Singapore Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in singapore, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Distribution and Sales Channels
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Singapore’s distribution and sales channels are simple, direct and open to the participation of foreign firms established in Singapore. Because of Singapore’s role as a regional hub, most local distributors will also have knowledge of regional distribution rules and regulations. Most consumer goods are imported by stocking distributors who resell to retailers. Some goods are imported directly for sale in the importer’s own retail outlets.


Using an Agent or Distributor

Many American exporters engage agents or distributors to serve the Singapore market and other Southeast Asia markets. Identifying prospective partners is generally straightforward, as Singapore firms are proactive and often enthuasiasic about representing new products and opportunities. Most American companies that use the U.S. Commercial Service (CS) Singapore matchmaking and promotion services in Singapore find several interested agents or distributors. With a strong history of trade, Singaporean companies are particularly successful in taking products to the ASEAN region. CS Singapore offers a wide range of programs and has an excellent record of success in introducing U.S. firms to the market. A list of services offered by CS Singapore can be obtained from our website. 


Establishing an Office 

Singapore maintains an open, heavily trade-dependent economy. The economy is supported through unprecedented government spending and strong supply chains in key sectors. The government’s predominantly open investment policies support a free- market economy while actively managing and sustaining Singapore’s economic development. U.S. companies regularly cite transparency, business-friendly laws, tax structure, customs facilitation, intellectual property protection, and well-developed infrastructure as attractive investment climate features. The IMD World Competitiveness Booklet 2024 ranked Singapore as the most competitive economy globally. Singapore actively enforces its robust anti-corruption laws and typically ranks as the least corrupt country in Asia. In addition, Transparency International’s 2024 Corruption Perception Index placed Singapore as the third-least corrupt nation globally. The U.S.-Singapore Free Trade Agreement (USSFTA), which came into force in 2004, expanded U.S. market access in goods, services, investment, and government procurement, enhanced intellectual property protection, and provided for cooperation in promoting labor rights and environmental protections.

Singapore is poised to attract future foreign investments in digital innovation, pharmaceutical manufacturing, sustainable development, and cybersecurity. The Government of Singapore is investing heavily in automation, artificial intelligence, and integrated systems under its Smart Nation banner and seeks to establish itself as a regional hub for these technologies. Singapore is also a well-established hub for medical research and device manufacturing. American firms wishing to establish a presence in Singapore have several straightforward options to do so. They can establish a Representative Office (RO), register as a Branch of the parent, or incorporate as a Singapore company. General information on establishing an office can be found online. 

If an American company wishes to carry on operations in Singapore, it should register a branch office or incorporate a local company with the Accounting and Corporate Regulatory Authority (ACRA). ACRA publishes an excellent guide that takes the first-time registrant through the process of establishing a branch office or incorporating in Singapore. For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s Investment Climate Statements website.


Representative Office

Setting up a Representative Office (RO) in Singapore can be a good way for American firms to explore business opportunities in Singapore or the region. ROs in banking and insurance need to register with the Monetary Authority of Singapore and meet the guidelines or requirements laid out by the MAS. ROs in all other industries need to register with Enterprise Singapore. 

ROs can only carry out market research, conduct feasibility studies or work as a liaison on behalf of the parent company. ROs may not conduct business directly or on behalf of the parent company. Representative Offices in Singapore are prohibited from engaging in the shipment, transshipment, or storage of goods. American firms can either work through an agent or distributor to do so or establish their own commercial presence.


Branch Office

For Branch Offices, the Companies Act requires a foreign company to appoint a minimum of one authorized representative who is ordinarily resident in Singapore, i.e. one who is a Singaporean Citizen, a Singapore Permanent Resident, or a person who has been issued an EntrePass.
 

Establishing a Singapore Business 

American firms can register a sole proprietorship, partnership, limited liability partnership, or incorporate a company in Singapore. While setting up a sole proprietorship takes about a day, more complex entities may take up to six weeks and often require legal and accounting support. Note that company registration does not guarantee the right to employ or relocate foreign staff. Foreign staff must obtain employment passes from the Singapore Ministry of Manpower.


Franchising

Singapore is home to a wide variety of franchise concepts. Foreign franchises are well received, and the United States is by far the largest supplier of foreign franchises in the country. There are American franchises in practically every industry like food and beverages, education, fitness, etc. McDonald’s, Burger King, KFC, A&W, Shake Shack, Five Guys, Krispy Kreme, Cinnabon, Van Leeuwen, Luke’s Lobster, Lady M, Jamba Juice, New Horizons, Avis, Comfort Keepers, Contours Express, and many others have operations in Singapore. The franchising market in Singapore is saturated and highly competitive. The success of selling a franchise in Singapore is based on a number of factors including brand name, up-front costs and royalties, the concept’s uniqueness, and the flexibility of the franchise agreement. 

With its strategic location and well-developed infrastructure, Singapore serves as an ideal regional showcase and distribution center for U.S. franchisors seeking entry into Asia markets. The country’s multi-ethnic society also makes it an ideal location for foreign franchisors to test their concepts and use the reaction to gauge the acceptance of their franchise in Asia. Amidst a market enriched by both established international brands and burgeoning Singaporean brands that have expanded internationally, U.S. companies are presented with challenges to set themselves apart within this intricate framework.
Singapore does not have a specific franchising statutory regulation or registration requirements. The relationship between the franchisor and franchisee is contractual. It would, however, be good practice to do due diligence checks before any partnership. 
Singapore is small and has limited land space. When planning on the franchise development, U.S. franchisors should be mindful that real estate in Singapore is expensive and getting a good location is a challenge, especially for those in the retail and F&B business.

A key annual international franchising event in Singapore, Franchising Expo Licensing Asia (FLAsia) will be held from September 18-20, 2025. Presented by the Franchising and Licensing Association of Singapore, FLAsia brings together the global franchising and licensing community, and franchisees from across the region, offering valuable platform for networking and business opportunities.
 

Direct Marketing

The direct marketing industry in Singapore began in the early 1990s and now includes direct mail, telemarketing, television sales, mail order, call centers, fulfillment, and eCommerce firms. The Data-Driven Marketing Association of Singapore (DMAS) represents both users and service providers. The direct marketing industry is well supported by service companies including Singapore Post, TDCX (formerly known as Teledirect), TNT International Mail, Ogilvy One and MMS Consultancy, among many others.  

The DMAS, a self-regulatory body, was established in 1983. It provides a forum for all direct-selling companies in Singapore to discuss problems of common concern and to codify a high standard of business practices throughout the industry. The DMAS has adopted a Code of Conduct by which member-companies in the Association must abide by in every aspect of business. Through the Code of Conduct, DMAS aims to further inculcate the spirit and practice of ethical direct-selling within its member-companies, setting examples for others to follow.


Joint Ventures/Licensing

Foreign investors are not required to enter into joint ventures or cede management control to local interests.  In Singapore, local and foreign investors are subject to the same basic laws. Apart from regulatory requirements in some sectors, the government screens investment proposals only to determine eligibility for various incentive regimes. Singapore places no restrictions on reinvestment or repatriation of earnings or capital. Licensing is also a viable alternative in Singapore. With one of the strongest intellectual property rights (IPR) protection schemes in Asia, a well-developed legal framework and an advanced manufacturing base, Singapore is an attractive location for American licensors.


Express Delivery

Changi Airport has one of the widest cargo networks in Asia. There are more than 25 cargo airlines operating close to 500 weekly cargo flights linking Singapore to over 50 cargo city links. Strategically located, Changi Airport provides efficient access to key markets in the Asia Pacific region, all within 7-hour flight time. 

As one of the world’s busiest airports for air cargo, Changi Airport handles over 2 million tons of air cargo per annum. At Changi Airport, stringent standards are set to ensure that ground handlers deliver world class services to the cargo agents and the shippers while cargo clearance through the Customs checkpoints remains seamless and efficient. Changi Airport serves as a regional hub for leading express logistics providers, including DHL Express, FedEx Express, UPS, and SF Express. This strong presence offers businesses and consumers a wide range of fast, reliable, and flexible options to transport goods and documents across the Asia Pacific region and around the globe.
 

Due Diligence

Entities wanting to carry out business in Singapore must register with the Accounting and Corporate Regulatory Authority (ACRA). The U.S. Commercial Service Singapore offers the International Company Profile service to American firms wishing to check the bona fides of existing or potential partners. Alternately, U.S. firms can run a check on Singapore companies by accessing the ACRA database. Other credit agencies include Dun & Bradstreet. 
 

eCommerce

Singapore’s eCommerce landscape is growing fast, helped by its pervasive, ultra‐high speed, and trusted ICT infrastructure, tech savvy population, and the government’s dedication in embracing the digital economy and achieving its goal of becoming a Smart Nation. The Singapore government actively supports companies in leveraging IT to develop and expand their businesses.  
In 2024, Singapore’s eCommerce market recorded a gross merchandise volume (GMV) of US$9 billion, with projections indicating a rise to US$17 billion by 2030. With around 3.48 million eCommerce users, the market was valued at approximately US$4.97 billion and is expected to grow steadily to US$8.3 billion by 2029. 

Fashion emerged as the leading product category in Singapore’s retail eCommerce in 2023, accounting for 31.1% of total sales. This was followed by appliances and electronics at 28.7% and personal accessories at 17.1%. Other notable categories included consumer electronics, apparel and footwear, and other products. 

Singapore is home to many local fulfilment centers, including uParcel, iStoreiSend, Allsome, WhiteBox, and SP eCommerce, all providing full comprehensive end-to-end managed eCommerce solutions. Strategically located at the crossroads of international shipping and air routes, Singapore serves as a key transportation and communication hub in Southeast Asia. Singapore’s Changi Airport has established itself as a major aviation hub in the Asia Pacific region. The country has also positioned itself as the leading international maritime center, connecting to 600 ports worldwide. With a well-developed logistics and infrastructure network, Singapore has attracted global logistics companies such as FedEx, UPS, and DHL to establish major hubs in Singapore. Singapore has established itself as the best-equipped eCommerce market in Southeast Asia.

Cross-border eCommerce is becoming increasingly significant in Singapore, as consumers continue to make online purchases both locally and internationally. In 2023, Singapore’s cross-border eCommerce retail sales reached an estimated US$2.42 billion, marking a threefold increase since 2018. Despite this growth, high logistical costs remain the most pressing challenge for Singaporean enterprises engaging in cross-border eCommerce in Asia Pacific region.

U.S. companies entering the Singapore market will face fierce competition. While the overall market size is relatively small compared to other Southeast Asian countries, Singapore has the highest Average Revenue Per Unit (ARPU) in the region, reflecting strong spending power among its digital consumers. A major eCommerce event in Singapore, DMEXCO Asia, will take place in Singapore from October 8-9, 2025.
 

Local eCommerce Sales Rules and Regulations

The Singapore government has strengthened statutes and regulations to boost consumer confidence in eCommerce.  U.S. firms interested in doing business in Singapore should be aware of the following regulations and laws:

Consumer Behavior

A study reveals that consumers in Southeast Asia have entered a new phase of development post-pandemic, which is marked by integrated shopping experience both online and offline. While there are some recoveries for offline shopping, online platforms remain important as consumers are also getting more familiar with online platform and the occurrence of frequent flash sales. 
ECommerce offers unparalleled convenience and accessibility with wide choices of payment methods such as credit cards, debit cards, digital wallets, buy now pay later (BNPL) solutions, and provides a greater variety of product categories available online. Over 85% of e-payment users indicated that they used e-payment transactions to pay for online purchases. “Livestreaming” is also gaining traction on eCommerce platforms, as livestreaming allows people to stay engaged and get a realistic view of the product’s features, functionality, and overall quality before making a purchase.

Social media platforms like Facebook, Instagram, TikTok, Youtube, WhatsApp, Telegram, etc., have also contributed to the rise in eCommerce adoption, as social commerce allows consumers to shop from the comfort of their own homes and enjoy a frictionless process from product discovery to purchase. Social commerce has become one of the most preferred shopping channels in the region and is expected to be a key contributor to Southeast Asia’s digital economy growth. 

The growth in eCommerce has led to a corresponding rise in online scams. ECommerce scams have become the most reported scam type, with 11,665 cases in 2024, a notable increase from 9,783 cases the previous year. In response to the rise in eCommerce scams, Singapore introduced the Transaction Safety Ratings (TSR) to protect consumers during online transactions. TSR assigns an overall safety rating that evaluates eCommerce marketplaces on their implementation of anti-scam measures. 
U.S. companies interested in selling online to Singaporean and ASEAN markets may wish to join a major eCommerce event in Singapore, DMEXCO Asia, which will take place in Singapore on October 8-9, 2025, at the Singapore Marina Bay Sands.  Popular commercial eCommerce sites in Singapore include Amazon, Lazada, Carousell, Shopee, E-bay, EZbuy, Zalora, Taobao, TikTok Shop, etc.
 

Selling Factors & Techniques

Price, quality, and service are key factors influencing sales in Singapore. Exporters looking to enter this market need to be aware of the fierce competition, which includes global rivals. Buyers expect not just high-quality products, but also excellent after-sales service. While selling techniques can differ based on industry or product, they generally align with those found in other advanced markets. 

In Singapore, the Goods and Services Tax (GST) is a broad-based consumption tax that applies to nearly all goods and services. The standard GST rate is currently set at 9%. This tax also applies to imported goods and services. Customers pay GST whenever they purchase taxable goods or services from businesses that are registered for GST. The GST collected by these businesses (output tax) must be paid to the Inland Revenue Authority of Singapore (IRAS), while the tax incurred on their own purchases or imports is referred to as input tax.  

Businesses can reclaim any input tax that exceeds their output tax. GST is applicable when the supply is made within Singapore. It is also applicable when the supply is taxable, the supply is made by a taxable person, and it is made in the course of a business operation carried out by the taxable person. Certain items, such as international services and exports, enjoy a zero rate of GST. Exemptions also include various financial services, residential property sales and leases, and the import of precious metals like gold and silver.

GST-registered businesses are required to submit periodic returns detailing their taxable supplies and inputs, typically on a monthly basis. Payments for GST liabilities must be made by the submission deadline, and tax invoices must be issued to GST-registered customers within 30 days of the transaction, except for zero-rated or exempt supplies. There are ample opportunities for sales in Singapore through local exhibitions, conferences, and business associations. Lists of relevant exhibitions and conferences can be found through various local sources.

A list of the principal business associations that accept U.S. companies as members may be found below.  All provide feedback from their members to the government. 

  • The American Chamber of Commerce in Singapore (Amcham) is dedicated to advocating for business interests and providing valuable insights and connections within the community.
     
  • The US-ASEAN Business Council conducts research across the ten ASEAN countries, including Singapore, focusing on various economic, financial and social conditions.
     
  • The Singapore Business Federation serves as the apex chamber of commerce, facilitating communication and collaboration between the business community and the government.
     
  • The Singapore International Chamber of Commerce (SICC) promotes fair trade and responsible business practices.
    The International Trade Administration supports U.S. companies entering and growing in new markets, offering various services, including the Business Service Providers (BSP) list, the Featured U.S. Exporter Service (FUSE), and the Single Company Promotion (SCP) service.  

According to the 2024 Transparency International Corruption Perceptions Index, Singapore remains one of the least corrupt countries globally, ranking third out of 180 countries—a significant achievement that underscores its commitment to maintaining integrity in business practices.

Local Professional Services

Legal Services: A list of service providers can be found at The Law Society of Singapore website. Accounting and Tax Services: A list of service providers in accountancy, finance and business can be found at the Institute of Singapore Chartered Accountants website.

Limitations on Selling U.S. Products and Services

The business limitations are confined primarily to professional services such as the legal, accounting and tax services, and engineering and architectural services. Details can be found in the “Investment Climate Statement.