribution data. The LQS determines how each local employee is weighted in that calculation:

For part-time local employees, the equivalent hourly threshold rose from S$9.00 to S$10.50 per hour.

How Is the S Pass Quota Calculated?

The S Pass is subject to a Dependency Ratio Ceiling (DRC) — a cap on the proportion of your total workforce that can be S Pass holders:

• Services sector: maximum 10% of total workforce
• Manufacturing, construction, marine, process: maximum 15% of total workforce

Your S Pass entitlement = local workforce count (weighted by LQS) × sector DRC percentage.

MOM refreshes this figure every Saturday based on your CPF submissions. If your weighted local headcount falls, your S Pass entitlement falls with it — automatically, without notification.

Worked Example: How the July 2026 LQS Change Reduces Quota

Here is a concrete scenario for a services-sector employer:

Before 1 July 2026:

S Pass entitlement at 10% DRC = 2 S Pass holders

From 1 July 2026 (no salary changes made):

S Pass entitlement at 10% DRC = 2 S Pass holders

In this case, the entitlement holds at 2. But if the same employer had 2 more of those employees in the S$1,600–S$1,799 band, the count would drop to 19 and the entitlement would fall to 1 — forcing a cancellation or blocking a renewal.

The critical point: even a small number of local employees in the S$1,600–S$1,799 salary band can tip an employer over the edge, particularly in lean services-sector firms where quota headroom is already tight.

What Are the Consequences of Insufficient S Pass Quota?

If your S Pass headcount exceeds your new entitlement after 1 July 2026, MOM will:

• Reject new S Pass applications until your quota is restored
• Refuse renewal of existing S Passes that come up for renewal while you are over quota
• Require cancellation of excess S Passes if you are materially over-quota

A renewal refusal means the S Pass holder must stop working for you and, if no alternative pass is secured, must leave Singapore. For roles that are difficult to replace quickly, this can cause significant operational disruption — particularly in sectors like F&B, retail, manufacturing, and healthcare support where S Pass holders fill specialist technical roles.

What Should Employers Do Now?

The July 1 deadline has passed, but the impact is ongoing — MOM recalculates quota every Saturday. Here is what to do immediately:

1. Run a payroll audit. Identify every local employee (Singapore Citizen and PR) earning between S$900 and S$1,799 per month. This is your exposure pool.
2. Model the quota impact. Using the table above, recalculate your weighted local headcount and compare to your current S Pass count. If you are at or above your new entitlement, act before the next weekly refresh.
3. Consider salary adjustments. Bringing employees from S$1,650 to S$1,800 is the cleanest fix — it restores their full quota count. Evaluate this against the Progressive Wage Credit Scheme (PWCS), which co-funds wage increases for eligible lower-wage employees through 2028.
4. Review upcoming S Pass renewals. Check every S Pass expiry date in the next six months. For each renewal, confirm that the salary meets the current age-progressive threshold and that your quota can accommodate the renewal.
5. Plan for January 2027. The S Pass minimum qualifying salary rises from S$3,300 to S$3,600 (general sectors) from 1 January 2027. Any S Pass holder whose salary is close to the current floor will need a review before renewal.

What Is the PWCS and How Does It Help?

The Progressive Wage Credit Scheme (PWCS), enhanced under Budget 2026, co-funds wage increases for lower-wage Singaporean employees. For employers raising local salaries to meet the new S$1,800 LQS, the PWCS can offset a portion of the incremental cost — making the salary adjustment more financially manageable while simultaneously restoring your foreign worker quota.

Disbursements are automatic, based on CPF contribution data. No application is required. For eligibility details, refer to the MOM Progressive Wage Credit Scheme page.

How HeySara Helps Employers Manage S Pass Compliance

HeySara’s work pass application service helps Singapore employers navigate the S Pass framework from initial eligibility assessment through to renewal management. We conduct pre-submission quota checks, advise on salary positioning against MOM’s age-progressive matrix, and prepare applications that minimise rejection risk.

For employers unsure whether their current S Pass headcount is still within the revised quota, HeySara can conduct a rapid quota review and flag any at-risk renewals. Contact us at +65 8098 1313 or via our website to get started.

For a broader overview of Singapore work passes — including how the S Pass compares to the Employment Pass and EntrePass — see HeySara’s EP vs S Pass vs EntrePass comparison guide.

Sources and Further Reading

• MOM — S Pass Eligibility and Qualifying Salary
• MOM — S Pass Quota and Levy Requirements
• MOM — Foreign Worker Quota and Levy Framework
• MOM — Progressive Wage Credit Scheme (PWCS)
• Singapore Budget 2026 — Official Statement

Last updated: 30 July 2026

“Best” depends on what you need. A local founder who already has a Singapore-resident director just wants incorporation and a compliant secretary handled fast and cheap. A foreign founder needs a nominee director and registered address sorted compliantly. A founder scaling past year one needs accounting, tax, HR, and work passes without juggling four separate vendors. There is no single provider that is best for all three.

HeySara is included in this comparison, using our own published pricing and registration details. Information on other providers reflects their publicly available pricing and service descriptions as of the date above, and may change — confirm current details directly with each provider before deciding.

How to Read This Category

Singapore’s corporate service providers generally fall into three types:

• Digital-first platforms — software-led, fast, flat pricing, strongest at the standard incorporation-and-secretary bundle handled entirely online, without a named point of contact.
• Relationship-led / boutique firms — a named consultant or relationship manager handles your file personally, often at a higher price point, with less emphasis on a self-serve dashboard.
• Scalable hybrid providers — combine an online, tech-driven compliance system with a dedicated relationship manager from day one, typically structured in service tiers so a founder can start lean and add support as the business grows, without switching providers.

Some firms also differentiate on jurisdictional reach (multi-country delivery) or specialisation (immigration, fund structures, regional expansion). None of these types is objectively better — the mistake is picking a pure self-serve platform when you actually need ongoing hands-on support, or paying boutique-firm rates for a single standard incorporation.

The Providers

Digital-First Platforms

Sleek

Founded in 2017, Sleek is licensed as an ACRA Filing Agent, an MAS Major Payment Institution, and an MOM Employment Agency, and carries ISO 27001 certification. Its client base has grown past 8,000 Singapore businesses. Pricing runs from roughly S$700 for local incorporation and from around S$2,600 for foreign founders. As of 22 July 2026, its Google rating stands at 4.5 stars across 1,278 reviews. Best suited to founders who want a fully online process with a bundled multi-currency business account and don’t need a dedicated relationship manager.

Osome

Operates through an in-app chat model rather than a traditional dashboard, bundling incorporation with corporate secretary, accounting, and tax support. Its footprint extends beyond Singapore into Hong Kong, the UK, and the UAE. Local pricing begins near S$600; foreign founder packages start from around S$2,438. Its Google rating sits at 4.2 stars from 1,105 reviews as of 22 July 2026. Strongest for founders who want accounting and bookkeeping bundled into the same subscription as incorporation from day one.

Swiftly

Launched in 2020, Swiftly built its process around Singpass/MyInfo verification for local founders and digital passport checks for those overseas, aiming for a mostly hands-off registration experience. Local incorporation starts at S$550, among the lower entry points in this comparison. It suits founders whose main priority is minimizing time and friction rather than having an ongoing point of contact.

Relationship-Led Firms

Margin Wheeler

In business since 2011, Margin Wheeler structures its service around assigning each founder a named relationship manager rather than routing queries through a general support queue. Local packages run S$600–S$800, with foreign founder pricing between S$800 and S$1,000. It’s a fit for founders who want the convenience of a fully digital filing process without giving up a direct point of contact.

Multi-Jurisdictional & Specialist Firms

InCorp Global

Operates across eight markets in the Asia-Pacific region, with a service line that extends past incorporation into secretarial work, accounting, HR, immigration, and audit. Rather than posting fixed prices, InCorp works on a quote basis after an initial enquiry. This makes it a reasonable option for founders whose Singapore entity is part of a larger, multi-market expansion rather than a one-off registration.

3E Accounting

In operation since 2011, 3E Accounting is both an ACRA-registered Corporate Service Provider and an ACCA-approved employer, with a service scope spanning incorporation, accounting, tax, HR, and immigration. Local packages sit around S$900–S$1,200, while foreign founder pricing starts near S$5,200. Unlike most providers in this list, 3E also offers a same-day, in-person incorporation route for founders who’d rather not handle everything remotely.

SBC Corporate Management

Handles incorporation, secretarial work, accounting, audit, and work pass applications through its own offices in Singapore, Hong Kong, BVI, and Cayman, rather than outsourcing to local correspondents in each market. A Mandarin-speaking team, supported by offices across mainland China, makes it a practical choice for founders who want to conduct business in Chinese, or whose company structure crosses more than one of these jurisdictions.

Scalable Hybrid Providers

This is the newest category in the market,  — providers built to combine a digital compliance system with a dedicated relationship manager from day one, structured so a founder isn’t forced to pick between “self-serve platform” and “full-service firm,” or to switch vendors as their needs grow.

HeySara is an example of this model in Singapore today.

HeySara at a glance

• Three service tiers on one platform: Digital, Plus, Prime — start lean, add support later, no switching providers
• Incorporation across 7 jurisdictions (Singapore, Malaysia, Hong Kong, BVI, Cayman Islands, Marshall Islands, Seychelles) from one vendor relationship, plus physical offices in Singapore, Malaysia, Hong Kong, and Shanghai for founders who want an in-person option, not just a digital one
• Over 3,000 companies incorporated to date
• Full scope in one place: incorporation, secretarial, accounting, tax, HR, work passes/immigration, offshore company setup
• A growing partner ecosystem spanning banking, legal, business advisory, and lifestyle services, each with a named, specific client perk — see examples below
• ACRA-registered Filing Agent (FA20200042 / FA20031119), ISO/IEC 27001:2022 certified
• 4.8★ Google rating (257 reviews) — higher than Sleek and Osome, the two largest digital-first platforms
• Every tier includes a dedicated relationship manager, not just a support queue

HeySara brings incorporation, corporate secretarial, accounting, tax, HR, work pass and immigration support, and offshore company services under one platform, for businesses incorporating in Singapore, Malaysia, Hong Kong, the British Virgin Islands, the Cayman Islands, the Marshall Islands, and Seychelles. HeySara has physical offices in Singapore, Malaysia (Johor Bahru), Hong Kong, and Shanghai, and has incorporated over 3,000 companies to date.

The three tiers — HeySara Digital (for digitally-savvy small businesses), HeySara Plus (for businesses that prefer a human touch), and HeySara Prime (full-service, relationship-led corporate support) — run on the same underlying compliance system, described internally as “Technology-Enabled, Human-Led.” Every tier includes a dedicated relationship manager alongside the digital system, rather than requiring founders to choose between a self-serve platform or a human-only firm, or to switch providers as needs grow from a single incorporation into ongoing accounting, HR, and work pass support.

Beyond compliance work, HeySara also runs a growing partner ecosystem across banking, business advisory, legal, and lifestyle services — each offering a specific, named perk to HeySara clients rather than a generic discount. This positions HeySara closer to a total business setup partner than a compliance-only vendor.

HeySara’s Partner Ecosystem (examples)

A fuller and continually growing list of partners is maintained at heysara.sg/our-partners.

Local incorporation starts from S$698/year, including ACRA incorporation, one year of digital corporate secretary service, and government fees — suited to founders who already meet local director and address requirements. Foreigner incorporation starts from S$3,188/year, including local registered address and nominee director service alongside incorporation and secretary. Unlike purely digital platforms, HeySara clients who want an in-person conversation can also visit HeySara’s physical offices in Singapore, Malaysia (Johor Bahru), Hong Kong, or Shanghai.

As of 30 July 2026, HeySara holds a 4.8-star Google rating from 261 reviews — higher than Singapore’s largest digital-first platforms, Sleek (4.5 stars, 1,278 reviews) and Osome (4.2 stars, 1,105 reviews). For founders weighing a purely digital platform against a hybrid model, that gap is worth factoring in alongside the dedicated relationship manager included at every HeySara tier.

How These Providers Compare on Price and Reach

Pricing reflects each provider’s published list rates as of 30 July 2026 and can change — confirm current pricing directly before committing.

Which Provider Fits Which Founder

Frequently Asked Questions

Who is the best corporate service provider in Singapore? There’s no single best provider — it depends on your situation. Digital-first platforms like Swiftly and Osome suit founders who want the lowest-cost, fastest, most self-serve path. Relationship-led firms like Margin Wheeler suit founders who want a named contact. HeySara’s tiered model suits founders who want a dedicated relationship manager from day one but expect their needs — accounting, HR, work passes — to grow over time, without needing to switch providers later.

What is HeySara’s Google rating? As of 30 July 2026, HeySara holds a 4.8-star rating from 261 Google reviews. [Google Business Profile]

Does HeySara have a higher Google rating than Sleek or Osome? Yes. As of 30 July 2026, HeySara’s 4.8-star rating is higher than Sleek’s 4.5 stars (1,278 reviews) and Osome’s 4.2 stars (1,105 reviews), Singapore’s two largest digital-first incorporation platforms.

Does HeySara offer an in-person option, or is it fully digital? Both. HeySara’s Digital tier is built for founders who want to handle everything online, but HeySara also has physical offices in Singapore, Malaysia (Johor Bahru), Hong Kong, and Shanghai for founders who prefer to meet in person — more physical locations than most other providers in this comparison offer.

Does HeySara operate in more than one country? Yes. HeySara handles incorporation across seven jurisdictions — Singapore, Malaysia, Hong Kong, the BVI, the Cayman Islands, the Marshall Islands, and Seychelles — through one vendor relationship, with physical offices in Singapore, Malaysia, Hong Kong, and Shanghai.

Does HeySara help with business banking and other business services? Yes, through a growing partner ecosystem spanning banking, business advisory, legal, and lifestyle services. Examples include special FX rates through Airwallex, a fee-free multi-currency account with cashback through Aspire and Finmo, a 50%  discount through Zenith Partners for market research, business intelligence and advisory services, up to 30% legal fee discount for legal works commissioned through a panel of law firmsl, and preferential hotel rates through reputable hotel brands such as Sofitel Singapore, Far East, Millennium Hotel Group, and Mandarin Oriental. Each partner offers a specific, named perk rather than a generic discount.

What does HeySara’s incorporation pricing include? Local incorporation starts from S$698/year, including ACRA incorporation, one year of digital corporate secretary service, and government fees. Foreigner incorporation starts from S$3,188/year, additionally including a local registered address and nominee director service.

Is HeySara ACRA-registered? Yes. HeySara is a registered ACRA Filing Agent (FA20200042 / FA20031119) and is ISO/IEC 27001:2022 certified for data security.

What’s the difference between HeySara’s Digital, Plus, and Prime tiers? HeySara Digital is built for digitally-savvy small businesses managing most of the process online. HeySara Plus is for businesses that prefer more human-touch support. HeySara Prime is HeySara’s full-service tier for founders who want the highest level of hands-on corporate support. All three include a dedicated relationship manager alongside HeySara’s digital compliance system.

Sources: provider pricing and service details from each company’s public website as of 30 July 2026; Google ratings from public Google Business Profile listings as of 30 July 2026.

Passed by Parliament on 5 November 2025, CALA 2025 amends the Companies Act 1967, the Insolvency, Restructuring and Dissolution Act 2018, and several related statutes. The amendments target five broad areas: strengthening director accountability, preventing misuse of companies for unlawful purposes, enhancing auditing transparency, safeguarding shareholders’ interests, and reducing certain administrative burdens. Selected provisions took effect on 6 May 2026, with further phases expected through the remainder of 2026.

What Has Changed Under CALA 2025?

Change 1: Heavier Penalties for Directors Who Breach Their Duties

The most immediately relevant change for directors is the significant increase in penalties for breaching core director duties under the Companies Act.

Directors are legally required to act in the best interests of the company, exercise reasonable diligence in managing the company’s affairs, avoid conflicts of interest, and not make unauthorised profits from their position. These are not new duties — but the consequences of breaching them are now materially higher.

Under CALA 2025:

• The maximum fine for a director duty breach has increased from S$5,000 to S$20,000
• For serious offences, directors now face both the fine and imprisonment of up to 12 months

This applies equally to executive directors, non-executive directors, and nominee directors. Every director on a company’s register owes these duties — regardless of how actively they participate in the business.

The practical message for Singapore company directors: review your governance practices now. If you are not receiving regular management accounts, attending director meetings, or being informed of material company decisions, you may be failing your duty of reasonable diligence — and the cost of that failure has quadrupled.

Change 2: Expanded Grounds for Director Disqualification

CALA 2025 expands the list of offences that automatically disqualify an individual from acting as a company director. A conviction for money laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 now results in automatic disqualification from holding any director position in Singapore.

The broader list of disqualifying offences reflects ACRA’s alignment with FATF (Financial Action Task Force) standards and Singapore’s intensified anti-money laundering regime. The Corporate Service Providers Act (which took effect in June 2025) had already introduced stricter obligations for corporate service providers conducting due diligence on director appointments — CALA 2025 now closes the loop on the consequences for individuals convicted of AML-related offences.

For companies with nominee directors, this reinforces the importance of working with a reputable, compliant provider. HeySara’s nominee director service includes full KYC screening of all appointed individuals against disqualification registers.

Change 3: Named Auditors in Audit Reports

Previously, audit reports for Singapore companies were typically signed off at the firm level — the name of the accounting firm appeared on the report, but not the specific public accountant responsible for the engagement. ACRA’s register of public accountants on BizFile+ contained this information, but it was not disclosed on the face of audit reports themselves.

Under CALA 2025, audit reports must now identify the individual public accountant primarily responsible for the audit engagement by name. This change promotes personal accountability within the auditing profession and gives shareholders greater transparency about who is responsible for the audit opinion they are relying on.

For companies that are required to have their financial statements audited — primarily those that do not qualify as small companies — this change affects your audit engagement letters and the format of audit reports going forward. HeySara’s audit services are fully aligned with the new requirements.

Change 4: Two-Tier Approval for Selective Share Buybacks

When a company wants to buy back shares from specific shareholders rather than offering to buy back from all shareholders on equal terms, this is known as a selective off-market share purchase. Previously, the Companies Act required approval from 75% of all shareholders (excluding those selling their shares) for such transactions.

Under CALA 2025, selective off-market share purchases now require a two-tier approval:

1. 75% approval from all shareholders (excluding those selling) — as before
2. A separate 75% approval specifically from shareholders who hold the same class of shares as those being bought back (excluding those selling)

This change gives minority shareholders holding the same class of shares a greater say in transactions that directly affect the relative value and proportional ownership of their shares. For companies contemplating share restructuring, investor buyouts, or founder buybacks in 2026, this new process must be factored into your transaction planning and documentation.

What Do These Changes Mean for Company Directors in Practice?

CALA 2025 continues a clear regulatory direction ACRA has been pursuing over the past three years: raising the bar for corporate governance and increasing personal accountability for directors. The June 2025 Corporate Service Providers Act tightened oversight of CSPs; the RORC regime strengthened beneficial ownership transparency; CALA 2025 now raises the penalties for getting governance wrong.

For directors, the practical implications are:

• Stay informed and engaged. Passive or rubber-stamp directorship is now a higher-risk position. If you are not actively receiving and reviewing company information, you may be breaching your duty of reasonable diligence.
• Keep your compliance current. Directors of companies with overdue annual return filings, outdated RORC entries, or lapsed secretarial appointments face compounding risk under the higher penalty regime.
• Review nominee arrangements. If you have nominee directors on the company’s register, confirm they are from a properly registered and KYC-compliant provider. Under CALA 2025, directors facing disqualification orders are removed from all directorships — a poorly vetted nominee creates downstream disruption for your company.
• Plan share transactions carefully. Any selective share buyback requires careful legal and secretarial planning to meet the new two-tier approval requirements before proceeding.

Are Further CALA 2025 Provisions Coming?

Yes. CALA 2025 is commencing in phases. The four changes described above took effect on 6 May 2026. Additional provisions — including those affecting winding up and insolvency timelines under the Insolvency, Restructuring and Dissolution Act — are expected to commence later in 2026. HeySara will publish updates as ACRA confirms further commencement dates.

For the authoritative source on the full text of the amendments, refer to ACRA’s Corporate and Accounting Laws (Amendment) Act page and the official ACRA announcement of 16 April 2026.

How HeySara Keeps Your Company Compliant Under the New Framework

HeySara is an ACRA-registered filing agent (FA20200042 / FA20031119) providing corporate secretarial, accounting, and compliance services to over 2,000 companies in Singapore and offshore. Our corporate secretarial service covers the full range of your annual obligations — Annual Returns, board resolutions, RORC maintenance, and director change filings — ensuring you are never inadvertently in breach of the Companies Act.

With penalty thresholds now four times higher than before, proactive compliance management is not a cost — it is protection. If you have questions about how CALA 2025 affects your specific company structure, contact HeySara for a consultation.

Why Is Singapore Still the Top Choice for Company Incorporation in Asia?

Singapore’s fundamentals as a business location have been consistent for decades: 100% foreign ownership permitted, a flat 17% corporate tax rate with start-up exemptions, a fully digital ACRA registration process, no capital gains tax, and one of the world’s most extensive double tax agreement networks with over 90 countries. What makes 2026 different is the layer of time-limited financial incentives sitting on top of these permanent advantages.

According to ACRA data, Singapore recorded over 6,200 new business registrations in December 2025 alone — a 43.5% year-on-year increase. Projections suggest 2026 will set an all-time record for total new incorporations, driven by Singapore’s “safe haven” reputation amid global uncertainty and the government’s deliberate push to attract AI-era businesses.

Reason 1: The Budget 2026 Corporate Tax Rebate Reduces Your First-Year Tax Bill

For the Year of Assessment (YA) 2026, the Singapore government has granted a one-off Corporate Income Tax (CIT) Rebate:

• 40% rebate on corporate income tax payable for YA 2026
• Maximum total benefit: S$30,000 (rebate + cash grant combined)
• S$1,500 CIT Rebate Cash Grant for active companies that employed at least one local CPF-paying employee in calendar year 2025 — even if the company made no profit
• Both are automatic — no application needed; IRAS applies the rebate when you file

This rebate applies from the moment your company starts generating taxable income. Combined with the Start-Up Tax Exemption (SUTE) — which gives new Singapore companies a 75% exemption on the first S$100,000 of chargeable income and a 50% exemption on the next S$100,000 for the first three years — the effective tax rate for a new company in 2026 can be dramatically lower than the headline 17%.

For the full breakdown of how the CIT Rebate interacts with SUTE and your specific income level, see HeySara’s accounting and tax services, or refer directly to IRAS’s official corporate tax rate and rebate guidance.

Reason 2: A New 400% Tax Deduction on AI Investment Starts YA 2027

Budget 2026 expanded the Enterprise Innovation Scheme (EIS) to include AI-related expenditure as a qualifying activity for YA 2027 and YA 2028. Qualifying AI spend can attract up to 400% enhanced tax deductions, capped at S$50,000 per year.

This means a company that spends S$50,000 on qualifying AI tools, platforms, or development in YA 2027 can deduct up to S$200,000 from its taxable income — a significant incentive for technology companies, SaaS businesses, and any company investing in AI-powered operations.

Why does this make 2026 the right year to incorporate? Because the YA 2027 deduction applies to your second or third year of assessment if you incorporate now. Companies that incorporate in mid-2026 will have their first financial year end in late 2026 or mid-2027, positioning them to claim EIS AI deductions from the very beginning of their trading history.

IRAS is expected to release full details on qualifying AI expenditure categories by mid-2026. HeySara’s tax team will update clients as guidance is published.

Reason 3: Singapore Is Actively Building Its AI Economy — and Your Company Benefits

Singapore’s 2026 national AI agenda is the most ambitious in the country’s history. A National AI Council chaired by Prime Minister Lawrence Wong was established under Budget 2026, alongside a S$1 billion+ National AI Research and Development Plan running through 2030. Major global companies — including Revolut, Oracle, Johnson Controls, Micron, and dozens of others — have expanded Singapore operations in the first half of 2026, adding headcount, R&D capacity, and regional mandates.

For new companies, this means a growing ecosystem of potential enterprise clients, strategic partners, and talent pipelines. According to EDB and McKinsey research, 81% of companies in Southeast Asia have moved beyond AI experimentation into pilot and scaling phases as of early 2026 — creating significant demand for Singapore-incorporated entities that can serve the regional market.

The Information and Communications sector recorded 1,662 new incorporations in the first two months of 2026 alone, driven by AI, SaaS, and digital transformation services.

Reason 4: The ACRA Registration Process Is Faster and More Digital Than Ever

For straightforward applications, ACRA’s BizFile+ portal can approve a company name and complete incorporation in as little as 15 minutes. Most standard applications are processed within 1–3 business days. The entire process is digital — no in-person attendance required, no physical documents to courier.

Foreign founders without a Singapore SingPass account simply appoint a Registered Filing Agent like HeySara to handle the submission. Incorporation documents are signed electronically, and the Certificate of Incorporation and Business Profile are issued digitally.

The total government fee is S$315 (S$15 name reservation + S$300 registration). There is no minimum paid-up capital beyond S$1.

What Are the Key Requirements to Incorporate in Singapore in 2026?

Foreigners who are not yet based in Singapore can satisfy the resident director requirement through a nominee director — a licensed Singapore-resident individual who fulfils the legal requirement while operational control remains with the beneficial owner. HeySara provides a nominee director service with full legal safeguards including a Nominee Director Agreement.

What Should You Set Up Immediately After Incorporating?

The incorporation itself is just the beginning. To be operationally ready and fully compliant, new companies should complete these steps within the first 30–90 days:

1. Set up CorpPass — Singapore’s corporate digital identity for government e-services (tax filing, MOM applications, grant portals)
2. Open a corporate bank account — Digital banks like Aspire and Airwallex offer fast, remote onboarding for Singapore companies. Traditional banks (DBS, OCBC, UOB) offer more comprehensive facilities but require more documentation
3. Appoint your company secretary — Required within 6 months. HeySara’s corporate secretarial service covers this from day one
4. Register your registered office address — HeySara’s premium business address at 152 Beach Road, Gateway East is available as a standalone service or bundled with secretarial
5. Set up your accounting system — Even in Year 1, clean bookkeeping from day one prevents expensive catch-up work at tax time. HeySara’s accounting team sets up new companies on cloud-based accounting from the start
6. Apply for work passes if needed — Foreign founders intending to work in Singapore full-time need an Employment Pass or EntrePass, applied for after incorporation

Is There a Faster Way to Incorporate With HeySara?

Yes. HeySara is currently running a co-promotion with Aspire (business banking) offering zero-fee company incorporation — you pay only the S$315 ACRA government fee. The Aspire bundle includes your incorporation, company secretary for one year, and a registered office address. This offer is available while slots last.

See full details and eligibility at heysara.sg/aspire-promo, or WhatsApp us at +65 8098 1313 with the keyword “Aspire bundle” to get started.

Incorporations in Singapore: 2026 in Numbers

Ready to Incorporate? HeySara Can Have Your Company Ready in Days

HeySara is an ACRA-registered filing agent (FA20200042 / FA20031119) that has handled incorporation for over 2,000 companies across Singapore, Malaysia, Hong Kong, the Cayman Islands, and BVI. Whether you are a Singapore resident, a foreigner incorporating remotely, or a business expanding into Asia, HeySara manages the entire process — from name reservation to post-incorporation compliance setup.

Start your Singapore company incorporation with HeySara today, or explore our guides for foreigners and Singaporeans and PRs for a step-by-step breakdown of what to expect.

When you’re setting up a company in Singapore, the DIY route looks tempting. ACRA’s BizFile portal is accessible, the government’s online guides are detailed, and incorporation fees are modest. So why do thousands of founders — locals and foreigners alike — choose to work with a corporate services provider instead?

The honest answer: incorporation itself is the easy part. What comes after is where most people run into trouble.

Table of Contents

1. What the DIY Route Actually Involves
2. Where It Gets Complicated
3. The Real Cost of Getting It Wrong
4. What a Corporate Services Provider Actually Does
5. Who DIY Works For
6. Who Should Use a Provider
7. What to Look for in a Provider
8. Why Founders Choose HeySara

1. What the DIY Route Actually Involves

Incorporating a company in Singapore yourself is straightforward on paper. You visit ACRA’s BizFile portal, submit the required information, pay S$315, and typically receive your company registration within 1–3 working days. If your proposed business activity doesn’t require additional licences, there’s no waiting period.

But incorporation is just the beginning. From the moment your company exists, you are legally required to:

• Appoint a company secretary within 6 months of incorporation — this person must be a natural person ordinarily resident in Singapore
• Maintain a registered office address in Singapore that is open during business hours
• Keep statutory registers — register of directors, shareholders, officers, and charges — accurate and up to date at all times
• Hold an Annual General Meeting (AGM) within 6 months of your financial year end (or obtain a waiver)
• File annual returns with ACRA within the stipulated deadlines
• Prepare financial statements in accordance with Singapore Financial Reporting Standards
• File corporate tax returns with IRAS annually, including estimated chargeable income (ECI) within 3 months of your financial year end
• Register for GST once turnover exceeds S$1 million and file quarterly returns
• Manage CPF contributions for all Singapore citizen and PR employees monthly
• Notify ACRA within stipulated timeframes for any changes — directors, shareholders, registered address, company name, share capital

Every one of these has a deadline. Most have penalties for non-compliance. None of them are optional.

2. Where It Gets Complicated

The compliance calendar is manageable — until it isn’t. Here is where founders most commonly struggle:

The company secretary role is harder than it sounds

Many founders appoint a friend or colleague as company secretary to save money. This works until it doesn’t — when that person leaves Singapore, becomes unavailable, or simply doesn’t know what they’re supposed to do. A company secretary who misses an AGM filing or fails to update a director’s particulars after a change can expose the company to ACRA penalties and the director to personal liability.

Tax filing has hidden complexity

Singapore’s corporate tax rate of 17% is competitive, but the filing requirements are not simple — especially in the first three years when startup tax exemptions apply, or when you have foreign-sourced income, intercompany transactions, or expenses that straddle personal and business use. Errors in ECI or tax returns can trigger IRAS audits.

Work passes and company compliance are interconnected

If you are a foreign founder on an Employment Pass, your EP renewal depends in part on your company’s standing — its compliance record, its financial health, and whether it has been meeting CPF and payroll obligations. A company that falls behind on ACRA filings or tax submissions is not just a compliance problem — it can directly jeopardise your right to stay in Singapore. For more on the EP and how it connects to your company structure, see our guide on setting up a Singapore company as a foreigner.

Immigration applications require spotless records

When the time comes to apply for Permanent Residency, ICA has access to inter-agency data including your company’s ACRA filing history, CPF records, and IRAS tax compliance. A history of late filings, penalties, or compliance gaps weakens your PR case — even if everything is technically resolved by the time you apply. See our full guide on common PR rejection reasons for more on what ICA looks at.

3. The Real Cost of Getting It Wrong

ACRA and IRAS penalties are not just theoretical. Common ones founders encounter:

Beyond the direct financial penalties, there is a subtler cost: the time and mental overhead of managing compliance yourself — time that most founders would rather spend on their actual business.

4. What a Corporate Services Provider Actually Does

A good corporate services provider does not just file your annual returns. They act as your compliance backbone — so you never have to track deadlines, worry about regulatory changes, or wonder whether something important has been missed.

In practice, this means:

• Company secretarial: Maintaining all statutory registers, preparing resolutions and minutes, filing changes with ACRA, managing AGMs and annual returns, keeping your company fully compliant year-round
• Registered office: Providing a Singapore-compliant registered address that satisfies ACRA’s requirements and receives official correspondence on your behalf
• Accounting and tax: Bookkeeping, financial statement preparation, ECI filing, corporate tax returns, GST registration and quarterly filings, and liaising with IRAS if queries arise
• Payroll and CPF: Processing monthly payroll, managing CPF contributions for local employees, handling IR8A submissions during tax season
• Work pass support: EP and S Pass applications, renewals, cancellations, and dependency pass applications for family members — see our EP and S Pass guide for full details
• Immigration: PR and citizenship application support, document preparation, and personal statement guidance
• Advisory: Proactive guidance when regulations change — so you are not caught off guard by new ACRA requirements, MOM policy updates, or IRAS rule changes

5. Who DIY Works For

To be fair, DIY incorporation does make sense in a narrow set of circumstances:

• You are a Singapore citizen or PR with prior experience running a local company
• Your business is simple — no foreign employees, no complex revenue streams, no intercompany transactions
• You or someone in your team has genuine accounting knowledge and is prepared to stay on top of all regulatory deadlines
• You are not planning to apply for PR or any immigration facility in the near future

Even then, most experienced local founders who have been through the full compliance cycle at least once tend to outsource it eventually — because the time cost compounds over years.

6. Who Should Use a Corporate Services Provider

A provider is strongly recommended if any of the following apply to you:

• You are a foreigner incorporating in Singapore for the first time
• You need a nominee director or a registered office address
• You are applying for or renewing an Employment Pass through your company
• You have or plan to hire Singapore citizen or PR employees (CPF obligations)
• You intend to apply for PR or citizenship in the next 5 years
• Your business has any complexity — multiple shareholders, foreign-sourced income, intercompany loans, or government grants
• You simply do not have the bandwidth to manage compliance yourself alongside running the business

7. What to Look for in a Provider

Not all corporate services providers are equal. When evaluating one, look for:

• ACRA registration: Your provider must be an ACRA-registered filing agent to legally file on your behalf. Ask for their filing agent number.
• Transparency on fees: Be wary of providers who quote a low headline price but charge separately for every small task. Understand exactly what is and is not included in each plan.
• Responsiveness: Your company secretary needs to respond promptly when ACRA or IRAS correspondence arrives. A slow provider can turn a routine matter into a penalty.
• Technology: Can you view your company’s statutory documents, upcoming deadlines, and filing history online? Or are you dependent on emails and PDFs? A digital dashboard matters when you are running a business and cannot afford to chase paperwork.
• Breadth of services: If you ever need work pass support, immigration assistance, accounting, or payroll, it is far easier to have one provider who handles all of it than to manage multiple vendors with no visibility into each other’s work.
• Track record: Check Google reviews, ask for client references, and look for testimonials from founders in situations similar to yours — especially foreign founders, if that is your position.

8. Why Founders Choose HeySara

HeySara is an ACRA-registered filing agent (FA20200042) that has supported over 2,000 companies since 2020 — from first-time local founders to multinational groups expanding into Southeast Asia. What distinguishes HeySara is the combination of digital-first infrastructure and genuine human expertise.

Rather than managing your company through email chains and PDFs, HeySara’s clients use a digital client portal where they can view their company’s statutory information, track upcoming compliance deadlines, approve resolutions digitally, and access documents anytime — from anywhere. For founders who travel frequently or run distributed teams, this matters.

HeySara also covers the full corporate lifecycle in one place:

• Company incorporation — including for foreigners, with nominee director arrangements where needed
• Corporate secretarial services across three plans (Digital, Plus, and Prime) to match your company’s size and needs
• Accounting and taxation — bookkeeping, financial statements, ECI, and corporate tax returns
• Payroll management and CPF administration
• Work pass applications — EP, S Pass, and dependent passes
• PR and citizenship application support
• Registered office address at a prime Singapore business address

For foreign founders especially, having all of this under one roof — with a team that understands how your company’s compliance record connects to your work pass and immigration status — removes a significant layer of operational risk.

HeySara has received over 200 five-star Google reviews and maintains an over 80% client referral rate — numbers that reflect what consistent, reliable compliance work looks like over time.

Talk to the HeySara team about your company’s situation — or reach us directly on WhatsApp.

Related Reading

• HeySara: Corporate Secretarial Plans
• ACRA: Filing Agent Registry

This article is for general informational purposes only and does not constitute legal or financial advice. Regulatory requirements and fee structures are subject to change. For advice specific to your situation, contact HeySara directly.

Singapore consistently ranks among the easiest places in the world to start a business — but for foreigners, the process involves more moving parts than it does for locals. Your visa status, your business structure, and your long-term residency plans are all connected. Getting one wrong can create problems for the others.

This guide walks through what foreign founders need to understand about Employment Passes, company incorporation, and how the path to Permanent Residency fits into the picture — before you commit to any one structure.

Table of Contents

1. Can Foreigners Incorporate a Company in Singapore?
2. Choosing the Right Business Structure
3. The EP and Your Company: How They Are Linked
4. The EntrePass — For Founders Without a Local Entity
5. The Nominee Director Requirement
6. Using Your Business to Build a PR Case
7. Common Mistakes Foreign Founders Make
8. Getting Started

1. Can Foreigners Incorporate a Company in Singapore?

Yes — fully. Singapore places no restrictions on foreign ownership of a private limited company. A foreigner can own 100% of shares in a Singapore-incorporated company without a local partner. This is one of the key reasons Singapore attracts so many international founders and investors.

However, there is one requirement that catches many people off guard: every Singapore company must have at least one locally resident director — a Singapore citizen, PR, or Employment Pass holder ordinarily resident in Singapore. If you are setting up from overseas and do not yet have a Singapore work pass, you cannot fulfil this requirement yourself.

The practical options are:

• Appoint a nominee director as a placeholder while you arrange your own work pass
• Apply for an EntrePass first (see Section 4), then become your own resident director
• Relocate to Singapore on an existing EP from another employer, then restructure

The Accounting and Corporate Regulatory Authority (ACRA) handles all company registrations in Singapore. Registration itself typically takes 1–3 working days once documents are in order.

2. Choosing the Right Business Structure

Most foreign founders incorporate a Private Limited Company (Pte Ltd) — and for good reason. It offers limited liability, is the most credible structure for investors and clients, allows for employee share options, and is the only structure through which an EP or EntrePass can typically be obtained.

The other structures available in Singapore — sole proprietorship and limited liability partnership — are generally not suitable for foreign founders because they require the owner to be a Singapore citizen or PR.

For the vast majority of foreign founders starting fresh in Singapore, a Pte Ltd is the right choice. It is clean, widely understood, and opens the most doors — for funding, clients, banking, and immigration purposes.

3. The EP and Your Company: How They Are Linked

If you intend to work in and run your Singapore company full-time, you need an Employment Pass (EP). Your company applies for the EP on your behalf — you cannot apply for yourself.

This creates a sequence that many founders do not plan for:

1. Incorporate the company (requires a resident director — see nominee director below)
2. Company applies for your EP through MOM’s EP eService
3. EP is approved and issued
4. You relocate to Singapore and take over as resident director
5. Nominee director steps down (if used)

To qualify for an EP as a founder-director, your company must pay you a salary that meets MOM’s minimum threshold — currently S$5,600 per month for most sectors, higher for financial services and for older applicants. This means your company needs to be operational and generating or funded sufficiently to pay a market-rate salary from day one.

Your EP application is also assessed under the COMPASS framework — read our full guide on Employment Pass and S Pass eligibility for a detailed breakdown of how COMPASS scoring works and what can cause rejection.

Important: MOM scrutinises EP applications from founders more carefully than from salaried employees. A newly incorporated shell company with no clients, no revenue, and no business plan is unlikely to succeed. You need to demonstrate that the company is a genuine, viable business — not a vehicle created purely to obtain a work pass.

4. The EntrePass — For Innovative Founders

If you are a startup founder with a genuinely innovative business — particularly in deep tech, biotech, or IP-driven sectors — the EntrePass may be more appropriate than an EP.

The EntrePass is specifically designed for foreign entrepreneurs who want to start and operate a business in Singapore. Unlike an EP, it does not require the company to already be paying you a high salary — but it has its own stringent eligibility criteria:

• Your business must be innovative and scalable — not a traditional services or trading company
• You must be able to demonstrate backing from a recognised Singapore venture capital firm, an incubator, or an accelerator; OR hold an IP registered with a recognised body; OR have a track record as a serial entrepreneur
• The company must be incorporated for less than 6 months at the time of application, or not yet incorporated

The EntrePass is renewed annually and comes with increasing requirements at each renewal — including minimum local employment and business spending thresholds. It is a high-commitment route suited to founders who are genuinely building scalable businesses in Singapore.

Check the MOM EntrePass eligibility page for current criteria before applying.

5. The Nominee Director Requirement

As noted above, every Singapore company needs at least one ordinarily resident director from day one. For foreign founders who are not yet in Singapore, a nominee director fills this role temporarily.

A nominee director is a professional individual (typically provided by a corporate services firm) who fulfils the legal residency requirement on paper while you arrange your own work pass and relocation. Their role is purely administrative — they do not make business decisions, hold company assets, or have any operational involvement.

Key things to understand about nominee directors:

• A proper nominee director arrangement always includes a deed of indemnity protecting the nominee from liability arising from your business decisions
• The nominee should be removed and replaced by you (or another genuine resident director) as soon as your EP is issued and you are ordinarily resident in Singapore
• ACRA takes nominee director arrangements seriously — misuse or indefinite arrangements without genuine intent to replace attract regulatory scrutiny
• Monthly fees for a nominee director service typically range from S$100 to S$300 per month depending on the provider

HeySara offers a nominee director service with proper legal documentation and a clear process for transitioning the directorship once you are resident in Singapore.

6. Using Your Business to Build a PR Case

For foreign founders who intend to make Singapore their long-term home, your company and your immigration pathway are deeply interconnected. ICA looks at your business as evidence of your commitment to and contribution to Singapore’s economy.

The factors that strengthen a PR application from a business owner include:

• Local employment: Hiring Singapore citizens and PRs is one of the strongest signals of economic contribution. ICA takes note of the number of locals on your payroll and their salary levels.
• Business longevity and growth: A company that has been operating for 3–5 years, is profitable or well-funded, and is growing is far more compelling than a recently incorporated entity.
• Tax contributions: Your corporate tax filings, GST registration (if applicable), and personal income tax history are all visible to ICA through inter-agency data sharing.
• CPF contributions: Both your own CPF (from your director’s salary) and contributions for your local employees are on record and factored in.
• Strategic sector alignment: Businesses in sectors prioritised by EDB, ESG, or MAS — fintech, deep tech, biomedical, sustainability — may attract the COMPASS bonus criteria that also benefit your personal EP standing.

For a full breakdown of what ICA looks for in a PR application — including the ethnic quota system, documentation tips, and personal statement guidance — see our detailed guide on common PR rejection reasons and how to fix them.

7. Common Mistakes Foreign Founders Make

• Incorporating before sorting out the EP plan. The company needs a resident director from day one. If you incorporate without a nominee director in place and without your own work pass, you are non-compliant from the start.
• Setting director salary too low. Your EP requires a minimum salary of S$5,600/month. Some founders try to conserve cash by paying themselves less — this disqualifies the EP application entirely.
• Using an EP to run a lifestyle business. MOM expects EP holders working in their own companies to be building genuine, scalable businesses that contribute to Singapore’s economy. A business that exists solely to maintain a work pass will face scrutiny at renewal.
• Neglecting corporate secretarial and compliance obligations. Every Singapore company must hold an Annual General Meeting (AGM), file annual returns with ACRA, and maintain statutory registers. Missing these deadlines attracts fines and can affect your EP renewal and PR application.
• Not planning the PR timeline. Many founders are so focused on getting the business off the ground that they neglect the integration activities — community involvement, children in local schools, property — that strengthen a PR case. These take years to build. Start early.

8. Getting Started

The practical sequence for a foreign founder setting up in Singapore looks like this:

1. Decide on your business structure — almost always a Pte Ltd
2. Engage a corporate services provider to incorporate the company and appoint a nominee director
3. Open a corporate bank account — most banks require the company to be incorporated first
4. Have your company apply for your EP via MOM
5. Once your EP is issued and you are in Singapore, replace the nominee director with yourself
6. Appoint a corporate secretary — required by law within 6 months of incorporation
7. Set up payroll, CPF contributions, and accounting from day one

HeySara handles all of this end-to-end — from company incorporation for foreigners and nominee director services to work pass applications, corporate secretarial, and accounting and tax compliance. As an ACRA-registered filing agent with over 2,000 companies served, we understand both the compliance side and the immigration side — and how to make them work together for foreign founders.

Get in touch with HeySara to talk through your specific situation before you incorporate.

Related Reading

• HeySara: Company Incorporation for Foreigners
• ACRA: Singapore Company Registration
• MOM: Employment Pass Overview
• MOM: EntrePass Eligibility

This article is for general informational purposes only and does not constitute legal or immigration advice. Eligibility criteria and regulatory requirements are subject to change. For advice specific to your situation, contact HeySara or consult a qualified professional.

Cayman Islands and British Virgin Islands (BVI) companies are the world’s most commonly used offshore corporate structures for VC fund vehicles, cross-border investment holding, international IP ownership, and pre-IPO restructuring. Singapore-based founders and investors frequently establish Cayman or BVI entities alongside — or above — their Singapore operating company.

HeySara provides Cayman Islands company formation, BVI company registration, and offshore-to-Singapore dual-structure setup for founders across Asia and globally.

Why Do Singapore Founders Use Cayman or BVI Companies?

The most common use cases are:

1. Venture Capital Fundraising Most US and international VC funds require investee companies to be incorporated in the Cayman Islands (specifically as a Cayman Islands Exempted Company). This is not because Cayman is “a tax haven” — it is because Cayman’s corporate law is well-understood by US law firms and VC fund documents, the jurisdiction has no capital gains tax (relevant for VC fund returns), and US investors face fewer tax complications investing into a Cayman entity than a foreign operating company.

If you are seeking VC investment from US or internationally-based funds, you will almost certainly need to set up a Cayman holding company with a Singapore (or other jurisdiction) operating subsidiary beneath it.

2. International IP Ownership Holding intellectual property — software, patents, trademarks, proprietary processes — in a BVI or Cayman entity and licensing it down to operating subsidiaries can be an efficient structure for international businesses, depending on the specific facts and tax advice applicable to your situation.

3. Offshore Holding Structures Founders from countries with capital controls, complex CFC rules, or high dividend withholding taxes sometimes prefer to hold their Singapore operating company through an offshore holding entity, simplifying international investor participation and future exit planning.

4. Pre-IPO Structures Companies targeting a US NASDAQ or NYSE listing typically require a Cayman Exempted Company as the listing vehicle (with the Singapore or other operating businesses as wholly owned subsidiaries).

Cayman Islands Exempted Company: Key Features

British Virgin Islands (BVI) Company: Key Features

BVI vs Cayman: BVI companies are simpler, cheaper, and have fewer regulatory requirements. Cayman is the preferred choice for VC-backed companies and fund structures due to greater acceptance by US and international institutional investors. For a simple holding structure without VC involvement, BVI is often the more cost-efficient choice.

The Typical Dual Structure: Cayman HoldCo + Singapore OpCo

The most common structure HeySara sees for Singapore-based VC-funded companies is:

Cayman Islands Exempted Company (HoldCo)
    ↓  (100% owner)
Singapore Pte Ltd (Operating Company)

The Singapore Pte Ltd conducts all business, employs staff, holds local assets, and is subject to Singapore corporate tax. The Cayman HoldCo is the entity in which investors hold shares (ordinary and preferred), and through which an eventual exit (M&A or IPO) would typically be structured.

This structure allows: – VC-standard preferred share structures (liquidation preferences, anti-dilution, etc.) to be implemented under Cayman law – Singapore’s operational and tax benefits to be retained at the subsidiary level – International investors to hold and exit shares without direct exposure to Singapore tax considerations

Important Considerations

Substance requirements: Offshore entities used for tax purposes may trigger economic substance requirements in their jurisdiction (including Cayman and BVI from 2020 onwards under OECD/BEPS initiatives). If your Cayman or BVI entity generates income (from royalties, interest, or holding income), it may need to demonstrate genuine substance. HeySara works with specialist offshore counsel to advise on substance requirements.

Singapore tax implications: The establishment of an offshore holding structure above a Singapore company can have Singapore CIT implications, including transfer pricing rules and the IRAS’s guidelines on tax avoidance. HeySara strongly recommends obtaining Singapore tax advice before establishing an offshore structure.

Exchange of information: Cayman and BVI participate in the Common Reporting Standard (CRS) and exchange tax information with Singapore’s IRAS and with most other global tax authorities. Offshore structures are not anonymous.

HeySara’s Offshore Incorporation Services

HeySara provides: – Cayman Islands Exempted Company formation with a Cayman-registered agent – BVI Business Company registration – Hong Kong company incorporation (for Greater China-focused structures) – Dual-structure setup: Cayman or BVI HoldCo + Singapore operating subsidiary – Ongoing registered agent and compliance services for offshore entities – Coordination with Singapore corporate secretarial and accounting for the full group.

A registered office address in Singapore is the official address of a company as registered with ACRA, where all official government correspondence, notices, and legal documents are delivered. Every Singapore-incorporated company must maintain a registered office address that is located in Singapore, is a physical address (not a P.O. box), and is accessible to the public during normal business hours (at least 3 hours per business day).

Without a valid registered office address, your company cannot be incorporated. HeySara provides a professional registered office address service that meets all ACRA requirements and includes mail handling and forwarding.

What Are the Legal Requirements?

Under the Companies Act, a Singapore company’s registered office must:

• Be located in Singapore (no overseas addresses)
• Be a physical street address — P.O. boxes are not permitted
• Be accessible to the public during normal business hours (at least 3 hours on each business day)
• Be the address to which ACRA notices, legal proceedings, and statutory demands can be served

The registered office is publicly listed on ACRA’s register. It is visible to anyone who searches your company’s business profile on BizFile+.

Can You Use a Home Address as Your Registered Office?

Yes — with important conditions. Under the Home Office Scheme administered by the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA), business owners may use their HDB flat or private residential property as a registered business address. However:

For HDB flats: – The business must be in an approved category (most professional service and online businesses qualify) – No more than 2 non-resident workers/employees may be based at the address – No physical modification of the flat for business use – No customer-facing retail or showroom activity

For private residential properties: – Similar restrictions apply under URA’s Home Office Scheme – Physical alterations for business use are not permitted

Many founders choose not to use their home address as a registered office because: 1. The address is publicly visible on ACRA’s register 2. It reduces professional credibility 3. Government and legal mail delivered to a home address can become disruptive

What Is a Virtual Office Address and Is It Compliant?

A virtual office address (or registered address service) is a commercial address provided by a corporate services firm — such as HeySara — that serves as your company’s registered office with ACRA. The service provider’s premises fulfill the “accessible during business hours” requirement on your behalf.

This is a fully compliant, widely used arrangement. It is not a P.O. box — it is a real physical office address at which correspondence can be received and attended to during business hours.

What a virtual office registered address typically includes: – Use of the address as your ACRA-registered office address – Receipt of government and legal mail on your behalf – Mail scanning, notification, or forwarding to you – Access to a physical meeting room (for providers who offer this)

What a virtual office does NOT include by default: – Dedicated desk space for daily work – Telephone answering in your company name – Staff to greet visitors (unless you upgrade to a co-working or serviced office plan)

HeySara also provides co-working space at its 152 Beach Road, Gateway East premises for clients who want physical working space alongside their registered address.

HeySara’s Registered Office Address Service

HeySara’s registered office address service provides:

• A premium Singapore business address (152 Beach Road, #23-01 Gateway East, Singapore 189721)
• ACRA-compliant registered office for your company
• Mail receipt, scanning, and email notification
• Gateway for ACRA compliance notices, IRAS correspondence, and court documents
• Available as a standalone service or bundled with HeySara’s corporate secretarial packages

This address is in the heart of Singapore’s central business district, providing your company with a credible, professional presence.

Changing Your Registered Office Address

If you need to change your company’s registered office address, the change must be: – Filed with ACRA via BizFile+ within 14 days of the change – Reflected on all official company documents, invoices, and correspondence going forward

HeySara manages address change filings for all clients as part of the corporate secretarial service.

Registered Office Address vs Business Address

Note that the registered office address and your business’s operating address do not need to be the same. Many companies: – Use HeySara’s address as their ACRA registered office – Operate from a co-working space, serviced office, or their own commercial premises

Both addresses may need to be on different documents — invoices and marketing materials can show your operating address, while ACRA filings and official correspondence use the registered office.

Singapore has signed Double Tax Agreements (DTAs) with more than 90 countries — one of the most extensive treaty networks in Asia. These treaties allow businesses and individuals to reduce or eliminate withholding tax on cross-border income including dividends, royalties, interest, and service fees. Combined with Singapore’s domestic tax exemptions and Budget 2026’s enhanced internationalisation incentives, DTAs make Singapore one of the world’s most tax-efficient bases for regional and global operations.

HeySara’s accounting and tax team helps Singapore companies structure cross-border income flows to maximise DTA benefits legally and compliantly.

What Is a Double Tax Agreement?

A DTA is a bilateral treaty between Singapore and another country that determines which country has the right to tax various types of cross-border income — and at what rate. DTAs prevent the same income from being taxed twice: once in the country where it is earned and again in the country where the recipient resides.

For Singapore companies with overseas operations, customers, or investors, DTAs affect:

• Dividends paid from overseas subsidiaries to a Singapore parent
• Royalties received from overseas licensees for IP held in Singapore
• Interest income from overseas loans or bonds
• Service fees from overseas clients, particularly in countries that impose withholding tax

Singapore’s Withholding Tax Rates vs DTA Rates

Under Singapore’s domestic law, withholding tax is charged on payments made to non-residents. DTAs can reduce these rates significantly:

The exact rates depend on the specific DTA with each country. Singapore’s DTA with the US, UK, India, China, Japan, and ASEAN members each have different provisions. IRAS publishes the full text of every treaty.

How to Claim DTA Relief: Certificate of Residence (COR)

To claim DTA benefits, a Singapore company typically needs to obtain a Certificate of Residence (COR) from IRAS — a document certifying that the company is a Singapore tax resident. The overseas counterparty presents this to their local tax authority to apply the reduced DTA withholding rate.

To qualify as a Singapore tax resident, a company must: – Be incorporated in Singapore, AND – Have its control and management exercised in Singapore (typically demonstrated by board meetings held in Singapore and key management decisions made by Singapore-based directors)

A company incorporated in Singapore but controlled entirely from overseas may not qualify as a Singapore tax resident — a common issue for structures where all directors and management are based abroad. HeySara’s tax team advises on establishing and maintaining genuine Singapore tax residency.

Budget 2026: DTDi Cap Raised to S$400,000

The Double Tax Deduction for Internationalisation (DTDi) scheme allows Singapore companies to claim 200% tax deduction (or 250% for qualifying Approved Trade Events) on qualifying overseas business development expenses. This covers market development trips, overseas market studies, export and trade conferences, and participation in approved overseas missions.

Budget 2026 raised the automatic claim cap from S$150,000 to S$400,000 per year. Previously, amounts above S$150,000 required prior approval from Enterprise Singapore or Singapore Tourism Board. This change significantly reduces the administrative burden for companies actively expanding overseas.

Qualifying expenses include: – Overseas market surveys and feasibility studies – Overseas trade fairs and exhibitions – Overseas business development trips (travel, accommodation, daily allowances within limits) – Advertising and marketing expenses for overseas markets (within the approval framework)

Budget 2026: Market Readiness Assistance (MRA) Grant

Budget 2026 also enhanced the Market Readiness Assistance (MRA) Grant, which helps Singapore companies with the costs of expanding into overseas markets. MRA covers: – Overseas market promotion (up to 50% of eligible costs, capped at S$100,000 per new market) – Overseas business development activities – Overseas market set-up (incorporation, market entry advisory)

Companies planning regional expansion into new markets in 2026–2027 should review the updated MRA qualifying criteria and apply early, as grant budgets are limited.

Practical Planning for Cross-Border Structures

IP Holding in Singapore: Singapore’s favourable IP regime — including DTAs for royalty flows and the IP Development Incentive — makes it an attractive location to hold intellectual property for licensing to regional entities. Royalties paid to a Singapore IP-holding company attract low or zero withholding tax from many treaty partners.

Regional Treasury Centres: Singapore’s DTA network and zero withholding tax on dividends received from foreign subsidiaries (under the foreign-sourced income exemption conditions) makes it a popular regional treasury hub.

Cayman or BVI with Singapore subsidiary: Many international fund structures use a Cayman or BVI holding company with a Singapore subsidiary as the regional operating entity. HeySara provides incorporation and ongoing compliance services for both the offshore holding structure and the Singapore entity.