Ask an Expert: Expanding your Business to Singapore edition

In this edition of Ask an Expert, Boon Tan, Managing Director of CST Singapore, answers your questions on expanding your business to Singapore:

Q: What are your top tips when starting a business in Singapore? Where can I find more information?
A: Setting up a business in Singapore is generally straightforward, and the environment is pro-business, with clear rules and low corruption. But there are a few key things to keep in mind:

• Have a clear game plan – while incorporation is easy, ongoing compliance comes with costs. Make sure you have a strategy to generate revenue - either in Singapore or back home - to support those expenses. Also, winding up a company can take up to six months, even if the business never traded – during which time, your running costs may continue.
• Understand compliance from the get-go – while the default financial year is the calendar year, you can elect a 30 June year-end (which may feel more familiar to Aussie businesses). Just be aware that choosing this may affect eligibility for certain tax exemptions for new companies in the early years which may be the difference between success and failure. 
• Engage the right local advisors – a good local accountant and corporate secretary with experience working with international clients can make all the difference. They’ll help you navigate the regulatory environment and avoid missteps early on.
• Get your SSIC code right – this is Singapore’s version of an industry classification code. It impacts licensing requirements and even your ability to use tax losses. If your income doesn’t line up with your registered SSIC activity, you may not be able to offset it with earlier losses.
• Opening a bank account isn’t automatic – just because your company is registered doesn’t mean you’ll get a bank account straight away. Traditional banks will want to see a robust business plan, details of your operations, and where funds are coming from. Thankfully, digital banks are now a viable option and typically have less red tape.

Where to start? Check out:

• ACRA for company registration
• IRAS for tax information
• Enterprise Singapore for grants and market entry support

Ultimately, finding a solid local advisor is the best first step to making your Singapore venture a success.

Q: What do Aussie businesses most commonly overlook when entering the Singapore market?
A: One of the most common missteps is assuming Singapore operates just like Australia, just in a different timezone.

Yes, Singapore is English-speaking, internationally connected, and part of the Commonwealth. But culturally, it’s very different. Business relationships here are underpinned by respect for hierarchy, formality, and the long game when it comes to trust and rapport. And you’re operating in a multicultural environment, with Chinese, Malay, Indian and Eurasian communities, each with their own customs, values, and religious beliefs.

Many Aussie businesses come in with a plug-and-play mindset—assuming a model that worked in Sydney or Melbourne will work here. But localising your approach—whether that’s how you sell, hire, or build partnerships—is critical.

Case in point: Uber. They tried to run their Singapore operations using a playbook built for other markets. They didn’t adapt to local nuances and ultimately had to sell to a competitor and exit the market.

Q: What are the key differences between Singapore and Australia that business owners should know?
A: There are quite a few, but here are the big ones:

• Tax rules – In Singapore, you’re taxed only on income sourced in Singapore. That usually means income tied to activities performed in Singapore. There’s no capital gains tax, no withholding tax on dividends to foreign shareholders, and the corporate tax rate is just 17% (vs. 30% in Australia). GST only kicks in once you hit SGD 1 million in turnover.
• Employment laws – Singapore’s labour laws are leaner. There’s no unfair dismissal regime like in Australia, but you’ll still need to understand rules around CPF (Super equivalent), the Employment Act, and levies for foreign workers. Getting an Employment Pass approved for foreign staff can be tough - the Ministry of Manpower wants to see that you’re hiring fairly and that locals aren’t being overlooked.
• Speed and systems – Everything from incorporation to licensing is fast and digital. The CorpPass system allows you to manage all your government interactions through a single login.
• Market size and ASEAN access – Singapore itself is a small market, but it’s your gateway to ASEAN’s 600+ million people. Use it as a base to grow into Southeast Asia.
• Business culture – There’s a more formal tone in meetings, and hierarchy is taken seriously. Decisions can be consensus-driven—especially if you’re dealing with regional HQs. 
• Share capital matters commercially – While it’s normal to register Aussie companies with a nominal share capital, in Singapore, it can signal how serious you are. I’ve seen clients miss out on leasing premium office space because their Singapore entity had minimal paid-up capital—even when the group itself was large and established. 
   

Q: Do I need to physically be in Singapore to set up and run a company?

A: No — you don’t need to be physically present in Singapore to set up or run a company. The whole incorporation process can be done remotely, and many foreign-owned businesses operate this way.

That said, there are a few key things to be aware of:

• You must appoint at least one local director – This person must be a Singapore citizen, permanent resident, or someone holding a valid work pass (like an Employment Pass). If that’s not you or someone on your team, you’ll likely need a nominee director through a local service provider.
• You’ll need a local registered address – This is a statutory requirement, but most corporate secretarial firms can provide one as part of their setup package.
• Opening a bank account may require local presence – While company registration is fast and fully digital, opening a corporate bank account can be more involved. Traditional banks often want to meet directors face-to-face. If that’s not feasible, digital banking platforms like Airwallex is a solid alternative with lower onboarding requirements.
• You can manage operations remotely – With the right local partners, you can handle compliance, payroll, invoicing, and filings from abroad. But if your business is client-facing, relies on local grants, or involves hiring staff in Singapore, having someone on the ground can be a real advantage.

In short, you can run a Singapore company from Australia — just make sure you have strong local support, and be clear on your longer-term plans (especially if you’re considering applying for a work pass or building a local presence).

Q: If I can run the company from overseas, how does that affect corporate tax residency — and how is that different to Australia?

A: This is a crucial point that’s often overlooked. While you can run a Singapore company from overseas, doing so might have unexpected tax consequences — both in Singapore and Australia.

In Singapore, a company is considered tax resident if its “control and management” is exercised in Singapore. In plain terms, this means where key strategic decisions are made — such as board meetings, financing decisions, and business direction.

• If major decisions are made offshore (say, by a sole director based in Sydney), the company may not qualify as a Singapore tax resident.
• That matters because tax residency is what determines your ability to access Singapore’s tax treaties, start-up exemptions, and certain incentives.

In Australia, the tax residency rules are broader. The ATO may treat your Singapore company as an Australian tax resident if it’s managed, controlled, or operated from Australia.

Even simple things — like logging into your Singapore company’s bank account while working in Sydney — can be used to demonstrate that the business is being operated from Australia.

This can lead to dual tax residency, meaning:

• The company may be taxed in both countries; and 
• You’ll have higher compliance costs managing tax filings in two jurisdictions

So what’s the takeaway?

If you plan to operate the Singapore business from abroad, it’s worth getting advice upfront. Employing a local director with real decision-making authority, holding board meetings in Singapore, and properly documenting where and how decisions are made can help secure Singapore tax residency.

Just because you can manage the company from Australia doesn’t always mean you should — not without first considering the tax consequences.

 

Ask an Expert is a monthly series in which we call on subject experts within the AustCham Singapore community to answer questions that we may have on a specific topic. The strength of our community is in the diverse expertise within our membership, and we want to use this initiative to tap on the knowledge of our members to enrich the community as a whole.

Our expert for this month is Boon Tan, Managing Director of CST Singapore, Singapore based tax and accounting firm that specialises in international tax. With offices in Singapore, Sydney, New York, London and Los Angeles, CST manages the complex international tax obligations of globally mobile executives, family groups and businesses operating across borders.

Australian born with Singaporean heritage, Boon is a dual qualified Chartered Accountant in Singapore and Australia. His speciality lies in providing tax advice regarding the establishment of corporate structures in Singapore, as well as international taxation matters for companies operating in Singapore.

His combined personal and professional background means he is ideally positioned to provide specialist tax advice for companies expanding to or operating in Singapore including company founders of companies entering Singapore.

Connect with Boon on LinkedIn, and find out more about CST Singapore.