How to Start a Singapore Company Without Local Hassles
For a long time, I lived a pretty settled life—first in Australia, then in New Zealand. I liked using the word “sedentary” to describe myself back then. But after years in Australia, I finally took the plunge into a more nomadic lifestyle. I’d already had a taste of it in the UK, where I traveled a lot within the country, mostly based in Manchester, and even ran my first business there. Setting up a company in the UK was incredibly simple—less than five minutes and it was done.
Now, living mainly in Asia, I started thinking about where to set up my next company. I wanted to share the behind-the-scenes of this decision-making process, because I know many people are curious about how to choose the right country for their business, especially if you’re a bit of a nomad like me.
The Big Three: UK, US, or Asia?
I considered three main options: the UK, the US, and somewhere in Asia. I didn’t want to set up another company in the UK—I’d already done that, and I was looking for a new challenge. Still, it’s worth noting that you can open a company in the UK even if you don’t live there.
The US was tempting, especially the idea of an LLC (Limited Liability Company) in states like Wyoming or Delaware. It’s a popular choice for people running SaaS businesses or similar online ventures. But the more I looked into it, the more I realized that having a US company isn’t always the best long-term solution. Anyone can open a company there, but it can look a bit suspicious these days, especially with all the Delaware clichés. Plus, getting paid and managing the company can get complicated, especially if you’re based in Asia like me.
Why Not Hong Kong or Dubai?
Hong Kong was another option. But with the administrative changes—Hong Kong now being more tightly linked to China, passports issued by Chinese authorities, and the general uncertainty about the future—it didn’t feel like a safe bet for the long term. Hong Kong’s reputation as a tax haven is also becoming more pronounced, and I wanted something more stable.
Dubai crossed my mind too. It’s flashy, but it also has that tax haven vibe. The basic fees to incorporate are high, and the online services for setting up a company there didn’t seem very reliable or transparent to me. Plus, Dubai is quite far from where I live in Asia.
Singapore: The Obvious Choice
That left Singapore. It’s not a tax haven—you actually pay a fair amount of tax there. For comparison, Ireland is at 12.5%, most countries like France, Belgium, and the UK are at 20%, and Singapore is at 17%. Australia, where I used to live, is at 30%, and unless you live there, there’s not much benefit to having an Australian company.
Singapore is a bit more expensive than Hong Kong for company setup, and the taxes are higher. In Hong Kong, if you can prove your income isn’t generated locally, you don’t pay tax on it, but you still have to file annual financial returns and get audited. There are good services like Sleek and Osome that can help with this, and their customer service is excellent. I spent an hour on the phone with someone from Osome for Singapore, and they explained everything in detail. For Hong Kong, the person even squeezed me in during their lunch break to answer my questions.
But for me, Singapore was the clear winner. It’s stable, serious, and has a great infrastructure for online businesses. If you’re planning to do business in China, Hong Kong might be better. But if your focus is online business, web development, AI, or similar fields, Singapore is the top choice.
Practical Steps and Tools
To open a company in Singapore, you need a local director. Services like Sleek and Osome can provide one for you, making the process straightforward. Opening a bank account is also easier in Singapore, especially with digital banks like Aspire and Airwallex. These options mean you don’t have to be physically present to open an account, which is a huge plus for nomads.
If you still prefer Hong Kong, Neat (now part of Rapyd) is a good choice for digital banking, especially if you want to avoid traveling there in person. For more traditional banking, you’ll need to go in person, especially if you’re handling a lot of transactions.
Sleek and Osome both offer accounting services, but their pricing models are different. Sleek charges based on your expenses, which can be cheaper if you don’t spend much. Osome charges based on your revenue, so if you go over 30,000 SGD in turnover, it gets pricier.
If you’re still drawn to the US, Firstbase is a good, affordable service for setting up a company there.
My Honest Advice
Do your research, but don’t get stuck in analysis paralysis. The most important thing is to start. If you want a stable, reputable, and straightforward place to set up your online business, Singapore is hard to beat.
“The best time to plant a tree was twenty years ago. The second best time is now.”
— Chinese proverb
“Success is not the result of spontaneous combustion. You must set yourself on fire.”
— Arnold H. Glasow
Key Takeaways
- Singapore is a solid choice for online businesses, especially if you’re based in Asia.
- Hong Kong is good if you plan to do business with China, but it’s less stable long-term.
- The US (Wyoming/Delaware) is popular but can be complicated and less reputable these days.
- Use services like Sleek or Osome for company setup and digital banking options like Aspire or Airwallex.
- Don’t overthink—pick a country that fits your needs and get started.
Action Steps
- Compare setup costs and tax rates in Singapore, Hong Kong, and the US.
- Check out Sleek, Osome, Aspire, Airwallex, and Firstbase for practical help.
- Decide what matters most: stability, reputation, or ease of setup.
Reflection
What’s stopping you from starting your business today? Which country fits your lifestyle and goals best?
Pierre-Henry Soria
#Business Setup Guide #Entrepreneurship #Entrepreneurship in Asia #Expat Entrepreneurs #Money #Nomad #Singapore Company Formation #Startup Relocation