How Can an Expat Own a Franchise in Singapore

• Research available franchise opportunities in Singapore across industries such as food & beverage, education, retail, and wellness.
• Consider international versus local franchises—some global brands have specific foreign ownership restrictions.
• Conduct due diligence on the franchisor, their track record, and financial viability.

To legally operate a franchise in Singapore, you must establish a registered business entity. Options include:

• • Private Limited Company (Pte. Ltd.) – The most common and preferred structure for franchises due to limited liability protection and scalability.
  • Sole Proprietorship or Partnership – Only available for Singapore Citizens and Permanent Residents (generally not recommended for foreign franchisees).

For expatriates, setting up a Pte. Ltd. company requires:

• • At least one local resident director (can be a nominee director).
  • A minimum of one shareholder (can be wholly foreign-owned).
  • Registration with the Accounting and Corporate Regulatory Authority (ACRA).
  • A business bank account in Singapore.

• Review and negotiate the Franchise Disclosure Document (FDD) if applicable.
• Ensure the agreement outlines:
  • Franchise fees and royalty payments.
  • Territory rights and exclusivity.
  • Operational requirements and branding obligations.
  • Termination clauses and renewal conditions.
• Seek legal review before signing the agreement to ensure that all of your rights are protected as a franchisee.

• Depending on the industry, you may need specific business licenses:
  • Food & Beverage Franchise – Singapore Food Agency (SFA) licenses.
  • Retail Franchise – Advertising and business signage permits.
  • Education Franchise – Private Education Institution registration (if applicable).
• Verify all regulatory requirements before launching operations.

Expats who wish to actively manage the franchise must hold a valid work pass:

• • Employment Pass (EP) – If hired by the franchise business.
  • EntrePass – If actively running the franchise and meeting innovation and investment criteria.
  • Dependent Pass (DP) with a Letter of Consent (LOC) – Limited to DP holders who meet MOM’s business ownership conditions.

If you plan to manage the franchise remotely, ensure a local manager is appointed to comply with Singapore’s corporate laws.

• Corporate Tax Rate: 17% (lower than many global markets).
• Goods and Services Tax (GST): You must register if your annual revenue exceeds SGD 1 million.
• Financial Reporting: Franchisees must maintain proper accounting records under Singapore law.