10 Reasons to Open a Company in Singapore in 2025

In a world marked by increasing regulatory uncertainty, shifting geopolitical dynamics, and rapid technological change, Singapore has emerged as a strategic safe haven for global founders, investors, and corporations seeking stability and growth. As we move into 2025, the city-state is not just maintaining its reputation as Asia’s premier business hub—it is actively redefining what it means to launch and scale a company in the new global landscape.

Backed by forward-thinking government policy, world-leading digital infrastructure, and a suite of bold new incentives, Singapore offers a uniquely competitive environment for businesses at every stage. From unprecedented grants and tax breaks for new entities, to unmatched regulatory clarity in deep tech, AI, and digital assets, to a progressive immigration regime designed to attract top global talent, the case for choosing Singapore has never been stronger. Below, we outline ten compelling, data-driven reasons why Singapore remains the launchpad of choice for ambitious companies in 2025.

1. Government Grants and Corporate Tax Rebates in 2025

In 2025, Singapore’s government introduced one of the most ambitious support packages in its corporate history, signaling a renewed drive to anchor new investments and incentivize company formation. All locally incorporated companies with at least one Singaporean or Permanent Resident (PR) employee in 2024 are automatically eligible for a direct SGD 2,000 cash grant. There are no restrictions on business activity or sector — the policy applies equally to tech startups, professional services firms, trading companies, and manufacturers.

But the support goes far beyond a simple grant:

For the Year of Assessment 2025, all qualifying companies receive a 50% corporate income tax rebate, up to a maximum of SGD 40,000 (or SGD 38,000 if the company also claims the cash grant). For a typical SME with annual profits of SGD 80,000, this translates into up to SGD 6,800 in immediate tax savings, directly boosting retained earnings or available capital for reinvestment. For larger businesses and multinationals, the capped amount still represents a significant offset against Singapore’s already low 17% standard corporate tax rate.

This dual scheme is especially important for new companies and foreign investors establishing a Singapore entity. It effectively lowers the cost and risk of market entry, frees up cash for hiring, and incentivizes the creation of local jobs — a core requirement of the new policy. In practice, the government is sending a strong signal: “If you create jobs in Singapore, you get rewarded.”

The scale and inclusivity of these incentives are unprecedented:

Inclusivity: There are no exclusions for sector, company size, or foreign ownership. Even single-director companies and startups with minimal local payroll qualify.

Ease of access: The process is automatic — eligible companies are identified via their CPF (Central Provident Fund) payroll records and IRAS tax filings. No additional paperwork or application process is required.

Stackable with other support: Companies can combine the 2025 grant and rebate with ongoing schemes like the Enterprise Development Grant (EDG), Startup SG, and R&D tax credits, further amplifying their benefits.

2. Southeast Asia’s Deep Tech and AI Launchpad

In 2025, Singapore is firmly established as the undisputed launchpad for deep tech, AI, and green tech ventures in Asia-Pacific, thanks to a strategic mix of public funding, world-class institutions, and pragmatic regulation. Over the 2024–2026 period, the government—primarily through the agencies Enterprise Singapore and SGInnovate—has committed more than S$1 billion in direct funding, equity co-investment, and targeted grants to fuel the next wave of innovation.

Startup SG Equity and SGInnovate: A Co-Investment Engine

Through the flagship Startup SG Equity scheme, the government co-invests directly alongside international VCs and corporate funds in high-potential early-stage startups. As of 2025, the scheme focuses on sectors where Singapore aims to be a regional or global leader:

• Quantum computing
• Advanced manufacturing (Industry 4.0)
• Life sciences and healthtech
• Sustainability, climate, and clean energy
• Artificial intelligence and deep learning

SGInnovate, the government’s “deep tech champion,” serves not just as an investor but as an active ecosystem builder—matching global founders with local partners, organizing demo days, and even seconding engineers and data scientists to portfolio companies.

3. AI Governance and Global Regulatory Leadership

In May 2025, Singapore updated its landmark AI Verify toolkit and officially launched the GenAI Governance Framework, aligning national regulations with the latest ISO/IEC 42001:2023 and US NIST AI standards. This step makes Singapore the first jurisdiction in Asia—and one of the few globally—to provide a fully government-backed, internationally recognized AI governance model for commercial deployment. The new Global AI Assurance Sandbox(launched 2025) gives both foreign and local companies a safe, legally robust environment to develop and test generative AI systems prior to market rollout. For founders and investors in sectors like fintech, healthtech, and logistics, Singapore offers a fast-track, predictable regulatory pathway that is simply unavailable in other Asian hubs, where rules remain fragmented or unclear.

Global Recognition: Singapore Ranked #2 Worldwide for AI Readiness

Singapore’s AI leadership is validated by the Salesforce Global AI Readiness Index 2025, where the country was ranked second globally and first in Asia-Pacific for overall AI readiness—beating out regional peers and even several Western economies in core areas. The index evaluates governance, diffusion, innovation, investment, and talent, and gave Singapore a record-high 9.8/10 in governance, highlighting its world-class regulatory clarity and institutional support. This global ranking is supported by Singapore’s robust Model AI Governance Framework and ambitious National AI Strategy 2.0.

For business:

• Faster regulatory approvals for AI-driven products and services
• Reliable legal compliance for global MNCs and tech startups
• Access to pilot schemes and regulatory sandboxes not available elsewhere in APAC
• Confidence for international investors and VCs to back AI ventures based in Singapore

Real-world impact:

Major companies—including Meta, Google, and leading banks—now routinely pilot new AI platforms in Singapore first, capitalizing on the country’s regulatory predictability and rapid adoption ecosystem before scaling to other markets.

4. Unmatched Tax Incentives for Startups and Multinationals

Singapore’s tax system continues to be recognized as one of the world’s most competitive and business-friendly in 2025, offering targeted advantages for both early-stage startups and global enterprises.

Startups: Significant Early-Stage Tax Relief

For newly incorporated startups, Singapore offers a partial tax exemption (PTE) that substantially reduces the effective corporate tax rate during the critical first three years of operation. Specifically:

• The first SGD 100,000 of chargeable income is 75% exempt from tax.
• The next SGD 100,000 is 50% exempt.
• This can result in tax savings of up to SGD 125,000 over three years, significantly boosting cash flow for reinvestment, hiring, and product development.

This tax regime is designed to encourage entrepreneurship, lower the risk of failure, and free up more capital for local employment and innovation.

Zero Tax on Capital Gains and Dividends

Unlike many other leading jurisdictions, Singapore does not impose capital gains tax on the sale of business assets, shares, or intellectual property. Additionally, dividends paid by Singapore-resident companies are exempt from tax in the hands of both residents and foreign shareholders. This structure is particularly attractive for founders, VCs, private equity investors, and family offices seeking efficient exit opportunities and minimal tax leakage on repatriated profits.

No Withholding Tax on Most Cross-Border Payments

For companies engaged in international trade or services, Singapore’s tax framework eliminates most forms of withholding tax on cross-border service payments. Royalties, interest, and technical fees paid to non-residents are either exempt or subject to reduced rates under Singapore’s extensive double taxation treaty (DTA) network—now covering more than 90 countries as of 2025.

Multinationals: Ultra-Low Effective Rates via FSI and Pioneer Schemes

For established companies and multinationals, Singapore offers sector-specific incentives that further lower the already competitive standard corporate tax rate of 17%:

• The Financial Sector Incentive (FSI) scheme, newly expanded in 2025, enables qualifying companies in fund management, digital assets, e-commerce, and regional HQ operations to access tax rates as low as 13.5%, and in some cases even lower for strategic investments.
• The Pioneer Certificate Incentive (PCI) and Development and Expansion Incentive (DEI) provide effective rates as low as 5%–10% for companies engaged in advanced manufacturing, R&D, or high-value service activities, subject to investment and local employment criteria.

5. World-Class Digital Infrastructure and Regulatory Tech

As of 2025, Singapore’s Bizfile+ digital platform allows for same-day company incorporation entirely online, with full integration for tax, social security, and regulatory filings. More than 95% of company administrative interactions are digital, supported by Singpass and Corppass authentication. This eliminates legacy paperwork and reduces onboarding time for global founders. The adoption of e-invoicing (Peppol) and digital banking (via MAS Digital Banking Framework) has enabled seamless B2B and B2C transactions, even for foreign founders without a prior local presence.

6. Epicenter of Regional Trade, IP, and Dispute Resolution

Singapore’s status as Asia’s legal and IP capital was reinforced in 2025 by the expansion of the Singapore International Commercial Court (SICC) and the modernization of the IP Dispute Resolution Act. Foreign companies launching IP-driven businesses can now rely on fast-track arbitration and robust enforcement of judgments worldwide. The 2024–25 WIPO Global IP Index again ranked Singapore #1 in Asia for IP protection and enforcement. Amazon, Grab, and Shopee all cite Singapore as their primary hub for IP holding and regional licensing.

7. Asia’s Family Office and Wealth Management Hub

By Q1 2025, Singapore has firmly cemented its reputation as the pre-eminent wealth management and family office hub in Asia, drawing record inflows of capital, new entrants, and global attention. According to the Straits Times, over 1,800 family offices were active in Singapore at the start of 2025—a staggering 250% growth since before the pandemic. This explosion is not just in numbers but also in scale, as total assets under management (AUM) by family offices and wealth vehicles exceeded S$450 billion, reinforcing Singapore’s leadership in global wealth structuring.

Why Singapore? Favorable Regulatory Regimes and Bespoke Pathways

Singapore’s appeal is grounded in a unique mix of stability, regulatory clarity, and proactive government initiatives:

• The Global Investor Programme (GIP) allows qualifying entrepreneurs and ultra-high-net-worth individuals (UHNWIs) to obtain permanent residency by investing S$10 million or more into Singapore-based businesses, family offices, or qualifying funds. In 2024–2025, the GIP was updated to further streamline application processing and lower minimum job creation thresholds for applicants establishing single-family offices.
• The new ONE Pass (Overseas Networks & Expertise Pass)—launched in 2024—enables founders, fund managers, and key family members to secure five-year work and residency privileges with maximum flexibility, even if they are not physically based in Singapore full time. This innovation has been particularly attractive to global entrepreneurs seeking a reliable base for multi-jurisdictional wealth.

VCC Regime and Structuring Efficiency

The Variable Capital Company (VCC) regime, enhanced in 2024, now permits single-family offices, PE/VC funds, and multi-asset platforms to consolidate global investments under a Singapore-registered umbrella, with:

• Simplified “substance” requirements (local directors, minimum staffing, office space)
• Tax exemptions for qualifying income, including on foreign-sourced dividends, capital gains, and certain fund management fees
• Regulatory recognition by global financial centers, making it easier to raise capital and launch cross-border structures from Singapore

This VCC framework has become the preferred vehicle for both Asian and international families looking to pool wealth, optimize tax efficiency, and enable generational transfer in a single, flexible legal entity.

Business Impact and International Benchmarking

The surge in family office and wealth inflows is driven by a combination of “push” and “pull” factors:

• Push: Increasing regulatory uncertainty and higher taxes in traditional wealth centers (e.g., Switzerland, UK, Hong Kong, and now even Dubai), including stricter CFC rules and increased scrutiny on offshore structures.
• Pull: Singapore’s robust rule of law, banking privacy, absence of estate duty, and investor-friendly tax treatment. There are no capital gains, inheritance, or estate taxes; foreign income remitted into Singapore is exempt if structured through certain fund vehicles.

Major global families—including tech entrepreneurs, PE principals, and founders from China, India, Southeast Asia, Europe, and the Middle East—have established Singapore-based single and multi-family offices in the last two years. Many cite the city-state’s “predictable regime, personal safety, and clear immigration path for heirs and executives” as decisive factors.

8. Financial Innovation and Digital Asset Leadership

In July 2025, Singapore hosted GITEX ASIA x AI Everything, attracting 400+ fintech and AI startups, and launching pilot programs in tokenized assets and cross-border DeFi settlements. The Global Finance & Technology Network (GFTN), headquartered in Singapore, coordinates digital asset standards across Asia and Europe. MAS continues to drive digital asset regulation via Project Guardian, offering sandboxes for institutional DeFi pilots. Companies like Circle, Ripple, and Standard Chartered have chosen Singapore for regional crypto and tokenization initiatives due to its clear, adaptive regulations.

9. Progressive Immigration and Global Talent Magnet

Singapore’s sustained success as a business hub is underpinned by its highly progressive, transparent, and practical immigration system, which remains a world leader for attracting global entrepreneurial and technical talent. In the face of widespread tightening of high-skill immigration in traditional innovation centers (such as the US, UK, and Australia), Singapore has moved decisively in the opposite direction—actively courting founders, scientists, and senior executives with a set of new and upgraded pathways.

COMPASS: A Data-Driven, Transparent Employment Pass System

Launched in 2024, the Complementarity Assessment Framework (COMPASS) replaces the previous opaque points-based approach with a transparent, multi-criteria system for awarding Employment Passes (EPs). The framework:

• Evaluates candidates on objective metrics such as education, job role, salary, diversity contribution, and support for local employment.
• Gives companies a clear preview of eligibility outcomes before making job offers—reducing uncertainty and administrative costs.
• Incorporates special provisions for startups, high-growth sectors, and globally in-demand roles (e.g., AI, fintech, deep tech).

COMPASS is lauded by HR professionals and international investors for its predictability and its ability to fast-track approvals for genuine global talent.

Specialized Visas for Tech and Entrepreneurial Leadership

Singapore’s Tech.Pass (for elite founders, investors, and technical experts) and the new ONE Pass (Overseas Networks & Expertise Pass, launched in 2024) offer unique advantages:

• Five-year validity (renewable), allowing holders to found multiple companies, take up board positions, or invest in local startups.
• No restrictions on sector, employer, or business activities—maximum flexibility.
• Eligibility for dependents (spouse, children), making Singapore an attractive relocation destination for families.
• Recognition of non-traditional backgrounds: Many successful applicants are founders, serial entrepreneurs, and scientists without traditional university degrees.

Real Numbers: Impact on Startup Ecosystem

• According to the Ministry of Manpower, over 30% of new tech founders in Singapore in 2024–25 were foreign nationals—far surpassing the global average and positioning Singapore ahead of regional and global rivals.
• VCs and accelerator programs frequently cite Singapore’s “no red tape” approach to talent as a primary reason for siting APAC operations, especially as Silicon Valley, London, and Sydney have raised entry barriers for non-citizens.

10. Access to ASEAN’s Fastest-Growing Consumer Markets

Singapore’s web of free trade agreements (FTA) was expanded again in 2025, with new protocols for EU, UK, and RCEP markets. The city-state acts as a springboard for APAC operations, with over 46% of MNCs using Singapore as their regional headquarters. Market entrants gain tariff-free access to over 600 million consumers in ASEAN, as well as direct routes to China, India, and Australia. Companies like Dyson, Stripe, and Wise use Singapore as a launchpad for regional scaling, citing streamlined customs, logistics, and banking.

NB! The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to ensure the content is accurate and up-to-date, it should not be relied upon as a substitute for professional consultation. For personalized advice or assistance with legal matters, please contact our specialists directly.