Profile

Singapore is a small island city-state in Southeast Asia with a population of approximately 5.7 million (as of recent estimates). Despite its modest size, it punches above its weight as a global financial center and trade hub. Strategically located at the crossroads of major shipping routes, Singapore serves as a gateway to Asia’s dynamic markets, including China, India, and Southeast Asia. Its world-class infrastructure, highly skilled workforce, and pro-business environment consistently rank it among the top countries for ease of doing business—often securing a top spot in global rankings.

Political

Singapore operates as a parliamentary republic modeled on the Westminster system, blending stability with efficiency. The government is led by a Prime Minister and a Cabinet, accountable to a unicameral Parliament. This political stability provides businesses with a predictable and secure environment, free from the uncertainties that can plague other jurisdictions.

Tax

The corporate tax rate is a competitive 17%, however there are numerous exemptions and incentives that can significantly reduce the effective rate for qualifying companies. For instance, new startups may enjoy full tax exemptions on the first SGD 100,000 of chargeable income for their first three years, with partial exemptions on the next SGD 100,000. Singapore imposes no capital gains tax, and dividends paid to shareholders are tax-exempt, making it highly attractive for investors. The country’s extensive network of over 90 double taxation agreements (DTAs) further minimizes tax liabilities for businesses operating internationally.

Legal

Singapore’s legal system is rooted in English common law, offering a familiar and reliable framework for international businesses. Company incorporation is governed by the Companies Act, administered by the Accounting and Corporate Regulatory Authority (ACRA), which ensures a streamlined process and clear guidelines.

Privacy

Singapore balances business efficiency with data protection through the Personal Data Protection Act (PDPA), enacted in 2012 and updated in 2020. The PDPA governs the collection, use, and disclosure of personal data by private organizations, ensuring individuals’ privacy while allowing businesses to operate effectively. Companies must obtain consent for data processing, implement reasonable security measures, and appoint a Data Protection Officer (DPO) to oversee compliance. While public agencies are exempt from the PDPA and operate under sector-specific laws, private entities—including newly incorporated companies—must adhere to these standards.

KYC and AML Regulations

Singapore’s commitment to combating financial crime is evident in its robust Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, overseen by the Monetary Authority of Singapore (MAS). The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Terrorism (Suppression of Financing) Act (TSOFA) form the legal backbone of these efforts. Businesses, especially financial institutions and designated non-financial businesses (e.g., lawyers, real estate agents), must conduct customer due diligence (CDD) to verify identities, assess risks, and monitor transactions. Enhanced CDD is required for high-risk customers, such as politically exposed persons (PEPs) or those from jurisdictions flagged by the Financial Action Task Force (FATF).