Starting a Singapore Company from Japan

Introduction: The Rising Wave of Japanese Businesses Expanding to Singapore

In today’s increasingly globalized business environment, many Japanese entrepreneurs and corporations are looking beyond domestic borders to establish regional hubs in Asia. Among all possible destinations, Singapore stands out as a preferred location for Japanese investors seeking to expand their footprint into Southeast Asia and beyond.

With its pro-business government, transparent legal system, competitive tax regime, and connectivity to global markets, Singapore is the ideal place for Japanese companies to establish operations. From startups to multinational corporations, Singapore offers a stable, English-speaking, and innovation-driven environment that perfectly complements Japan’s reputation for quality and precision.

This comprehensive guide explores why Singapore is the top choice for Japanese businesses and how to successfully incorporate a Singapore company from Japan.

Why Singapore Attracts Japanese Entrepreneurs

1. Strategic Location in Asia

Singapore sits at the heart of Asia, making it a natural hub for Japanese companies looking to reach emerging markets such as Indonesia, Vietnam, Thailand, and India. Changi Airport’s global connectivity and the country’s world-class port infrastructure make regional trade and logistics effortless.

2. Political Stability and Transparent Regulations

Japan and Singapore share a deep respect for order, law, and integrity in governance. Singapore’s political stability and transparent regulatory environment allow Japanese investors to operate with confidence and long-term vision — essential qualities for sustainable expansion.

3. Competitive Corporate Tax Rates

Singapore’s corporate income tax rate is capped at 17%, one of the lowest in the developed world. Startups enjoy additional exemptions, and dividends are not taxed at the shareholder level. This allows Japanese businesses to reinvest more profits into growth.

Moreover, the Japan–Singapore Double Taxation Agreement (DTA) ensures that companies don’t pay taxes twice on the same income, making cross-border trade and investment tax-efficient.

4. Ease of Doing Business

The Accounting and Corporate Regulatory Authority (ACRA) enables businesses to incorporate online in as little as one day. There are no complex bureaucratic hurdles, which appeals to Japanese companies that value precision and efficiency.

5. Multilingual, Highly Skilled Workforce

Singapore’s bilingual population, fluent in English and Mandarin, ensures seamless communication for businesses dealing with global clients. Japanese companies benefit from a workforce that is adaptable, professional, and familiar with both Asian and Western business cultures.

Benefits of Incorporating a Singapore Company from Japan

1. Regional Headquarters and Expansion Hub

Many Japanese conglomerates, including Mitsubishi, Hitachi, and Toyota, have already chosen Singapore for their regional headquarters. SMEs and startups can follow the same path, using Singapore as a platform to manage their Southeast Asian operations.

2. Access to ASEAN’s 650 Million Consumers

Singapore’s strong trade ties and membership in ASEAN give Japanese businesses a gateway to one of the fastest-growing economic blocs in the world. With free trade agreements and minimal tariffs, Japanese exporters gain direct access to regional markets.

3. Intellectual Property (IP) Protection

For Japanese technology, engineering, and design firms, IP is invaluable. Singapore ranks among the best in the world for intellectual property protection, ensuring Japanese innovations remain secure.

4. Financial and Banking Advantages

Singapore’s reputation as a global financial hub means Japanese companies can enjoy robust banking services, multi-currency accounts, and easy cross-border transactions.

5. Strong Bilateral Relations

Singapore and Japan share a long-standing partnership built on mutual trust and collaboration. This is reinforced by frequent trade missions, cultural exchanges, and government-backed cooperation programs.

Step-by-Step Guide: How to Register a Singapore Company from Japan

Step 1: Choose the Right Business Structure

For most Japanese investors, the Private Limited Company (Pte Ltd) is the ideal structure due to its flexibility, credibility, and tax advantages. It allows foreign ownership and protects shareholders’ personal assets from business liabilities.

Step 2: Understand the Legal Requirements

To set up a Private Limited Company in Singapore, you’ll need:

At least one shareholder (can be an individual or corporate entity)
One local resident director (Singapore Citizen, Permanent Resident, or Employment Pass holder)
One company secretary (must be a Singapore resident)
Local registered address (cannot be 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 licensed corporate service provider in Singapore.

Step 3: Reserve Your Company Name

The proposed company name must be approved by ACRA. Avoid names that are identical or too similar to existing businesses, or that infringe on trademarks. Once approved, the name is reserved for 120 days.

Step 4: Prepare Incorporation Documents

Documents required from Japanese applicants include:

Passports and residential proof of all shareholders and directors
Memorandum and Articles of Association (Constitution)
Details of business activities
Company’s registered address in Singapore

Step 5: File for Incorporation with ACRA

Once all documents are ready, your service provider can submit the application online. Most companies receive approval within one working day.

Step 6: Open a Corporate Bank Account

You can open a corporate bank account with banks such as DBS, OCBC, UOB, or international banks like HSBC or MUFG. Some banks require a physical meeting, while others allow remote onboarding for foreign directors.

Step 7: Apply for Work Passes (if relocating)

If a Japanese director or manager wishes to relocate to Singapore, they can apply for an Employment Pass (EP) or EntrePass depending on business type and qualifications.

Post-Incorporation Compliance

After your company is incorporated, maintaining compliance is crucial:

Appoint a company secretary within 6 months
File annual returns to ACRA
Prepare unaudited or audited financial statements based on company size
Conduct an Annual General Meeting (AGM)
Register for Goods and Services Tax (GST) if annual revenue exceeds S$1 million

Outsourcing accounting, taxation, and secretarial work to a corporate services provider in Singapore ensures smooth compliance and efficiency.

Common Industries Where Japanese Businesses Excel in Singapore

Technology & Robotics – Japanese innovation meets Singapore’s smart city infrastructure.
Manufacturing & Electronics – Both nations are known for high-quality industrial standards.
Finance & FinTech – Singapore’s financial hub status attracts Japanese financial institutions.
Trading & Logistics – Proximity to major shipping routes and ASEAN markets.
Food & Beverage (F&B) – Japanese restaurants and food chains thrive in Singapore’s multicultural dining scene.
Real Estate & Design – Japanese architectural and interior design firms find opportunities in urban projects.

Singapore’s Tax Incentives for New Companies

Singapore offers one of the most attractive tax systems in Asia. Newly incorporated companies enjoy:

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 withholding tax on dividends

The Japan–Singapore DTA further enhances these benefits by eliminating double taxation and ensuring fair treatment of cross-border income.

Why Japanese Entrepreneurs Choose Singapore Over Other Hubs

1. English-Based Legal and Business Environment

Unlike other ASEAN nations, Singapore’s entire legal, financial, and business ecosystem operates in English. This simplifies documentation and communication for Japanese companies working with international partners.

2. Low Corruption and High Efficiency

Singapore consistently ranks in the top 5 globally for transparency and absence of corruption. Business decisions and government procedures are handled quickly and professionally.

3. Infrastructure and Connectivity

With world-leading digital and transport infrastructure, Singapore allows businesses to operate seamlessly across time zones and geographies.

4. Government Support for Foreign Entrepreneurs

Through Enterprise Singapore, the government provides financial assistance, grants, and advisory support for international companies setting up regional headquarters.

Cultural Synergy Between Japan and Singapore

Both countries share a strong work ethic, precision, and commitment to quality. Japanese companies often find that Singapore’s professional environment aligns closely with their corporate culture. Additionally, the significant Japanese expatriate community in Singapore ensures access to familiar networks, schools, and social support systems.

The Japanese Chamber of Commerce & Industry Singapore (JCCI) plays a pivotal role in connecting new Japanese entrepreneurs to established networks and potential partners.

Practical Tips for Japanese Founders

Engage a Professional Incorporation Firm – They handle all ACRA filings, nominee directorship, and compliance matters efficiently.
Leverage Double Taxation Agreements – Proper structuring between Singapore and Japan entities can significantly reduce overall tax burden.
Consider a Virtual Office – For startups testing the market, a registered address and mail-handling service offer cost efficiency.
Hire Local Talent – Employing Singaporeans enhances local market credibility and eligibility for certain government grants.
Apply for Grants – Programs like the Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA) Grant can support internationalization efforts.

Challenges and How to Overcome Them

While Singapore is welcoming to foreign investors, Japanese entrepreneurs might encounter challenges such as:

Understanding Singapore’s business laws and filing deadlines
Language and cultural nuances when dealing with diverse clients
Banking documentation requirements for overseas shareholders

Partnering with a reputable Singapore-based accounting and corporate services firm helps mitigate these issues through expert guidance and local representation.

Conclusion: Why Singapore Is the Perfect Destination for Japanese Businesses

Singapore offers Japanese entrepreneurs the best of both worlds — Asian market access and global sophistication. Its stable government, efficient systems, favorable taxation, and innovation-driven environment make it the ideal choice for expanding Japanese enterprises.

Whether you’re an SME exploring ASEAN opportunities or a large corporation setting up a regional office, Singapore provides the infrastructure and ecosystem to thrive.

By establishing your Singapore company from Japan, you gain not only a regional base but also a strategic advantage in scaling your business across Asia and the world.

If you are a Japanese entrepreneur ready to expand into Singapore, consider partnering with a professional corporate services provider who can handle your incorporation, compliance, and ongoing business support efficiently.