Singapore is widely recognized as one of the most business-friendly countries in the world. With its strategic location in Southeast Asia, strong legal framework, efficient infrastructure, and favourable tax regime, Singapore continues to attract companies seeking regional headquarters or expansion into Asia. 

For businesses planning to establish a presence in Singapore, understanding the visa options available to both owners and employees is crucial. It is not unusual for companies to relocate key executives to manage the entry into a new market. 

Visa Types For Business Owners And Employees

1. EntrePass (Entrepreneur Pass)

For: Foreign entrepreneurs looking to start and operate a business in Singapore.

• Eligibility – Innovative or venture-backed businesses in sectors such as technology, biotech, or digital media.
• Requirements – A business plan, and often, endorsement from a recognised incubator or VC.  The business plan must also include a forecast for the employment of Singapore citizens or permanent residents. 
• Renewal Conditions – Based on business performance and local job creation.

Ideal for start-up founders and innovation-driven enterprises.  A holder of an EntrePass can also act as a Director of multiple companies incorporated in Singapore. 

2. Employment Pass (EP)

For: Foreign professionals, managers, and executives.

• Eligibility – Monthly salary of at least SGD $5,000 (higher for older or more experienced applicants), with acceptable qualifications.
• Company Sponsorship – Required.
• Duration – Initially issued for 1–2 years, renewable.
• Fair Consideration Framework (FCF) – Employers must first advertise the job to locals unless exempt.

Best suited for key foreign hires such as general managers, technical leads, and consultants. It is important to note that an individual with an EP may only act as a Director of the company that sponsors their EP.  It is, however, possible to apply to the Ministry of Manpower requesting that the individual be appointed as the director of multiple companies. The key requirement is to show that the companies are directly related.

3. Overseas Networks & Expertise Pass (ONE Pass)

For: High-calibre professionals across business, tech, science, and academia.

• Eligibility – Monthly salary of at least SGD $30,000, or with outstanding achievements.
• Validity – 5 years.
• Flexibility – Allows holder to work for multiple companies without reapplying for new passes.

Excellent option for top-tier talent or founders planning long-term relocation.  Unlike a EP, you are not sponsored by a specific company, meaning that should you change roles, it is not necessary to apply for a new work visa.  

4. S Pass

For: Mid-skilled workers.

• Eligibility – Monthly salary of at least SGD $3,150 (as of 2025, increases annually), with relevant qualifications.
• Quota System – Employers are subject to a quota and levy.
• Duration – Up to 2 years, renewable.

Useful for companies hiring technicians, supervisors, or skilled tradespeople.

5. Dependant Pass (DP) And Long-Term Visit Pass (LTVP)

For: Families of EP and S Pass holders.

• Dependant Pass – For legally married spouses and children under 21.
• LTVP – For common-law partners, stepchildren, or parents (if the EP holder earns a sufficient salary).

These passes allow the family to legally reside in Singapore as long as the EP or S Pass remains valid. 

Key Considerations When Hiring Foreign Talent

• Singapore enforces a Fair Consideration Framework (FCF) which ensures fair hiring practices, especially when hiring foreign vs local talent. There a stringent requirements on businesses that seek to hire foreign talent over local talent. 
• There are quota restrictions especially for S Pass and Work Permit holders. The quota system is based on the Dependency Ratio Ceiling (DRC), which defines the maximum percentage of foreign workers a company can employ relative to its local workforce 
• Companies must stay updated with Ministry of Manpower (MOM) policies.
• Non-residents are taxed differently; holders of a working visa are often regarding as tax residents of Singapore from the date that they arrive in Singapore and are issued their pass. 

Final Thoughts

Singapore’s robust ecosystem makes it an ideal launchpad for regional expansion. However, navigating the immigration and employment landscape requires careful planning. 

Businesses should assess their workforce needs early and consult with immigration professionals or legal advisors when necessary.

By choosing the right visa types and understanding the regulatory framework, companies can ensure a smooth entry into the Singapore market and build a sustainable, talent-rich operation.

If you run a business in Singapore that deals with related companies overseas—like a parent company, subsidiary, or sister company—there’s one tax rule you really need to be aware of: transfer pricing.

It might sound like something only big multinational corporations worry about, but transfer pricing rules apply to any Singapore-based company that transacts with related parties across borders. And getting it wrong can lead to unexpected tax bills and even penalties.

Transfer pricing isn’t just a technical tax concept—it’s something every company with cross-border operations should understand. These rules are there to ensure fairness in how profits are reported and taxed across countries, and the Inland Revenue Authority of Singapore (IRAS) expects businesses of all sizes to follow them.

This article breaks it down simply, so you know what matters, what to look out for, and how to stay compliant without getting buried in legislation.

What Is Transfer Pricing?

Transfer pricing is all about how much your Singapore company charges—or is charged—when it buys or sells something to a related company overseas.

For Example: If your Singapore company pays your parent company $200,000 a year for “management services,” how do you know that’s a fair price? 

That’s where transfer pricing rules step in. The IRAS wants to ensure you’re charging or paying what’s called an “arm’s length” price — basically, the price you’d agree on if both parties were unrelated and negotiating normally.

If IRAS thinks you’re undercharging or overpaying (which could reduce your taxable profits in Singapore), they can make adjustments — and add a penalty on top.

Whilst traditionally associated with large multi-national companies, the principles of transfer pricing applies whenever a company deals with a related party.  “Related” means there’s some form of control or influence—same shareholders, same directors, same group of companies. 

Transfer Pricing Compliance

Here is what you need to focus on to ensure that you are compliant with your transfer pricing obligations.

1. Price Things Like You’re Independent

You should price intercompany transactions the same way you’d price them with an unrelated third party. That means you need to be able to explain why the pricing is fair and commercially reasonable.

2. Keep Proper Documentation

If your total revenue is over S$10 million, and your related party transactions cross certain thresholds (e.g. S$15 million in goods, or S$1 million in services), you’ll need to prepare what’s called transfer pricing documentation which you must keep for at least 5 years.

The documentation must include:

1. Group and entity-level business descriptions
2. Functional analysis of entities involved (functions, assets, risks)
3. Details of related party transactions
4. Transfer pricing method(s) used and rationale
5. Benchmarking analysis with comparables
6. Assumptions and economic conditions

Remember, even if you’re under these thresholds, IRAS still expects you to apply the arm’s length principle—and having basic documentation helps protect you.

3. Be Consistent And Defensible

IRAS may review your transactions during a tax audit, especially if your Singapore company shows low profits or losses. You’ll want to be ready to explain how you arrived at the prices you charged or paid.

If your pricing isn’t defendable, IRAS may adjust your taxable income and impose a 5% surcharge on the adjustment.

Common Examples Founders Should Watch For

Here are some real-life examples where transfer pricing rules come into play:

• Payments to HQ for branding, legal, or strategy services. Can you show the value of those services and that the fee is reasonable?
• Import of products from your overseas factory. Are you charging yourself a fair wholesale price, or are you inflating/deflating margins?
• Use of intellectual property (like software or a brand name) from a related company. Is the royalty rate reasonable based on similar deals in the market?
• Loans made to your overseas subsidiary. Are you charging interest? Is the rate similar to what a bank would charge?

How To Stay Compliant (Without Stressing Out)

Here’s a practical checklist:

1. Identify your related party transactions – Make a list of any dealings with overseas related companies.
2. Review your pricing – Ask: Would I agree to this price if I were dealing with a third party?
3. Prepare documentation early – Don’t wait until IRAS asks. A simple summary that explains the “who, what, and why” goes a long way.
4. Update it annually – Your business evolves, and your documentation should too.
5. Get expert help if needed – For complex transactions (like IP, licensing, or large service fees), a tax advisor or transfer pricing specialist can help you benchmark prices and draft supporting documents.

Advance Pricing Arrangements 

If your company does a lot of high-value intercompany transactions, Singapore offers something called an Advance Pricing Arrangement (APA). This is an agreement between you and IRAS that locks in your transfer pricing method for several years. It gives you certainty and reduces audit risk—but it takes time and preparation to set up, so it’s better for larger businesses or high-stakes deals.

In Summary

If you are a Singapore based company dealing with overseas-based related parties, then the issue of transfer pricing is one you will need to manage as soon as possible. Here are the 5 key principles to remember: 

1. Transfer pricing rules apply to any Singapore company transacting with related overseas entities.

2. All intercompany prices must reflect “arm’s length” terms.

3. Documentation is required—especially if your revenue exceeds S$10 million.

4. Non-compliance can lead to tax adjustments and a 5% surcharge.

5. Regularly review intercompany dealings and prepare justifications.