Starting a Singapore Company from Iceland

Introduction: Why Icelandic Entrepreneurs Are Expanding to Singapore

Iceland may be a small country in population, but it is globally recognized for its entrepreneurial spirit, innovation, and technological sophistication. As Icelandic businesses increasingly seek to diversify and reach Asian markets, Singapore has emerged as the ideal destination for international expansion.

Located in the heart of Southeast Asia, Singapore offers Icelandic entrepreneurs access to over 650 million consumers in ASEAN and serves as a bridge to larger economies such as China, India, and Japan. With its low corporate taxes, transparent regulations, and stable government, Singapore provides the perfect gateway for Icelandic companies looking to expand globally.

This guide explains the benefits, requirements, and process of starting a Singapore company from Iceland, helping Icelandic investors understand why the city-state is one of the best places in the world to do business.

Why Singapore Appeals to Icelandic Businesses

1. Strategic Access to Asian Markets

Singapore is strategically located between major global trade routes and serves as a regional hub for finance, logistics, and innovation. For Icelandic exporters — especially in technology, renewable energy, seafood, and pharmaceuticals — establishing a Singapore base opens access to rapidly growing Asian economies such as Vietnam, Indonesia, and Malaysia.

2. Political Stability and Legal Transparency

Singapore is globally ranked among the most stable and corruption-free countries. Its independent judiciary, clear commercial laws, and reliable contract enforcement make it a safe jurisdiction for foreign investors. Icelandic companies can confidently operate knowing their investments are protected.

3. Competitive and Simple Tax System

Singapore’s tax system is one of the most business-friendly in the world. The corporate tax rate is capped at 17%, with various tax exemptions for startups and no capital gains or dividend taxes.

Moreover, Iceland and Singapore have a Double Taxation Agreement (DTA) that prevents companies from being taxed twice on the same income — a major advantage for Icelandic businesses operating across both jurisdictions.

4. Ease of Doing Business

Incorporating a company in Singapore is remarkably straightforward. The entire process can be completed online within one working day through the Accounting and Corporate Regulatory Authority (ACRA). Singapore’s regulatory framework prioritizes efficiency and transparency.

5. English as the Business Language

All business, legal, and government processes in Singapore are conducted in English, making it easy for Icelandic entrepreneurs to operate without language barriers.

6. Shared Values: Innovation and Sustainability

Both Iceland and Singapore emphasize innovation, environmental sustainability, and technology-driven development. Icelandic companies in clean energy, green tech, and marine innovation will find Singapore a compatible environment for collaboration and investment.

Key Benefits of Incorporating a Company in Singapore from Iceland

1. 100% Foreign Ownership

Icelandic entrepreneurs can own 100% of their Singapore-registered company, without the need for local partners or shareholders.

2. Global Credibility

A Singapore-incorporated business enjoys a strong international reputation. Singapore’s adherence to global financial standards enhances trust among investors, clients, and business partners across Asia.

3. Access to the ASEAN Market

From Singapore, Icelandic companies can expand into the 10-member ASEAN region, with preferential trade access and reduced tariffs through regional free trade agreements.

4. World-Class Banking Infrastructure

Singapore is one of the world’s leading financial centers, hosting both local and international banks such as HSBC, Standard Chartered, DBS, OCBC, and Citibank. Icelandic entrepreneurs can open multi-currency corporate accounts, facilitating trade in USD, EUR, SGD, and other currencies.

5. Government Support for Foreign Businesses

The Singapore government actively encourages international business growth with funding programs such as:

Startup SG Founder Grant – for new entrepreneurs
Enterprise Development Grant (EDG) – for innovation and expansion
Market Readiness Assistance (MRA) Grant – for overseas market entry

These programs can significantly reduce setup and operational costs.

Step-by-Step Guide: How to Incorporate a Singapore Company from Iceland

Step 1: Choose the Right Business Structure

For Icelandic entrepreneurs, the most suitable entity is a Private Limited Company (Pte. Ltd.), offering:

Limited liability protection
Tax benefits
Credibility and scalability
Separate legal identity

Step 2: Meet the Legal Requirements

To register a Private Limited Company, the following requirements must be met:

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

If the Icelandic owner does not have a local director, they can appoint a nominee director through a licensed corporate services provider.

Step 3: Reserve Your Company Name

The first step is to reserve a company name through ACRA’s BizFile+ portal. The name must be unique and not infringe on existing trademarks. Once approved, it will be reserved for 120 days.

Step 4: Prepare Incorporation Documents

Icelandic applicants must submit:

Passport copies of all directors and shareholders
Proof of residential address (utility bill or bank statement)
Description of business activities
Company Constitution (Articles of Association)

If the shareholder is an Icelandic company, certified copies of incorporation documents and board resolutions are required.

Step 5: Register the Company

Your appointed service provider can file the incorporation online through BizFile+. Registration typically takes one business day after document submission.

Step 6: Open a Corporate Bank Account

After incorporation, open a corporate bank account in Singapore. Banks like DBS, OCBC, UOB, and HSBC serve foreign entrepreneurs and offer remote account setup depending on KYC requirements.

Step 7: Apply for a Work Visa (If Relocating)

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

Post-Incorporation Compliance

Once your company is incorporated, you must maintain statutory compliance. Key obligations include:

Appointing a company secretary within 6 months
Holding an Annual General Meeting (AGM)
Filing annual returns with ACRA
Preparing financial statements (audited or unaudited)
Registering for Goods and Services Tax (GST) if annual revenue exceeds S$1 million

Engaging a corporate services provider ensures all legal and accounting requirements are handled efficiently.

Tax Advantages for Icelandic Entrepreneurs

Singapore’s tax framework is designed to promote business growth and foreign investment. Benefits include:

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

Through the Singapore–Iceland DTA, businesses are protected from double taxation, reducing the overall tax burden and encouraging cross-border investment.

Popular Business Sectors for Icelandic Companies in Singapore

Renewable Energy and Clean Technology – Iceland’s leadership in geothermal and sustainable energy can complement Singapore’s drive for a green economy.
Technology and Software Development – Singapore’s Smart Nation initiative welcomes Icelandic expertise in data, AI, and cybersecurity.
Marine and Fisheries – As a major seafood exporter, Iceland can use Singapore’s port and logistics facilities to reach Asian markets.
Healthcare and Biotechnology – Iceland’s biotech and pharmaceutical firms can collaborate with Singapore’s advanced research institutions.
Creative Design and Architecture – Icelandic creativity and Scandinavian aesthetics resonate with Singapore’s modern urban design culture.
Tourism and Hospitality – Icelandic travel and lifestyle brands can use Singapore as a base for Asian expansion.

Iceland–Singapore Economic Relationship

Singapore and Iceland, though geographically distant, share strong economic interests in innovation, technology, and sustainability.

As part of the EU–Singapore Free Trade Agreement (EUSFTA), Icelandic companies trading through the European Economic Area (EEA) benefit from:

Elimination of tariffs on most exports
Simplified customs procedures
Enhanced protection of intellectual property
Access to public procurement markets

Furthermore, organizations such as the Nordic Innovation House Singapore and the Embassy of Iceland in Beijing (accredited to Singapore) support Icelandic businesses looking to establish a presence in Asia.

Cultural and Business Compatibility

Singapore’s efficiency, transparency, and innovation-driven mindset align well with Icelandic business culture. Both countries emphasize ethical governance, technological advancement, and long-term thinking.

Icelandic entrepreneurs will find Singapore’s cosmopolitan society welcoming and its business culture easy to adapt to — professional, punctual, and performance-oriented.

Practical Tips for Icelandic Entrepreneurs

Hire a Professional Corporate Services Provider – They can handle incorporation, nominee directorship, and compliance.
Use the DTA to Optimize Tax Efficiency – Structure your income flow to benefit from double tax relief.
Leverage Government Grants – Apply for EDG or MRA to support expansion costs.
Open a Multi-Currency Account – Simplify cross-border transactions with EUR, USD, and SGD accounts.
Join Business Networks – Connect with regional chambers and Nordic innovation hubs in Singapore for collaboration and local insights.

Common Challenges for Icelandic Businesses

While Singapore is highly business-friendly, Icelandic entrepreneurs may encounter:

Banking compliance checks (KYC/AML) that can delay account setup
High living and office costs compared to neighboring ASEAN countries
Regulatory differences requiring professional local guidance

Working with experienced corporate service firms and consultants helps mitigate these challenges.

Why Singapore Is the Ideal Destination for Icelandic Entrepreneurs

Singapore offers Icelandic companies a world-class business environment in the heart of Asia. Its strong legal system, efficient tax policies, and connectivity make it the perfect launchpad for international expansion.

By starting a Singapore company from Iceland, business owners gain access to global markets, favorable trade terms, and an ecosystem designed to foster innovation and growth.

Whether you’re in renewable energy, technology, or marine products, Singapore provides the platform and stability to bring your business to the next level.

If you are an Icelandic entrepreneur ready to expand into Asia, contact a trusted corporate services provider in Singapore today to handle your incorporation, accounting, and compliance — and take the first step toward building a successful international enterprise.