TLDR:
- Most US companies enter Singapore through a private limited subsidiary, which the US parent can own 100%.
- Every Singapore company needs at least one director who is ordinarily resident in Singapore.[1]
- ACRA registration takes 1 to 3 business days; with banking and the first Employment Pass, expect about 4 to 8 weeks to be fully operational.
- Singapore's headline corporate tax rate is 17%, and the partial tax exemption reduces the effective rate on the first S$200,000 of chargeable income.[4]
- The US and Singapore have no comprehensive income tax treaty, so plan withholding and US reporting early.[10]
- Staff relocating from the US need an Employment Pass, which requires at least S$5,600 a month in most sectors in 2026.[5]
A Singapore subsidiary for a US company is a Singapore private limited company, registered with the Accounting and Corporate Regulatory Authority (ACRA), whose shares are held by the US parent. Singapore allows 100% foreign ownership, but the Companies Act requires every company to have at least one director who is ordinarily resident in Singapore.[1] For most US businesses that want to sell, hire or hold regional contracts in Asia, a subsidiary is the right vehicle because it ring-fences liability and is taxed as a Singapore company with access to Singapore's corporate tax exemptions. A branch or a representative office suits narrower cases, covered below.
What are the ways a US company can set up in Singapore?
A US company can enter Singapore through a subsidiary, a branch or a representative office, and the subsidiary is the most common choice.
| Option | Legal status | Liability | Singapore tax position | Typical use |
|---|---|---|---|---|
| Private limited subsidiary | Separate Singapore company owned by the US parent | Limited to the subsidiary's assets | Taxed as a Singapore company; partial tax exemption applies, and the start-up exemption only if an individual holds at least 10% | Trading, hiring and signing contracts in Singapore and the region |
| Branch (foreign company registration) | Part of the US company, registered with ACRA | The US parent is directly liable | Taxed on Singapore profits; not eligible for the start-up exemption | Groups that want Singapore results inside the US entity |
| Representative office | Temporary liaison office registered with Enterprise Singapore | The US parent | Cannot carry out revenue-generating activities | Market research before committing, for up to 3 years |
A branch must appoint at least one authorised representative who is locally resident, and it files the US parent's financial statements with ACRA.[2] A representative office is limited to market research and liaison work, cannot earn revenue, and is registered only for parents in eligible sectors such as manufacturing and trading.[3]
Can a US company own 100% of a Singapore company?
Yes. Singapore has no local shareholding requirement, so a US parent or a US citizen can hold every share.
The ownership rule is generous, but the officer rules are strict. A Singapore company must have at least one director who is ordinarily resident in Singapore, which means a Singapore Citizen, a Singapore Permanent Resident or an eligible pass holder living in Singapore.[1] The company must also appoint a qualified company secretary within six months of incorporation and keep a registered office address in Singapore.
Most US companies meet the director rule in one of two ways. The first is relocating a US manager to Singapore on an Employment Pass, who then serves as the resident director. The second is appointing a resident director through a corporate service provider, such as E&H Corporate Services, until a team member arrives.
What are the steps to set up a Singapore subsidiary from the US?
Setting up a Singapore subsidiary takes six steps, and the whole process can be completed remotely.
- Choose the structure and shareholding. Decide whether the US parent, a holding company or individuals hold the shares, and agree the financial year-end with your US tax adviser.
- Reserve the company name. The name is reserved with ACRA through BizFile, usually alongside the incorporation filing.
- Appoint officers. Name at least one ordinarily resident director, any US directors, a company secretary and the registered office address.
- Prepare the documents. The constitution, director consents and KYC documents for the US parent and its beneficial owners are signed, usually electronically.
- File with ACRA. Registration is usually completed within 1 to 3 business days, and the company receives its Unique Entity Number (UEN).
- Open the bank account and register for tax. Corporate bank onboarding follows, then GST registration if taxable turnover is expected to exceed S$1 million.
The US parent's documents are the most common cause of delay. Banks and ACRA filing agents ask for the parent's certificate of incorporation, its register of shareholders and directors, and identification for every beneficial owner holding more than 25%. Preparing these before the first call saves one to two weeks.
How long does it take a US company to start operating in Singapore?
Most US companies are fully operational in Singapore in about 4 to 8 weeks, although ACRA registration itself takes only 1 to 3 business days.
| Stage | Typical time | What drives the timing |
|---|---|---|
| Structuring and KYC | About 1 week | How quickly the US parent's documents are ready |
| ACRA incorporation | 1 to 3 business days | Name approval and complete documents |
| Corporate bank account | 1 to 4 weeks | The bank's onboarding checks and the group structure |
| Job advertising (if required) | At least 14 days | Fair Consideration Framework rules for Employment Pass roles |
| First Employment Pass | A few weeks after submission | MOM processing and the completeness of the application |
The stages overlap. A company can advertise a role on MyCareersFuture while the bank account is being opened, so the critical path is usually the bank or the first pass, whichever finishes last.
How much does it cost to set up a Singapore subsidiary?
A Singapore subsidiary costs from about S$1,600 to incorporate with E&H, plus annual compliance costs that depend on activity.
| Item | E&H fee | Frequency |
|---|---|---|
| Company incorporation (ACRA filing, constitution, first-year secretary support) | From S$1,600 | One-off |
| Corporate secretarial services | From S$800 | Per year |
| Accounting and bookkeeping | From S$300 | Per month |
| Payroll and HR | From S$25 per employee | Per month |
| Employment Pass application | From S$1,200 | Per application |
A resident director service and a registered office address are quoted separately, and government fees are passed through at cost. Singapore allows a company to incorporate with paid-up capital of S$1, though banks and MOM look more favourably on a company with capital that matches its planned operations.
How is a Singapore subsidiary of a US company taxed?
A Singapore subsidiary pays Singapore corporate income tax at a headline rate of 17%, and its first S$200,000 of chargeable income is partly exempt.
Under the start-up tax exemption, a qualifying new company is exempt on 75% of its first S$100,000 of normal chargeable income and 50% of the next S$100,000, for its first three consecutive Years of Assessment.[4] The start-up exemption requires every shareholder to be an individual, or at least one individual to hold at least 10% of the shares.[4] A subsidiary wholly owned by a US corporation therefore does not qualify for it.
A subsidiary wholly owned by a US corporation receives the partial tax exemption instead: 75% of the first S$10,000 and 50% of the next S$190,000 of normal chargeable income are exempt.[4] A founder-owned Singapore company, where a US individual holds the shares directly, can qualify for the larger start-up exemption.
Singapore does not appear on the IRS list of countries with a US income tax treaty.[10] Treaty-reduced withholding rates are therefore not available on royalties, interest or service fees paid between the US parent and the Singapore subsidiary. Singapore does not tax dividends paid by a Singapore company, which helps when profits are sent back to the US.
On the US side, a Singapore subsidiary owned by a US company is generally a controlled foreign corporation, which brings US information reporting and may bring US tax on some of its income. E&H Corporate Services handles the Singapore filings and works with the client's US CPA, who handles the US position.
How does a US company hire staff in Singapore?
A US company hires Singapore Citizens and Permanent Residents directly through its subsidiary, and brings foreign staff in on work passes.
Local hires are employed under the Employment Act, and the employer must make CPF contributions for every Singapore Citizen and Singapore Permanent Resident on its payroll.[11] CPF contributions are not payable for foreign employees on an Employment Pass.[11]
Employers must advertise most Employment Pass roles on MyCareersFuture for at least 14 consecutive days before applying, and must not make a job offer during that period.[6] Roles paying a fixed monthly salary of at least S$22,500 are exempt from this advertising requirement.[5]
A US company that is not ready for its own entity can use an employer of record, which employs staff in Singapore on the company's behalf. An employer of record suits one or two early hires, while a subsidiary becomes cheaper and gives more control once the team grows or the company needs to sign local contracts.
Which work pass do US founders and staff need?
US citizens working in Singapore need a work pass, and the Employment Pass is the standard route for managers, executives and specialists.
| Pass | Who it suits | Key requirement (2026) |
|---|---|---|
| Employment Pass | Transferees, senior hires and founders employed by their Singapore company | At least S$5,600 a month (S$6,200 in financial services), rising with age, plus 40 COMPASS points unless paid at least S$22,500[5] |
| ONE Pass | Top earners who want to work for more than one company | Fixed monthly salary of at least S$30,000; valid for 5 years[7] |
| EntrePass | Founders of venture-backed or innovative start-ups | Hold at least 30% of a Singapore private limited company and meet one innovation criterion, such as raising at least S$100,000[8] |
| Dependant's Pass | Spouses and children of pass holders | The Employment Pass holder earns at least S$6,000 a month[9] |
MOM has announced that the Employment Pass minimum qualifying salary rises to S$6,000 (S$6,600 in financial services) for new applications from 1 January 2027.[5] US companies planning transfers for 2027 should budget for the higher figure. Approval of any pass is not guaranteed, and MOM assesses each application on its merits. The E&H work pass team assesses the candidate and the company before anything is submitted.
What does a Singapore subsidiary need to do every year?
A Singapore subsidiary must keep its statutory registers, file an annual return with ACRA and file corporate tax returns with IRAS every year.
- Keep a company secretary, a registered office and the registers of members, directors and controllers up to date.
- Prepare financial statements and hold an AGM, or pass written resolutions where allowed.
- File the annual return with ACRA.
- File the Estimated Chargeable Income (ECI) and Form C-S, C-S (Lite) or C with IRAS.
- File GST returns if the company is GST-registered.
- Renew work passes and keep payroll and CPF records current.
Our corporate tax filing guide explains the IRAS deadlines in detail.
What mistakes do US companies make when setting up in Singapore?
The most expensive mistakes are choosing the wrong vehicle, underestimating bank onboarding and planning work passes too late.
- Opening a branch by default. A branch exposes the US parent to Singapore liabilities and cannot use the start-up tax exemption.
- Leaving the resident director to the end. ACRA will not register the company without one.
- Assuming the bank account opens in days. Bank onboarding usually takes weeks and depends on clean KYC for the US parent.
- Making an offer before job advertising ends. MOM's rules forbid offers during the 14-day advertising period for roles that must be advertised.
- Ignoring the US side. Without a treaty, cross-border payments and US reporting need planning from the start.
Opening in Singapore from the US? E&H Corporate Services sets up the company, the bank account and the work passes as one project, with a fixed-fee proposal before any work starts. See the US-to-Singapore service or talk to a specialist.
What are the frequently asked questions about setting up a Singapore subsidiary for a US company?
Can a US citizen own a company in Singapore?
Yes. A US citizen or a US company can own 100% of the shares in a Singapore private limited company. The company must still appoint at least one director who is ordinarily resident in Singapore.
Does a US company need a local director in Singapore?
Yes, if it sets up a subsidiary. Every Singapore company needs at least one ordinarily resident director, such as a Singapore Citizen, a Singapore Permanent Resident or an eligible pass holder living in Singapore. A branch needs a locally resident authorised representative instead.
How long does it take a US company to start operating in Singapore?
ACRA registration usually takes 1 to 3 business days once documents are ready. With bank onboarding and the first Employment Pass, most US companies are operational in about 4 to 8 weeks.
Is there a tax treaty between the US and Singapore?
No. Singapore does not appear on the IRS list of countries with a US income tax treaty, so treaty relief is not available on payments between a US parent and its Singapore subsidiary. US groups should plan withholding and US reporting with a US tax adviser.
Do I have to pay CPF for American employees in Singapore?
No. CPF contributions are only payable for Singapore Citizens and Singapore Permanent Residents. Employers do not make CPF contributions for foreign employees on an Employment Pass.
Can I run my Singapore company from the US?
Yes. Shareholders and most directors can live in the US, provided at least one director is ordinarily resident in Singapore. Anyone who works in Singapore for the company needs a valid work pass.
What does it cost to set up a Singapore subsidiary?
E&H Corporate Services incorporates Singapore companies from S$1,600, which covers ACRA registration, the constitution and first-year company secretary support. Resident director, registered address, banking support and work passes are quoted separately.
Related reading
- Singapore setup for US companies and founders
- Company Incorporation in Singapore: A Complete Guide for Founders
- Nominee Director in Singapore: Duties, Fees, Risks and Appointment
- Withholding Tax in Singapore: Rates, Rules, Deadlines and Filing
- Payroll Providers in Singapore: A Complete Guide
Sources & References
- Choosing company directors and other key officers — Accounting and Corporate Regulatory Authority
- Registering as a foreign company branch — Accounting and Corporate Regulatory Authority
- Representative Office — GoBusiness Licensing (Enterprise Singapore)
- Corporate income tax rate, rebates and tax exemption schemes — Inland Revenue Authority of Singapore
- Employment Pass eligibility — Ministry of Manpower
- Fair Consideration Framework — Ministry of Manpower
- Overseas Networks & Expertise Pass eligibility — Ministry of Manpower
- EntrePass eligibility — Ministry of Manpower
- Dependant's Pass eligibility — Ministry of Manpower
- United States income tax treaties, A to Z — Internal Revenue Service
- Who should receive CPF contributions — Central Provident Fund Board
