--- title: "Doing Business in Singapore | Benefits and Catches | Aemorph" url: https://aemorph.com/business-guides/ description: "Doing business in Singapore means 17% company tax, no capital gains tax and open foreign ownership. Figures checked at IRAS and ACRA, with the catches." publisher: Aemorph publisher_entity: https://aemorph.com/entitymap.json#org_aemorph entities: [tax_sg_business_guides] language: en-SG updated: 2026-11-05 --- Business guides # Benefits of Doing Business in Singapore, With the Costs and Catches **Doing business in Singapore costs a company 17% tax on profit and nothing on capital gains, according to IRAS figures checked on 5 November 2026. Foreign founders keep full control, because the US State Department's September 2026 report records no joint-venture requirement. The catches are a resident director, a corporate service provider for foreign founders and licensing limits in finance, professional services and media. Every figure below carries its official source and the date it was checked.** Written by [Kevin Dam](https://aemorph.com/about/), founder of Aemorph, who has practised SEO since 2010 and sits on the [Forbes Agency Council](https://councils.forbes.com/profile/Kevin-Dam-Global-Search-Architect-%7C-SEO-GEO-AEO-IMO-LLM-Visibility-Aemorph/4c8c7a38-1285-470d-8ea8-e517a310a00b). Aemorph is a [Google Partner](https://www.google.com/partners/agency?id=4441861842). [LinkedIn](https://www.linkedin.com/in/kevindam) *Accurate as of 5 November 2026. Every figure, date and rule on this page was checked against its source on that date, and the page is rechecked monthly.* --- ## Singapore taxes company profits at 17% and exempts part of the first S$200,000 **A Singapore company pays 17% tax on its chargeable income, and an exemption on the first S$200,000 lowers the effective rate to 11.19% on S$300,000 of profit for an established company and 9.92% for a start-up.** IRAS states in its Form C-S notes that the rate is 17% for Year of Assessment (YA) 2026. A company outside the start-up scheme receives the partial tax exemption, which covers 75% of the first S$10,000 and 50% of the next S$190,000 of normal chargeable income. A new company receives the start-up exemption for its first three consecutive YAs, which covers 75% of the first S$100,000 and 50% of the next S$100,000. How a company files and pays this tax is covered in [Tax Filing Singapore](https://aemorph.com/business-guides/compliance-tax-filing/). The start-up exemption applies to a company that is incorporated and tax resident in Singapore, has no more than 20 shareholders, and has either only individual shareholders or at least one individual holding 10% or more of the ordinary shares. It excludes investment holding companies and, for companies incorporated after 25 February 2013, property development companies. *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-6057)* *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-6bf6)* ### How much tax does a company with S$300,000 of profit pay? **A company with S$300,000 of chargeable income pays S$33,575 under the partial exemption and S$29,750 under the start-up exemption, before any YA 2026 rebate.** | Chargeable income | Tax with no exemption (17%) | Tax after partial exemption | Effective rate | Tax after start-up exemption | Effective rate | | --- | --- | --- | --- | --- | --- | | S$100,000 | S$17,000 | S$8,075 | 8.08% | S$4,250 | 4.25% | | S$300,000 | S$51,000 | S$33,575 | 11.19% | S$29,750 | 9.92% | | S$1,000,000 | S$170,000 | S$152,575 | 15.26% | S$148,750 | 14.88% | *Tax payable before the YA 2026 rebate, calculated by Aemorph from IRAS's YA 2026 rate and exemption tiers as at 5 November 2026.* For S$300,000 under the partial exemption, the exempt amount is 75% of S$10,000 (S$7,500) plus 50% of S$190,000 (S$95,000), a total of S$102,500. The taxable amount is S$300,000 less S$102,500, which is S$197,500, and 17% of S$197,500 is S$33,575. Under the start-up exemption, the exempt amount is S$75,000 plus S$50,000, a total of S$125,000. The taxable amount is S$175,000 and the tax is S$29,750. IRAS's YA 2026 notes also show a 50% corporate income tax rebate capped at S$40,000. On the S$33,575 above, the rebate is S$16,787.50 and the tax payable is S$16,787.50. The rebate is stated for YA 2026 only. *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-6057)* *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-6bf6)* ### Does Singapore tax capital gains on company assets? **No, IRAS states that Singapore does not tax capital gains, and only gains or losses of an income nature are taxable or deductible.** The label on a gain does not decide the tax. The nature of the gain does. *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-67a1)* ### Is a company tax resident because it is incorporated in Singapore? **No, IRAS treats a company as a Singapore tax resident when its control and management is exercised in Singapore, and the start-up exemption requires tax residence for the year of assessment.** A board that directs the business entirely from overseas therefore puts the start-up exemption in question, even though the company is incorporated in Singapore. *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-dfa0)* ### How does Singapore tax foreign income that a company brings home? **A Singapore tax resident company enjoys tax exemption on specified foreign income that it remits into Singapore under IRAS's Foreign-Sourced Income Exemption (FSIE) Scheme.** IRAS lists the specified foreign income as foreign-sourced dividends, foreign branch profits and foreign-sourced service income. Only income that qualifies for FSIE is exempt, so a holding company confirms the conditions with IRAS before relying on it. *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-6bf6)* ## A foreign founder owns a Singapore company outright with no local partner **Singapore does not require a joint-venture partner, with exceptions in a short list of regulated sectors, so a foreign founder or parent company holds the whole company and keeps management control.** The US State Department's 2026 Investment Climate Statement for Singapore, published in September 2026, records that foreign investors are not required to enter joint ventures or cede management control to local interests. The same report records that Singapore places no restrictions on reinvestment or repatriation of earnings or capital. ACRA describes a subsidiary as a separate Singapore company owned by the parent. The sector exceptions and the director rule below are the conditions attached to this advantage, and [Business Licensing in Singapore](https://aemorph.com/business-guides/license/) covers the licences that follow in regulated trades. *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-52a2)* ### Does a foreign-owned Singapore company need a local director? **Yes, ACRA requires at least one director who is ordinarily resident in Singapore, such as a citizen, a permanent resident or a holder of a valid Employment Pass, Personalised Employment Pass or Overseas Networks and Expertise Pass.** Every company has at least one director and one company secretary. The director is 18 or older. The company secretary is a real person, meets the same residency rules, is not the same person as the sole director, and is appointed within six months of registration. A foreigner engages a corporate service provider to reserve the name and register the company. *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-5772)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-b207)* ### Which sectors limit foreign ownership in Singapore? **The State Department lists telecommunications, broadcasting, domestic news media, financial services, legal and accounting services, ports, airports and property ownership as exceptions to Singapore's general openness to foreign investment.** The report adds that Singapore law lets articles of incorporation carry shareholding limits that restrict ownership by foreign persons. It also records that, since 2023, the Ministry of Trade and Industry designates entities as critical to national security and requires approval for certain controlling-stake sales. A founder in one of these sectors checks the sector regulator before relying on full ownership. *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* ## ACRA registers a Singapore company for S$315 in government fees, usually soon after payment **ACRA charges S$315 in government fees to reserve a name and register a local company, and most registrations are approved soon after payment, with complex cases taking up to 15 working days.** The table lists each filing for a local company in deadline order. The S$315 covers ACRA's fees only, and a foreign founder adds the fee of the corporate service provider that ACRA requires them to engage. The filing steps in full are in [How to Register a Business in Singapore](https://aemorph.com/business-guides/registration/). | Filing | Timing | ACRA fee | What ACRA asks for | | --- | --- | --- | --- | | Reserve the company name | Before registration | S$15 | A name approved by ACRA, applied for through a corporate service provider by a foreign founder | | Register the company in Bizfile | After the name is reserved, by the person who reserved it | S$300 | Singpass or Corppass login, a constitution, a Singapore registered office open at least three hours each business day, and director and shareholder details | | Receive the approval | Soon after payment for most cases, up to 15 working days for complex cases, 14 to 60 days if a referral authority is involved | None listed | A check of the Bizfile inbox for the outcome | | Other position holders endorse the registration | Within 60 days of submission, not required when a corporate service provider files | None listed | Endorsement by each director and shareholder named | | Appoint the company secretary | Within six months of registration | None listed | A real person who meets the residency rules and is not the sole director | | Apply for an EntrePass, for founders who move to Singapore | Before incorporation or within six months of setting up | None listed | A work pass for the founder | *ACRA's local company registration steps in deadline order, with fees as listed by ACRA on 5 November 2026.* *[Source: ACRA, January 2026](https://aemorph.com/sources/#acra-january-2026-023a)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-94f0)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-5772)* ### How long does it take to incorporate a company in Singapore? **ACRA does not promise a fixed day: most registrations are approved soon after payment, complex applications take up to 15 working days, and those needing a referral authority take 14 to 60 days.** A company whose activity needs approval from a referral authority is the slow case, so the licence question is answered before the filing date is planned. *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-94f0)* ### Is a subsidiary or a foreign company branch cheaper to register? **A branch costs S$300 for one year against S$315 for a subsidiary, but a branch is not a separate legal entity and needs a locally resident authorised representative who is personally answerable.** | Structure | Legal identity | ACRA fee | Local-resident requirement | Ongoing duties | | --- | --- | --- | --- | --- | | Subsidiary (local company) | A separate Singapore company owned by the parent | S$315 (S$15 name application and S$300 registration) | At least one director who is ordinarily resident, and a company secretary within six months | Company secretary, an auditor unless exempt, an annual general meeting and annual returns | | Foreign company branch | A direct extension of the parent, not separate | S$300 for one year, after a name reservation | A locally resident authorised representative, who is held personally responsible if requirements are unmet | Companies Act 1967 obligations such as annual filing for foreign companies | *ACRA's two main set-up routes for a foreign business compared on identity, fee and local-resident rule, as published on 5 November 2026.* ACRA also lists a representative office, which is not a separate legal entity and is a temporary set-up, and a transfer of registration, under which a foreign company moves its legal home to Singapore. All foreign businesses engage a corporate service provider to register, whichever structure they choose. *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-52a2)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-c5ac)* *[Source: ACRA, September 2026](https://aemorph.com/sources/#acra-september-2026-39cf)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-e8ca)* ## Singapore's treaty network covers 93 double taxation agreements in force and 29 free trade agreements **Singapore has 93 comprehensive double taxation agreements in force and 29 implemented free trade agreements, which gives a Singapore company treaty coverage for cross-border income and trade.** IRAS reports 96 comprehensive double taxation agreements (DTAs) signed to date, of which 93 are in force as at 31 March 2026. The State Department's September 2026 report records 43 bilateral investment treaties in force, 29 implemented free trade agreements and 11 free-trade zones operated by four zone authorities. *[Source: IRAS, November 2026](https://aemorph.com/sources/#iras-november-2026-53e7)* *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* ### Does Singapore have an income tax treaty with the United States? **No, the State Department's September 2026 report states that Singapore has no bilateral income taxation treaty with the United States, so the DTA count above does not reach US income tax.** A company with US-linked income checks that point before it counts treaty relief as an advantage. *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* ### Which advantage matters most for each type of business? **An exporter gains most from the trade agreements, a start-up from the tax exemption, a holding company from the foreign income exemption and a foreign-owned operator from the ownership rule.** | Business type | Advantage that matters most | Verified figure | Catch to check first | | --- | --- | --- | --- | | Foreign-owned operating company | Full control without a local partner | No joint-venture or management-control requirement (State Department, September 2026) | A resident director and a corporate service provider (ACRA) | | Start-up in its first three years | Start-up tax exemption | 9.92% effective rate on S$300,000 against 17% | Tax residence in each YA, the 20-shareholder test, no investment holding companies | | Exporter or trader | Free trade agreements and free-trade zones | 29 implemented FTAs and 11 FTZs (State Department, September 2026) | Each agreement has its own terms, and ports are on the State Department's sector list | | Regional holding or head-office company | Treaties and the foreign income exemption | 93 DTAs in force at 31 March 2026 (IRAS) | Control and management exercised in Singapore decides tax residence, and there is no income tax treaty with the United States | | Finance, professional services, media or telecommunications business | An open investment regime | Licensing restrictions apply in these sectors (State Department, September 2026) | Shareholding limits in the articles of incorporation and sector licence conditions | *Aemorph's matrix of the advantages above by business type, built from the IRAS, ACRA and State Department figures cited on this page as at 5 November 2026.* *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* ## Singapore moves profits out freely and settles contracts in independent courts **Singapore places no restrictions on reinvestment or repatriation of earnings or capital, and its judiciary is independent of the executive, according to the US State Department's September 2026 report.** The report records that Singapore's judiciary upholds the sanctity of contracts and that its decisions are generally considered transparent and effectively enforced. It names the Singapore International Arbitration Centre (SIAC) as the major arbitral institution and lists the Singapore International Commercial Court among the specialised commercial dispute bodies. *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* ## Singapore's labour force is about 40% foreign, and every foreign hire needs a work pass **Foreign workers numbered about 1.64 million of Singapore's 4.09 million workers in December 2025, which is about 40%, and every foreigner needs a valid work pass before starting work.** The State Department's September 2026 report adds that about 75% of those foreign workers are basic or semi-skilled, so the foreign share does not measure the professional hiring pool. Unemployment was 2.0% for full-year 2025. The rules for contracts, leave and dismissal are in [Singapore Employment Law](https://aemorph.com/business-guides/employment-law/). The 40% share is 1.64 million divided by 4.09 million, which equals 0.401. *[Source: US Department of State, September 2026](https://aemorph.com/sources/#us-department-of-state-september-2026-15a5)* ## A Singapore company carries yearly duties alongside its tax advantages **A Singapore company carries a company secretary, an auditor unless exempt, an annual general meeting, annual returns and a registered office open to the public at least three hours each business day.** ACRA states that a company offers the best protection for personal money because it is a separate legal entity, and that it also has the most rules and yearly paperwork of the business structures. A company secretary vacancy that lasts beyond six months exposes the director to a fine of up to S$1,000. The wider list of obligations is in [Guide to Business Compliance in Singapore](https://aemorph.com/business-guides/compliance/). *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-e8ca)* *[Source: ACRA, November 2026](https://aemorph.com/sources/#acra-november-2026-b207)* ## The Business guides series follows the order in which a new company meets each decision **The Business guides series covers registration, banking, licences, tax, hiring and compliance in the order a new Singapore company meets them, and [How to Start a Business in Singapore](https://aemorph.com/business-guides/how-to-start/) is the first step.** *General guidance as of 5 November 2026, not legal advice.* ## Explore further Business guides ### Accounting Software in Singapore Accounting software in Singapore compared on published S$ prices and InvoiceNow status, with the IRAS date for your annual supplies band. 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