How Can a Japanese Set Up a Company and Work in Singapore?
Singapore has long been one of the world’s most business-friendly countries, and its appeal is especially strong among Japanese entrepreneurs. With strong economic ties between Japan and Singapore, a large Japanese expatriate community, excellent infrastructure, and a trusted legal system, Singapore presents a welcoming gateway to Southeast Asia. For a Japanese citizen looking to start a company and work in Singapore, the process is systematic, transparent, and achievable with the right guidance.
This article explains how a Japanese citizen can:
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Set up a company in Singapore
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Work legally in Singapore
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Maintain ongoing compliance
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Navigate costs, taxation, banking, and other practical considerations
By the end, you will have a complete roadmap to relocation and entrepreneurship in one of the world’s most vibrant economies.
Why Singapore Appeals to Japanese Entrepreneurs
Before diving into process and procedures, it helps to understand why many Japanese entrepreneurs choose Singapore:
1. Political and economic stability
Singapore’s neutral geopolitics, AAA credit rating, strong currency, and rule of law make it a safe base to operate regional or global businesses.
2. Pro-business regulations
Incorporation can be completed within 1–2 days, with minimal bureaucracy, digitally accessible systems, and transparent requirements.
3. Low tax environment
Singapore offers corporate tax rates capped at 17%, partial tax exemptions for new companies, and no capital gains tax—very attractive compared to other global hubs.
4. Easy regional access
Singapore sits between Southeast Asia, China, India, and Australia—ideal for Japanese companies seeking expansion beyond Japan’s domestic market.
5. English-speaking operating environment
Japanese entrepreneurs often find comfort in Singapore’s widespread English fluency, especially in legal, government, and financial matters.
6. Strong Japanese community and culture
Singapore is home to over 40,000 Japanese residents, dozens of Japanese schools, businesses, restaurants, and cultural centres.
With these advantages, it is no surprise that Japanese SMEs, family businesses, and multinational corporations choose Singapore.
Step 1: Incorporating a Singapore Company as a Japanese Citizen
A Japanese citizen can fully own a Singapore company—100% shareholding is allowed, with no requirement for a local partner. The most common business structure is a Private Limited Company (Pte Ltd).
Key requirements include:
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At least one shareholder (individual or corporate, local or foreign)
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At least one local director
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A registered Singapore business address
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A minimum paid-up capital of SGD 1
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A company secretary within 6 months of incorporation
Let’s look at each component.
Local Director Requirement
Every Singapore private limited company must appoint at least one director who is:
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A Singapore Citizen,
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Singapore Permanent Resident,
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or Employment Pass holder who lives in Singapore.
Foreigners—including Japanese citizens—cannot act as local directors unless holding a valid Employment Pass or EntrePass.
Many foreigners solve this requirement by appointing a nominee director service, offered by Singapore corporate service providers.
Company Name Approval
A simple name application is submitted to ACRA (the Accounting and Corporate Regulatory Authority). Approval is usually instant unless the name contains restricted words like “finance,” “bank,” or “school.”
Shareholding Structure
Japanese entrepreneurs can hold shares individually or through a Japanese company. Singapore imposes no restrictions.
Company Secretary
Singapore law requires every company to appoint a qualified secretary within six months.
Registered Address
The business must have a Singapore-based address.
Documents Required for Incorporation
ACRA will require:
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Passport copy
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Proof of residential address
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Corporate documents (if using a Japanese company as shareholder)
In most cases, incorporation can be completed online without physical presence.
Step 2: Opening a Corporate Bank Account
Once the company is incorporated, the next step is opening a business bank account. Singapore banks such as DBS, UOB, OCBC, HSBC, or Standard Chartered are common choices.
Some banks may require the business owner to visit Singapore for verification, though digital banking solutions like Airwallex or Wise Business may not.
Banks will typically request:
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Business profile
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Company constitution
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Director/shareholder identification
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Business plan or activity description
Step 3: Working Legally in Singapore—Pass Options for Japanese Entrepreneurs
To live and work in Singapore after setting up a business, Japanese citizens must apply for a work pass. There are three common pathways:
1. Employment Pass (EP)
The most common route for company directors.
Eligibility factors include:
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A defined role in the Singapore company
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Minimum qualifying salary (varies by age, from SGD 5,600+)
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Degree or strong experience background
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Business activity and hiring plan
Employment Pass holders can become local directors of the company once approved.
2. EntrePass
Designed for innovative entrepreneurs and startup founders.
Suitable if:
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The business involves innovation, R&D, or technology
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There is international expansion potential
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There is enterprise funding support
The EntrePass allows the founder to live in Singapore while building the company.
3. Dependant Pass + Work Authorisation
If the founder’s spouse or children relocate to Singapore, they may obtain Dependant Passes and may later qualify for work approval.
How a Japanese Applicant Usually Progresses
Many Japanese entrepreneurs follow this path:
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Set up a Singapore company
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Appoint a nominee director temporarily
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Launch business and banking operations
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Apply for Employment Pass as company director
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Once approved, replace nominee and act as local director
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Relocate and run business in Singapore
This method ensures compliance and smooth application flow.
Step 4: Meeting Annual Regulatory Requirements
Running a Singapore company involves regular compliance duties:
Annual Filing
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Annual Return with ACRA
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Corporate tax filing with IRAS
Bookkeeping and Accounting
Accurate accounts must be maintained and filed yearly.
GST Registration
If revenue exceeds SGD 1 million or if business chooses voluntary registration.
Many companies hire accountants and corporate service providers to manage these obligations.
Tax Considerations for Japanese Entrepreneurs
Singapore’s tax system is territorial—only Singapore-sourced income is taxable whether the owner is Japanese or any other nationality.
Key advantages:
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Corporate tax rate capped at 17%
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New company tax exemptions
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No tax on dividends
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No withholding tax on dividends
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No capital gains tax
For Japanese investors, an added benefit is the Singapore–Japan tax treaty, which reduces withholding tax on cross-border payments.
Cost Estimates
Incorporation:
SGD 1,500 – 3,000 depending on provider
Nominee local director service:
SGD 1,800 – 3,000 per year
Corporate secretary:
SGD 500 – 1,000 per year
Accounting + tax filing:
SGD 1,000 – 3,000 per year depending on transaction volume
Employment Pass application:
SGD 800 – 1,500 approximate (professional service fees vary)
The overall structure is affordable for most entrepreneurs.
Industries Popular Among Japanese Business Owners in Singapore
Food & Beverage
Restaurants, cafés, catering, and import distribution—Japanese cuisine is highly valued in Singapore.
Technology & Digital Services
AI, SaaS, fintech, mobile app development.
Import/Export & Wholesale
Especially Japan–ASEAN trade.
Manufacturing & Engineering
Precision engineering, robotics, automotive.
Tourism & Travel Services
Singapore is a travel hub for Japanese travellers.
Consulting & Professional Services
Business development, branding, market entry advisory.
Singapore supports most business types except regulated fields such as finance, media, and education, which require licencing.
Living in Singapore as a Japanese Citizen
The experience of working and living in Singapore is comfortable for Japanese professionals:
Language & culture
English is widely spoken, and many staff are multilingual.
Education
Japanese schools and enrichment institutions make relocation easier for families.
Safety
Singapore ranks among the safest countries worldwide.
Lifestyle
Clean transport, reliable healthcare, and rich dining experiences.
The transition from Japan to Singapore is usually smooth.
Long-Term Path to Singapore Permanent Residency
Japanese entrepreneurs who succeed in Singapore often consider applying for Permanent Residency (PR). Eligibility is stronger for:
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Long-term Employment Pass holders
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Company owners who hire locals
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Individuals with strong economic contribution
PR allows the holder to live, work, and remain in Singapore indefinitely without repeated visa renewals.
Practical Tips for a Successful Application Journey
1. Show genuine business intent
Paper companies or passive income structures are discouraged.
2. Prepare a strong business plan
Employment Pass and EntrePass approvals improve with clear revenue projections and hiring plans.
3. Ensure proper tax filing
Clean accounts build long-term credibility.
4. Demonstrate contribution to local economy
Banks, government agencies, and immigration value job creation and industry growth.
5. Engage professional corporate services
Most foreigners rely on registered Singapore corporate secretarial and accounting providers—this ensures compliance, smooth filing, and faster approval processing.
Conclusion
For a Japanese entrepreneur, setting up a company and working in Singapore is a straightforward and rewarding process. Singapore offers a transparent legal system, a trusted business environment, low tax rates, and convenient access to global markets. Incorporation is fast, ownership is flexible, and multiple work visa options are available. With proper planning, a Japanese citizen can launch a company in Singapore, relocate smoothly, and build long-term business success.
Whether the goal is regional expansion, investment diversification, or creating a new lifestyle abroad, Singapore stands as one of the world’s most supportive locations for Japanese entrepreneurs to grow and prosper.