One Tax CM, a Singapore-based corporate service provider, is playing a crucial role in assisting foreign entrepreneurs in navigating the complexities of establishing a business presence in Singapore. With the introduction of new requirements under the Corporate Service Providers Act 2024, the firm is helping overseas founders understand and comply with local regulations, such as appointing a local director and opening corporate bank accounts.
Singapore’s Companies Act mandates that all registered companies have at least one locally resident director. For foreign founders, this often means arranging for a nominee director, a process that must be handled with care to ensure compliance with fiduciary duties. The Corporate Service Providers Act 2024 further stipulates that only registered corporate service providers (CSPs) can arrange nominee directors, who must be assessed as fit and proper individuals.
Lancaster Lee, co-founder and Managing Director of One Tax CM, highlighted the challenges foreign founders face: “Singapore is widely regarded as a stable, rules-based environment for business, but foreign founders often underestimate the administrative and regulatory steps required after incorporation.”
In addition to directorship requirements, foreign-owned entities must navigate tightened financial regulations when opening bank accounts. Enhanced due diligence by banks necessitates detailed documentation regarding the source of funds and business activities.
Beyond incorporation, companies must adhere to regulatory and tax compliance, including filing annual returns and potentially registering for Goods and Services Tax (GST). Singapore’s strategic position as a gateway to Southeast Asia makes it an attractive base for international companies, offering a multilingual workforce and a network of trade agreements.
Lee emphasised the importance of understanding the local context: “Foreign companies looking to expand into Asia often choose Singapore first. The country’s infrastructure and legal systems provide confidence, but founders still need to understand the local operating context.” One Tax CM offers tailored guidance to a diverse range of clients, including tech startups and multinational subsidiaries.
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