Taiwan and Singapore have long had close economic ties. According to Singapore's Ministry of Trade and Industry, Taiwan became Singapore's largest merchandise trading partner in 2025, with bilateral merchandise trade of about S$170 billion. In 2024, Taiwanese investment in Singapore totalled about US$5.81 billion. For Taiwanese startups preparing to go global, this means the two economies already share strong industrial and financial links. Singapore also offers an entry route for eligible foreign founders. Issued by the Ministry of Manpower (MOM), the EntrePass is a work pass that allows foreign entrepreneurs to start and operate a private limited company in Singapore that is venture-backed or owns innovative technologies. Applicants must hold at least 30% of the registered company and meet at least one eligibility criterion. For example, they have raised at least S$100,000 from investors in a single funding round for a past or current business; the business is supported by a government-recognised or internationally renowned incubator or accelerator; or the business holds intellectual property, registered with an approved national IP institution, that gives it a significant competitive advantage. A new EntrePass and its first renewal are each valid for up to one year. Each later renewal is valid for up to two years. Singapore's Place in the Region: The Gateway to ASEAN and a Starting Point for Southeast Asia The Association of Southeast Asian Nations (ASEAN) now has 11 member states, and they differ widely in language, law and business practice. Singapore uses English as its language of business and law. Its legal system draws on the English common law tradition and continues to develop through local legislation and court decisions. A Taiwanese startup can first set up a company in Singapore and manage its contracts, funds and intellectual property there in one place. It can then assess, market by market, when and how to enter countries such as Indonesia, Vietnam and Thailand. Setting up in Singapore is only the first step. The team's next task is to use the company and contract structure it has built in Singapore to win customers and generate revenue in each market. Know Singapore's Rules First to Avoid Early Missteps Singapore's rules are transparent but strictly enforced, and the legal consequences of certain breaches differ between Taiwan and Singapore. For example, in Singapore, employing a foreign employee who is required to hold a work pass but has no valid pass is in itself a criminal offence. In Taiwan, a first breach of the corresponding employment permit rules is met with an administrative fine, and only a further breach within five years carries criminal liability. Before submitting an Employment Pass or S Pass application, a company must generally advertise the job on the government's job portal, MyCareersFuture, for at least 14 consecutive days and consider all candidates fairly. Exemptions from advertising apply in certain cases, including companies with fewer than 10 employees, but fair hiring is still required. In addition, even without a company in Singapore, an organisation that collects, uses or discloses personal data in Singapore must generally comply with Singapore's Personal Data Protection Act 2012. Tax is one of Singapore's main attractions for businesses. The standard corporate income tax rate is 17%, and qualifying companies can also obtain exemptions on part of their income. Under Singapore's one-tier corporate tax system, corporate income tax is imposed only once, at the company level, and the dividends a company pays are tax-exempt in the hands of its shareholders. Singapore does not impose withholding tax on dividends. It generally does not tax capital gains either, but gains from selling assets may still be taxable if they are treated as trading income or fall within specific rules that tax gains from the sale of foreign assets. In addition, the Start-up Tax Exemption Scheme sets conditions on shareholders, and a subsidiary wholly owned by a Taiwanese parent company does not meet them. Once dividends are sent back to Taiwan, the tax payable in Taiwan has to be worked out separately. To lower the barriers for Taiwanese startups entering Singapore, Startup Island TAIWAN (SIT) has invited experts from ZhongYin Law Firm and RPC Premier Law to provide answers and insights on the questions Taiwanese startups most often face. Go to Singapore organises frequently asked questions into seven themes: Contracts, Intellectual Property, Company Set-up and Banking, Compliance, Dispute Resolution, Tax and Payment Collection, and Talent and Employment. Each Q&A sets out the rules and what to prepare. What is the tax difference between setting up a subsidiary and a branch? When you hire your first employee, what must you get right, from advertising the job to signing the contract? If a dispute arises with a Singapore partner, what options do you have besides going to court? Wherever your team is in the process, the answers from these law firm experts help you work out your next steps and when to seek professional advice tailored to your circumstances.
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