Starting a Singapore Company from the European Union

Introduction: Why Entrepreneurs from the European Union Are Expanding to Singapore

Over the past two decades, Singapore has earned its place as one of the most business-friendly destinations in the world — and European Union (EU) entrepreneurs are increasingly taking notice. With its strategic location, low tax regime, transparent legal system, and pro-business government, Singapore has become the go-to base for EU companies seeking to expand into the dynamic markets of Asia.

Whether you’re a startup founder from France, a manufacturing executive from Germany, or a technology innovator from the Netherlands, starting a company in Singapore offers access to one of the world’s most advanced economies and a gateway to ASEAN’s 650 million consumers.

This comprehensive guide will help EU business owners understand the key benefits, requirements, and steps involved in incorporating a company in Singapore, as well as how Singapore’s trade relations with the EU can help you grow across Asia.

Why Singapore Attracts Entrepreneurs from the European Union

1. Strategic Gateway to Asia-Pacific

Singapore sits at the crossroads of international trade routes, linking Europe, the Middle East, and Asia. Its proximity to major Asian markets — including China, India, and ASEAN — makes it the perfect base for EU companies looking to manage regional operations and logistics efficiently.

2. Stable, Pro-Business Environment

Singapore consistently ranks as one of the easiest places in the world to do business. The country’s transparent legal framework, low corruption levels, and efficient digital infrastructure make company setup and compliance straightforward — a stark contrast to more bureaucratic jurisdictions.

3. Low and Predictable Taxes

Singapore’s corporate income tax rate is capped at 17%, with tax exemptions for new companies, and no tax on capital gains or dividends.

In addition, the Singapore–European Union Free Trade Agreement (EUSFTA) simplifies cross-border trade and investment by eliminating tariffs on most goods and services and providing strong intellectual property protections.

4. Strong Legal and IP Protection

Singapore is renowned for its rule of law and rigorous protection of intellectual property (IP). This is especially beneficial for EU companies in sectors like technology, pharmaceuticals, and design — industries where IP is a core business asset.

5. English as the Business Language

Unlike some Asian markets that pose language barriers, Singapore’s business, legal, and financial systems operate in English. This allows EU entrepreneurs to navigate contracts, compliance, and negotiations easily.

6. Efficient Connectivity and Infrastructure

Changi Airport and Singapore’s world-class port make it one of the most connected nations on the planet. EU companies benefit from easy access to suppliers and clients throughout the Asia-Pacific region.

Advantages of Incorporating a Singapore Company from the EU

1. 100% Foreign Ownership

Singapore allows full foreign ownership of companies. Entrepreneurs from any EU member state can own 100% of their shares without requiring a local partner or shareholder.

2. Fast Incorporation Process

Company registration in Singapore can be completed entirely online through the Accounting and Corporate Regulatory Authority (ACRA) — typically within one business day.

3. International Reputation and Credibility

A Singapore-incorporated entity adds significant credibility when dealing with Asian clients, suppliers, and investors. The country’s global reputation for compliance, neutrality, and good governance makes it a trusted jurisdiction for international trade.

4. World-Class Banking and Financial Services

Singapore is one of the top financial hubs in the world, hosting major European and international banks such as HSBC, Standard Chartered, BNP Paribas, Credit Suisse, and Deutsche Bank. EU entrepreneurs can easily open multi-currency accounts and access financing options.

5. Access to Grants and Support

The Singapore government actively encourages internationalization through funding schemes such as:

Enterprise Development Grant (EDG) – for business transformation and expansion
Startup SG Founder Grant – for new ventures
Market Readiness Assistance (MRA) Grant – for overseas market entry and trade development

These incentives can reduce the cost of setting up operations in Singapore for EU firms.

Step-by-Step Process: How to Incorporate a Singapore Company from the EU

Step 1: Choose the Appropriate Business Structure

The Private Limited Company (Pte. Ltd.) is the most common structure for EU investors. It offers:

Limited liability protection
Tax advantages
Flexibility for ownership and expansion
Global credibility

Step 2: Meet the Incorporation Requirements

To register a company in Singapore, you’ll need:

At least one shareholder (individual or corporate)
One local resident director (Singapore citizen, Permanent Resident, or Employment Pass holder)
One company secretary (must be a Singapore resident)
A local registered office address
Minimum paid-up capital of S$1

If the EU business owner does not have a local director, a nominee director can be appointed through a professional corporate services provider.

Step 3: Reserve Your Company Name

The proposed company name must be approved by ACRA. It cannot be identical to an existing entity, contain restricted words, or infringe trademarks. Once approved, it’s reserved for 120 days.

Step 4: Prepare the Necessary Documents

For EU entrepreneurs, the following documents are typically required:

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

If the shareholder is a corporate entity registered in the EU, certified incorporation documents and board resolutions are required.

Step 5: Register the Company

Once all documents are ready, your corporate services provider can file the incorporation online through BizFile+, ACRA’s digital platform. Approval usually takes one working day.

Step 6: Open a Corporate Bank Account

After successful registration, open a corporate bank account in Singapore. Most major banks support remote account opening, depending on verification and compliance checks.

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

If you intend to move to Singapore to manage the business, apply for an Employment Pass (EP) or EntrePass. These passes allow foreign entrepreneurs and professionals to live and work in Singapore legally.

Post-Incorporation Compliance

Once incorporated, a company must meet several compliance obligations:

Appoint a company secretary within 6 months
Hold an Annual General Meeting (AGM)
File annual returns to ACRA
Maintain proper accounting records
Register for Goods and Services Tax (GST) if annual turnover exceeds S$1 million

Most foreign-owned companies engage a professional corporate services firm to manage compliance, accounting, and tax reporting.

Tax Benefits for EU Entrepreneurs

Singapore’s tax policies make it a top jurisdiction for international business operations. Key benefits include:

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

Additionally, the Singapore–EU Free Trade Agreement (EUSFTA) eliminates or reduces tariffs for many goods and services between Singapore and EU countries, further enhancing trade competitiveness.

Popular Industries for EU Companies in Singapore

Technology and Innovation – Many EU tech startups use Singapore as their Asian base, particularly in AI, cybersecurity, and fintech.
Engineering and Manufacturing – European industrial expertise complements Singapore’s advanced infrastructure and regional trade access.
Luxury Retail and Fashion – Singapore’s affluent consumers are receptive to European brands known for quality and design.
Renewable Energy and Sustainability – The EU’s leadership in sustainability aligns with Singapore’s Green Plan 2030 initiatives.
Food and Beverage (F&B) – European products like wine, olive oil, and gourmet foods enjoy strong demand in Singapore’s hospitality and retail sectors.
Finance and Professional Services – Many EU financial institutions and consulting firms have established regional headquarters in Singapore.

The Singapore–EU Free Trade Agreement (EUSFTA)

The EUSFTA, which came into effect in November 2019, is one of the most comprehensive trade agreements between the EU and an Asian nation. Key highlights include:

Elimination of tariffs on 84% of Singapore’s exports to the EU and 99% of EU exports to Singapore
Enhanced market access for services, public procurement, and investments
Strong IP protection for European goods and brands
Simplified customs and trade processes

This agreement has made Singapore even more attractive for EU companies seeking to establish regional operations in Asia.

Cultural Synergy Between Europe and Singapore

While Europe and Singapore have different cultural roots, both share core business values: professionalism, efficiency, and respect for agreements. Singapore’s multicultural workforce is used to working with Europeans, and EU entrepreneurs will find it easy to adapt.

Moreover, Singapore’s cosmopolitan lifestyle, safety, and education system make it appealing for business owners who plan to relocate with their families.

Practical Tips for EU Entrepreneurs

Engage a Corporate Service Provider – They will handle incorporation, nominee directorship, and compliance efficiently.
Leverage the EUSFTA – Use the trade benefits to reduce tariffs and improve profitability.
Utilize Government Grants – Programs like the EDG and MRA can offset costs for market expansion.
Open Multi-Currency Bank Accounts – Singapore’s banks support EUR, USD, GBP, and SGD transactions seamlessly.
Join EU Business Networks – Organizations such as EuroCham Singapore and various European chambers of commerce provide networking and market insights.

Common Challenges and How to Overcome Them

While Singapore is exceptionally business-friendly, EU entrepreneurs may encounter:

Strict banking KYC (Know Your Customer) procedures during account opening
Complex compliance requirements if unfamiliar with local regulations
High living and office rental costs compared to some neighboring countries

These challenges can be minimized by partnering with experienced local consultants and outsourcing non-core functions like accounting and payroll.

Why Singapore Is the Best Choice for European Union Entrepreneurs

Singapore offers a rare combination of stability, transparency, and opportunity that few countries can match. Its location in the heart of Asia, favorable tax regime, and extensive trade relations with the EU make it the perfect base for European entrepreneurs aiming to grow across Asia.

By starting a Singapore company from the European Union, business owners gain access to world-class infrastructure, a vibrant economy, and an ecosystem designed to support global expansion.

Whether you’re an SME from Italy, a fintech startup from France, or a logistics firm from Germany, Singapore offers the platform, policies, and partnerships needed for success in Asia’s dynamic markets.

If you are an EU entrepreneur planning to expand your business to Singapore, engage a trusted corporate services provider today for assistance with incorporation, taxation, and compliance — and take your first step toward establishing your regional headquarters in Asia’s most competitive and connected business hub.