How Can a Canadian Set Up a Company in Singapore

Koh Lim Audit Singapore > Uncategorized > How Can a Canadian Set Up a Company in Singapore
8th Oct

How Can a Canadian Set Up a Company in Singapore

Singapore has long been one of the most attractive destinations for foreign entrepreneurs to start and expand their businesses. With its strong legal framework, low corporate tax rates, political stability, and strategic location in Asia, Singapore offers immense opportunities for international investors—including Canadians who wish to establish a presence in Asia.

This guide explains how Canadians can set up a company in Singapore, what requirements they must meet, and the steps involved in making it happen successfully.

1. Why Singapore Appeals to Canadian Entrepreneurs

Before diving into the technicalities, it’s essential to understand why many Canadian business owners look toward Singapore for expansion.

1.1 Business-Friendly Environment

Singapore consistently ranks as one of the easiest places in the world to do business. The process of incorporating a company is fast, digital, and transparent. Most businesses can be registered within one or two working days through the Accounting and Corporate Regulatory Authority (ACRA).

1.2 Strategic Location

Singapore’s geographical position in Southeast Asia makes it a gateway to over 650 million consumers in the ASEAN region. For Canadian firms seeking to access Asian markets, Singapore serves as a strong regional base for logistics, management, and operations.

1.3 Low Taxes and Double Tax Treaties

The corporate tax rate in Singapore is a flat 17%, one of the lowest in the world. There are also numerous tax incentives for new startups. Furthermore, Singapore has a Double Taxation Agreement (DTA) with Canada, ensuring Canadians are not taxed twice on the same income.

1.4 Political Stability and Legal Certainty

Singapore’s strong governance and transparent legal system create a safe environment for international investment. Canadian entrepreneurs can rely on clear rules for contracts, property rights, and business operations.

1.5 Access to Skilled Talent

With a highly educated, multilingual workforce, Singapore provides access to local professionals and international talents—ideal for businesses that need regional expertise or multilingual support.

2. Key Requirements for Canadians to Set Up a Company in Singapore

Before setting up a business, Canadians must understand the basic requirements for incorporation.

2.1 Company Type

The most common structure for foreign entrepreneurs is a Private Limited Company (Pte. Ltd.). This structure provides limited liability protection and is treated as a separate legal entity from its shareholders.

Other options include:

  • Branch Office – An extension of a Canadian parent company.

  • Representative Office – A temporary setup for market research or liaison activities (cannot engage in commercial transactions).

2.2 Local Director Requirement

Singapore law requires every company to have at least one local director who is a Singapore citizen, permanent resident, or holder of an Employment Pass (EP), EntrePass, or Dependant Pass with LOC (Letter of Consent).

Canadians can still own 100% of the shares in the company, but they must appoint a local director to meet this legal requirement. This is often fulfilled through a nominee director service provided by corporate service firms.

2.3 Shareholder and Paid-Up Capital

A company must have at least one shareholder and a minimum paid-up capital of S$1. Canadians can be the sole shareholder, and there is no upper limit on foreign ownership.

2.4 Company Secretary

Within six months of incorporation, a company must appoint a qualified company secretary who is a resident in Singapore. This role ensures compliance with statutory requirements and handles filings with ACRA.

2.5 Registered Office Address

The business must have a local Singapore address (not a P.O. Box). Many incorporation firms provide virtual office or registered address services to help fulfill this condition.

3. Step-by-Step Process for Canadians to Incorporate a Company in Singapore

Here’s how a Canadian entrepreneur can set up a business step by step:

Step 1: Choose a Company Name

The first step is selecting a unique and appropriate name for your company. The name must:

  • Not be identical to existing names,

  • Not contain vulgar or prohibited terms, and

  • Not infringe on trademarks.

You can check availability and reserve the name through ACRA’s BizFile+ portal. Once approved, the name is reserved for 120 days.

Step 2: Prepare Incorporation Documents

The following documents are needed:

  • Proposed company name and structure

  • Description of business activities (select from ACRA’s SSIC code list)

  • Details of shareholders, directors, and company secretary

  • Local registered office address

  • Constitution of the company (formerly Memorandum & Articles of Association)

  • Passport copies and proof of address for all foreign individuals

If the shareholder is a corporate entity (e.g., a Canadian company), additional documentation such as a Certificate of Incorporation and Board Resolution is required.

Step 3: Appoint a Local Director and Company Secretary

Since Canadians cannot be local residents unless they hold a valid Singapore work pass, they can engage a nominee director service through a registered corporate service provider.

A company secretary must also be appointed within six months after incorporation.

Step 4: File the Incorporation with ACRA

Once all documents are prepared, your corporate service provider will submit the application via BizFile+. The process usually takes 1–2 working days.

Upon approval, you will receive:

  • Certificate of Incorporation

  • Unique Entity Number (UEN)

  • Business profile extract from ACRA

These documents serve as proof of the company’s legal registration.

Step 5: Open a Corporate Bank Account

After incorporation, open a corporate bank account in Singapore. Most major banks—such as DBS, OCBC, UOB, Standard Chartered, and HSBC—offer accounts for foreign-owned entities.

Some banks may require the directors or shareholders to be physically present for identity verification, while others offer remote account opening options.

Step 6: Apply for a Work Visa (if relocating)

If a Canadian business owner intends to relocate to Singapore to run the business, they can apply for an Employment Pass (EP) or EntrePass.

  • Employment Pass – For professionals or company owners with a fixed salary of at least S$5,000/month (varies by industry).

  • EntrePass – For innovative entrepreneurs setting up venture-backed or technology-driven businesses.

Once approved, the Canadian can act as both director and shareholder.

Step 7: Register for GST (if applicable)

If your business turnover exceeds S$1 million per year, or if you choose to register voluntarily, you must apply for Goods and Services Tax (GST) registration.

This allows you to charge and claim GST on goods and services.

4. Post-Incorporation Compliance Requirements

After the company is incorporated, Canadians must comply with ongoing annual and regulatory obligations.

4.1 Accounting and Bookkeeping

Companies are required to maintain proper accounting records, financial statements, and supporting documents for five years.

4.2 Annual General Meeting (AGM)

An AGM must be held within six months after the company’s financial year-end unless exempted. Financial statements must be presented during the AGM.

4.3 Annual Return Filing

The company must file an Annual Return (AR) with ACRA within seven months after the financial year-end.

4.4 Corporate Tax Filing

Every company must file:

  • Estimated Chargeable Income (ECI) within 3 months of FYE.

  • Form C/C-S tax return with the Inland Revenue Authority of Singapore (IRAS) annually.

Singapore offers partial tax exemptions for new start-ups, including up to 75% tax exemption on the first S$100,000 of chargeable income for the first three years.

4.5 Employment and CPF

If hiring local employees, the company must make Central Provident Fund (CPF) contributions and comply with the Employment Act.

5. Work Visa Options for Canadians

If you plan to operate your Singapore company from within the country, you’ll need an appropriate visa. The most common options are:

5.1 Employment Pass (EP)

  • For company directors, professionals, or managers.

  • Must meet salary and qualification requirements.

  • Renewable every 1–2 years.

5.2 EntrePass

  • For innovative startup founders.

  • Must meet innovation or funding criteria (e.g., IP ownership or venture capital support).

  • Allows family relocation through Dependant’s Pass.

5.3 Dependant’s Pass

Family members (spouse, children) can relocate under the Dependant’s Pass if the main applicant holds an EP or EntrePass.

6. Tax Benefits for Canadian Businesses in Singapore

Singapore’s tax regime offers significant advantages for Canadian companies.

6.1 Corporate Tax

A flat 17% corporate tax rate, with partial exemptions for SMEs:

  • First S$10,000: 75% exemption

  • Next S$190,000: 50% exemption

6.2 No Capital Gains Tax

There is no capital gains tax in Singapore, meaning profits from share sales or asset disposals are not taxable.

6.3 Avoidance of Double Taxation

The Canada-Singapore DTA ensures income is not taxed in both countries, and Canadians may claim foreign tax credits when filing in Canada.

6.4 Start-Up Tax Exemption Scheme (SUTE)

Newly incorporated companies can enjoy up to S$125,000 tax exemption on their first three years of taxable income.

7. Hiring and Expanding Your Singapore Company

Once your company is set up, you can start hiring locally or regionally.

7.1 Local Hiring

Singapore’s Employment Act governs working conditions, salaries, and benefits. Employers must also contribute to CPF for local employees.

7.2 Foreign Hiring

To hire foreign employees, you’ll need to apply for relevant work passes such as:

  • S Pass (mid-level skilled staff)

  • Work Permit (low-skilled staff)

7.3 Office Space and Virtual Setup

Many Canadian entrepreneurs start with co-working spaces or virtual offices to minimize costs before leasing permanent offices.

8. Engaging a Corporate Services Provider

Given the paperwork and local requirements, most Canadians engage a registered corporate service provider (CSP) in Singapore to handle:

  • Company incorporation

  • Nominee director service

  • Registered address and company secretary

  • Tax filing and compliance

  • Visa applications

A reliable CSP ensures your business is compliant with ACRA and IRAS regulations from day one.

9. Conclusion

For Canadian entrepreneurs seeking to expand into Asia, Singapore provides a robust, efficient, and tax-friendly gateway. The incorporation process is straightforward, ownership is fully open to foreigners, and the country’s pro-business policies make it one of the most attractive jurisdictions in the world.

By engaging a local corporate service provider, meeting compliance requirements, and leveraging Singapore’s favorable trade and tax environment, Canadians can easily build a thriving business presence in Southeast Asia.

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