- Country: Singapore
- Services: Company formation, Others
- Rating Count: 57
- Rating Value: 5
Understanding the Dependant Pass is key to making the transition smooth.
Whether you're a working professional bringing your spouse and kids or a business owner relocating your team, you’ll need a clear game plan to navigate Singapore’s visa system.
And it starts with knowing how the Dependant Pass (DP) works.
In this guide, I’ll walk you through everything you need to know:
From who qualifies, to how to apply, to what your family can or can’t do while living in Singapore.
You’ll learn each step of the process, starting with eligibility and ending with getting your loved ones settled in Singapore.
This is exactly the knowledge and process of how a family of our experts used to relocate seamlessly, while avoiding common application mistakes that delay approvals.
Ready to bring your family to Singapore with confidence?
Let’s begin with what a Dependant Pass is.
What is Dependant Pass?
The Singapore Dependant Pass (DP) is a type of visa (permit) that allows eligible family members of Singapore pass holders to live and work in Singapore.
It is the Singapore Ministry of Manpower that can grant this pass to a qualified person.
Getting this right will save you weeks of frustration and unnecessary paperwork.
The Dependant Pass gives family members the legal right to stay in Singapore while the main pass holder works.
For example, a foreign executive working in Singapore on an Employment Pass can apply for a Dependant Pass for their spouse and children.
How does the Dependant Pass work? (Eligibility and Requirements)
Who can apply for a Dependent Pass?
Are YOU the Main Pass Holder?
You can apply for a Dependant's Pass for your family if you are the Main Pass Holder (Employment Pass or S Pass) and you satisfy the application requirements.
Else, it is your employers of the Singapore company you work for who apply for the Dependant's Pass on your behalf
Not everyone can bring their spouses and children to Singapore. You must meet specific criteria in order to have your family join you in Singapore.
Those who qualify for a dependent pass must be
1. If you are an Employment Pass Holder
- You earn a fixed monthly salary of at least SGD 6,000
- You are sponsored by a company in Singapore that is incorporated and registered there. (You can use your own company in Singapore or via the company of your employer.)
2. If you are an S Pass Holder
- You earn a fixed monthly salary of at least SGD 6,000
- You are sponsored by a company in Singapore that is incorporated and registered there.
3. If you are an Entre Pass Holder
You must meet at least ONE of the following requirements
- Your business has an Annual Total Business Spending (TBS) of SGD 100,000 AND 1 Local Workforce (LWF)
- You have founded and sold 2 or more companies that were venture-backed or owned innovative technologies
- You have raised more than SGD 2 million for a past or current business
- You possess 2 or more deep tech Intellectual Properties (IPs) that give your business a big competitive advantage
4. If you are an Overseas Networks & Expertise Pass Holders
There is no other requirement you must meet to get a Dependant Pass
Who can you apply for a Dependent Pass?
You can only apply for a dependent pass for your legally married spouse, your unmarried children who are under 21 years old, or a newborn.
Other family members must get a Long-Term Visit Pass instead.
Family member | Pass type |
Legally married spouse | Dependant’s Pass |
Unmarried children under 21 years old, including those legally adopted | Dependant’s Pass |
Newborns of different citizens at birth | Dependant’s Pass |
Common-law spouse | Long-Term Visit Pass |
Unmarried handicapped children aged 21 and above | Long-Term Visit Pass |
Unmarried step-children under 21 years old | Long-Term Visit Pass |
Parents (Only for EP holders earning at least $12,000) | Long-Term Visit Pass |
What can Dependant Pass holders do?
One of the biggest questions Dependent Pass holders have is about employment opportunities.
Here is the good news: Dependant Pass holders can apply for jobs in Singapore.
In fact, there are many job vacancies for DP holders for you to apply for. They have the options for working, starting a business, volunteering, or working remotely
However, there's a catch: To work in Singapore, you must fulfill a condition for specific work.
To work in Singapore, you must:
Start a business or Freelance (with a Letter of Consent)
Planning to run your own company?
If you're the registered business owner of a Singapore-based entity (e.g., sole proprietorship or company), you can apply for a Letter of Consent (LOC) to operate it legally.
Volunteer for charitable causes
You don’t need a work pass to volunteer, as long as:
- You’re not getting paid, and
- The work is for a charitable or non-profit purpose.
Work remotely for overseas clients
Yes, you can work remotely. But it depends on who you're working for:
No work pass required if you’re working for an overseas-based company or client.
But if you’re providing services to a Singapore-registered company (even remotely), you’ll need an appropriate work pass.
- Get a specific Work Pass while keeping the Dependant's Pass
A dependent pass holder must get a special type of Work Permit called a DP-WP.
You must continue holding your Dependant's Pass while applying for the DP-WP.
The DP-WP’s validity will be tied to the validity of your Dependant’s Pass.
There’s no minimum salary requirement, and your nationality doesn't matter.
However, Work Permit quotas and levies apply—just like for regular Work Permit holders.
You’re exempt from certain requirements like:
- The six-monthly medical examination
- Security bond
- Pregnancy restrictions (which apply to some other Work Permit holders)
If you already have adequate medical insurance, your employer may not need to buy a new policy—as long as it meets MOM’s minimum coverage rules.
- Apply for Your own Employment Pass (EP) or S Pass
Want more flexibility or to qualify for a higher-skilled job? You can apply for your own work pass.
Here’s how it works:
- You’ll need to meet the criteria for an EP or S Pass, just like any other applicant.
- If approved, you’ll get independent work and stay rights tied to your own pass, not the main pass holder’s.
- That means your Dependant’s Pass will be cancelled once the EP or S Pass is issued.
Employers can check your eligibility using MOM’s Self-Assessment Tool (SAT) to see if they need to grant you these passes or not.
How to apply for a Dependent Pass (Straightforward process)
When the time comes, and you need to bring your spouse or child to Singapore on a Dependant’s Pass.
This guide walks you through the entire process — step by step — so you can apply with confidence.
We recommend keeping a checklist of the documents and requirements in one place as you go through each step.
Let’s get started:
Step 1: Gather the required documents
Before you fill in any forms, make sure you’ve got all your documents ready. Missing paperwork is a common cause of delays.
Here’s what you typically need:
- A copy of the passport (personal particulars page) of the person you’re applying for.
- If a child shares a passport with a parent, include the parent’s passport page too.
- Based on the family member’s relationship, prepare:
- Marriage certificate (for spouses).
- Birth certificate with parent names (for children under 21).
- Adoption documents (for adopted children).
- For foreign-born kids under 12 (applying for a new DP): you’ll need a Verification of Vaccination Requirements from HPB.
- Non-English documents must be translated — submit the original and translated version in one file.
Keep in mind: MOM may ask for additional documents later, depending on the case.
Step 2: Choose the right Submission method
How you apply depends on the main pass type (e.g., EP, S Pass, PEP, EntrePass, etc.). Each type has its own flow.
Here’s what to expect:
- EP/S Pass holders: Apply online via EP eService. Make sure your company’s financials are up to date.
- PEP & EntrePass holders: Apply online and pay the $105 fee.
- EP (Sponsorship): A bit more manual. Download and complete a form, pay via PayNow, and submit through the MOM online form.
Application fees are typically $105 per DP. Pay by GIRO, credit card, or as instructed.
A few important reminders before you click “submit”:
- You can apply for the DP before or after the main pass application.
- Submit a separate application for each person.
- If the person is on a short-term visit pass, be mindful that the pass cannot be extended if it expires before the DP is issued.
- Ideally, wait for approval before bringing them to Singapore.
- Newborns in Singapore? They get a 6-week Special Pass to give you time to apply.
Step 3: Track the application status
After submitting, don’t forget to monitor your application’s progress.
Here’s when to check:
- EP/S Pass dependents: After 3 weeks.
- PEP, EntrePass, or EP (Sponsorship) dependants: After 1 week.
If more documents are needed, MOM will notify you via email. This could add time to the process.
Results are sent to the email address you listed in the application.
You must check your inbox regularly since this email determines your next step.
Step 4: Receive the In-Principle Approval (IPA) letter
If approved, you’ll get an IPA letter (a key document.)
Here’s why it’s important:
- The IPA letter acts as a pre-approved, single-entry visa to enter Singapore.
- You have to send it to your family member as soon as you receive it.
- You must not lose it, you’ll need it to enter the country.
Make sure you and your family member checks the latest travel and entry requirements before flying into Singapore.
Step 5: Issue the Pass
Once the dependent has arrived, it’s time to officially issue the DP.
Here’s what you need to do:
- Log in to EP eService and upload:
- Passport and entry details
- Local address and contact info
- Delivery address for the card
- Any required medical documents
- Pay:
- $225 for the DP
- $30 more if a Multiple Journey Visa is needed
You’ll receive a notification letter. It allows travel to and from Singapore while waiting for the card.
Note: Issuance must be done within the IPA validity (6 months for most, 2 months for S Pass dependents).
Step 6: Register Fingerprints and Photo (If Needed)
Not all DP holders need to register, but check your notification letter.
If required, you have to
- Book an appointment at MOM’s centre.
- Bring:
- Original passport
- Appointment and notification letters
The dependant pass holders have to be present at the MOM center
- 2 weeks after issuance for EP dependants
- 1 week after for S Pass dependants
Step 7: Receive the Dependant’s Pass Card
The pass card is delivered to your registered address within 5 working days after successful registration or verification.
Here’s how it works:
- You’ll be notified in advance about the delivery.
- If delivery fails twice, you’ll need to collect the card from MOM.
- Bring the original passport and notification letter.
- If someone else collects it, provide a signed authorisation letter and their ID.
- Once the card is received, your family member is officially allowed to stay in Singapore under the DP.
Remember that you must keep all letters and documents safe since you need them later for renewals or re-entry.
What to do after getting your family member's Dependent Pass?
Now that you get a Dependant Pass, fly to Singapore and settle your family members in your apartment, what to do next?
Before diving into your new routine, take time to set up the practical essentials that’ll make day-to-day life smoother.
Here’s what to do first: Make These Two Moves First
There’s a lot to think about, but here’s your starting point:
- Open their bank account
- Register for Singpass
Once those are done, everything else—payments, insurance, access to services—gets easier.
Set yourself up this week. You’ll thank yourself later.
1. Open a bank account early
One of the first things you should do is open a local bank account.
Most banks will ask for your physical Dependant’s Pass, passport, and proof of address (like a tenancy agreement).
Don’t wait too long—some services, like employer reimbursements or rental payments, will require a local account.
Consider banks that offer expat-friendly packages such as DBS, OCBC, or UOB. They usually have smoother onboarding for new arrivals.
Pro tip: Book an appointment online first. It’ll save you hours in queues.
If you haven’t heard of Singpass yet, think of it as your all-in-one login for Singapore’s digital services.
As a Dependant’s Pass holder, you’re eligible to register.
Use Singpass to:
- Access healthcare records
- Check pass validity
- View CPF info (if applicable)
- And much more
It’s a must-have for handling anything official in Singapore.
3. Sort out Healthcare Coverage
Singapore has excellent healthcare, but here’s the catch:
Dependant’s Pass holders aren’t automatically covered under national health schemes like MediShield Life.
That’s why it’s crucial to have private health insurance from Day 1.
Check if your main pass holder’s employer offers family coverage. Many do, but some don’t include dependents unless requested.
If not, explore options from providers like AIA, Great Eastern, or NTUC Income.
4. Get around easily with EZ-Link
Public transport in Singapore is world-class, and it’s even better with an EZ-Link card.
You can use it to
- Tap in/out on MRT trains and buses.
- Pay at convenience stores, vending machines, and more.
If you’re commuting daily, look into the monthly travel pass—it could save you a lot.
Cards are available at MRT stations and 7-Eleven stores.
Understand the validity, renewal, and cancellation of Dependant's Pass
Managing a Dependant’s Pass in Singapore involves more than just applying.
You need to stay on top of its validity, renewal timeline, and cancellation rules to ensure compliance and avoid unnecessary penalties.
How long is a Dependant’s Pass (DP) valid?
A Dependant’s Pass is closely tied to the main work pass holder’s status.
- There’s no fixed maximum validity stated upfront.
- However, on renewal, MOM clearly states that a DP’s validity matches the main pass or is shorter if requested.
- This means the DP is only as long-lasting as the main pass it’s linked to.
For example, a husband has an employment pass lasting for 2 years. In this case, the dependent pass of his wife also lasts for 2 years.
How to renew a Dependant’s Pass?
Renewing isn’t automatic. There’s a clear process with different timing depending on the main pass type.
When do I have to renew?
- EP or S Pass dependants: Apply up to 6 months before expiry.
- EP (Sponsorship) or EntrePass dependants: Start 3 months before expiry.
Here is the good news for you: Renewing early doesn’t waste time on the current pass. The new one kicks in right after the old one ends.
Who applies?
- For most cases, the employer or appointed employment agent handles the renewal.
- EP (Sponsorship) and EntrePass dependants use a downloadable form submitted online.
How much is the renewal fee?
- $225 to issue the renewed DP.
- Add $30 if a Multiple Journey Visa is required.
Most applications are processed in 3 to 8 weeks, depending on the pass type.
Remember that Renewal is not guaranteed. MOM checks if you still meet the latest criteria.
What happens next after renewal?
If approved, you’ll receive an In-Principle Approval (IPA) letter:
- It’s valid for 3 months (EP holders) or 2 months (S Pass holders).
- You must act before the IPA or current DP expires—whichever is sooner.
Once the pass is issued:
- You’ll get a notification letter.
- It tells you whether to keep the current card or expect a new one.
- Returning the old card unnecessarily? That’s a $60 replacement fee.
How to cancel a Dependant Pass?
You’ll need to cancel a DP if the holder no longer needs it or is leaving Singapore.
When to cancel?
- Up to 14 days before the planned cancellation date.
- Mandatory if the DP holder has left Singapore permanently.
No need to cancel if the pass has expired or the DP holder becomes a Singapore PR.
Who cancels?
Usually, the employer or employment agent. For PEP and EntrePass holders, you can do it yourself or via an agent.
How to cancel?
Log in to the EP eService.
- If the DP holder is still in Singapore, you can request an STVP (up to 90 days) during the process.
- This STVP is delivered via email and shown at immigration when leaving.
Any Letter of Consent or Work Permit tied to the DP also gets cancelled. The DP card must be cut in half and discarded to avoid misuse.
Pro tip: Keep a timeline checklist. A well-managed DP reduces stress and helps your team stay compliant without last-minute surprises.
FAQs about Singapore Dependant Pass
1. What happens if the Dependant Pass expires while the holder is still in Singapore?
You must apply for a Short-Term Visit Pass (STVP) immediately. Overstaying without a valid pass can result in fines or penalties.
2. Can I bring my parents to Singapore with a Dependent Pass?
In this case, you do not apply for a Dependent Pass but a Long-Term Visit Pass.
You can bring your parents to Singapore only if you are a Singapore Pass Holder earning at least $12,000.
3. Who pays for the Dependent Pass?
The cost of applying for the Dependant’s Pass is covered by the main pass holder’s employer.
If not, the main pass holder pays.
4. What is the difference between Long Time Visit Pass (LVTP) and Dependent Pass in Singapore?
Dependant’s Pass (DP) is for spouses and children under 21 years old of Employment Pass or S Pass holders earning at least $6,000/month.
LTVP is for common-law spouses, step-children, disabled children, or parents of Employment Pass holders earning at least $12,000/month.
With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries
Our areas of expertise include:
- Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
- Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
- Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
- Opreation support:
With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.
+10 years
Cross-disciplinary experience
Top 10
Leading Asian Brand
Collapse Expand
- Country: Hong Kong
- Services: Company formation
- Rating Count: 141
- Rating Value: 5
You can have the most compliant, well-structured company in Hong Kong. But if you hire the wrong company secretary, none of that will matter.
The company secretary is more than just a legal requirement. They’re your gatekeeper for staying compliant with Hong Kong law.
Get it right, and everything runs smoothly. Get it wrong, and you’re looking at missed deadlines, penalties, or worse, deregistration.
Take this real-world scenario:
- Business A hired a freelancer off a referral via Facebook with the promise of full compliance.
- Business B worked with a licensed, experienced firm specializing in Hong Kong corporate law.
One faced fines for late filings and had to seek our support to explain the situation with the Inland Revenue Department.
The other never missed a deadline and expanded into regional markets with ease.
Same city. Same regulations. Different outcome.
So, what made the difference? And how do you make the right hire?
In this guide, I’ll walk you through what a company secretary does, the red flags to avoid, and a proven way to help you hire the right person the first time.
What is a company secretary in Hong Kong?
A company secretary in Hong Kong is a legally required officer responsible for ensuring that a company complies with local regulations and maintains proper corporate governance.
You can think of them as your company’s compliance gatekeeper. This is the person who makes sure your business follows the rules and stays in good standing with the government.
Although they usually work behind the scenes, their role is crucial.
A company secretary is responsible for tasks like:
- File annual returns and other statutory documents with the Companies Registry
- Maintain the company’s statutory books and records
- Keep directors informed of their legal obligations
- Ensure proper board meeting procedures are followed
By law, every Hong Kong limited company must appoint a company secretary.
In practice, a company secretary can be:
- A natural person ordinarily resides in Hong Kong;
- A professional service provider specializing in company compliance (If you search on Google, Chat GPT the keyword "Company secretary in Hong Kong", you will find hundreds of companies that offers Hong Kong company secretarial services)
Behind the scenes, they help your business operate smoothly and legally in Hong Kong.
Does my company in Hong Kong need a company secretary?
The short answer is yes. It is not optional.
Under Section 474 of the Hong Kong Companies Ordinance (Cap. 622), every Hong Kong company is legally required to appoint a company secretary.
And it’s not just a formality.
The company secretary plays a key role in making sure your business stays compliant with local laws.
They handle essential tasks like submitting your annual return, maintaining statutory records, and communicating with the Companies Registry.
You may have a question: If I am a one-man company (I am the sole director, the sole shareholder of my company in Hong Kong), can I also assume the role of a company secretary?
According to the (Cap. 622, Section 475(2))
The answer is no,
- If you’re running a one-director company, you’re legally required to appoint someone else as the company secretary.
- You cannot be both the sole director and the company secretary.
Why does it matter?
In fact, failure to appoint a company secretary is a breach of statutory duty, and it comes with real penalties.
According to Section 898 of the Companies Ordinance, failing to comply can result in fines of up to HKD 50,000, and in some cases, daily default fines if the breach continues.
Not having a company secretary means:
- Your filings may be rejected
- You could miss key deadlines
You risk fines, legal trouble, or even being struck off the register
Long story short: A company secretary is required by law, and is essential for keeping your business legally safe.
What does a company secretary actually do for my company?
Do you think the company secretary is there to fulfill the legal requirements and just sort your paperwork? Think again
They offer more than that, they have a lot of responsibilities. These behind-the-scenes responsibilities keep your business compliant, organized, and running smoothly.
In this way, you can focus on growing your business and leave all the repetitive administrative tasks to your trusted secretary.
Stay compliant
Your company secretary ensures you meet all legal requirements, so you avoid costly mistakes. Here’s what that includes:
- File annual returns with the Companies Registry on time
- Manage changes like share allotments or director updates
- Handle company dissolution or deregistration
- Keep statutory books (shareholders, directors, charges, etc.) up to date
- Managing and recording the use of the company seal
- Oversee share transfers and documentation
Talk to the Government, so you don't have to
A company secretary is your company’s point of contact with government agencies:
- Communicate with the Companies Registry and the Inland Revenue Department (IRD)
- Handle official correspondence and updates
- Keep all stakeholders informed on compliance issues
Tip: Use your company secretary’s address as your registered address to make sure all official mail is handled promptly. Normally, the secretary will handle the registered address service to help you in this regard.
Run the right meeting the right way
Good governance means good meetings. Your secretary makes sure they’re done right:
- Schedule and coordinate board meetings
- Prepare agendas and take accurate minutes
- Organize AGMs and EGMs, ensuring voting procedures and notice periods are followed
Avoid fines and headaches
Mess up your filings, and it can cost you. Your secretary helps you avoid:
- Penalties for late tax or annual report filings
- Fines for outdated statutory registers or missing records
- Risks from not keeping up with regulatory changes
How to find the right secretary for my Hong Kong company?
Choosing a company secretary isn’t just a checkbox.
It’s a decision that impacts your compliance, credibility, and operational flow. Here’s how to make the right choice and avoid costly missteps with our 3-step process
Understand who can qualify
Before you hire, make sure your candidate is legally eligible.
- For individuals: Must be a Hong Kong resident
- For corporations: Must be a licensed TCSP (Trust and Corporate Service Provider) with a registered business address in Hong Kong
The one rule here is simple. Always make sure the person you hire is verified, trusted, and has a working history.
If you have a person currently residing in Hong Kong whom you can trust, you can ask them to be your secretary. But, they need to be well-versed in Hong Kong company regulations.
Else, you risk putting your company in jeopardy.
Decide between In-House or Outsourced
You’ve got two main options:
- In-house — You hire someone directly as part of your team
- Outsourced — You partner with a professional services firm
Outsourcing is a popular choice in Hong Kong because it:
- Lowers overhead costs
- Gives you access to experts in local compliance
- Reduces the risk of late filings or missed obligations
Check their credentials
Especially when outsourcing, make sure your provider:
- Holds a valid TCSP License
- Has a solid track record in handling statutory filings
- Offers ongoing support for things like annual returns, director changes, or share allotments
Pro tip: Look for providers who also offer a registered address. This streamlines official communications and keeps things centralised.
1 proven way to find a reliable secretary in Hong Kong
No matter if you are a foreigner looking to incorporate a company in Hong Kong or a Hong Kong local who wants to find a reliable secretary, our method works for all.
Here’s one proven method to make sure you’re choosing a legitimate, licensed provider (not a middleman reselling services at a markup).
We call this the TCSP License Cross-Check Method.
Why does this work?
Because it lets you verify secretarial firms against the official Hong Kong government database—the Trust or Company Service Provider (TCSP) register.
That means no guesswork, no fancy marketing sites—just licensed, verifiable data straight from the government source. Plus, it is very easy to do.
Step 1: Google Search “Hong Kong Company Secretarial Services”
Start by listing potential providers from organic search results. Use a simple search like with the keyword "Hong Kong company secretarial services" on Google.
Your goal here is to collect 10 company names that look promising.
Step 2: Find their company CR Number
Go to each website’s About or Contact page, or the footer on the Homepage, and find the TCSP Name of Licensee or Licence Number. For example, TC003167
This is a verification that a person/a company who carries on or wishes to carry on a trust or company service business in Hong Kong.
This person or this company is licensed by the Hong Kong government to do this job legally.
If it's not listed? Red flag. Skip them or email support to ask directly.
Step 3: Check the TCSP License
Now verify each name using the official TCSP License Register via this link: Register of Trust or Company Service Provider Licensees in Hong Kong
On the site:
- Choose Search By Name of Licensee or Licence No.
- Input the name or number
- Click Search
If the company shows up in the results, it’s officially licensed to offer company secretarial services.
If it doesn’t? You’re likely dealing with a reseller or unauthorized third party.
Summary:
- Google and shortlist 10 providers
- Check if they list their TCSP license number or their registered company name
- Cross-check with the TCSP register
- Choose a verified, direct service provider
That’s it. You now have a bulletproof method to find a reliable, cost-effective, and legally qualified secretary in Hong Kong, without relying on trial and error.
How can we help you open a company in Hong Kong the right way
We’re not just another corporate service provider
As a trusted business advisor with over 10 years of direct relationships with licensed TCSP providers in Hong Kong, we help entrepreneurs like you skip the middlemen and get first-hand, high-quality service at a fair, transparent price.
You might come across providers like Sleek, Osome, or AsiaBC in your top 10 Google search.
Here’s the truth:
Most of these firms charge premium prices for basic services, especially if you're a first-time founder unfamiliar with Hong Kong regulations.
We’re different.
We’re a one-stop partner that:
- Works directly with licensed TCSPs (no resellers, no middlemen)
- Has deep knowledge of the legal, tax, and banking ecosystem in Hong Kong
- Helps you avoid costly mistakes when setting up your company
- Guides you step-by-step with personalized advice, not templated responses
Our services Include:
- Open a company in Hong Kong legally, fast with our one-stop support
- Get a reliable, experienced company secretary with our corporate secretarial service
- Support in opening your business bank accounts;
- Get an affordable, professional registered office address for business;
- Support to open, authenticate, and manage Stripe, and PayPal Business in Singapore, Hong Kong, and the U.S;
- Handle all your tax accounting needs, timely annual filings, auditing, and more.
Whether you’re a solopreneur, startup, or scaling business, we’ll make sure your Hong Kong setup is fully compliant, optimized, and affordable.
Want a real, trusted expert to guide you?
Let’s talk. No fluff, no hard sell — just real advice from someone who knows how to help and 1000 clients from all over the world who trust us to help them thrive globally.
FAQs about company secretaries in Hong Kong
1. How do I change my company secretary?
A board resolution is required, and the change must be reported to the Companies Registry using the appropriate forms.
2. Can I outsource company secretarial services?
Yes, many companies opt to outsource to professional firms for expertise and efficiency.
You should find a reliable service provider or a trusted business advisor like Global Link Asia Consulting who can help you comply with Hong Kong regulations.
With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries
Our areas of expertise include:
- Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
- Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
- Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
- Opreation support:
With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.
+10 years
Cross-disciplinary experience
Top 10
Leading Asian Brand
Collapse Expand
Opening a company in Hong Kong is straightforward, but choosing the right type of company.
That’s where many foreigners and foreign companies get stuck.
Each structure comes with different rules, benefits, and responsibilities.
Some are ideal for solo entrepreneurs. Others are better suited for businesses that plan to raise investment or scale quickly.
Don’t worry—you don’t need to memorize every option. You only need to focus on understanding the main types and which one fits your goals best.
In this article, our experts at Global Link Asia Consulting will break them down for you below, with real-world examples to help you decide which company structure is best for your business model.
Important note for foreigners
If you are a foreigner who wants to open a company in Hong Kong, you must do so with the support of a Registered Filing Agent with a verified license from the Hong Kong Companies Registry, as required by local regulations.
Global Link Asia Consulting will be your trusted business advisor, helping you open and run your company sustainably with full compliance and expert guidance.
8 types of companies in Hong Kong you must know
Foreign investors looking to start a business in Hong Kong have several company structures to choose from.
Here’s a quick breakdown of the five main types of companies you can set up under Hong Kong’s Companies Ordinance (Cap. 622):
- A private company limited by shares - This is the most common structure. It limits shareholder liability and is ideal for small to medium businesses.
- A public company limited by shares - This is suitable for large companies that want to raise capital from the public or list on the stock exchange.
- A company limited by guarantee - It is Often used by non-profits or charities. These companies don’t have share capital and instead have members who guarantee a fixed contribution if the company winds up.
- A private unlimited company with a share capital - This structure is rarely used. Shareholders have unlimited liability, meaning they’re personally responsible for the company’s debts.
- A public unlimited company with a share capital is similar to the private version, but can offer shares to the public. It is also very uncommon to set up.
- A branch office is an extension of a foreign parent company. It is not a separate legal entity. This is a choice for major corporations with a well-known brand name
- A representative office is used for non-commercial activities like market research or liaison. This is a choice for major corporations
- A partnership is formed by two or more people jointly running a business. It is the choice of professionals who want to work together
- A sole proprietorship is owned and run by one individual. It is the easiest and cheapest to set up.
You don’t need to memorize every type.
In fact, most foreign entrepreneurs, foreign SMEs go with a private company limited by shares. It’s simple, flexible, and widely accepted for business operations.
But knowing the full list helps you understand the legal landscape and choose the right fit if your situation is more complex.
If you want to see how each structure works in practice, our experts have included real-world examples with the characteristics of each business structure below.
Private limited company (Ltd)
A private Limited Company is the most popular choice among foreigners starting businesses in Hong Kong. Its key features are:
- Limited liability protection (your assets stay safe)
- Minimum 1 shareholder and 1 director (can be the same person)
- No nationality restrictions (foreigners can own 100%)
- Minimum share capital of HK$1 (about US$0.13)
- Annual compliance requirements include filing tax returns and audited accounts
This company type in Hong Kong is perfect for:
- Most traditional businesses
- An e-commerce business selling overseas
- Professional services (IT, accounting, Digital marketing)
- Companies wanting to benefit from 0% VAT/GST/Sales tax for Google Ads invoice, Facebook Ads invoice
- Trading companies
- Businesses seeking credibility with clients and banks
Gogovan, or now GoGoX, is the best example of utilizing this company type in Hong Kong.
Founded by Steven Lam, it began as an app connecting van drivers with customers needing delivery services. Today, it's expanded across Asia and has become Hong Kong's first unicorn startup.
Pubic limited company
A public limited company can offer shares to the public and list on stock exchanges. Its key features include:
- Can raise capital by selling shares to the public
- Subject to strict regulatory requirements and disclosures
- Minimum of 2 directors and a qualified company secretary
- Higher setup and maintenance costs than private companies
- Must comply with the Hong Kong Stock Exchange listing rules if listed
- Enhanced credibility and visibility in the market
This company type is perfect for:
- Companies seeking to raise substantial capital from public investors
- Larger businesses planning significant expansion
- Companies wanting enhanced visibility and prestige
- Businesses with plans for an eventual IPO (Initial Public Offering)
There are many public companies in Hong Kong. In this article, we will use the example of a company with more than 100 years of history.
AIA Group Limited successfully listed on the Hong Kong Stock Exchange after separating from its American parent company.
As a public limited company, it gained access to significant capital for expansion, US$17.8 billion, making it one of the largest IPOs globally.
Company limited by guarantee
This unique structure has no share capital and is typically used for non-profit activities.
Key Features:
- No shareholders; instead has members who guarantee a nominal amount
- Cannot distribute profits to members
- Often used for charitable, educational, or community purposes
- Tax exemption is available if recognized as a charity
- Members' liability limited to the amount they guarantee (typically HK$100)
This business structure in Hong Kong is perfect if you are:
- Non-profit organizations
- Charitable foundations
- Educational institutions
- Industry associations
- Religious organizations
The Hong Kong Jockey Club operates as a company limited by guarantee.
Despite being one of the largest taxpayers in Hong Kong, it channels its surplus to charitable and community projects rather than distributing it to shareholders.
Unlimited company (Private or public)
An unlimited company is a type of business where the owners (called members or shareholders) are personally responsible for all the company’s debts and liabilities.
This means that if the company owes money or faces legal trouble, the owners may have to use their money or assets, like savings, property, or cars, to pay off those debts.
The key characteristics of this types of companies are:
- Shareholders have unlimited liability for company's debts
- Not required to file annual accounts publicly
- Rare in Hong Kong due to the liability exposure
- Greater privacy than limited companies
- No minimum capital requirement
If you fit the descriptions below, an unlimited company will be your best choice
- Professional service providers who want financial privacy
- Family businesses where members fully trust each other
- Subsidiaries of larger corporate groups for specific purposes
- Companies prioritizing financial privacy over liability protection
Some professional service firms and family-owned businesses in Hong Kong choose the unlimited company structure when they value financial privacy over liability protection. For instance, certain wealth management firms serving high-net-worth clients may prefer this structure.
Branch office
A branch office is not a separate company on its own. Instead, it is simply an extension of your existing foreign company that operates in Hong Kong.
This means the branch shares the same legal identity as the parent company overseas.
Many foreign businesses choose this setup when they want to enter the Hong Kong market but don't want to register a new company from scratch.
The key features of a branch office in Hong Kong are:
- Not a separate legal entity (your parent company bears all liability)
- Must register as a "Non-Hong Kong Company" within one month of establishment
- Can conduct business activities under the parent company's name
- Must file annual returns and audited accounts
- Parent company remains fully responsible for all debts and obligations
Usually, only major international corporations would choose this company types
Microsoft is the perfect example of a global company using a branch office to their advantages.
Located at 15/F, Cyberport 2, 100 Cyberport Road, Hong Kong, the Microsoft Hong Kong office has been operating there since 1991 to serve customers in the region, with over 300 employees based locally.
Representative Office
A representative office allows foreign companies to set up a presence in Hong Kong without actually running a business or making sales there.
They can use it for things like market research, meeting with local contacts, or promoting their brand.
Key features off a representative office in Hong Kong are:
- Cannot generate revenue or sign contracts in Hong Kong
- Limited to market research, promotion, and liaison activities
- Simple setup with minimal compliance requirements
- No need for audited accounts
- Cannot issue invoices or collect payments
In summary, a representative office is only practical for a major company that wants to test the market before full entry, as the operating expenses and the license fee for a representative office are high.
Many luxury brands, such as Louis Vuitton, initially established representative offices in Hong Kong to study the market and build relationships before launching full-scale retail operations.
Louis Vuitton set up its first Hong Kong store in 1979 after forming Louis Vuitton Hong Kong Limited as a subsidiary to manage its presence locally.
This approach allowed the brand to understand local consumer preferences and establish connections with key stakeholders before expanding into retail.
Sole proprietorship
A sole proprietorship is a type of business owned and run by one person. As the owner, you are personally responsible for everything (making decisions, handling daily operations, paying debts, and dealing with any legal issues.)
There is no separation between you and the business, so if the business owes money or gets sued, you might have to pay from your pocket.
It’s easy and cheap to start, but it also comes with higher personal risk.
The key characteristics for a sole proprietorship are:
- No separation between business and personal assets (unlimited liability)
- Simple and inexpensive to set up
- Minimal compliance requirements
- All profits go directly to the owner
- Must renew business registration annually
Since this business structure is a one-man business, it is perfect for individuals who are:
- Freelancers and consultants in any industry
- Small service providers
- One-person businesses with minimal risk
- A person testing a business concept before incorporating
Many foreign English teachers and fitness instructors in Hong Kong start as sole proprietors, offering their services directly to clients before expanding to larger operations.
Partnership
A partnership is a type of business where two or more people come together to share ownership and responsibilities.
This means all partners work together to manage the business, make decisions, and share the profits.
At the same time, they also share the risks and debts. If the business runs into trouble, each partner may be personally responsible for part—or even all—of the debt, depending on the type of partnership.
Key features of a partnership is:
- Can be general (all partners have unlimited liability) or limited (some partners have limited liability)
- Profit and losses are shared according to the partnership agreement
- Each partner is responsible for the actions of the other partners
- Simple to establish, but requires a clear partnership agreement
- Annual business registration is required
A partnership is perfect for
- Professional services (law firms, accounting firms)
- Joint ventures between individuals or companies
- Family businesses
- Businesses where skills and resources from multiple owners add value
KPMG in Hong Kong operates as part of KPMG China, which converted from a joint venture to a special general partnership as of August 1, 2012.
This partnership structure is part of KPMG's global organization of independent professional services firms providing Audit, Tax and Advisory services.
As a partnership, KPMG's structure allows its professionals to share ownership and management responsibilities while combining their expertise across various service areas.
Which company type is best for you to incorporate your company in Hong Kong?
Hong Kong company type | Private limited company | Public limited company | Company limited by guarantee | Unlimited company |
When should you choose? | You should choose a private limited company if - You want liability protection
- You plan to expand or raise capital in the future
- You need to open corporate bank accounts
- You want to enhance your business credibility
| You should choose a public limited company if - You need to raise capital from the public
- You plan to list on a stock exchange
- You want maximum visibility and prestige
- You can handle strict regulatory requirements
| You should choose a company limited by guarantee if: - You're running a non-profit organization
- You want to reinvest all profits into your mission
You're establishing a charitable foundation - You need a formal structure for a community group
| You should choose an unlimited company if - You prioritize financial privacy over liability protection
- You and your partners fully trust each other
- You need a specialized vehicle within a larger corporate structure
|
Hong Kong company type | Branch office | Representative office | Sole proprietorship | Partnership |
When should you choose? | You should choose a branch office if - You already have an established company abroad
- You want to maintain direct control from your home country
- You're testing the Hong Kong market before a full commitment
| You should choose a representative office if - You only need a presence for research and promotion
- You're not ready to conduct actual business transactions
- You want minimal compliance requirements
| You should choose a sole proprietorship if: You're a one-person operation with low risk You want simplicity and lower costs You don't need liability protection | You should choose a partnership if - You're joining forces with other professionals
- You want to share resources and expertise
- Your business benefits from collective management
|
How can we help you open your company in Hong Kong?
Wondering which type of company you should set up in Hong Kong as a foreigner?
Here’s the good news: Hong Kong offers 8 solid options—each with its own pros, legal requirements, and ideal use cases.
The result?
You get a structure that fits your business goals, protects your assets, and positions you for long-term growth in Asia’s most business-friendly city.
Use our quick-start guide above to explore all 8 company types—with real-world examples so you can decide faster.
And when you're ready to register your business, check out our step-by-step setup process for foreigners in Hong Kong.
- Open a company in Hong Kong legally, fast with our one-stop support
- Get a reliable, experienced company secretary with our corporate secretarial service
- Support in opening your business bank accounts;
- Get an affordable, professional registered office address for business;
- Support to open, authenticate, and manage Stripe, and PayPal Business in Singapore, Hong Kong, and the U.S;
- Handle all your tax accounting needs, timely annual filings, auditing, and more.
FAQs about opening a Hong Kong company
1. Can foreigners own 100% of a Hong Kong company?
Yes, absolutely! Hong Kong welcomes foreign ownership without restrictions.
Foreigners can own 100% of Hong Kong companies across all industries, with very few exceptions in regulated sectors like broadcasting.
You don't need a local partner, and there are no foreign investment restrictions or special approvals needed.
2. What are the tax advantages of setting up a company in Hong Kong?
Hong Kong offers several significant tax advantages:
- Low corporate tax rate: 16.5% on profits derived from Hong Kong (8.25% on the first HK$2 million for incorporated businesses)
- Territorial tax system: Only profits sourced from Hong Kong are taxable; offshore profits are generally not taxed
- No VAT or sales tax: Unlike many countries, Hong Kong doesn't impose these taxes
- No capital gains tax: Profits from selling assets aren't taxed
- No withholding tax: On dividends paid to shareholders
- No inheritance tax: Making it attractive for family businesses
- Extensive tax treaty network: Double tax agreements with over 40 jurisdictions
3. Do I need to be physically present in Hong Kong to start or run my company?
No, you don't need to be physically present in Hong Kong to incorporate or run your company.
The entire company formation process can be handled remotely with the help of a company secretary or formation agent.
4. What are the most popular uses of Hong Kong companies by foreigners and foreign businesses?
Hong Kong companies are popular among foreigners and international businesses for several strategic purposes:
- Be a procurement hub for buying products from mainland China and other Asian countries.
- Handle international trade between Asia and Western markets
- Hold investments in Asian companies or real estate.
- Run global e-commerce businesses through Hong Kong companies.
- Receive payments in multiple currencies and invoice clients professionally.
- Oversee their Asian companies with a holding company in Hong Kong
With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries
Our areas of expertise include:
- Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
- Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
- Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
- Opreation support:
With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.
+10 years
Cross-disciplinary experience
Top 10
Leading Asian Brand
Collapse Expand
- Country: Hong Kong, The U.S, BVI
- Services: Company formation
- Rating Count: 71
- Rating Value: f
As a YouTube creator outside the U.S, you're not just making content—you're running a global business connecting with your subscribers and viewers.
But here's the problem:
Without the right business structure, you could lose 30% of your YouTube income to withholding taxes.
This comprehensive guide will show you exactly how to set up an international company that can:
- Save thousands in taxes by reducing or eliminating the 30% YouTube withholding
- Build credibility with international brands and sponsors
- Protect your personal assets from business liabilities
- Manage your finances more effectively
- Scale your income through multiple monetization channels
Based on strategies used by successful creators worldwide, I'll walk you through your three best options for setting up an international company and help you decide which one is right for your situation.
The hidden tax problem costing YouTubers thousands
If you're a creator living outside the US, YouTube automatically withholds 30% of your earnings (Source: U.S. tax requirements for YouTube earnings)
For a creator making $10,000 monthly, that's $3,000 gone every month—or $36,000 annually!
This withholding is required by the US Internal Revenue Service (IRS), and most creators simply accept it as an unavoidable cost of doing business.
But it doesn't have to be this way.
With the right international company structure, you can legally reduce or even eliminate this withholding tax.
4 pillars of a sustainable international YouTube business
Before diving into your options, let's establish the four key elements of a successful international setup. These 4 considerations are what you have to keep in mind when you incorporate your own company to deal with accounting, tax and trademark of your brand name,
Strategic tax planning
The 30% YouTube withholding tax is your biggest obstacle. Each business structure, which our experts suggest below, offers different solutions:
- US company: Eliminate the 30% withholding, but requires US corporate tax payments
- Hong Kong company: Can apply for exemptions, reducing the tax burden
- BVI (British Virgin Islands): Require tax refund procedures but offers 0% corporate tax
Professional income management
No matter which structure you choose, proper financial management is crucial:
- Separate business and personal finances: Always route YouTube income to your company account first
- Use international payment solutions: Services like Wise, Payoneer, or Revolut make cross-border transactions easier
- Develop a financial plan: Create strategies for reinvesting in your channel and growing your brand
Multiple income stream management
As a creator, you likely have various revenue sources that may be taxed differently:
- YouTube AdSense revenue
- Direct viewer support (Super Chat, Channel Membership)
- Brand sponsorships and advertising deals
- Merchandise sales
Your international company should be structured to handle all these income streams efficiently.
Intellectual property protection
Your content, brand name, and channel identity are valuable assets that need protection. The right international company can help you:
- Register copyrights under the company name
- Manage your personal brand professionally
- Access legal tools to address unauthorized content usage
With these foundations in place, let’s explore
3 best international company structures for YouTubers
Let's examine your three main options in detail:
Option 1: US company formation
A US company offers the most direct solution to the 30% withholding problem, but it comes with its costs and requirements.
Advantages | Disadvantages |
- 0%YouTube withholding tax - Immediately save 30% on all YouTube income
- Enhanced credibility with brands and potential business partners
- Easy business AdSense account setup and online payment processing
- Access to premium YouTube partner programs reserved for businesses
- Simplified advertising contracts with international brands
| - Federal corporate income tax (20%+, depending on profits)
- Additional state taxes (0-13%, depending on the state, with California at around 7%)
- High compliance and accounting costs
- Complex financial reporting requirements
- Potential double taxation issues if not properly structured
|
Tax optimization tips for companies in the U.S
When operating a US company, you can legally reduce your tax burden by deducting:
- Content production equipment (cameras, computers, software)
- Marketing expenses (advertising, event participation)
- Workspace costs (studio space or home office)
- Travel expenses related to content production
- Personnel costs (editors, designers, assistants)
Option 2: Hong Kong company formation
Hong Kong offers a good balance of tax benefits and business credibility, making it popular among Asian content creators.
Advantages | Disadvantages |
- Relatively low corporate tax (16.5% on profits)
- Potential tax exemptions in specific situations
- Solutions for the 30% withholding issue
- Easy international transactions
- Good access to Asian markets for creators targeting Asian audiences
| - Higher setup and maintenance costs compared to offshore jurisdictions
- Strict financial reporting requirements
- Increasingly stringent banking regulations
- Possible annual board meeting requirements
- More complex administration than tax havens
|
Option 3: BVI (British Virgin Islands) company formation
BVI and similar offshore jurisdictions offer minimal taxation but come with certain challenges regarding banking and credibility.
Advantages | Disadvantages |
- 0% corporate income tax
- High privacy protection for YouTube channel owners
- Low annual maintenance costs
- Simple setup and management procedures
- Minimal financial reporting requirements
| - Tax refund process required for the 30% YouTube withholding
- Difficult international banking access due to stricter anti-money laundering regulations
- May affect partnerships with major brands
- Potential business visa difficulties when traveling to developed countries
- Higher scrutiny from platforms during verification processes
|
Which option is best for your channel?
To help you compare between the three company formation options, we create a comparison table below
Criteria | US Company | Hong Kong company | BVI Company |
YouTube 30% withholding | None | Need to file for tax exemption | Need to file for tax refund |
Corporate tax | 20%+ | 16,5% | 0% |
Company incorporation costs | High | Medium | Low |
Maintenance cost | High | Medium | Low |
Brand reputation | High | High | Medium |
Ability to open a corporate bank account | Easy | Medium | Low |
Reporting requirements | Complex | Medium | Simple |
Information privacy | Medium | Medium | High |
Channel growth support | Excellent | Good | Medium |
In addition, your ideal company structure depends primarily on three factors:
1. Channel size and revenue
- Revenue over $100,000/year: A US company is typically most effective. Despite paying corporate tax (around 20% on profits), you'll avoid the 30% withholding on total revenue and can deduct legitimate business expenses.
- Revenue under $100,000/year: BVI might be more cost-effective with low setup and maintenance costs, even though you'll need to handle the tax refund process.
- US-focused audience: A US company provides maximum credibility with American brands and partners.
- Asian-focused audience: A Hong Kong company might be more suitable while still maintaining good international credibility.
title="3. Growth strategy
Expanding into other business areas: US or Hong Kong companies offer greater flexibility and growth opportunities.
Focusing solely on YouTube income: A BVI company may be sufficient at the lowest cost.
Real-world examples we support
Let's look at three typical scenarios to help you understand which option might work best for you:
Scenario 1: Creator with $50,000 annual revenue
At this revenue level, the 30% withholding ($15,000) is significant, but the costs of establishing and maintaining a US company might outweigh the benefits.
Best option: A BVI company offers the advantage of zero corporate tax, even though you'll still need to go through the 30% tax refund process. The lower setup and maintenance costs make this more economical at this revenue level.
Scenario 2: Creator with $300,000 annual revenue
With this income, the 30% withholding ($90,000) is substantial enough to justify more complex solutions.
Best option: A US company would likely save you more money despite paying corporate tax of approximately 20% on profits. After deducting legitimate business expenses, your effective tax rate could be significantly lower than the 30% withholding.
Scenario 3: Creator focused on Asian markets
If your content and audience are primarily in Asia, your business structure should reflect this focus.
Best option: A Hong Kong company provides an excellent balance between reputation, cost, and tax benefits for Asian-focused creators. Hong Kong's developed financial system and geographical advantage make it ideal for accessing Asian markets.
How can we help content creators open their companies to receive YouTube income?
Setting up an international company is an important step in a professional YouTuber's career. Each option has its own advantages and disadvantages.
The best choice depends on many factors like channel size, revenue, target market, and long-term growth strategy.
If you're a YouTuber considering setting up an international company to optimize taxes, our experts at Global Link Asia Consulting are your helpful partner in building a complete strategy and setting up a sustainable company.
We provide full support, from start to finish:
FAQs about opening an international company for Youtube content creators
1. With revenue around $5,000-$10,000/month from YouTube, where should I establish my company?
With revenue of $5,000-$10,000/month (approximately $60,000-$120,000/year), a US company would likely be your best option.
At this revenue level, the 30% withholding becomes significant enough to justify the higher setup and maintenance costs of a US entity.
3. How do I handle the 30% withholding tax refund process with a BVI company?
The process typically involves:
- Providing your company information through the W-8BEN form
- Documenting your company's tax status in BVI
- Working with YouTube/Google's tax department
- Following up regularly until the refund is processed
While this requires additional effort, the zero corporate tax in BVI can make it worthwhile for some creators.
With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries
Our areas of expertise include:
- Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
- Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
- Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
- Opreation support:
With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.
+10 years
Cross-disciplinary experience
Top 10
Leading Asian Brand
Collapse Expand
- Country: Singapore
- Services: Tax - Accounting
- Rating Count: 31
- Rating Value: 5
Tax evasion might sound like something that only big companies or shady operators worry about, but the truth is, it can affect everyday business owners, too.
In Singapore, where tax laws are strict and well-enforced, knowing the difference between tax evasion and legal tax planning can make or break your business.
So, how do you stay compliant, avoid penalties, and still save money on taxes the legal way?
The smartest move is to understand what tax evasion really means, what the penalties are, and how to plan your taxes properly.
Let’s break it down in our comprehensive guide, written by our tax accounting experts with 10 years helping Singapore companies thrive.
What is tax evasion in Singapore?
Tax evasion refers to illegal practices where individuals or businesses deliberately hide income or provide false information to reduce their tax liability.
In its simplest form, tax evasion is cheating on your taxes.
It happens when taxpayers knowingly:
- Underreport income
- Overstate deductions
- Hide assets
- Misrepresent financial affairs
- File false returns
IRAS (Inland Revenue Authority of Singapore) defines tax evasion as "when someone has deliberately provided IRAS with inaccurate or incomplete information about their activities to reduce their tax liability or obtain undue tax credits and refunds."
Tax evasion isn't a simple mistake. It requires intention and deliberate action to hide true financial information from tax authorities.
There are various business examples you can think of when it comes to tax evasion, for example:
- A company director transferring money to personal accounts but recording them as business expenses
- A business deliberately maintains two sets of financial records—one showing actual income and another showing reduced income for tax purposes
- A business claiming expenses for purchases that never occurred
- A restaurant owner pocketing cash payments without recording them as sales
Tax evasion vs Tax avoidance: What is the difference?
First things first:
Tax evasion is illegal. It involves deliberately hiding income or providing false information to reduce tax liability.
Tax avoidance is legal. It involves using legitimate methods within tax law to minimize tax obligations.
Here's a simple breakdown:
Tax evasion (Illegal) | Tax avoidance (Legal) |
Do not declare cash sales | Take advantage of tax incentives |
Use false invoices | Time business purchases strategically |
Hide overseas income | Set up a legitimate business structure to enjoy tax exemption scheme |
Claim personal expenses as business costs | Maximize allowable deductions |
You can think of these concepts this way.
Tax evasion means breaking the rules. Tax avoidance means playing by the rules smartly.
And there's a third concept worth knowing: tax planning.
This is the proactive approach of organizing your business affairs to legally minimize tax liability.
This is how our tax and accounting experts at Global Link Asia Consulting help foreigners and Singapore business owners to not only comply with tax law but also optimize their tax strategies.
4 real cases and hard lessons you must know
Let's look at some actual Singapore cases that show exactly what you NOT to do:
Case 1: Undertaker’s unregistered GST and income tax evasion (2025)
In January 2025, Tee Siew Gim, a partner of Hock Hin Undertaker and sole proprietor of Eternal Life Bereavement Services, was sentenced to 21 weeks' jail and ordered to pay $341,327.75 in penalty and $3,000 in fine.
The offenses included two counts of Income Tax evasion in YA2018 and YA2019, resulting in $101,630.24 in taxes undercharged, and failing to register Hock Hin Undertaker for GST when revenue exceeded $1 million for four consecutive quarters ending March 2014, resulting in $364,370.30 in taxes due.
Source: Tee Siew Gim (Income tax evasion and GST offence)
Key lesson
Businesses must accurately report income for tax purposes and monitor taxable turnover for GST registration requirements.
Failure to comply with these obligations can result in severe penalties, fines, and imprisonment.
Case 2: Economic Tutor tax evasion (2024)
In 2024, Quek Ban Tong Edmund, an economics tutor, was sentenced to five weeks' jail and ordered to pay penalties of $72,770.79.
The offense? Evading $24,256.93 in Income Tax by failing to report all income from individual tuition and textbook sales in his business's tax form for 2020, which also led to under-reporting his personal income.
IRAS's audit program uncovered the evasion, noting that Quek had previously been audited in 2016 and was expected to have improved his tax reporting practices.
Source: Recalcitrant economics tutor gets 5 weeks’ jail and penalties of $72,770.79 for Income Tax evasion
Key lesson
Self-employed people must keep clear records of all income and report it correctly.
IRAS checks these records often. Those who break the rules more than once can face large fines or jail time.
Case 3: Safety marine management GST fraud (2024)
In 2024, Lau Zhen Zhou, the sole shareholder and director of Safety Marine Management Pte Ltd (SMM), was sentenced to 3 years and 8 months' imprisonment and ordered to pay $3,213,828.09 in penalties.
The offense? Assisting SMM to evade approximately $1.1 million in Goods and Services Tax (GST) by making false entries in 5 GST returns between 2017 and 2018.
Lau also provided fabricated documents in response to IRAS auditors' queries, demonstrating deliberate intent to obstruct tax investigations.
Source: Company Director Sentenced to 3 Years’ and 8 Months’ Jail for Evading GST and Providing False Reply to IRAS
Case 4: Fanco Fan's Fictitious Expenses (2021)
In November 2021, Quek Lip Ngee and his company, Fanco Fan Marketing Pte Ltd, were convicted of serious fraudulent tax evasion
The Court sentenced Quek to 10 months and 2 weeks in jail and ordered him to pay a penalty of $508,969.
Fanco Fan Marketing Pte Ltd was sentenced in July 2021 to pay a fine of $7,500 and a penalty of $50,252
The crime?
The person in charge of Fanco Fan made up fake expenses and used false invoices to lower the company's profit and his income.
Source: Business Partner and Company Convicted for Preparing False Records to Claim Fictitious Expenses to Evade Tax
Key lesson
Making fake records and claiming fake expenses to pay less tax is a serious crime. It is considered tax fraud and can lead to big fines and jail time.e
Legal tax planning strategies for Singapore businesses
Now for the good stuff—how to legally minimize your tax burden.
Here are the most common methods you can use today to start maximizing your tax savings.
Take full advantage of tax incentives
Singapore offers various tax incentives to encourage business growth.
The 2 most popular tax exemption schemes are the SUTE Scheme and PTE Scheme. These 2 schemes are only for companies incorporated in Singapore.
You can read more about these 2 tax exemption policies in our article: Company tax exemptions in Singapore made simple.
Optimize your business structure
Your business entity type can significantly impact your tax situation:
- Sole proprietorship: Business income is taxed at your personal income tax rates (potentially up to 24%)
- Private limited company: Corporate tax rate is a flat 17% (with exemptions for new companies)
For example, a successful freelance graphic designer incorporated her business when annual profits exceeded $100,000, saving approximately $12,000 in taxes the first year by utilizing corporate tax rates and the partial tax exemption scheme.
Time your payments strategically
Strategic timing can legitimately defer tax payments:
- Schedule major purchases before your financial year-end
- Delay certain income recognition where legally possible
- Pre-pay deductible expenses
For example, a technology company accelerated $80,000 in equipment purchases to the current tax year when they are expected to receive exceptional profits from the long-term contract, reducing their immediate tax burden by approximately $13,600.
In addition, you can make donations to approved charitable organizations to enjoy a 250% tax deduction.
Utilize tax relief for business owners and employees
In addition, you can make use of tax reliefs available for both business owners and employees. This can help reduce the amount of tax you need to pay.
- CPF contributions: Tax relief for mandatory and voluntary contributions
- Approved donations: 250% tax deduction
- Course fees relief: For work-related education
- NSman relief: For National Service-related activities
What are the consequences of committing a tax evasion offence?
In Singapore, tax evasion is considered a serious offense under the Income Tax Act and can result in both civil penalties and criminal prosecution.
Section 96 of the Income Tax Act specifically addresses "willful evasion" with penalties that can reach up to 400% of the tax undercharged, along with jail terms to years.
For example, if you evaded $10,000 in taxes, you could be forced to pay the original $10,000 plus a penalty of up to $40,000 (400%), for a total of $50,000, and up to 7 years of imprisonment for serious cases.
Remember that: The difference between an honest mistake and tax evasion comes down to intent. Errors can happen, but deliberately misleading tax authorities crosses the line into illegal territory.
Beyond these direct penalties, there are hidden costs that a convicted business owner has to endure :
- Legal fees for defense
- Time and resources diverted from your business
- Damaged banking relationships
- Loss of business opportunities
- Increased scrutiny on future tax filings
What to do if you discover errors on your tax returns?
In case you made a tax mistake in the past? Don’t panic—come forward.
IRAS understands that honest mistakes happen. Many taxpayers may commit errors out of negligence or a lack of understanding, not with the intent to evade.
That’s why the IRAS Voluntary Disclosure Programme (VDP) exists.
If you voluntarily disclose past errors or omissions before they’re discovered, you may qualify for reduced penalties or even a full waiver in some cases.
- Disclose early
- Be transparent
- Get back on the right side of compliance
It’s never too late to do the right thing—and it could save you a lot.
You can click on this link on the IRAS Voluntary disclosure of errors to learn more about how to make a voluntary disclosure.
In addition, you can use the IRAS self-review checklist for your Singapore business to guide yourself in identifying potential areas with reporting errors.
Bonus: How did IRAS discover tax evasion with your support?
Here's something every business owner should know:
IRAS isn't just waiting for you to make mistakes. They're actively looking for them.
Their detection methods include:
- Data analytics: IRAS uses advanced algorithms to identify unusual patterns in tax returns
- Third-party information: Banks, other businesses, and government agencies share data
- Whistleblower reports: Individuals report to IRAS using the reporting template, Reporting Tax Evasion
- Lifestyle-business mismatch: Living luxuriously while reporting minimal business income raises red flags
- Random audits: Some businesses are selected for a comprehensive review with no specific trigger
Don’t leave your tax position to chance.
We recommend you work with experienced tax professionals or do it yourself first to review your filings and ensure full compliance before IRAS does it for you.
How can we help you do proper tax planning?
Tax evasion in Singapore carries severe penalties, and it’s simply not worth the risk.
But with proper planning, you can legally minimize your tax burden while staying fully compliant.
The most successful Singapore businesses don’t see tax compliance as just a legal obligation—they treat it as a smart part of business strategy.
Remember that
- Understand the difference: Tax evasion is illegal. Tax avoidance through smart planning is not.
- Maintain strong internal controls and keep thorough documentation.
- Leverage legitimate tax incentives and reliefs.
- Engage tax professionals for complex issues or cross-border matters.
- If errors occur, voluntarily disclose them before IRAS finds out.
By following these principles, you’ll protect your business and optimize your tax position the right way.
Book a free consultation with our experts at Global Link Asia Consulting today if you haven’t already.
If you are thinking about expanding overseas with Singapore to be your company headquarters, we can help you:
FAQs about tax evasion in Singapore
1. When must I pay CPF contributions for my employees?
IRAS generally has up to 4 years from the year of assessment to raise additional assessments.
However, in cases of fraud or willful default, there is no time limit.
2. Can I negotiate with IRAS if I can't pay my tax bill?
Yes, IRAS may consider installment payment arrangements if you can demonstrate genuine hardship. However, penalties and interest may still apply.
To start, you should write an email to the IRAS officers explaining your situation and ask for their guidance. Normally, they will reply in 2-3 days with a practical recommendation.
4. How do I know if I need to register for GST?
You must register for GST if your taxable turnover exceeds $1 million in the past 12 months or is expected to exceed $1 million in the next 12 months.
5. How can I report suspected tax evasion by another business?
IRAS accepts confidential reports through their website (Reporting Tax Evasion), email, or hotline. You can remain anonymous if you prefer.
We offer a comprehensive range of accounting and tax services for Singaporean companies. Our services include:
- Tax Consulting including corporate income tax, GST tax, contractor tax, and more.
- Monthly/Annual Tax Accounting services in accordance with Singapore accounting standards (SFRS).
- QuickBooks Consulting and Licensing.
- Corporate Income Tax Return Preparation
- GST Tax Return Preparation.
+10 years
Cross-disciplinary experience
Top 10
Leading Asian Brand