How Overseas Companies Can Bill Singapore Clients Without a Local Entity

Singapore is a great market for software, consulting and creative services. But many overseas companies hit the same wall: the client loves the work, then procurement asks for a Singapore company.

This guide explains why that happens and the options you have.

Why Singapore clients prefer a local vendor

It is rarely about trust in your work. It is about their internal process:

• Vendor registration. Many companies, and most government-linked ones, register vendors with a Singapore UEN (Unique Entity Number).
• Currency. Finance teams prefer to pay in SGD, by local bank transfer.
• Local invoice format. A local invoice with a Singapore address and UEN fits their accounting system.
• Withholding tax. Some payments to non-residents need the client to withhold tax and file with IRAS. That is extra work and risk for them.
• Contracts and disputes. A contract under Singapore law, with a local counterparty, is easier for their legal team.

Each of these adds friction. Together, they can kill a deal.

Option 1: Invoice directly from abroad

How it works: you sign with the client from your home company and invoice in your currency or in SGD.

Pros: simple, no new entity.

Cons:

• Some clients cannot onboard a foreign vendor.
• The client may need to handle withholding tax on certain service payments.
• International transfers add fees and delays.

Good for one-off projects and clients with international procurement.

Option 2: Set up a Singapore subsidiary

How it works: you incorporate a Singapore Pte Ltd that signs and invoices locally.

Pros: full local presence, best for a large, steady business.

Cons:

• You need a locally resident director, a company secretary, a registered address, a local bank account, annual filings and accounts.
• Setup and yearly costs are real, even if you have only one or two clients.
• Transfer pricing between your companies needs proper documents.

Good when Singapore becomes a core market with several clients and local staff.

Option 3: Use a local contracting partner

How it works:

1. A Singapore company signs with your client.
2. It sends a local invoice in SGD with its UEN.
3. It collects the payment locally.
4. It keeps an agreed fee and pays your company, often in your currency.

Pros:

• The client deals with a registered Singapore company.
• No entity to set up or maintain.
• Fast to start, easy to stop.

Cons:

• You pay a percentage of each invoice.
• You still deliver the work and stay responsible for quality.

This is what Giinger does for companies outside Singapore. See the pricing.

Tax points to check

General information only. Ask a tax adviser for your case.

Withholding tax

When a Singapore company pays a non-resident for certain things, such as some services performed in Singapore, royalties or interest, it may need to withhold tax and pay it to IRAS. Tax treaties may reduce the rate. See the IRAS withholding tax pages.

GST

• A Singapore company that is GST-registered adds GST to its local invoices.
• Overseas businesses that sell certain digital services to consumers in Singapore may need to register under the overseas vendor regime.
• B2B imported services can fall under the reverse charge for some Singapore businesses.

Permanent establishment

If you have people working in Singapore for long periods, or a fixed place of business, you may create a taxable presence in Singapore. Plan this before you send staff.

Comparison table

	Direct invoicing	Singapore subsidiary	Contracting partner
Client sees	Foreign company	Your Singapore company	Singapore partner company
Currency	Usually foreign	SGD	SGD
UEN for vendor forms	No	Yes	Yes
Setup time	None	Weeks	Days, after review
Yearly fixed costs	None	Medium to high	None
Best for	Occasional projects	Core market	First clients, steady deals

How to choose

• One project, flexible client? Invoice directly.
• Several clients, local team planned? Set up a subsidiary.
• Client needs a local vendor now, and you want to test the market? Use a contracting partner.

Many companies start with a partner and move to a subsidiary once revenue justifies it.

Next step

If you have a Singapore client who wants to pay a local company, tell us about the deal. We review every project before we say yes.

Also useful: how to invoice overseas clients and get paid in USD or EUR.