Introduction: Why South Korean Entrepreneurs Are Eyeing Singapore
In recent years, an increasing number of South Korean entrepreneurs and business owners have looked beyond their domestic market and turned their attention to Singapore as a strategic gateway to Southeast Asia. With its business-friendly environment, low corporate tax rates, political stability, and access to the ASEAN market, Singapore stands out as one of the best countries in the world to start and grow an international company.
For South Koreans aiming to expand regionally or establish an overseas base, starting a Singapore company offers unparalleled benefits — from ease of incorporation to tax efficiency and global connectivity. This guide provides an in-depth look at how South Korean investors can incorporate a company in Singapore and why it makes strategic business sense.
Why Singapore Is Attractive to South Korean Businesses
1. Business-Friendly Environment
Singapore consistently ranks among the top countries in the world for ease of doing business. The Accounting and Corporate Regulatory Authority (ACRA) allows online registration and approval of companies within one to two days. There’s minimal bureaucracy and strong legal transparency, which aligns well with South Korea’s structured business culture.
2. Strategic Gateway to ASEAN and Beyond
Singapore’s geographic location gives South Korean companies access to ASEAN’s 650 million consumers and proximity to India, China, and Australia. Whether you’re in technology, manufacturing, finance, or logistics, Singapore serves as a springboard into emerging Asian markets.
3. Attractive Tax System
With a corporate tax rate capped at 17%, and numerous tax exemptions for startups, Singapore’s taxation framework encourages innovation and expansion. South Korean companies can benefit from Singapore’s extensive double taxation agreement (DTA) network, including a DTA between Singapore and South Korea to prevent double taxation on income earned in both countries.
4. Global Reputation and Legal Certainty
Singapore is known for its world-class infrastructure, robust intellectual property protection, and independent judiciary system. For South Korean technology firms or creative companies, this ensures peace of mind that their IP and contracts will be safeguarded.
5. Skilled and Multilingual Workforce
Singapore’s educated and globally-minded talent pool allows Korean companies to hire professionals who understand both Asian and Western business norms. Additionally, English being the working language simplifies communication and business operations.
Key Requirements to Start a Company in Singapore as a South Korean
1. Company Type: Private Limited Company (Pte Ltd)
The most common and advantageous structure for South Koreans to set up in Singapore is a Private Limited Company (Pte. Ltd.). This type of company offers limited liability, corporate tax benefits, and credibility with banks and clients.
2. Minimum Setup Requirements
To incorporate a company in Singapore, you need:
- At least one shareholder (individual or corporate entity)
- At least one resident director (a Singapore Citizen, Permanent Resident, or an Employment Pass holder)
- A company secretary (must be a resident of Singapore)
- A local registered address (a physical Singapore address, not a P.O. box)
- Paid-up capital of at least S$1 (no minimum beyond that)
3. Documents Required
South Korean applicants will need to prepare and provide:
- Passport copies of directors and shareholders
- Proof of residential address (utility bill or bank statement)
- Corporate documents if the shareholder is a company (e.g., Certificate of Incorporation, Business Profile)
4. Appointing a Nominee Director
Foreign entrepreneurs who do not reside in Singapore can engage a nominee director service to fulfill the resident director requirement. This is a common and fully compliant practice used by international business owners.
The Step-by-Step Incorporation Process
Step 1: Choose and Reserve a Company Name
Your company name must be approved by ACRA before registration. The name should not be identical to existing ones, contain offensive words, or infringe on trademarks.
Step 2: Prepare the Incorporation Documents
Once the name is approved, you’ll need to prepare the Constitution (Memorandum and Articles of Association), identification documents, and declarations of compliance.
Step 3: File for Incorporation with ACRA
With all documents ready, the registration can be done online through BizFile+, ACRA’s portal. The approval process typically takes one working day if all details are in order.
Step 4: Open a Corporate Bank Account
After incorporation, open a corporate bank account with one of Singapore’s reputable banks (e.g., DBS, OCBC, UOB, HSBC, Standard Chartered). Many banks allow remote onboarding if your documents are verified.
Step 5: Apply for Work Visa (If Needed)
If you plan to relocate and manage your business in Singapore, you can apply for an Employment Pass (EP) or EntrePass. This allows you to live and work in Singapore legally while running your company.
Post-Incorporation Compliance
Once your company is successfully registered, you must comply with Singapore’s statutory requirements:
- Appoint a company secretary within 6 months
- File annual returns to ACRA
- Prepare unaudited or audited financial statements, depending on company size
- Hold an Annual General Meeting (AGM) within 6 months of the financial year-end
- Register for GST if your turnover exceeds S$1 million
Working with a local corporate services provider ensures compliance and smooth business operation.
Benefits of Setting Up in Singapore for South Koreans
1. Access to Global Banking
Singapore’s world-class financial ecosystem makes it easy to handle multi-currency transactions, ideal for South Korean companies dealing with trade across Asia and beyond.
2. Funding and Startup Support
Entrepreneurs can apply for Singapore’s government grants such as the Startup SG Founder, Enterprise Development Grant (EDG), or Market Readiness Assistance (MRA) Grant to expand internationally.
3. Cultural Compatibility
Both Singapore and South Korea emphasize discipline, education, and professionalism. South Koreans will find Singapore’s culture relatively easy to adapt to while benefiting from its international business outlook.
4. Business Networking Opportunities
Singapore hosts numerous Korean chambers of commerce, business councils, and trade missions, fostering connections between both nations. Events organized by Enterprise Singapore and the Korea Trade-Investment Promotion Agency (KOTRA) often promote bilateral partnerships.
Tax Advantages for South Korean Entrepreneurs
Singapore offers generous tax exemptions to new startups:
- 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 of chargeable income
- No capital gains tax and no dividend tax
For South Koreans, the Singapore–Korea DTA ensures that you don’t pay taxes twice on the same income, creating an efficient and legal tax structure for cross-border business.
Common Business Types Korean Entrepreneurs Establish in Singapore
- Trading and Distribution Companies – Singapore’s logistics infrastructure supports global trade seamlessly.
- Technology Startups – Singapore’s innovation ecosystem welcomes Korean tech founders with grants and incubators.
- Finance and Investment Firms – Strong regulatory framework and transparency attract investors.
- Consultancy or Professional Services – Suitable for Korean professionals offering advisory or design services.
- E-commerce and Retail Businesses – The digital economy and regional logistics network make online businesses thrive.
Challenges and How to Overcome Them
While the process is straightforward, foreign entrepreneurs may face challenges such as:
- Navigating local compliance requirements
- Managing bank account opening delays
- Understanding local employment laws
The best way to overcome these is to engage a Singapore-based corporate service provider who can assist with incorporation, accounting, tax filing, and visa matters.
Conclusion: Singapore as the Ideal Launchpad for South Korean Businesses
For South Korean entrepreneurs ready to expand globally, Singapore represents an unbeatable combination of efficiency, opportunity, and connectivity. Whether you’re a startup founder or an established SME, incorporating in Singapore provides a foundation for long-term success in Asia and beyond.
By setting up your Singapore company, you not only gain access to the region’s fastest-growing markets but also enjoy a world-class legal, tax, and financial ecosystem that supports your business ambitions.