Premia TNC Singapore Team
Author
The Case for Incorporating in Singapore
As content distribution, SaaS, and platform businesses expand globally, one of the first challenges they encounter is managing foreign currency transactions, both in collecting sales and in settling payments. Implementing efficient global payment systems is no longer optional; it is essential.
These challenges are especially evident in situations such as:
- Complex foreign settlements: “We have contracts with Spotify, YouTube, and Apple, but their foreign currency settlement structures are complicated.”
- Payment gateway limitations: “I’m launching a SaaS service for global customers, but I can’t create a Stripe account.”
- Cross-border transaction hurdles: “Receiving and remitting foreign currency is always cumbersome and slow for a Korean corporation.”
- Scalable global systems: “Even as a one-person startup, we need a reliable global business infrastructure.”
Amid these realities, establishing a Singapore corporation emerges as a strategic decision. Rather than operating as just another foreign branch, it serves as a true global business hub, offering streamlined access to international banking, payments, and business operations.
Barriers Commonly Encountered by Korean Corporations
|
Recurring Issues |
Restrictions on Korean Corporations |
|
Open a Stripe account |
No (except unofficial agency) |
|
Foreign currency receipt or remittance |
Reporting and documentation required under the Foreign Exchange Transactions Act |
|
Overseas partner settlement |
Tax restrictions and numerous transaction documentation requirements |
|
Attracting global investment |
Limited structure and IP ownership structure is disadvantageous |
|
SaaS revenue structure design |
Accounting processing and revenue classification are complex |
Singapore Corporation as a Strategic Resolution Structure to Solve Challenges
Freedom in Receiving and Remitting Foreign Currency
- No capital movement restrictions make settlements with overseas clients and partners seamless.
- For businesses with partners across multiple countries, a Singapore entity can serve as a central settlement hub, simplifying global transactions.
Easy Integration with Global Payment Systems
- Singapore is an officially supported jurisdiction for Stripe, allowing you to open an account immediately after incorporation. This integration applies to Paddle and other global payment systems.
- Enables subscription models, automated payments, and tax reporting.
- Flexible multi-currency receiving and sending through platforms like Airwallex and Payoneer.
Payment Flow Example:
Global customers → Singapore Stripe account (payment collection) → Singapore corporate bank account → (if needed) remittance to Korean HQ and creators.
Optimized Structures for SaaS and Digital Content Businesses
- Tax and accounting systems tailored for digital services.
- IP-holding corporations benefit from efficient royalty structures.
- Partial Tax Exemption (PTE) is available even when sales are modest, reducing the initial tax burden.
What Drives Companies to Incorporate in Singapore
|
Case |
Explanation |
|
Company A (music distribution startup) |
Revenue generated from streaming platforms must be accounted for to musicians worldwide. → After establishing a Singapore corporation, Stripe was introduced and automatic partner settlement was established. |
|
Company B (SaaS-based education platform) |
Need a payment system for global subscribers. → Automatic monetization after Stripe + Paddle integration. |
|
Company C (webtoon or game content company) |
Settlement of content revenue and IP holding company in Singapore and payment of license to Korea. |
|
Company D (one-person startup team) |
Started business in Korea, but converted to Singapore early to secure global revenue stream. |
Singapore Corporation: The First Infrastructure for Global Expansion
If you’re building content, operating a SaaS service, handling global payments, or signing contracts with overseas partners, one thing is clear: a Korean corporation alone is no longer enough.
Establishing a Singapore corporation is not just about opening “another branch.” It’s about creating the core infrastructure your business needs for stable global operations and sustainable growth.
What’s Next?
- Steps to open a Stripe account.
- Best practices for structuring tax transactions with Korean corporations.
Leveraging on Premia TNC’s Expertise
At Premia TNC, we don’t just stop at incorporation. We work with you to design strategies aligned with your growth stage, covering payment system implementation, tax structuring, and operational efficiency.
Premia TNC Singapore Team
Author
Premia TNC Singapore is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Singapore specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
