For decades, Singapore has been one of the most attractive places in the world for foreign business owners, especially Japanese entrepreneurs seeking stability, access to global markets, and a competitive tax environment. Today, more Japanese are choosing Singapore as their regional headquarters, technology base, investment centre, and residence.
Japan and Singapore share strong economic and cultural ties, and the presence of a well-established Japanese community in Singapore makes the transition even smoother for new arrivals. For a Japanese citizen who wants to set up a company and work in Singapore, the process is clear, structured, and efficient.
This guide walks through the full journey:
- why Singapore is ideal for Japanese founders
- how to register a company
- how to qualify to work legally in Singapore
- taxation, immigration, banking, and other practical details
Why More Japanese Are Starting Businesses in Singapore
Several factors explain why Singapore consistently draws Japanese SMEs, startups, and investors.
1. Business-friendly legal framework
Unlike many countries, Singapore allows complete foreign ownership of companies. A Japanese entrepreneur can own 100% of their Singapore business without a local partner.
2. Global connectivity
Singapore’s Changi Airport connects the city to major capitals across Asia. This makes the country a perfect regional base for Japanese companies expanding into ASEAN markets.
3. Simple taxation structure
With a maximum corporate tax rate of 17%, tax exemptions for new companies, and no tax on capital gains or dividends, Singapore offers an efficient tax environment compared to Japan.
4. High ease of doing business
Processes such as incorporation, licensing, and filing can be completed online through government digital systems, often within days.
5. Strong Japanese community
Restaurants, supermarkets, schools, and business organisations help Japanese citizens feel at home in Singapore.
These advantages make Singapore both a safe and high-growth environment for business development.
Setting Up a Company in Singapore as a Japanese Citizen
The registration process is straightforward and suitable for all types of industries, whether the goal is to open a trading company, restaurant, consultancy firm, tech startup, e-commerce platform, or regional headquarters.
Choosing a Business Structure
Most foreign entrepreneurs select a Private Limited Company because it offers credibility, flexible ownership, and tax efficiency.
Key features include:
- Limited liability
- Perpetual existence
- Ability to scale globally
- Corporate tax benefits
Basic Requirements for Incorporation
To set up a private limited company, Singapore law requires:
- Company Name
Must be approved by the Accounting and Corporate Regulatory Authority (ACRA). Names are usually approved instantly unless restricted terms are used. - At Least One Shareholder
Can be a person or another company, and may be 100% foreign owned. - At Least One Local Director
Must be Singapore citizen, PR, or Employment Pass holder residing in Singapore. Japanese citizens can eventually take this role once their own pass is approved. - Registered Singapore Address
Needed for all business communications and official notices. - Company Secretary
Must be appointed within six months of incorporation. - Minimum Paid-Up Capital
Starts from SGD 1, though most investors choose a higher number for credibility.
Because foreigners cannot work or act as resident directors until they have a work pass, most Japanese founders initially appoint a nominee director and later replace them once their own pass is approved.
Documents Required
A typical Japanese applicant will prepare:
- passport copy
- proof of overseas residential address
- description of business activities
- shareholding details
- company constitution
The incorporation procedure itself can be done fully online without being physically present in Singapore.
Most entrepreneurs complete the process through a registered corporate service provider.
Opening a Corporate Bank Account
After incorporation, the next step is setting up a local business bank account. Banks such as DBS, OCBC, UOB, Standard Chartered, and HSBC are common choices.
Digital alternatives like Wise Business or Airwallex may also be used.
Banks will request:
- company business profile
- personal identification of directors and shareholders
- business plan or commercial explanation
- source of funds
Some banks require a meeting in person.
How a Japanese Citizen Can Work Legally in Singapore
Setting up a company does not automatically allow a foreign owner to work or live in Singapore. A suitable work visa is required.
There are three common pathways:
1. Employment Pass (EP)
Ideal for company directors and managers, the Employment Pass is the most common work visa for foreign entrepreneurs.
To qualify, the applicant must:
- have a job role in the Singapore company
- meet salary guidelines (starting at SGD 5,600 per month, higher for senior applicants)
- possess suitable qualifications or strong experience
Once approved, the Employment Pass holder may also act as the company’s local director.
2. EntrePass
The EntrePass is specifically designed for entrepreneurs building innovative businesses.
Suitable if the company:
- operates in a tech, innovation, or R&D space
- has strong growth prospects
- has funding or IP potential
It does not require a minimum salary and is often preferred for startups building new technology or entering advanced sectors.
3. Letter of Consent for Dependants
If the entrepreneur’s spouse receives a Dependant Pass, they may be eligible for work authorisation later.
Typical Progress Path for Japanese Founders
Most Japanese entrepreneurs follow a gradual method:
- Register the Singapore company online
- Appoint a nominee director temporarily
- Start bank account setup and operational planning
- Apply for Employment Pass
- Once approved, remove the nominee and become resident director
- Relocate and run operations from Singapore
This approach ensures legal compliance from the start.
Accounting and Compliance Requirements
Singapore companies must meet ongoing statutory obligations. These include:
Annual Return Filing
Submitted to ACRA.
Corporate Tax Filing
Submitted to IRAS, typically by November each year.
Bookkeeping and Financial Statements
Every Singapore company must maintain proper records.
GST Registration
Required once revenue exceeds SGD 1 million.
Because most Japanese entrepreneurs are managing regional operations, accounting firms are commonly engaged to handle bookkeeping, payroll, and tax matters.
Tax Advantages for Japanese Investors
Singapore has one of the most attractive tax regimes in Asia. Key benefits include:
- Corporate tax capped at 17%
- Tax exemptions for new startups
- No tax on overseas income received in Singapore if qualifying conditions are met
- No capital gains tax
- No dividend tax
- Double Taxation Agreement between Singapore and Japan
This treaty ensures Japanese shareholders avoid unnecessary duplication of taxes when transferring profits.
Popular Industries Among Japanese Founders in Singapore
Food & Beverage (F&B)
Japanese cuisine is highly popular. Restaurants, catering companies, food importers, and premium product distributors do well.
Technology & Software
Singapore’s tech ecosystem is expanding. Japanese startups in AI, data, cybersecurity, and software development find strong support.
Wholesale Trade & Logistics
Many Japanese businesses use Singapore as a trading hub for ASEAN markets.
Professional Consulting Services
Management, finance, HR, and market advisory services are in demand.
Education & Training
Language schools, tutoring centres, and cultural training academies are popular options.
Thanks to Singapore’s open economy, most industries are available to foreign investors with very few restrictions.
Working and Living in Singapore as a Japanese Citizen
Beyond business, lifestyle quality is a major draw. Singapore offers:
- extremely low crime rates
- excellent healthcare
- world-class public transport
- strong infrastructure
- English-speaking daily environment
Japanese cultural life is vibrant. Many Japanese restaurants, community clubs, supermarkets, and schools make the experience familiar and supportive.
Business owners moving with families will also find that the education system—both local and international—provides strong options for children of all ages.
Pathway to Permanent Residency (PR)
Many foreign entrepreneurs working in Singapore eventually explore Singapore PR.
Although approval is not guaranteed, contributing factors include:
- stable business revenue
- hiring of Singaporean employees
- long-term contribution to Singapore economy
- salary level and role
- education history
Obtaining PR provides long-term settlement rights and more flexibility in business operations.
Cost Breakdown
Although costs vary depending on business needs, here are general estimates:
Incorporation service fees
SGD 1,500 – 3,000
Nominee director services
SGD 1,800 – 3,000 yearly
Corporate secretarial services
SGD 500 – 1,000 yearly
Accounting and tax support
SGD 1,000 – 3,000 yearly
Work pass application fees
SGD 800 – 1,500
These figures give Japanese entrepreneurs a realistic budgeting framework.
Important Practical Notes
You do not need to be physically in Singapore to register a company.
The entire incorporation process can be handled online.
Singapore uses English for legal and business documents.
This makes company administration very straightforward.
Japanese investors can own 100% of shares.
There is no requirement for Singaporean shareholding.
You need a work pass to live and work in Singapore.
Incorporation alone does not permit employment.
Understanding these points avoids misunderstandings later.
Tips for Building a Successful Singapore Business
1. Present a strong business model
Immigration authorities favour companies that show real economic contribution and commercial value.
2. Keep financial records clean and accurate
Transparent accounting helps with banking, employment pass renewals, tax compliance, and reputational credibility.
3. Focus on hiring local talent
This strengthens your Employment Pass profile and company image.
4. Work closely with local partners
Accountants, corporate secretaries, and consultants help navigate regulations efficiently.
5. Understand cultural expectations
Singapore business culture values punctuality, clarity, and professionalism—traits that align well with Japanese business ethics.
The Outlook for Japanese Entrepreneurs in Singapore
Singapore remains one of Asia’s most attractive business locations for Japanese founders. As Japan’s domestic economy matures, many businesses look outward for new customer bases, international talent, and favourable tax conditions. Singapore is uniquely positioned to support these objectives.
The nation continues to welcome foreign business owners who bring investment, innovation, jobs, and regional development.
With strategic planning and ongoing guidance, a Japanese entrepreneur can:
- register a company quickly
- obtain a suitable work visa
- operate within a low-tax environment
- grow within Southeast Asia’s fast-expanding markets
Conclusion
Japanese entrepreneurs who are ready to expand overseas will find Singapore one of the most accessible, secure, and growth-oriented places in the world to build a business. From straightforward incorporation procedures to strong legal protections, generous tax incentives, and sophisticated infrastructure, Singapore supports both business success and personal quality of life.
With thousands of Japanese investors already thriving in Singapore, new arrivals step into a trusted ecosystem with vast opportunity.
Whether the goal is to open a small consultancy, establish a regional headquarters, launch a startup, or operate a trade network, Singapore offers the framework needed to succeed.