Starting a Singapore Company from Denmark

Introduction: Why Danish Entrepreneurs Are Choosing Singapore

Denmark has a long-standing reputation for innovation, transparency, and global trade. Danish companies — known for their excellence in design, sustainability, and technology — are increasingly looking beyond Europe to expand into new and rapidly growing markets. Among all global destinations, Singapore stands out as the ideal hub for Danish entrepreneurs and corporations seeking to establish a strong foothold in Asia.

With its pro-business policies, low corporate tax rates, robust legal system, and strategic access to ASEAN’s 650 million consumers, Singapore offers Danish investors a powerful platform for international growth. Whether you’re an SME owner in Copenhagen or a startup founder in Aarhus, starting a Singapore company from Denmark can open doors to global opportunities and long-term profitability.

This guide explores why Singapore is a preferred destination for Danish businesses, what benefits to expect, and how to incorporate a company step-by-step.

Why Singapore Appeals to Danish Businesses

1. Strategic Location and Global Connectivity

Singapore is positioned at the heart of Southeast Asia, providing Danish companies with direct access to fast-growing economies such as Indonesia, Vietnam, Thailand, and Malaysia, as well as major Asian markets like China, Japan, and India.

For Danish exporters and logistics firms, Singapore’s world-class ports and air freight infrastructure ensure efficient supply chain management. Its reputation as a global shipping and aviation hub aligns perfectly with Denmark’s strength in maritime trade and logistics.

2. Low and Transparent Tax Regime

Singapore’s corporate income tax rate of 17% is one of the lowest globally. There are no taxes on dividends, capital gains, or foreign-sourced income (subject to qualifying conditions).

Additionally, the Singapore–Denmark Double Taxation Agreement (DTA) prevents companies from being taxed twice on the same income, enabling Danish entrepreneurs to operate seamlessly between both countries.

3. Business-Friendly Environment

Singapore ranks consistently among the world’s easiest places to do business. Incorporation can be completed entirely online in as little as one business day through the Accounting and Corporate Regulatory Authority (ACRA).

The regulatory environment is transparent and predictable — a factor Danish businesses highly value when entering foreign markets.

4. Political and Economic Stability

Singapore’s government is known for integrity, efficiency, and consistent economic management. Its political stability and strong legal protection give Danish investors the security needed for long-term strategic expansion.

5. English as the Business Language

All corporate, legal, and government procedures in Singapore are conducted in English. This eliminates language barriers for Danish entrepreneurs and simplifies contracts, documentation, and negotiations.

6. Shared Business Values

Singapore and Denmark share similar values — innovation, sustainability, and transparency. Danish companies specializing in renewable energy, green tech, design, and logistics will find Singapore’s environment highly compatible.

Advantages of Incorporating a Singapore Company from Denmark

1. 100% Foreign Ownership

Danish entrepreneurs can own 100% of a Singapore company without needing a local partner. This gives them complete control over management and profit distribution.

2. International Credibility

Singapore-registered companies are globally recognized for reliability and professionalism. This enhances a Danish company’s reputation when seeking Asian clients, suppliers, or investors.

3. Access to ASEAN and Asia-Pacific Markets

From Singapore, Danish companies can easily manage business across Southeast Asia and tap into Free Trade Agreements (FTAs) with countries including China, Australia, Japan, and South Korea.

4. Strong Banking and Financial Ecosystem

Singapore is Asia’s leading financial hub. Danish entrepreneurs can open multi-currency corporate accounts with banks like DBS, OCBC, UOB, HSBC, or European banks such as Danske Bank, Nordea, or BNP Paribas.

5. Government Support and Incentives

Singapore’s government actively encourages foreign investment and innovation through:

Enterprise Development Grant (EDG) – for business expansion and transformation
Market Readiness Assistance (MRA) Grant – to help SMEs enter new markets
Startup SG Founder – providing seed funding and mentorship for new entrepreneurs

These grants help Danish companies minimize the financial burden of setting up in a new region.

Step-by-Step Guide to Setting Up a Singapore Company from Denmark

Step 1: Choose the Right Business Structure

The most suitable entity for most Danish entrepreneurs is the Private Limited Company (Pte. Ltd.). It offers:

Limited liability protection
Separate legal identity
Attractive tax benefits
Flexibility for growth and investment

Step 2: Meet the Incorporation Requirements

To incorporate a company in Singapore, you’ll need:

At least one shareholder (individual or corporate)
One local resident director (Singapore Citizen, PR, or Employment Pass holder)
One company secretary (must be a Singapore resident)
A local registered office address (not a P.O. box)
Minimum paid-up capital of S$1

If no local director is available, you can appoint a nominee director through a professional corporate services provider.

Step 3: Reserve a Company Name

Submit your preferred company name to ACRA for approval. The name should be unique, relevant, and not infringe on existing trademarks. Once approved, it’s reserved for 120 days.

Step 4: Prepare Required Documents

For Danish applicants, you’ll need to prepare:

Passport copies of all directors and shareholders
Proof of residential address (e.g., utility bill or bank statement)
Business activity description
Company Constitution (Articles of Association)

If the shareholder is a Danish company, certified corporate documents and a board resolution authorizing the investment are required.

Step 5: File for Incorporation

Once all documents are ready, your appointed service provider will file the application online through BizFile+. Most registrations are approved within one working day.

Step 6: Open a Corporate Bank Account

After successful incorporation, open a corporate bank account in Singapore. Many banks offer remote account setup after identity verification. Choose from global and local banks depending on your needs.

Step 7: Apply for Work Visa (If Relocating)

If you plan to move to Singapore to manage your company, apply for an Employment Pass (EP) or EntrePass. These passes allow business owners to live and operate in Singapore legally.

Post-Incorporation Compliance

After incorporation, every company must comply with Singapore’s statutory requirements:

Appoint a company secretary within 6 months
Hold an Annual General Meeting (AGM)
File annual returns with ACRA
Prepare financial statements (audited or unaudited, depending on company size)
Register for GST if annual revenue exceeds S$1 million

Many Danish entrepreneurs engage local corporate service providers to handle accounting, tax, and secretarial work to stay compliant.

Tax Advantages for Danish Entrepreneurs

Singapore’s tax system is designed to attract and reward business innovation. Key highlights include:

17% corporate tax rate
75% tax exemption on the first S$100,000 of chargeable income for the first 3 years
50% tax exemption on the next S$100,000
No capital gains tax
No tax on dividends paid to shareholders

The Singapore–Denmark DTA provides double taxation relief, ensuring Danish companies are not taxed twice on income earned in both countries.

Popular Business Sectors for Danish Companies in Singapore

Renewable Energy and Sustainability – Denmark’s expertise in wind and clean energy aligns perfectly with Singapore’s Green Plan 2030.
Shipping and Maritime Services – Both nations are global maritime leaders, creating strong synergies in shipping and logistics innovation.
Technology and Digital Solutions – Danish IT, AI, and automation firms can thrive in Singapore’s smart city ecosystem.
Design and Architecture – Scandinavian design principles are highly appreciated in Singapore’s urban and interior spaces.
Food & Beverage (F&B) – Danish food exports, from dairy to premium seafood, find eager consumers in Singapore’s cosmopolitan market.
Education and Consultancy – Danish education models and business consulting expertise are valued in Singapore’s knowledge economy.

Denmark–Singapore Economic Relationship

Singapore and Denmark share a long-standing and strong economic partnership. The Denmark–Singapore Economic Cooperation Agreement and the broader EU–Singapore Free Trade Agreement (EUSFTA) promote trade, investment, and innovation between the two countries.

Under EUSFTA:

Tariffs are eliminated for nearly all EU exports to Singapore.
Customs procedures are simplified, saving time and cost.
Intellectual property protections are strengthened.
Public procurement markets are open to EU companies.

In addition, the Danish Business Association of Singapore (DABS) provides networking opportunities, market insights, and support for Danish entrepreneurs operating in Singapore.

Cultural Synergy Between Denmark and Singapore

Both countries value integrity, professionalism, and equality. Singapore’s business culture — structured yet collaborative — complements Denmark’s open and innovation-driven approach.

Danish companies will find Singapore’s workforce adaptable and internationally minded. The cosmopolitan environment makes it easy for Danish professionals to integrate, both in business and lifestyle.

Practical Tips for Danish Entrepreneurs

Engage a Corporate Services Provider – They will handle incorporation, compliance, and nominee director services.
Leverage the DTA and EUSFTA – These agreements help reduce taxes and facilitate smoother trade between Denmark and Singapore.
Apply for Government Grants – Explore the EDG and MRA grants for financial support in expansion and branding.
Set Up Multi-Currency Accounts – Manage transactions easily in DKK, EUR, and SGD.
Join DABS and EuroCham Singapore – Networking with other Danish and European business leaders accelerates local market understanding.

Challenges and How to Overcome Them

While Singapore is highly business-friendly, Danish entrepreneurs might encounter:

Strict bank KYC (Know Your Customer) procedures for account opening
High cost of living and office space compared to neighboring countries
Compliance deadlines that differ from European schedules

These challenges can be easily managed with local expertise from legal, accounting, and business advisors.

Why Singapore Is the Ideal Destination for Danish Entrepreneurs

Singapore represents the perfect combination of Asian opportunity and Scandinavian values — efficient, transparent, innovative, and globally connected. Its world-class business ecosystem allows Danish companies to scale across Asia while maintaining the standards of professionalism and governance they are used to in Denmark.

By starting a Singapore company from Denmark, entrepreneurs gain access to an ecosystem built for international success — with low taxes, high credibility, and unmatched market access.

Whether you’re expanding a renewable energy firm, a technology startup, or a design consultancy, Singapore provides the foundation and flexibility for your global ambitions.

If you are a Danish entrepreneur planning to establish a company in Singapore, engage a trusted corporate services provider today to assist with incorporation, accounting, and compliance — and take your first step toward success in Asia’s most vibrant and business-friendly economy.