Doing Business in Dubai vs. Singapore for Foreigners (2025)
Singapore and Dubai are popular business destinations for expats, but each has its own set of perks and disadvantages. In this article, we compare the two cities and examine the fundamental differences between registration, taxation and residence for foreigners in 2025.
1. Company registration
The process of registering a business in Dubai and Singapore is relatively fast, but each jurisdiction has its own specific rules that foreigners must take into account.
Now that we have taken a general look at what an offshore company entails, let’s dive into why Singapore is often considered one of the top locations for entrepreneurs to register an offshore company.
| Criteria | Dubai (UAE) | Singapore |
|---|---|---|
| Registration Time | 3-10 days | 1-3 days |
| Forms of Ownership | Mainland, Free Zone, Offshore | Pte Ltd, Sole Proprietorship, LLP |
| Is a local partner required? | ❌ (in most cases) | ❌ (100% foreign ownership) |
| Is an office required? | ✅ (but a virtual one is possible in the Free Zone) | ❌ (but may be required to open an account) |
| Minimum Capital | From 0 AED (usually from 10,000 AED in the Mainland) | 1 SGD |
Dubai (UAE)
Company registration in Dubai takes from 3 to 10 days, depending on the chosen jurisdiction. There are three main options:
- Mainland (mainland zone) – allows foreigners to do business throughout the UAE and work with government contracts. Although the requirement for a local sponsor (51%) has been abolished in many industries since 2021, it is still required in strategic sectors. An office is required, and a license is issued through the Dubai Economic Department (DED).
- Free Zone (free economic zones) – the most popular option for foreigners. Allows 100% ownership of the business, but there are restrictions on working with local companies. Each Free Zone has its own rules, but the registration process is usually simpler. An office is required, but a virtual one can be used.
- Offshore – a great option for international business without operating in the UAE. No office is required, but opening a bank account may be more difficult.
When registering, it is necessary to select a particular business activity (there are over 2,000) and submit documents, including a passport, proof of address and a business plan (in some areas).
Visa options for business owners
Company registration allows foreign business owners to obtain an Investor Visa for 2-3 years.
- Proof of ownership of the company is required (usually through incorporation documents).
- The visa holder can sponsor a family.
- The visa allows to obtain a local ID (Emirates ID), open a bank account, and use local services.
- In some cases, owners can apply for a Golden Visa (10 years) if they invest a large amount.
Singapore
In Singapore, company registration takes 1-3 days and is completely digital through the Accounting and Corporate Regulatory Authority (ACRA) portal.
- Private Limited Company (Pte Ltd) – similar to LLC, preferred by most of business owners. It is also the most available option for foreign entrepreneurs. Allows limited liability and 100% foreign ownership.
- Limited Liability Partnership (LLP) – Less common than Pte Ltd companies for investors, LLPs offer limited liability protection similar to that of a private company, with a minimum of two partners (individuals or companies).
- Sole Proprietorship – a common choice for freelancers and sole traders, but the owner is personally liable for all business debts and obligations. It does not offer the limited liability protection of a company.
The main difference is that Singapore requires at least one resident director (a nominee can be used). A physically registered office is not required but may be necessary to open a bank account.
When registering, the statutory documents (Memorandum & Articles of Association), passport details of the owners and the minimum paid-up capital (1 SGD) are submitted.
Visa options for business owners
[1] EntrePass – a work visa for entrepreneurs, valid for up to 1 year with subsequent renewals up to 2 years.
- The applicant must have a business idea or project that has a good degree of innovative element or economic perspective.
- Unlike Dubai, in Singapore the visa is not issued automatically, but based on a strict selection.
- EntrePass allows the holder to sponsor a family, but for this, they need to meet additional conditions (for example, the venture should be capable of creating new jobs).
[2] Employment Pass (EP) – the main option for those who want to work as a director in their own company. Initially issued for 1-2 years, it can be extended for 2-3 years, up to a maximum of 5 years.
- The minimum salary for new applicants is 5,600 SGD as of 1st of January 2025.
- The company must show the ability to support employment and contribute economically (financials, justification, plans); unlike EntrePass, no innovation requirement
Key differences between EntrePass vs. EP
- EntrePass is more difficult to obtain but is more suitable for startups and innovative projects.
- EP is easier if the company already has turnover and economic activity.
2. Taxes
The tax system is one of the key factors when choosing a jurisdiction for business. Dubai and Singapore offer favorable conditions, but differ in approaches: in the UAE, taxes are practically absent for some companies, while in Singapore there is a system of deductions and benefits that allows to significantly reduce the tax burden. Let’s take a closer look at the details.
| Criteria | Dubai | Singapore |
|---|---|---|
| Corporate tax | 9% (if taxable income exceeds 375,000 AED) | 17% |
| VAT/GST | 5% | 9% |
| Personal Income Tax | ❌ (0%) | Up to 24% (progressive) |
| Dividends/capital taxes | ❌ (0%) | ❌ (0%) |
Dubai
The UAE has long remained a tax haven, but in 2023, a corporate tax of 9% was introduced. However, the tax burden remains one of the lowest in the world.
Corporate tax
- 0% – for companies with net profit up to 375,000 AED.
- 9% – for profit over 375,000 AED.
- Companies in offshore zones do not pay tax if they do not conduct activities in the UAE.
- Free economic zones (free zones) can save 0% tax on certain types of activities (but it is important to check the conditions of a particular free zone).
VAT and other taxes
- 5% VAT – applies to most goods and services. Companies are required to register if their turnover exceeds 375,000 AED per year.
- There is no salary tax – employees receive the full amount without deductions.
- Dividends and capital increases are not taxed.
Singapore
Singapore offers a flexible tax system for entrepreneurs. The corporate tax rate is officially 17%, but due to benefits and deductions, it can be much lower.
Corporate tax
- 75% exemption on the first SGD 100,000 of normal chargeable income (during their first three YA).
- 50% exemption on the next SGD 100,000 of normal chargeable income.
- 17% – a standard rate for a profit of more than 200,000 SGD.
Coporate TAX CALCULATOR – click here
GST and other taxes
- Increased to 9% since 2024. Companies are required to register if the annual turnover exceeds 1 million SGD.
- Dividends:
- Dividends paid by Singapore resident companies and received under the uniform tax system are exempt from tax.
- Dividends paid by cooperatives are taxable, as are certain distributions from realization trusts and overseas dividends received in Singapore.
- There is no capital gains tax.
- Central Provident Fund (CPF) – 17% of employees’ salaries, but they are not applicable for non-residents.
3. Bank accounts
The availability and convenience of banking services play a significant role in choosing a country for business purposes. Banks in Dubai and Singapore provide several business options, however, the account opening process, minimum deposit requirements and online banking availability differ.
| Criteria | Dubai | Singapore |
|---|---|---|
| Opening period | 2-6 weeks | 1-2 weeks |
| Is a resident visa required? | Preferably, not necessarily | ✅ (Typically, at least 1 local director is needed) |
| Popular banks | Emirates NBD, Mashreq, Wio | DBS, UOB, OCBC, Standard Chartered, HSBC |
Dubai
The UAE banking System is represented by large local and international banks. However, opening an account for foreigners can be difficult due to strict customer checking procedures, known as Know-Your-Client (KYC) and minimum deposit requirements.
The process of opening an account
- On average, the process takes from 2 weeks to several months.
- The presence of a resident visa greatly simplifies the process, but some banks can consider applications from non-residents.
- A mandatory requirement is the personal presence of the director and/or shareholders when opening an account.
Minimum requirements
- The minimum deposit varies from 5,000 USD to 100,000 USD, depending on the bank.
- Some banks require maintaining a minimum balance, otherwise the commission is charged.
- The need to provide a business plan, contracts and evidence of the real activity of the company.
Features of banking services
- With limited access to international financial institutions, many banks prefer traditional banking.
- High level of banking secrets, but strict control of compliance with compliance with the requirements of the compliance.
- Online banking is available, but in some banks, it is less convenient compared to Singapore.
Singapore
Singapore is one of the world’s financial centers, with a developed banking infrastructure and convenient online services. Opening an account as a foreigner here is completely viable, but it is also accompanied by strict checks. We strongly recommend visiting our guide on corporate bank accounts for more information.
The process of opening an account
- On average, it takes from 2 to 4 weeks.
- The director’s presence is recommended as applications submitted by a local director may be approved faster.
- Checking KYC requires the provision of documents about the company, sources of income and business activity.
Minimum requirements
- The minimum deposit requirements vary widely, from no minimum deposit to a few thousand Singapore dollars (or more, in some cases).
- In online banks such as Aspire and Airwallex, there is no minimum deposit and the application process is simplified.
- Traditional banks may require evidence of doing business (contracts, websites, accounts, financial reports, resumes).
Features of banking services
- A high level of integration with financial institutions is an easy connection to international payment systems.
- Modern online banking services allow easy account opening and transactions from anywhere with an internet connection.
- A comprehensive suite of banking products, including loans, mortgages and investment services.
4. Living and Residence Permits for Entrepreneurs
The choice of a country for doing business is inseparably linked to the possibility of residence and obtaining a residence permit. Dubai and Singapore offer different visa programs for entrepreneurs, but the conditions for obtaining residency and long-term stay differ significantly.
| Criteria | Dubai | Singapore |
|---|---|---|
| Automatic residence permit | ✅ through a company | ❌ work visa required |
| Main visas | Investor Visa, Golden Visa, Employment Visa, Freelance Visa | EntrePass, EP, Dependent Pass (DP) |
| Business requirements | Minimum capital 50,000 AED, office | The Ministry of Manpower (MOM) has moved away from specifying a fixed minimum paid-up capital (for EntrePass) |
| Visa validity | 2-10 years | 1-2 years (EP), 1 year (EntrePass) |
| Taxes | No income tax | Up to 24% income tax |
| Apartment rental cost | From USD 2,500/month | From SGD 2,500-4,000/month |
| Access to citizenship | Difficult to obtain, requires 30 years of residence | No options, only Permanent Residence (PR) is possible for qualifying period before applying for a citizenship |
Dubai
Dubai attracts entrepreneurs with its flexible immigration rules. A resident visa can be obtained through company registration, investment in real estate or employment.
Main types of visas
- Investor Visa – issued to entrepreneurs who have registered a company in the UAE. Valid for 2-3 years. Requires a deposit of AED 50,000 into a corporate account and office rent.
- Golden Visa – a long-term residence permit for 10 years for investors, business owners and highly qualified specialists. Requires an investment of AED 2 million.
- Employment Visa – issued to employees of companies registered in the UAE. Includes health insurance and allows to sponsor a family.
- Freelance Visa – suitable for self-employed specialists. It is issued through free economic zones and is valid for 1-2 years.
Life in Dubai
- The absence of income tax makes Dubai attractive for high incomes.
- Rent is one of the largest expenses. The average cost of renting an apartment is from 2,500 USD per month.
- The heat in the summer months (temperatures above 40°C) may be a problem for some expats.
- High level of security, developed infrastructure, prestigious schools and international hospitals.
Singapore
Unlike Dubai, registering a company in Singapore does not automatically lead to obtaining a residence permit. To legally reside and run a business, work visa must be obtained. The main options are EntrePass suitable for more skilled entrepreneurs and EP for specialists and startup owners.
Main types of visas
- EntrePass – designed for founders of innovative businesses with experience or a promising idea or project. Previously required a paid-up capital of 50,000 SGD but the MOM has moved away from specifying a fixed amount. The granting of a pass is not guaranteed only due to company registration. To learn more about EntrePass, please visit our comprehensive guide.
- EP – suitable for company owners who want to work in their business in Singapore. It is assessed by the level of salary (from 5,600 SGD), qualifications and the importance of the position. A business owner cannot automatically obtain an EP – there is still a contract arrangement between the employer and then company, as both are separate legal entities. For more detailed guidance on EP, refer to our guide.
- DP (visa for family members) – available only after obtaining an EP or EntrePass. Allows to bring spouses and children to Singapore, but does not grant the holder the right to work under this permit.
Life in Singapore
- High level of security, developed infrastructure, stable economy.
- Expensive real estate – rent of an apartment from 2,500-4,000 SGD per month in central areas.
- High quality of education and medicine, but international schools can cost up to 40,000 SGD per year.
- Strict laws and strict control over order (fines for littering, smoking in unauthorized places, no chewing gum, etc.)
5. The pitfalls for foreigners in Dubai and Singapore
When choosing a country to do business in, it is important to consider not only the most basic incorporation needs such as taxes and ease of registration, but also possible difficulties that foreigners may encounter. Dubai and Singapore have their own nuances that are worth knowing in advance.
| Pitfalls | Dubai | Singapore |
|---|---|---|
| Business restrictions | In Mainland - a local partner is required (51%), in Free Zones - it is not possible to conduct business in the domestic market | Entrepreneurs need to hire a local director or obtain a relevant work visa to replace a nominee director themselves |
| Bank accounts | Complicated opening, possible refusals without explanation | Strict KYC, increased control over companies |
| Residence and visas | Resident visa is not automatic, possible restrictions on renting housing | EP/EntrePass is not issued to everyone, PR is difficult to obtain |
| Legal system | Strict laws, high risks for contracts and debts | High compliance standards, strict Anti-Money Laundering (AML) laws |
| Business control | Local regulators can change the rules depending on the situation | Transparent legal environment, but high filing reporting requirements |
Dubai
Business Restrictions
- In the Mainland, some types of businesses require a local sponsor – a UAE citizen. This means that a foreigner can own no more than 49% of the company, and 51% belongs to a local partner. There are exceptions, but they depend on the industry.
- In Free Zones, it is possible to register a company without a local sponsor, but such companies cannot do business directly with UAE residents (only through distributors or representative offices).
Bank accounts and compliance
- Banks in Dubai have tightened the requirements for opening accounts due to international regulations in the field of financial monitoring (AML/CFT). Even with an operating company, an account may not be opened immediately, and the process can take up to several months.
- It is important to have a clear financial history, as well as evidence of the legal origin of funds. Banks may refuse some companies without explanation.
Residence and visa restrictions
- Simply registering a company does not automatically grant residency. This requires an investor visa or a business-related residence visa.
- The visa is issued for a specific period of time and requires renewal. A deposit or proof of rental housing in the UAE may be required to obtain it.
- To qualify for a 10-year Golden Visa, it is required to make a significant investment or demonstrate outstanding business achievements.
Legal system and legislative risks
- Unlike Western countries, the UAE has strict laws, including criminal liability for financial violations.
- Debts and unpaid obligations can lead to a prohibition on leaving the country and in some cases even imprisonment.
- It is important to consider the specifics of local laws, especially in the area of business ethics and contractual obligations.
Singapore
Business Restrictions
- Foreigners can own 100% of a company, but cannot be its local directors. The company must have at least one resident director – a citizen or PR of Singapore.
- To avoid the need to hire a nominee director, a foreigner will need to obtain an EP and become the official director of the company.
Opening a Bank Account
- In Singapore, the banking system is very strict with new companies. Even if the business is already registered, opening an account is not guaranteed.
- Banks carefully check clients, asking for proof of sources of income, a business plan, a description of the business and potential clients.
- Financial services (fintech, cryptocurrency) are subject to particularly strict restrictions, as they require licensing and additional checks from the Monetary Authority of Singapore (MAS).
Visa complications
- Registering a company in Singapore does not automatically grant the right of residence. To do this, foreigners need to obtain a relevant work visa.
- EP is issued only if the business owner has a competitive salary and proof of economic practicality of the business owner’s work in the company.
- Obtaining a PR is a long process that may take up to 12 months or even longer, and even having a company in Singapore does not guarantee its approval.
- It is only possible to bring family after receiving a work visa, and work permits for spouses are not issued automatically.
Strict regulatory requirements
- Singapore has extremely strict AML laws, especially after recent changes. Even the slightest discrepancies or unconfirmed transactions can lead to account blocking and investigation.
- Tax transparency control is high: the Inland Revenue Service (IRAS) requires strict file reporting and does not tolerate errors. Fines for non-compliance with tax obligations can be significant.
Conclusion
The choice between Dubai and Singapore depends fully on business priorities: in the UAE, you can minimize taxes and register a company in a free economic zone, but there may be difficulties with banking services and visas while Singapore has transparent legislation and a high level of trust from international partners, but strict requirements for a resident director, work visas and tax reporting. Opening a bank account in both countries requires careful preparation of documents, and business registration does not automatically grant the right to reside. Dubai is better suited for minimizing the tax burden, and Singapore is better suited for long-term, transparent and international business. So, will it be the tax-friendly shores of Dubai or the globally trusted landscape of Singapore that suits your business the most?
Get Started with Intraconnect
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