How to Relocate Your Business to Singapore for Better Tax Efficiency
Global businesses are constantly looking for smarter ways to lower tax burdens
and increase profitability.
Singapore has become a leading destination
for companies looking to relocate,
thanks to its world-class tax system,
political stability, and strong business infrastructure.
Here’s how you can make the move — and why it’s worth considering.
1️⃣ Why Singapore?
✅ Low corporate tax rates (17% headline, but effective rates often lower)
✅ No capital gains tax
✅ Wide network of tax treaties (over 80 double-taxation agreements)
✅ Political and economic stability
✅ Strategic gateway to Southeast Asia and beyond
Example: A European tech company relocated its APAC headquarters to Singapore
to enjoy tax benefits and tap into the growing ASEAN market.
2️⃣ Understand the Legal and Tax Requirements
Relocating isn’t just flipping a switch —
it involves careful legal and tax planning.
✅ Review current corporate structure and tax exposures
✅ Assess redomiciliation or incorporation options
✅ Align with Singapore’s Economic Substance Requirements (if claiming tax residency)
Example: A U.S.-based e-commerce firm consulted with a Singapore tax advisor
to ensure its profits would qualify for local tax incentives
before moving operations.
3️⃣ Set Up the Right Corporate Entities
You may need to:
✅ Incorporate a new Singapore private limited company
✅ Apply for relevant tax incentives (e.g., under the Economic Expansion Incentives Act)
✅ Structure intercompany transactions properly (for transfer pricing compliance)
Example: A manufacturing group created a Singapore holding company
to manage IP and distribution,
leveraging Singapore’s IP tax incentives.
4️⃣ Move the Right Functions
Singapore wants real, substantive activities —
not just a brass plate on the wall.
✅ Relocate key executives and decision-making functions
✅ Employ local staff and establish physical operations
✅ Generate real income from Singapore activities
Example: A European logistics company established
a regional management team in Singapore,
qualifying for regional headquarters incentives.
5️⃣ Why Work With Paperwork.sg?
We:
✅ Handle incorporations, corporate secretary, and compliance
✅ Connect you with expert tax and legal partners
✅ Support your regional setup and ongoing operations —
so you can focus on scaling, not admin headaches