Introduction: Why Italian Entrepreneurs Are Choosing Singapore
In recent years, Italian entrepreneurs and companies have increasingly looked beyond Europe to explore opportunities in Asia. Among all possible destinations, Singapore has become one of the most preferred choices for Italian businesses aiming to expand internationally.
With its strategic location, low taxes, political stability, and excellent infrastructure, Singapore serves as a gateway to the rapidly growing ASEAN market. For Italian firms — known for their innovation, craftsmanship, and design excellence — the city-state offers a thriving, business-friendly environment that rewards creativity, efficiency, and quality.
This comprehensive guide will explain why and how to start a Singapore company from Italy, covering the advantages, key requirements, incorporation steps, and the tax and business ecosystem that make Singapore a top choice for Italian investors.
Why Singapore Appeals to Italian Businesses
1. Strategic Gateway to Southeast Asia
Singapore is strategically located at the crossroads of major global trade routes, making it the ideal base for Italian companies that wish to access the fast-growing ASEAN markets, including Indonesia, Malaysia, Thailand, and Vietnam. From Singapore, Italian exporters can manage supply chains, distribution, and regional partnerships with ease.
2. Business-Friendly and Efficient Environment
Unlike many European jurisdictions, Singapore offers an extremely straightforward incorporation process, transparent regulations, and minimal bureaucracy. The entire process is digital and managed through the Accounting and Corporate Regulatory Authority (ACRA). Most companies can be registered within one business day.
3. Attractive Tax System
Singapore’s corporate tax rate is capped at 17%, and new companies enjoy partial tax exemptions for the first three years. There are no taxes on capital gains or dividends, and foreign income may be exempt under certain conditions.
The Singapore–Italy Double Taxation Agreement (DTA) ensures that businesses are not taxed twice on the same income, which helps Italian entrepreneurs structure their operations efficiently.
4. Political Stability and Legal Security
Singapore’s political and legal systems are globally recognized for their transparency and reliability. Contracts are enforceable, corruption levels are extremely low, and the judiciary operates independently.
5. Cultural Compatibility and Skilled Workforce
Singapore’s workforce is highly educated, English-speaking, and internationally minded. Italian entrepreneurs will find it easy to communicate and collaborate while maintaining their high standards of creativity and quality.
Benefits of Incorporating a Company in Singapore from Italy
1. 100% Foreign Ownership
Italian investors can own 100% of their Singapore-registered company. No local partners or shareholders are required, offering full operational control.
2. Global Business Reputation
A Singapore-incorporated company enjoys global credibility, especially among investors, banks, and clients. This enhances business reputation when dealing with partners in Asia or internationally.
3. Access to Banking and Financial Services
Singapore’s financial sector is one of the most robust in the world. Italian companies can open multi-currency corporate bank accounts with local banks (DBS, OCBC, UOB) or international institutions (HSBC, Standard Chartered, Citi, and even Italian banks with regional presence).
4. Access to Trade Agreements
Singapore’s network of Free Trade Agreements (FTAs) with ASEAN, China, and the EU ensures reduced tariffs and open access to major global markets. Italian exporters and manufacturers particularly benefit from this network.
5. Startup and SME Support
For Italian entrepreneurs launching new ventures, Singapore offers multiple grants and assistance programs such as:
- Startup SG Founder Grant – Seed funding support
- Enterprise Development Grant (EDG) – For innovation and market expansion
- Market Readiness Assistance (MRA) Grant – For overseas expansion and partnerships
Step-by-Step Process to Start a Singapore Company from Italy
Step 1: Choose the Right Business Structure
The most common and efficient structure is the Private Limited Company (Pte Ltd). It provides limited liability, corporate tax benefits, and flexibility to raise funds or expand later.
Step 2: Meet the Legal Requirements
To incorporate a Private Limited Company, you’ll need:
- At least one shareholder (individual or corporate)
- At least one resident director (Singapore Citizen, Permanent Resident, or Employment Pass holder)
- One company secretary (must be a resident of Singapore)
- A local registered office address (cannot be a P.O. box)
- Minimum paid-up capital of S$1
If the Italian owner does not have a local director, they can hire a nominee director through a licensed corporate services firm.
Step 3: Reserve Your Company Name
Submit your preferred company name to ACRA for approval via the BizFile+ portal. The name must be unique and cannot infringe on existing trademarks. Once approved, the name will be reserved for 120 days.
Step 4: Prepare Incorporation Documents
For Italian shareholders or directors, the following documents are needed:
- 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 Italian corporate entity, certified copies of incorporation documents and resolutions will also be required.
Step 5: Register the Company
After all documents are ready, your appointed service provider will submit them online through ACRA’s BizFile+ portal. Registration is usually completed within one working day.
Step 6: Open a Corporate Bank Account
Once incorporated, open a corporate bank account with a local or international bank. Options include DBS, OCBC, UOB, HSBC, or Standard Chartered, many of which have experience serving European clients. Some banks may allow remote account setup after verification.
Step 7: Apply for Work Visas (If Relocating)
If you plan to move to Singapore to manage your company, apply for an Employment Pass (EP) or EntrePass. These passes allow foreign business owners to reside and operate their companies legally in Singapore.
Post-Incorporation Obligations
After incorporation, companies must maintain compliance with Singapore laws. The main requirements include:
- Appointing a company secretary within 6 months
- Filing annual returns and financial statements to ACRA
- Conducting an Annual General Meeting (AGM)
- Registering for Goods and Services Tax (GST) if annual revenue exceeds S$1 million
- Maintaining proper accounting records
Most Italian entrepreneurs choose to work with a corporate services provider to handle ongoing compliance, accounting, and taxation.
Tax Advantages for Italian Entrepreneurs
Singapore’s tax system is designed to promote business growth and international expansion. Key benefits include:
- Corporate tax rate of 17%
- Startup tax exemptions:
- 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 tax on dividends paid to shareholders
- No withholding tax on foreign shareholders
Furthermore, under the Singapore–Italy DTA, double taxation is avoided for income earned in both countries, ensuring that Italian entrepreneurs do not pay taxes twice on the same income.
Key Sectors for Italian Companies in Singapore
- Luxury Goods and Fashion – Italian brands enjoy strong demand in Singapore’s luxury retail sector.
- Food & Beverage (F&B) – Italian restaurants, coffee roasters, and wine importers flourish in Singapore’s cosmopolitan food scene.
- Engineering and Manufacturing – Singapore’s infrastructure and skilled labor attract Italian industrial and mechanical engineering firms.
- Design and Architecture – Italian design and creativity are valued in Singapore’s property and interior design markets.
- Technology and Innovation – Italian tech startups can collaborate with Singapore’s innovation ecosystem, accelerators, and venture capital firms.
- Automotive and Marine – Singapore serves as a regional base for Italian automotive and maritime component suppliers.
Singapore–Italy Economic Relationship
Singapore and Italy have a long-standing economic partnership supported by the Singapore–EU Free Trade Agreement (EUSFTA), which reduces tariffs and strengthens IP protections.
The Italian Chamber of Commerce in Singapore (ICCS) plays a key role in fostering collaboration, offering networking opportunities, and supporting Italian entrepreneurs entering the Singapore market.
Additionally, many Italian companies such as Ferrari, Luxottica, Barilla, and ENI already maintain a strong presence in Singapore, further reinforcing confidence in the business environment.
Cultural Synergy: Italy and Singapore
Both Italy and Singapore value quality, innovation, and professionalism. While Italian culture emphasizes creativity and relationships, Singapore’s business culture values precision, punctuality, and efficiency. The blend of both cultures can create highly productive partnerships.
Moreover, Singapore’s multicultural society appreciates European products and craftsmanship — making it easier for Italian brands and services to find receptive customers.
Practical Tips for Italian Entrepreneurs
- Hire a Professional Incorporation Agent – They can handle ACRA registration, nominee directorship, and compliance.
- Use the Double Taxation Agreement Wisely – Work with a tax advisor to structure your Singapore operations efficiently.
- Leverage Government Support – Apply for EDG or MRA grants if expanding your Italian brand into new Asian markets.
- Open a Multi-Currency Account – Manage transactions in SGD, EUR, and USD easily.
- Join the Italian Chamber of Commerce in Singapore – Build connections and gain insights from other Italian business owners.
Common Challenges for Italian Businesses
While Singapore is very welcoming, Italian entrepreneurs may face initial challenges such as:
- Understanding local compliance timelines
- Adapting to Asian business etiquette
- Banking documentation and KYC requirements
These are easily managed with professional corporate service providers and experienced legal or accounting advisors in Singapore.
Why Singapore Is the Ideal Destination for Italian Entrepreneurs
Singapore combines European-style efficiency with Asian market access. For Italian entrepreneurs, it offers everything necessary to thrive: a reliable legal system, favorable taxation, strategic trade location, and strong government support for foreign businesses.
Whether you’re in luxury goods, food, manufacturing, or tech, starting a Singapore company from Italy provides the foundation to scale your brand across Southeast Asia and beyond.
If you are an Italian entrepreneur looking to expand into Asia, contact a professional corporate services provider in Singapore today to assist you with incorporation, accounting, and compliance — and take your first step toward international success in one of the world’s most dynamic business hubs.