The dynamic relationship between India and Singapore has long been a catalyst for cross-border business growth. For Indian entrepreneurs looking to expand globally, Singapore is one of the most attractive destinations. With its world-class infrastructure, ease of doing business, low taxation, and strategic location in Southeast Asia, Singapore provides a solid foundation for business success.
This blog will guide you through the process of opening a business in Singapore from India, highlighting key aspects such as company registration in Singapore, opening a corporate bank account, meeting regulatory obligations, and dealing with the realities of cross-border bureaucracy.
Why Choose Singapore?
Before we get into the logistics, it’s worth understanding why Singapore is often the first choice for Indian entrepreneurs looking to set up overseas operations:
- Business-friendly regulations and tax laws
- Strategic geographical location in Asia
- Access to a skilled, multicultural workforce
- Strong legal system and intellectual property protection
- Double Taxation Avoidance Agreement (DTAA) with India
These advantages make Singapore a top destination for Indian companies seeking regional expansion or a global headquarters.
Step 1: Understand the Legal Requirements
Singapore allows 100% foreign ownership of companies. This means an Indian citizen can fully own and operate a business in Singapore without needing a local partner.
The most common business structure for foreign entrepreneurs is a Private Limited Company (Pte Ltd). It’s preferred due to its limited liability, separate legal identity, and scalability.
To begin your Singapore company formation journey, you’ll need:
- At least one shareholder (individual or corporate)
- One resident director (can be a local or via a nominee director service)
- One company secretary (must be a resident of Singapore)
- A registered local address
- Minimum paid-up capital of SGD 1
Indian residents typically appoint a local nominee director if they do not plan to relocate to Singapore immediately.
Step 2: Company Registration in Singapore
Company registration in Singapore is done through the Accounting and Corporate Regulatory Authority (ACRA). The process is fast, straightforward, and can often be completed within a day if all documents are in order.
The steps include:
- Name Reservation: Choose a unique name and reserve it with ACRA. The name should not be identical to any existing businesses or trademarks.
- Prepare Incorporation Documents: Includes details like company constitution, identification documents of directors and shareholders, proof of address, and more.
- Submit Application: Through BizFile+, ACRA’s online portal, or via a corporate services provider.
- Receive Incorporation Certificate: Once approved, you’ll receive an official email confirmation of incorporation.
It’s strongly recommended to work with a local agency or business consultant who understands Singapore company setup procedures, especially if you are managing the process remotely from India.
Step 3: Open a Corporate Bank Account
Opening a business bank account in Singapore is crucial for running your operations smoothly. However, due to tightened KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, banks may require a face-to-face interview with company directors.
Documents typically required include:
- Certificate of Incorporation
- Company Constitution
- Details of directors and shareholders
- Business plan or intended business activities
- Proof of business address
- ID and proof of address of all stakeholders
While some digital banks or fintech platforms offer remote account opening, most traditional banks like DBS, OCBC, or UOB prefer in-person verification. If you’re unable to travel to Singapore immediately, consider using multi-currency online business accounts as an interim solution.
Step 4: Employment Pass or Nominee Director
If you plan to move to Singapore to run your business, you’ll need an Employment Pass (EP). This work visa is issued by the Ministry of Manpower and allows foreign professionals to live and work in Singapore.
To qualify for an EP, you must:
- Earn at least SGD 5,000/month (higher for older applicants)
- Have acceptable qualifications
- Be involved in an active role in the company (e.g., director or manager)
Alternatively, if you plan to operate your business from India, you’ll need to appoint a resident nominee director, as required by Singapore law. Many corporate secretarial firms offer nominee director services for a fee, ensuring your business remains compliant without relocation.
Step 5: GST Registration and Ongoing Compliance
If your company’s annual turnover exceeds SGD 1 million, you must register for Goods and Services Tax (GST). Voluntary registration is also an option if you want to claim input tax credits.
Annual compliance obligations include:
- Filing of Annual Returns with ACRA
- Filing of Estimated Chargeable Income (ECI) and Corporate Income Tax returns with IRAS
- Maintaining proper accounting records
- Holding Annual General Meetings (AGMs), unless exempted
Many Indian entrepreneurs engage local accounting and tax firms to manage these filings and ensure compliance with Singaporean law.
Taxation Benefits
Singapore has one of the most attractive corporate tax regimes in the world:
- Corporate tax rate capped at 17%
- Partial tax exemption for new start-ups for the first 3 years
- No capital gains tax
- No dividend withholding tax
The DTAA between India and Singapore allows Indian residents to avoid being taxed twice on the same income, which is an important consideration for businesses operating in both countries.
Step 6: Running the Business Remotely
With your company legally incorporated, bank account in place, and compliance obligations handled by a local firm, you can effectively run your Singapore business from India.
Many Indian startups use their Singapore entity to:
- Raise global funding
- Access regional customers
- Build credibility with international clients
- Protect intellectual property
Tools like cloud accounting, remote communication platforms, and cross-border payment gateways make remote management feasible and efficient.
Challenges to Consider
Despite the many advantages, there are some practical challenges:
- Bank account approval can be slow or uncertain for new companies
- Nominee director services may limit your decision-making autonomy
- Compliance costs can add up if not managed efficiently
- Immigration rules for EP are becoming more stringent
Proper planning and professional guidance can help you overcome these hurdles.
FAQs
1. Can I open a company in Singapore without visiting the country?
Yes, company registration can be completed remotely. However, opening a bank account may require you to visit Singapore for KYC verification.
2. Do I need a local partner to open a business in Singapore?
No, Singapore allows 100% foreign ownership of companies. However, you must appoint at least one resident director.
3. How long does the company registration process take?
If all documents are in order, the registration process typically takes 1 to 3 working days.
4. What is the cost of setting up a company in Singapore from India?
The basic cost starts from SGD 1,500 to SGD 3,000, depending on whether you use a corporate service provider and include nominee services.
Opening a business in Singapore from India is not just a possibility; it’s a strategic move with tremendous growth potential. With the right guidance, efficient planning, and understanding of the legal landscape, you can establish a successful cross-border venture that benefits from the best of both economies.