Singapore stands as a global energy and petrochemicals hub, home to major oil and gas companies and a world-class refining and trading infrastructure. For foreign entrepreneurs and investors, establishing an oil and gas company in this strategic location offers unparalleled access to Asian markets, a stable regulatory environment, and significant growth opportunities. However, navigating the incorporation process and sector-specific regulations requires careful planning and expert guidance.
This guide provides a comprehensive roadmap for foreigners looking to open an oil and gas company in Singapore. We will cover everything from business registration and licensing to regulatory compliance and operational setup, giving you the foundational knowledge needed to launch your venture successfully.
Key Takeaways
- Singapore is a leading global energy and petrochemicals hub, offering unparalleled access to Asian markets and advanced infrastructure.
- Jurong Island serves as the heart of the oil and gas industry, housing major refineries, petrochemical plants, and storage facilities.
- The oil and gas sector is heavily regulated, requiring specific licenses from agencies
- Singapore offers attractive tax incentives, such as the Global Trader Programme (GTP), with concessionary tax rates of 5% or 10%.
- Partnering with a corporate services firm ensures smooth navigation of legal, regulatory, and operational complexities.
Overview of Singapore’s Oil & Gas Industry
Although it has no oil & gas resources of its own, Singapore continues to be a leading global O&G equipment and services hotbed, serving as a key trading and refining center in Asia. The city state’s strategic location and advanced infrastructure position it as a key player in LNG trading, bunkering services, and energy storage solutions.
Jurong Island remains the heart of the industry with advanced refineries, petrochemical plants, and storage facilities. It houses bases of the world’s biggest O&G and petrochemicals industry names, such as ExxonMobil, Baker Hughes, Schlumberger, National Oilwell Varco, and Evonik.
Step 1: Choose the Right Corporate Structure
The first critical decision is selecting the appropriate legal entity for your business. For foreign investors, the most suitable and common choice is the Private Limited Company (Pte Ltd).
A Private Limited Company is recognised as a separate legal entity, meaning the personal assets of its shareholders are protected from business liabilities. This structure limits liability to the amount of capital invested in the company, providing a crucial layer of security for foreign owners. It also enhances credibility with financial institutions, suppliers, and government agencies.
Key requirements for incorporating a Pte Ltd in Singapore include:
- At least one shareholder (can be an individual or a corporate entity).
- At least one director who is a Singapore resident (a Singapore citizen, Permanent Resident, or an EntrePass holder).
- A qualified company secretary who is a Singapore resident.
- A registered physical office address in Singapore.
- A minimum initial paid-up share capital of just S$1.
Foreigners can own 100% of the company’s shares. To meet the local director requirement, you can either relocate to Singapore on an Employment Pass (EP) or appoint a nominee director service.
Step 2: Register Your Business With ACRA
Once you have decided on the corporate structure, the next step is to register your company with the Accounting and Corporate Regulatory Authority (ACRA). This is Singapore’s official business registrar.
The process involves two main stages:
- Name Reservation: You must choose a unique company name that does not infringe on existing trademarks or business names. The name must be approved by ACRA before you can proceed with incorporation.
- Company Incorporation: After name approval, you will submit the incorporation application. This requires providing details of the company directors, shareholders, company secretary, and the registered office address. You will also need to submit the company’s constitution (formerly known as the Memorandum and Articles of Association).
Related Read: What is the Unique Entity Number (UEN) in Singapore: Complete Guide for Businesses
While the online registration process is efficient, it is highly recommended to engage a professional corporate services firm. These firms can manage the entire incorporation process, ensure all documents are correctly filed, and provide essential services like a nominee director and company secretary to guarantee compliance.
Step 3: Obtain Necessary Licenses and Permits
The oil and gas industry is heavily regulated to ensure safety, environmental protection, and operational integrity. Depending on your specific business activities, whether it is trading, storage, processing, or exploration, you will need to secure various licenses and permits.
Key regulatory bodies and potential licenses include:
- Enterprise Singapore: This agency oversees the commodity trading sector. If your company is involved in oil trading, you might consider applying for the Global Trader Programme (GTP), which offers concessionary tax rates.
- Energy Market Authority (EMA): The EMA regulates the gas and electricity markets. Companies involved in gas import, shipping, or retail must obtain the relevant Gas License from the EMA.
- National Environment Agency (NEA): Businesses dealing with hazardous substances, pollutants, or waste management must secure permits from the NEA. This includes licenses for the storage and transportation of petroleum and flammable materials.
- Singapore Civil Defence Force (SCDF): The SCDF issues licenses for the storage of petroleum and flammable materials to ensure fire safety standards are met. This is critical for companies operating storage facilities or bunkering services.
Thoroughly research the specific licenses required for your intended operations. Working with a local consultant can help you identify all necessary permits and navigate the application procedures efficiently.
Related Read: Guide to Set Up an Investment Holding Company in Singapore
Step 4: Open a Corporate Bank Account
After successful incorporation, you must open a corporate bank account in Singapore. The country hosts a wide range of reputable local and international banks, offering robust banking services tailored for businesses.
To open an account, you will typically need to provide the following documents:
- A completed bank account opening form.
- A copy of the company’s business profile from ACRA.
- A copy of the company’s constitution.
- A board resolution authorising the opening of the account.
- Copies of passports and proof of address for all company directors and signatories.
Some banks may require the physical presence of the directors and signatories in Singapore. A corporate services provider can assist in liaising with banks and facilitating the account opening process.
Step 5: Understand and Comply With Regulations
Compliance is non-negotiable in Singapore’s business environment, especially in the oil and gas sector. Your company must adhere to stringent standards related to safety, environmental impact, and financial reporting.
Health, Safety, and Environment (HSE) Standards
The Workplace Safety and Health Act (WSHA) outlines the responsibilities of employers to ensure the safety and health of their employees. In the oil and gas industry, this is of paramount importance. You must implement a robust Safety Management System, conduct regular risk assessments, and ensure all operations comply with industry-specific codes of practice. Failure to do so can result in severe penalties, including fines and work stoppages.
Tax and Financial Compliance
Singapore offers one of the most attractive corporate tax systems in the world, with a headline tax rate of 17%. The government also provides various tax incentives to encourage growth in key sectors like oil and gas.
- Global Trader Programme (GTP): As mentioned, companies engaged in international trading of qualifying commodities (including oil and gas) can apply for the GTP. Successful applicants enjoy a concessionary corporate tax rate of 5% or 10% on qualifying trading income.
- Tax Exemptions for New Start-ups: Qualifying new companies can receive significant tax exemptions for their first three consecutive years of assessment.
Beyond incentives, your company must meet its annual filing obligations with ACRA and the Inland Revenue Authority of Singapore (IRAS). This includes filing an Annual Return and submitting annual financial statements.
Step 6: Set Up Your Operations
With the legal and regulatory framework in place, you can focus on establishing your physical operations.
- Securing Office and Industrial Space: Whether you need a corporate office in the central business district or an industrial facility in Jurong Island, Asia’s leading energy and chemicals park, Singapore offers a variety of real estate options.
- Hiring Manpower: You will need to hire a skilled workforce to run your operations. Foreign professionals must secure a valid work pass, such as an Employment Pass (EP), to work in Singapore. The EP is for managers, executives, and specialists who meet specific salary and qualification criteria. You must also adhere to fair consideration practices when hiring.
The Importance of Professional Guidance
Opening an oil and gas company in Singapore as a foreigner involves multiple layers of legal, regulatory, and operational complexities. Partnering with a professional corporate services firm is a strategic necessity.
An experienced local partner can:
- Provide nominee director and company secretary services to meet statutory requirements.
- Manage the entire company registration process seamlessly.
- Advise on the specific licenses and permits your business needs.
- Assist with work pass applications for your foreign staff.
- Ensure ongoing compliance with ACRA and IRAS regulations.
By leveraging local expertise, you can navigate the complexities with confidence, avoid costly mistakes, and position your company for long-term success in Singapore’s dynamic energy market. Contact InCorp now to find out how to get started!
FAQs about Oil & Gas Companies
What are the big oil and gas companies?
- Some of the biggest companies include ExxonMobil.
What is the oil and gas industry outlook in Singapore?
- The oil and gas industry outlook in Singapore for 2025 and beyond remains optimistic, albeit with significant shifts driven by global energy transitions and sustainability goals.
How can InCorp help with incorporating my oil and gas company in Singapore?
- Our incorporation team can assist you through the different stages of incorporation and ensure that compliance requirements are met.
Talk to our friendly team now!
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