Setting Up A Business in Singapore from Malaysia
How to Start Business in Singapore from Malaysia
Why Malaysians Open Companies in Singapore
Malaysia's corporate tax ranges from 17% to 30%, while Singapore caps at 17%, with most businesses benefiting from lower rates through tax incentives.
Singapore’s business regulations attract foreign investment, allowing 100% foreign ownership, while Malaysia requires approval for foreigners to hold more than 30% of company shares.
Singapore's political and economic stability attracts numerous VC firms, resulting in a larger pool of funds compared to Malaysia.
Malaysia imposes a capital gains tax of up to 30% in certain sectors, while Singapore levies no capital gains tax.
The Malaysia-Singapore DTA removes double taxation, offering tax relief to Malaysian residents in Singapore. This enables Malaysians to grow their business and maximize profits more effectively.
Singapore offers a range of incentives for incorporated companies, including grants up to S$6 million and tax deductions up to S$10 million, along with non-financial support like training and development programs.
FAQs on setting up and running a business in Singapore
No physical visit needed. All communication could be done online.
Relocate with an EP by meeting the S$6,000 salary requirement; higher for experienced workers, and for bringing family on Dependant Passes.
Hiring local employees are optional. Only a local director and secretary are required to meet ACRA’s criteria, allowing you to run your business from Malaysia.
To set up your business in Singapore from Malaysia, you need a Resident Director, Company Secretary, and Local Address.
What taxes will my Singapore company need to pay?
Singapore offers a competitive corporate tax rate of 17% for both local and foreign businesses. New companies enjoy tax exemptions for the first three years. Additionally, the Singapore-Malaysia Double Taxation Agreement ensures Malaysians aren't taxed twice. Here's a breakdown of what your Singapore company needs to pay:
The standard corporate tax rate is 17%, but thanks to Singapore's tax exemptions and incentives, the effective tax rate can be much lower.
Once your turnover hits S$1,000,000 (around RM3,000,000), you'll need to register with IRAS as a GST registered company and pay a 9% GST. However, if your services or products aren't sold in Singapore, the GST will be 0%.
It is a progressive tax, ranging from 0% to 24%, based on your taxable income.
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