Open a Company in Singapore from Australia: A Practical Guide for Australian Entrepreneurs
Thinking about expanding your Australian business into Asia? Opening a company in Singapore from Australia can provide a strategic base for accessing Southeast Asian markets, international customers and regional business opportunities.
Singapore allows foreign entrepreneurs and overseas businesses to establish operations through several structures. Depending on your objectives, you may choose to incorporate a Singapore subsidiary/local company, register an Australian company as a Singapore branch, or establish a representative office for market research.
For Australians planning to establish a Singapore business remotely, understanding the incorporation process, local requirements, accounting obligations and tax considerations is essential.
WLP can help Australian business owners navigate the accounting, tax and corporate compliance aspects of setting up and maintaining a Singapore company.
Can an Australian Open a Company in Singapore?
Yes. Australians can establish a business presence in Singapore.
Singapore’s corporate registration framework allows foreign individuals and overseas businesses to establish various types of entities. Foreigners must generally engage a registered Corporate Service Provider (CSP) to reserve a business name and register a business structure. Foreign-owned companies must also meet applicable local residency requirements.
If you are an Australian entrepreneur living in Australia and want to own a Singapore company without immediately relocating, the incorporation structure and local director arrangements need to be considered carefully.
If your intention is to move to Singapore and personally operate the business there, you will also need to consider Singapore’s immigration and work-pass requirements.
Why Open a Company in Singapore from Australia?
Singapore is often considered by Australian businesses looking for a regional base because of its location, business infrastructure and established commercial environment.
Potential reasons to establish a Singapore entity include:
- Expanding into Southeast Asian markets
- Establishing a regional headquarters
- Accessing Singapore-based customers and suppliers
- Separating Singapore operations from an Australian business
- Creating a Singapore subsidiary for regional expansion
- Building an Asian presence while retaining an Australian parent company
- Facilitating regional hiring and operations
However, incorporation should be based on your commercial objectives rather than simply the perceived tax advantages of Singapore. An Australian-owned Singapore company can create accounting, tax and reporting considerations in both jurisdictions.
What Is the Best Structure for an Australian Business?
There is no single structure that suits every Australian entrepreneur. The main options include a Singapore subsidiary/local company, Singapore branch, or representative office.
- Singapore Subsidiary or Local Company
A Singapore subsidiary is a separate Singapore legal entity. It can be owned by an Australian company or other shareholders and can conduct commercial activities in Singapore.
This structure may be appropriate when an Australian business wants to establish a standalone Singapore operation with its own legal identity.
A subsidiary is separate from its parent company, and its liability is generally limited to the subsidiary’s assets. A Singapore subsidiary must comply with the requirements applicable to local companies.
- Singapore Branch of an Australian Company
An Australian company can register a Singapore branch as an extension of the existing Australian entity.
Unlike a subsidiary, a branch is not a separate legal entity from its Australian parent. The Australian company therefore remains responsible for the branch’s obligations.
A Singapore branch must have a Singapore registered office and a locally resident authorised representative. Foreign company branches also have specific annual filing and financial reporting requirements.
- Representative Office
A representative office can be useful when an Australian business wants to research the Singapore or wider Asian market before establishing a full commercial operation.
However, a representative office is not a separate legal entity and generally cannot conduct income-generating commercial activities.
How to Open a Company in Singapore from Australia
The process will depend on the entity you choose, but a typical incorporation journey involves the following stages.
Step 1: Decide on Your Business Structure
First, determine whether you need a Singapore subsidiary/local company, branch or representative office.
Consider:
- Ownership
- Liability
- Intended activities
- Expected revenue
- Australian parent-company structure
- Singapore staffing requirements
- Tax considerations
- Long-term expansion plans
Choosing the right structure at the beginning can help avoid unnecessary restructuring later.
Step 2: Choose and Reserve a Company Name
Your proposed Singapore business name must be checked and reserved through Singapore’s corporate registration system.
For foreign entrepreneurs and foreign businesses, a Corporate Service Provider is required to assist with the registration process.
Step 3: Appoint the Required Local Resident
A Singapore company must have at least one director who meets the applicable local residency requirements.
If you are an Australian resident who does not ordinarily live in Singapore, this is an important issue to address before incorporation.
ACRA states that foreign-owned businesses must satisfy local residency requirements, and foreigners who intend to relocate to Singapore to run their business may also require an appropriate work pass.
Step 4: Arrange a Singapore Registered Office
A Singapore company needs a registered office address in Singapore.
The registered office is used for official correspondence and company records. It does not necessarily have to be the physical location where the business conducts its day-to-day commercial activities.
Step 5: Prepare Company Information and Documents
Depending on the structure, you may need information relating to:
- Company shareholders
- Directors
- Beneficial owners/controllers
- Share capital
- Company constitution
- Registered office
- Financial year-end
- Parent-company information for a branch
- Certified corporate documents
For an Australian company registering a Singapore branch, ACRA requires specific information about the Australian parent, including its registration details and constitutional documents. Certain foreign documents may need certification and documents not in English require certified English translations.
Step 6: Register Through Bizfile
The incorporation or registration application is submitted through Singapore’s Bizfile system, generally with assistance from a Corporate Service Provider for foreign businesses.
Once the application is approved, the entity receives a Unique Entity Number (UEN) and its registration details can be accessed through the company’s Business Profile.
Step 7: Set Up Your Corporate Bank Account
After registration, you can arrange a Singapore corporate bank account.
Banks may conduct identity, ownership and business verification checks, and requirements can vary depending on the bank and the company’s circumstances. ACRA notes that banks may require company documents and the physical presence of directors or authorised signatories.
Step 8: Set Up Accounting and Compliance
Incorporation is only the beginning.
Your Singapore company may need ongoing support with:
- Bookkeeping
- Financial statements
- Corporate tax
- GST considerations
- Annual returns
- Company registers
- Payroll
- Corporate secretary requirements
- Audit requirements
- Cross-border accounting matters
A professional accounting firm can help establish appropriate processes from the beginning.
Do I Need to Live in Singapore to Own a Singapore Company?
Not necessarily.
An Australian entrepreneur can own a Singapore company without automatically becoming a Singapore resident. However, Singapore companies have local residency requirements for certain company officers, and foreigners who want to relocate to Singapore and operate their business may need an appropriate work pass.
The exact requirements depend on your role, immigration status and chosen business structure.
Does an Australian Company Need a Singapore Subsidiary or Branch?
It depends on how you plan to operate.
A subsidiary creates a separate Singapore legal entity, while a branch extends the Australian company’s operations into Singapore.
For businesses seeking a distinct Singapore operation, a subsidiary may be more suitable. For businesses wanting Singapore operations to remain directly connected to the Australian company, a branch may be considered.
This decision should be assessed alongside legal liability, accounting, tax, commercial and reporting considerations.
Singapore Company Tax and Australian Tax Considerations
One of the most important aspects of establishing a Singapore company from Australia is understanding that incorporation in Singapore does not automatically remove Australian tax obligations.
An Australian-owned Singapore business can create cross-border tax issues involving:
- Singapore corporate income tax
- Australian tax residency considerations
- Controlled foreign company rules
- Transfer pricing
- Related-party transactions
- Withholding tax
- GST/VAT considerations
- Double-taxation arrangements
- Tax reporting in Australia and Singapore
The correct treatment depends heavily on your ownership structure, management arrangements, activities and where business decisions are made.
For this reason, Australian entrepreneurs should obtain professional cross-border tax advice before assuming that a Singapore company will produce a particular tax outcome.
Ongoing Singapore Compliance Requirements
After incorporation, your Singapore company must continue meeting its regulatory obligations.
For example, companies generally need to maintain appropriate company registers and comply with annual filing requirements. A company secretary must be appointed within six months of registration, while an auditor generally needs to be appointed within three months unless the company qualifies for an audit exemption.
Companies may also need to determine whether specific licences or permits are required for their activities.
Foreign companies have additional reporting obligations. For example, Singapore branches can have annual financial statement filing requirements covering both the head office and Singapore operations.
Why Australian Entrepreneurs Work With WLP
Setting up a company in another country can be complicated when accounting, tax and compliance responsibilities cross international borders.
WLP provides accounting and tax services in Singapore and can assist Australian business owners who need professional support with their Singapore business requirements.
Whether you are establishing a new Singapore company, expanding an Australian business, or managing an existing Singapore entity, working with an experienced accounting professional can help you understand your ongoing obligations and keep your financial records organised.
Start Your Singapore Business From Australia
If you are an Australian entrepreneur considering opening a company in Singapore from Australia, the first step is to determine the structure that matches your business goals.
You should consider the ownership model, local residency requirements, registered office arrangements, banking, accounting, taxation and ongoing compliance before proceeding with incorporation.
With the right structure and professional guidance, you can establish a Singapore business while managing the accounting and compliance requirements that come with operating across Australia and Singapore.
Looking for help with your Singapore company setup? Contact WLP to discuss your accounting, tax and compliance requirements.
Frequently Asked Questions
Can an Australian citizen start a company in Singapore?
Yes. Australians can establish businesses in Singapore, subject to Singapore’s registration, residency and regulatory requirements. Foreigners generally need to engage a Corporate Service Provider to register their business.
Can I own 100% of a Singapore company from Australia?
Foreign ownership is possible for Singapore companies, but the company must still satisfy applicable Singapore requirements, including local residency requirements for relevant company officers.
Can I register a Singapore company without travelling to Singapore?
In many cases, foreign entrepreneurs can complete the incorporation process with assistance from a Singapore Corporate Service Provider. Whether you need to travel will depend on matters such as banking, identification and your specific circumstances.
Should I open a branch or subsidiary in Singapore?
A branch is an extension of the Australian company, whereas a subsidiary is a separate Singapore legal entity. The appropriate option depends on your commercial, legal, accounting and tax objectives.
Does my Singapore company need a local director?
A Singapore company must have at least one director who meets the applicable local residency requirements.
Do I need an accountant for my Singapore company?
An accountant is not simply about preparing accounts. Professional accounting support can help with bookkeeping, tax, financial reporting and ongoing compliance, particularly where the owners or parent company are based overseas.
Can WLP help Australian businesses?
Yes. WLP can assist Australian entrepreneurs and businesses with accounting and tax-related requirements associated with operating a Singapore business.
Final Takeaway
Opening a company in Singapore from Australia can be an effective way to establish a presence in Singapore and expand into the wider Asian market. However, choosing the right entity and understanding the ongoing Singapore and Australian obligations are crucial.
Before incorporating, assess whether a subsidiary, branch or representative office is appropriate for your business. Then put the correct local, accounting, tax and compliance arrangements in place.
For Australian entrepreneurs who want professional assistance with their Singapore business accounting and tax requirements, WLP can help you understand the financial and compliance side of operating in Singapore.