Introduction
For Taiwanese entrepreneurs and business owners looking to expand internationally, Singapore offers one of the most attractive destinations in Asia. With its strategic location, low taxes, political stability, and strong financial infrastructure, Singapore has long been a preferred hub for global investors and multinational corporations.
This article explores why Taiwanese residents should set up a company in Singapore, the advantages it provides, and how it can serve as the perfect springboard for regional and international expansion.
1. Strategic Location and Gateway to ASEAN Markets
Singapore’s location at the heart of Southeast Asia is one of its strongest advantages. It sits right between major trade routes connecting China, India, and the Pacific Ocean, providing unparalleled access to ASEAN’s 650 million consumers.
For Taiwanese businesses that already have trade ties with Mainland China, expanding to Singapore opens new opportunities in Indonesia, Vietnam, Malaysia, Thailand, and the Philippines—some of the fastest-growing economies in the world.
Singapore’s world-class infrastructure, including Changi Airport and one of the busiest container ports globally, ensures smooth logistics and international connectivity, making it an ideal regional headquarters for Taiwanese companies.
2. Political Stability and Strong Legal Framework
Singapore is renowned for its political neutrality, transparency, and good governance. The government maintains clear policies and stable regulations that promote business confidence and long-term planning.
This stability is especially appealing to Taiwanese entrepreneurs who value predictability in their overseas operations. Singapore’s legal system is based on English common law, offering a transparent and efficient judicial process familiar to international investors.
Contracts, intellectual property (IP), and commercial transactions are well protected under Singaporean law, giving Taiwanese companies confidence that their business interests are secure.
3. Low and Competitive Corporate Tax Rates
One of the biggest incentives for setting up a company in Singapore is its low and simple tax system.
- The corporate tax rate is capped at 17%, among the lowest in Asia.
- Startups enjoy tax exemptions on the first S$100,000 of chargeable income for the first three years.
- There is no capital gains tax, meaning profits from selling shares or investments are not taxed.
- There is no dividend withholding tax.
- Singapore uses a territorial tax system, so income earned outside Singapore is generally not taxed if not remitted locally.
Compared to Taiwan, where the corporate tax rate is 20% and global income may be taxable, Singapore offers a far more favorable environment for maximizing profits and encouraging growth.
4. Double Taxation Agreement Between Singapore and Taiwan
Singapore and Taiwan have established an Avoidance of Double Taxation Agreement (DTA) since 1981. This agreement ensures that companies and individuals operating between both countries are not taxed twice on the same income.
Under this DTA, Taiwanese entrepreneurs can enjoy reduced tax rates on dividends, interest, and royalties, as well as clear guidelines on tax residency and cross-border income.
This framework makes business operations between Singapore and Taiwan smoother, more predictable, and tax-efficient.
5. 100% Foreign Ownership and Fast Incorporation Process
Singapore allows 100% foreign ownership of locally incorporated companies. This means that Taiwanese investors can fully own and control their Singapore business without the need for a local partner.
The Accounting and Corporate Regulatory Authority (ACRA) has made the incorporation process highly efficient. Most companies can be registered within one to two working days, provided all documents are in order.
The basic requirements include:
- At least one shareholder (individual or corporate)
- One resident director (can be fulfilled using a nominee director service)
- A local registered office address
- A company secretary within six months of incorporation
Once incorporated, the company can open a corporate bank account and begin operations immediately.
6. Excellent Financial and Banking Infrastructure
Singapore’s banking system is one of the most trusted in the world. It hosts over 200 banks and financial institutions, including major Taiwanese banks such as E.SUN, Cathay United Bank, and Mega International Commercial Bank.
Businesses can open multi-currency accounts and conduct international transactions in SGD, TWD, USD, or other major currencies with ease.
Singapore’s strong regulatory framework under the Monetary Authority of Singapore (MAS) ensures financial stability and compliance with global standards, offering a secure environment for international business operations.
7. Strong Intellectual Property (IP) Protection
Singapore is a regional leader in intellectual property rights (IPR) protection. For Taiwanese entrepreneurs involved in technology, manufacturing, design, or creative industries, this is a critical factor.
The Intellectual Property Office of Singapore (IPOS) offers comprehensive protection for patents, trademarks, and copyrights, aligned with global standards such as the World Intellectual Property Organization (WIPO) treaties.
By setting up in Singapore, Taiwanese innovators can safeguard their IP assets and enjoy global credibility when licensing or expanding into new markets.
8. Skilled and Multilingual Workforce
Singapore boasts a highly skilled and educated workforce, fluent in English, Mandarin Chinese, and other regional languages.
This multilingual environment is particularly beneficial for Taiwanese entrepreneurs, as it bridges communication across East and Southeast Asia. The city’s talent pool spans various industries, including finance, technology, engineering, marketing, and logistics.
Singapore also provides flexible work visa options such as the Employment Pass (EP) and EntrePass, allowing foreign directors, founders, and key employees to relocate and manage operations locally.
9. Supportive Government Policies and Business Grants
Singapore’s government actively supports innovation and entrepreneurship through grants, funding schemes, and tax incentives.
Some popular programs include:
- Enterprise Development Grant (EDG) – supports businesses in upgrading, innovating, and internationalizing.
- Market Readiness Assistance (MRA) Grant – helps SMEs expand into new overseas markets.
- Startup SG – provides funding, mentorship, and access to the startup ecosystem.
Foreign-owned companies incorporated in Singapore are also eligible for many of these programs, provided they contribute to the local economy. Taiwanese entrepreneurs can leverage these resources to scale faster and minimize startup costs.
10. Strong Trade Relations Between Singapore and Taiwan
Singapore and Taiwan share robust economic and trade relations. Taiwan is one of Singapore’s top trading partners, with bilateral trade exceeding billions annually.
Both economies complement each other well—Taiwan’s strengths in manufacturing and innovation pair naturally with Singapore’s excellence in finance, logistics, and global market access.
By setting up a Singapore company, Taiwanese firms can manage regional operations more effectively, benefit from international visibility, and strengthen their trade ties with ASEAN and beyond.
11. Access to Free-Trade Agreements (FTAs)
Although Taiwan’s international trade agreements are limited due to diplomatic constraints, incorporating a company in Singapore offers access to over 60 active Free-Trade Agreements (FTAs) with countries around the world.
This gives Singapore-registered companies tariff reductions, simplified customs procedures, and greater market access in key economies, including China, Japan, South Korea, Australia, and the European Union.
For Taiwanese entrepreneurs, using Singapore as an international base provides a major competitive advantage in global trade.
12. Comparison Between Singapore and Taiwan
| Feature | Singapore | Taiwan |
|---|---|---|
| Corporate Tax Rate | 17% | 20% |
| Capital Gains Tax | None | Up to 20% |
| Dividend Withholding Tax | None | 21% |
| Double Tax Agreement | Yes | Yes |
| Foreign Ownership | 100% allowed | Limited in some sectors |
| Incorporation Time | 1–2 days | 5–10 days |
| Political Stability | Very High | Moderate |
| Business Language | English & Mandarin | Mandarin |
| Global FTAs | 60+ | Limited |
From this comparison, it’s clear that Singapore’s combination of low taxes, speed of setup, and international reach gives it a clear edge as a regional business base.
13. Advanced Infrastructure and Digital Ecosystem
Singapore’s state-of-the-art infrastructure supports all types of businesses—from manufacturing and trade to fintech and e-commerce.
The Smart Nation initiative aims to transform Singapore into a fully digital economy, integrating AI, data analytics, IoT, and green technologies.
For Taiwanese companies in electronics, semiconductors, or digital services, Singapore’s infrastructure offers ideal conditions for R&D, innovation, and smart operations.
14. Excellent Quality of Life and Business Environment
Beyond business advantages, Singapore offers a high standard of living that appeals to Taiwanese professionals and families. The country is safe, clean, and highly organized.
Healthcare and education systems are world-class, with numerous international schools offering bilingual (English-Mandarin) programs—making it ideal for Taiwanese expatriates.
English is widely spoken, and the vibrant multicultural environment provides comfort and familiarity while allowing easy integration into the local business community.
15. Sustainable and Green Economy Opportunities
Singapore is also a global leader in sustainability and environmental innovation. Taiwanese businesses involved in renewable energy, electric vehicles, recycling, or sustainable materials will find plenty of opportunities for collaboration and government support.
Singapore’s emphasis on green finance, smart cities, and sustainable supply chains aligns closely with Taiwan’s growing interest in clean technology and ESG (Environmental, Social, and Governance) investment.
16. Simple Incorporation and Compliance for Taiwanese Entrepreneurs
The steps for Taiwanese entrepreneurs to incorporate in Singapore are straightforward:
- Choose a company name and check its availability through ACRA.
- Prepare incorporation documents (passport copy, proof of address, shareholding structure).
- Appoint a resident director (can be fulfilled via nominee service).
- Register the company online through ACRA (usually approved within 24–48 hours).
- Open a corporate bank account.
- Apply for necessary business licenses (if applicable).
After incorporation, companies must maintain basic compliance: annual returns, financial statements, and tax filings. Professional corporate service providers in Singapore can handle these efficiently on behalf of Taiwanese clients.
17. Singapore as a Neutral Business Hub
For Taiwanese business owners concerned about geopolitical risks, Singapore’s neutral and globally respected position offers additional peace of mind.
Many multinational corporations use Singapore as a neutral base for operations involving partners in both China and the West. This allows Taiwanese companies to manage international business relationships more smoothly without political complications.
Conclusion
For Taiwanese residents and entrepreneurs, setting up a company in Singapore presents a powerful opportunity to expand globally. The advantages are clear:
- Strategic location and access to ASEAN markets
- Low corporate taxes and strong tax agreements
- Political stability and transparent governance
- 100% foreign ownership and easy incorporation
- Reliable financial systems and IP protection
- Multilingual, highly skilled workforce
- Excellent infrastructure and quality of life
Whether you’re a tech startup, manufacturing firm, or trading company, Singapore provides the ideal foundation for your international success.
Partnering with an experienced corporate services provider in Singapore can further streamline your setup process—allowing you to focus on growth while they handle compliance and administrative requirements.