What Are the Advantages of Opening a Company in Singapore? (Beneficial Analysis for Chinese Investors)

As Chinese enterprises accelerate their "going global" strategy, more and more investors, entrepreneurs, and cross-border operators are turning their attention to Singapore. As Southeast Asia's economic hub and a globally renowned offshore center, Singapore not only offers a superior business environment but also provides numerous practical beneficial policies for Chinese investors.

So, from the perspective of Chinese investors, what are the specific advantages of establishing a company in Singapore? This article will provide you with an in-depth analysis.

1. Business Environment Friendly to Chinese

No Language and Cultural Barriers: Singapore has both Chinese and English as official languages, with over 80% of residents able to speak Chinese, ensuring smooth communication without barriers.
Chinese-Dominated Market Atmosphere: Business circles, government service agencies, and banking systems have high acceptance of Chinese clients, making cooperation more convenient.
Mature and Transparent Legal System: Singapore adopts the British common law system, with well-established corporate governance and investment protection systems, ensuring investor rights are protected.

2. Low Company Registration Threshold and Fast Process

No Local Shareholders Required, 100% Foreign Ownership
Chinese individuals or enterprises can establish wholly-owned Singapore companies without setting up joint ventures or bringing in local investors.
Fully Online Registration Process, Completion in as Fast as 1 Day
Through the ACRA (Accounting and Corporate Regulatory Authority) system, working with local service providers, you can obtain a business license (BizFile) in 1-2 working days.
Extremely Low Registered Capital Requirements
Singapore companies can be established with registered capital starting from just 1 SGD, with no mandatory capital verification requirements, allowing flexible capital arrangements.

3. Reasonable Tax Policies, Globally Recognized

Corporate income tax rate of 17%, much lower than China and most other countries
Enjoy "Tax Exemption for Start-up Companies" policy for the first three years:
- First S$100,000 of taxable profit enjoys 75% tax reduction
- Next S$100,000 of profit enjoys 50% tax reduction
- Actual effective tax rate is much lower than 17%, significantly reducing early-stage tax burden for startups
No capital gains tax, no dividend tax, suitable for equity transfers and profit distribution arrangements
No foreign exchange controls, supports free foreign currency transactions, suitable for foreign trade and cross-border fund allocation

4. Developed Banking and Payment Systems

Multiple international-grade banks (DBS, OCBC, UOB, Standard Chartered, HSBC, etc.)
Supports multi-currency account management, can receive and pay in RMB, USD, SGD, EUR, etc.
Can connect to global payment platforms, suitable for cross-border e-commerce, export trade, SaaS subscription businesses, etc.

5. Friendly Supporting Immigration Policies: Can Apply for Self-Employed EP

Once a Singapore company is registered, it is eligible to hire foreign employees (including yourself)
Can apply for Employment Pass (EP) or Self-Employed EP through the company, achieving long-term work and residency
After residing with EP for the required period, can further apply for Singapore Permanent Resident (PR)

For Chinese investors who wish to allocate family resources overseas, plan for children's education, or manage identity planning, a Singapore company is not only a business platform but also an important vehicle for immigration and global asset allocation.

6. Good International Reputation, Beneficial for Global Business Development

Singapore companies are widely recognized, with high reputation, strict regulation, and stable compliance
In international trade, software globalization, technology exports, financial investment, and other fields, establishing a Singapore company can effectively enhance brand image and cross-border trust
Easier to connect with multinational clients, financing institutions, overseas agents, and partners

7. Suitable for Various Industries and Business Models

Business models suitable for Singapore companies include but are not limited to:

Cross-border e-commerce and logistics distribution centers
Software/AI/SaaS technology companies going global
Investment holding companies, fund structure platforms
Offshore financial settlement centers
Education, medical, consulting, digital marketing, and other asset-light service enterprises

Summary: Opening a Company in Singapore is the Golden Starting Point for Chinese Investors Going Global

Advantage Dimension	Specific Benefits
Registration Threshold	No local shareholders required, fast process, low capital requirements
Tax Structure	Low corporate tax, no tax on profit distribution, no foreign exchange controls
Legal System	Stable and transparent, internationally recognized, investor rights protected
Banking and Finance	Multi-currency accounts, free settlement, suitable for cross-border business
Visa and Identity	Can apply for EP, supports long-term work and family residency
Brand Reputation	High international trust, facilitates financing, cooperation, and trade expansion