As we enter 2026, Singapore remains the undisputed gateway to Asia for global entrepreneurs. Its “AAA” credit rating, strategic location, and stable regulatory environment continue to attract record-breaking foreign direct investment. However, for a foreign investor, success depends on more than just a great product; it requires a deep understanding of the local compliance ecosystem.
At Hallmark Corporate Services, we’ve helped thousands of international founders launch successfully. Here is the essential 2026 roadmap for doing business in the Lion City.
1. The Legal Gateway: Choosing the Right Entity
While several structures exist, the Private Limited Company is the gold standard for foreign investors. It offers limited liability, is a separate legal entity, and provides the most significant tax benefits.
Foreigners can own 100% of the shares in a Singapore company with no restrictions on the repatriation of profits.
2. The “Local Presence” Hurdle
Under the Singapore Companies Act, every company must satisfy three “local” requirements that often catch foreign investors off guard:
- Resident Director: You must appoint at least one director who is “ordinarily resident” in Singapore (a Citizen, Permanent Resident, or an eligible Employment Pass holder).
- Qualified Company Secretary: Within six months of incorporation, you must appoint a local secretary to handle ACRA filings.
- Registered Office Address: A physical Singapore address is required for official correspondence (P.O. boxes are not allowed).
Pro Tip: Many foreign investors utilize a Nominee Director service provided by firms like Hallmark Corporate Services to meet legal requirements while they manage the business from abroad.
3. Navigating the 2026 COMPASS Framework
If you plan to relocate to Singapore to manage your business, you must secure an Employment Pass (EP). As of January 1, 2026, the COMPASS (Complementarity Assessment Framework) has been updated.
To qualify, candidates must now meet a higher salary threshold (starting at S$5,600 for general sectors and S$6,200 for financial services) and earn at least 40 points based on qualifications, diversity, and support for local employment. Navigating these points requires strategic workforce planning.
4. Maximizing Tax Efficiency in 2026
Singapore’s tax regime is one of the most attractive globally, but in 2026, there are specific updates to be aware of:
- Corporate Tax Rate: A flat 17% on chargeable income.
- 2026 CIT Rebate: For the Year of Assessment 2026, companies receive a 50% Corporate Income Tax (CIT) Rebate, capped at S$40,000.
- Start-Up Tax Exemption (SUTE): New companies still enjoy a 75% exemption on the first S$100,000 of taxable income for their first three years.
5. Banking and KYC Compliance
Opening a corporate bank account is no longer an “over-the-counter” affair. In 2026, Know Your Customer (KYC) standards are rigorous. Banks will scrutinize the “ultimate beneficial owners” and the nature of your business transactions. Having a professional corporate service provider to facilitate these introductions is often the difference between a swift approval and a months-long delay.
Conclusion: Partnering for Success
The Singapore market is high-reward but demands high-compliance. Missing a filing deadline or failing a COMPASS assessment can lead to director disqualification or visa rejections.
Hallmark Corporate Services acts as your local “anchor.” From providing nominee director services and company secretarial support to managing your 2026 tax filings, we ensure your business remains 100% compliant so you can focus on scaling across Asia.
Are you ready to incorporate? Would you like a free consultation on how to meet the 2026 COMPASS requirements for your team? CONTACT US!