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Why More Philippine SMEs Are Expanding to Singapore
In recent years, Singapore has emerged as one of the top destinations for Philippine small and medium-sized enterprises (SMEs) looking to expand beyond domestic markets. With its strategic location, low corporate tax rates, stable regulatory environment, and access to world-class digital infrastructure, Singapore presents a compelling growth opportunity for Philippine entrepreneurs.
As international trade and cross-border digitalisation become more accessible, more SMEs from the Philippines are exploring Singapore not just as a business destination, but as a regional launchpad. This guide explores the key reasons behind the trend—and how SMEs can position themselves to enter Singapore effectively.
Market Access to ASEAN and Beyond
Singapore offers Philippine SMEs seamless access to the ASEAN Economic Community, which boasts a combined population of over 660 million. For businesses targeting Southeast Asia and beyond, Singapore acts as a central gateway for trade, distribution, and operations.
As a signatory to over 25 Free Trade Agreements (FTAs), including those with the EU, China, Australia, and the Philippines through the ASEAN Free Trade Area, Singapore enables cost-effective market entry across global regions. According to Enterprise Singapore, the country’s FTA network helps reduce or eliminate tariffs and simplifies compliance requirements for exporters.
Setting up in Singapore also grants access to its extensive port and logistics infrastructure, including one of the busiest shipping hubs in the world and Changi Airport’s Freeport, a dedicated logistics hub for high-value goods. For Philippine SMEs in manufacturing, retail, or e-commerce, this translates into faster turnaround times and reduced operational costs.
Favourable Corporate Tax Environment
One of Singapore’s strongest advantages is its low and transparent tax regime. The country offers a flat 17% corporate income tax, one of the lowest in the region. For newly incorporated companies, tax exemptions are also available for the first three years of assessment, lowering the effective tax rate even further.
Philippine SMEs incorporated in Singapore can also benefit from the Avoidance of Double Taxation Agreement (DTA) between the two countries, which prevents income from being taxed twice. This is especially beneficial for businesses with operations or customers in both markets.
Filing and compliance are also streamlined through IRAS, Singapore’s tax authority, with digital tools for filing Estimated Chargeable Income (ECI), Goods and Services Tax (GST), and annual returns. For businesses accustomed to manual compliance processes, the efficiency of Singapore’s system can be a significant operational upgrade.
For more on tax filings, SMEs can also refer to Acc Pro’s corporate tax service, which supports growing companies in structuring and maintaining proper tax compliance from the start.
A Stable and Pro-Business Regulatory Environment
Singapore consistently ranks among the top countries in the world for ease of doing business. As noted by the World Bank, Singapore offers streamlined incorporation processes, strong contract enforcement, and minimal red tape.
Philippine entrepreneurs can set up a private limited company in Singapore in as little as 1–3 business days, with no requirement for a local shareholder. Additionally, foreign ownership of 100% is allowed in most sectors, removing barriers for Filipino founders who want to retain full control of their businesses.
Compliance obligations such as annual filings, corporate secretarial requirements, and bookkeeping are all clearly defined under the Accounting and Corporate Regulatory Authority (ACRA). Services like Acc Pro’s corporate secretary and bookkeeping solutions provide tailored support for foreign business owners to navigate their obligations with clarity and confidence.
Digital-First Infrastructure for SMEs
Singapore is a digital-first economy with government support for business digitalisation. From banking to compliance to HR, nearly every business function can be handled online—reducing the friction Philippine SMEs may face when operating in new markets.
Cloud-based accounting systems like Xero and QuickBooks Online are widely adopted and integrated with government reporting portals. This makes it easier to track finances, automate submissions, and monitor performance remotely.
Singapore also offers grant schemes and productivity support for SMEs investing in digital solutions, making it easier to implement scalable infrastructure early in the expansion journey. While most grants are for local companies, foreign SMEs that localise operations and work with Enterprise Singapore-certified consultants, like Acc Pro, may benefit from future eligibility under supported schemes.
A Strategic Move Toward Long-Term Growth
Many Philippine SMEs enter Singapore not just for short-term trade opportunities, but to build a long-term regional presence. Incorporating in Singapore can open doors to joint ventures, foreign investment, and even government partnerships.
Startups and tech-focused SMEs also benefit from Singapore’s vibrant funding ecosystem, including accelerators, venture capital networks, and fintech sandboxes. For example, a Philippine SaaS company that sets up a Singapore entity can more easily raise capital from Singapore-based investors or partner with multinational clients who require local invoicing and tax compliance.
By using Singapore as a springboard, Philippine SMEs can position themselves to operate regionally, attract higher-value clients, and scale with confidence.
The Takeaway for Philippine Entrepreneurs
Singapore is not just a financial hub—it’s a gateway for Southeast Asian expansion, backed by strong infrastructure, fair taxation, and digital-first regulation.
For SMEs in the Philippines looking to build internationally credible operations, Singapore offers a balance of opportunity and reliability. With the right partners, setup, and tools, your business can go regional—without unnecessary risk.
FREQUENTLY ASKED QUESTIONS
How long does it take to incorporate a business in Singapore?
Most companies are incorporated within 1 to 3 business days once requirements are submitted. This includes name approval and filing with ACRA. Working with a service provider speeds up the process.
Do I need to travel to Singapore to register a company?
No. Incorporation can be done entirely online through a corporate services provider. Identity verification and documentation can be completed remotely.
Can a Philippine citizen own 100% of a Singapore company?
Yes, foreigners can own 100% of a Singapore private limited company. However, you’ll need at least one local resident director. Nominee director services can fulfil this requirement.
Is there a minimum capital requirement?
The minimum paid-up capital is SGD 1. You can increase this later if needed for banking or licensing purposes. Some sectors may require a higher starting capital.
Can I operate my SG business from the Philippines?
Yes, many SMEs run their Singapore companies remotely using cloud systems. You'll still need a local director and registered office address. Compliance obligations like tax and filings remain mandatory.
Expanding Smart with Acc Pro (Singapore)
If you’re a Philippine business ready to explore regional markets, Singapore is the ideal first step.
Acc Pro (Singapore) supports SMEs with full incorporation, digital accounting, payroll setup, tax compliance, and post-incorporation advisory. As a certified partner of Xero and QuickBooks, and a recognised consultant for Singapore government grants, we equip founders with the digital foundation needed to scale smart.
We help businesses integrate systems, localise their operations, and maintain full compliance—without losing control of their growth plans.
Contact us today to find out how we can support your journey from the Philippines to Singapore and beyond.
Published: 24 April 2025
Jessica Moreno
Jessica Moreno is a Marketing and Partnership Team Lead at Acc Pro (Sinigapore). She works with growing businesses across Southeast Asia and the UK to craft SEO-driven content that fuels digital transformation. Her work focuses on bridging strategy, storytelling, and cloud technology to help brands scale smarter in today’s online economy.
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