This material focuses on doing business in Singapore, and covers taxation, the banking system, compliance, payment infrastructure, and the country’s role in the global startup ecosystem. It explains how companies operate in practice in 2026 and why this jurisdiction remains attractive to international entrepreneurs.
The material will be useful for founders, owners of international companies, and investors who are considering Singapore as an operational or regional base.
Singapore is not just a place to incorporate a legal entity. It is an environment where businesses connect with capital, talent, and regional markets. In 2025, the country ranked among the world’s leading startup ecosystems, confirming its evolution from a regional hub to an international center for management, finance, and innovation.
For founders and investors, this jurisdiction serves as a gateway to Asia-Pacific markets while also functioning as a stable operational base for global business. More than 27 free trade agreements, including RCEP and CPTPP, provide access to fast-growing economies while offering a predictable regulatory environment.
Singapore’s tax model for business: rates, incentives, and predictability
Singapore’s tax system is built around the principles of transparency, reinvestment, and long-term planning. The standard corporate income tax (CIT) rate is 17%; however, most early-stage companies effectively pay significantly less due to tax exemptions available during the first years of operation.
New companies can substantially reduce their effective tax burden during the first three years, allowing them to allocate resources to product development and team growth rather than taxation. Dividends and capital gains are not taxed, which is particularly important for holding structures and companies focused on scaling.
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The Goods and Services Tax (GST) rate is 9%. GST registration is mandatory only if annual turnover exceeds SGD 1 million, reducing the administrative burden for businesses at early stages. In addition, the system allows companies to claim tax credits for qualifying expenses.
The predictability of the tax regime is critical for companies operating across borders. Consistent rules, transparent tax incentives, and an administration designed for digital reporting and cross-border compliance reduce both risk and management overhead. This predictability is a key advantage of doing business in Singapore for international companies.
Below is a comparison of tax regimes for startups and established companies across key Asian jurisdictions, highlighting how doing business in Singapore compares to alternative hubs in Asia.
Country | Tax regime for startups (2026) | Effective tax rate for startups | CIT |
Singapore | 75% exemption on the first SGD 100,000 and 50% on the next SGD 100,000 (first 3 years); 50% CIT rebate up to SGD 40,000 applicable to all companies | approximately 4–8% (first SGD 200,000); thereafter a fixed rate of 17%, based on rebates in 2025 | 17% (50% tax rebate for YA 2025; minimum cash grant of S$2,000 for qualifying companies) |
Notes for established companies* | Large multinational enterprises with revenue exceeding €750 million are subject to a minimum effective tax rate of 15% from 2025 (BEPS Pillar Two); generous expansion incentives and double tax treaty network | ||
Hong Kong | Two-tiered profits tax: 8.25% on the first HKD 2 million, 16.5% thereafter; one-off 100% tax rebate (capped at HKD 1,500) for 2024/25 | approximately 8.25% (profits ≤ HKD 2 million); thereafter 16.5% | 16,5% |
Notes for established companies* | Territorial tax principle: tax applies only to income sourced in Hong Kong; expansion of the FSIE regime for certain categories of foreign-sourced income | ||
* Established companies are businesses that have moved beyond the startup stage, have stable operational activities, and operate under the standard tax regime of the relevant country.
Overall, Singapore’s tax model enables companies to forecast tax costs years in advance and build international structures without unexpected tax outcomes.
We’ve gathered everything that matters in one guide: jurisdictions, taxes, payment systems, and the most common mistakes entrepreneurs face when entering new markets.
How banking and payments work when doing business in Singapore
Singapore’s financial infrastructure is designed for mobility and scalability. Local banks such as DBS, OCBC, and UOB operate at the same level as international financial groups, offering digital banking services, multi-currency accounts, and remote client onboarding.
While some banks may still require physical presence, an increasing number of institutions use video verification and remote KYC procedures. For companies operating across multiple markets, this ensures secure fund flows with minimal operational friction.
Payment gateways, integrations with fintech providers, and government initiatives create an environment where innovation is combined with a high level of regulatory compliance.
As a result, Singapore’s banking system is particularly well-suited for companies with international clients, holding structures, and businesses with multi-currency revenue streams.
The role of Singapore in the global startup ecosystem
Singapore remains one of the strongest startup ecosystems in Asia while continuing to enhance its position as a global innovation hub. According to the StartupBlink 2025 ranking, the city is among the world’s top 15 startup ecosystems, confirming its maturity and attractiveness for entrepreneurs.
The ecosystem combines access to venture capital, a highly skilled talent pool, and active government involvement in supporting innovation. Programs under the Research, Innovation, and Enterprise Plan stimulate the development of deep tech, fintech, and green energy sectors.
Predictability remains a key advantage. Funding rounds often combine private investment with state-backed funds, reducing early-stage risks. Cross-border collaboration with innovation hubs in the United States, Europe, and Israel makes this jurisdiction an effective base for both Asian and global operations.
Source: Visual StartupBlink (2025)
Entrepreneurs note that doing business in Singapore provides access to both local and international investors, creating conditions for sustainable and predictable growth. The chart above illustrates the position of this jurisdiction compared to leading startup cities worldwide, including San Francisco, New York, London, and Beijing. Each city’s ranking is based on key indicators such as the number of startups and their diversification across technology and service sectors, the volume of private investment (including venture capital and angel funding), and the density of “unicorns”, companies valued at over USD 1 billion.
Singapore’s 11th-place ranking demonstrates its consistent ability to attract talent, foster innovation, and maintain investor confidence even amid global economic uncertainty. The country’s startup ecosystem continues to develop through a combination of effective public governance, strategic geographic location, and advanced digital infrastructure, creating an attractive environment for founders and investors focused on global scaling.
The Global Startup Genome 2025 report identifies Singapore as the leading innovation hub in Southeast Asia and one of the fastest-growing startup ecosystems worldwide. The local environment combines access to venture capital, a highly qualified talent base, and government support programs that encourage experimentation and the development of new technologies. Initiatives under the Research, Innovation and Enterprise Plan 2025 continue to stimulate deep tech, fintech, and green energy, further strengthening the jurisdiction’s appeal for companies targeting long-term growth.
A defining characteristic of Singapore remains the predictability of its scaling environment. Funding rounds frequently combine private capital with state-participated funds, reducing early-stage development risks. Cross-border collaboration remains strong through partnerships that connect local startups with innovation hubs in Tel Aviv, London, and San Francisco. For entrepreneurs locating their headquarters here, Singapore becomes not only a source of capital but also a reliable operational base for doing business across Asia and globally.
Taken together, these factors create a clear and predictable environment for doing business in Singapore on an international scale.
Frequently asked questions about doing business in Singapore
WoBorders supports companies throughout their entire journey in Singapore – from the first operational steps to stable scaling. We assist with tax and legal compliance, banking and payment solutions, visa matters (Employment Pass, EntrePass), and day-to-day administrative processes.
Our role is to remove operational complexity and create a clear, predictable working environment so entrepreneurs can focus on development, team building, and growth. We operate Monday to Friday from 9:00 AM to 7:00 PM. If you need contact us here at a convenient time.
