EOR Singapore helps foreign firms hire in Singapore before they form a local company. The service lets you test the market, sign talent, and stay within tight legal lines. This guide breaks the whole path down into clear steps.
Many founders worry about first hires in a new land. They fear slow filing, hidden fees, and missed rules. With the right partner, that fear fades fast.
Below you will learn why EOR Singapore wins for early moves, which rules matter most, and how to walk each rule with simple actions. Every part uses short lines so you can read and apply at once.
Why Foreign Companies Hire in Singapore Before Setting Up Locally
Singapore stands as Asia’s global hub for finance, trade, and tech. Access to this hub can hint at huge growth, but a full branch brings cost.
EOR in Singapore lets you book one expert fast. You can gauge demand, start outreach, and adjust plans without building a full office.
Starting lean saves cash flow. It also keeps you light if plans shift. You may pivot the role, switch the product, or exit with ease if data turns cold.
Typical first roles that fit the model
- Sales lead who meets local buyers.
- Market analyst who maps price points.
- Account manager who supports regional clients.
Each role often needs a quick sign-off. EOR Singapore removes up to two months of admin, so you close an offer while the candidate is still keen.
Early insights drive later success
Once hired, your employee feeds real feedback on customer pain, price depth, and partner lanes. That data shapes future product tweaks and the scale plan. Without an EOR, you might miss the window while permits crawl through queues.
Regulatory Landscape: What You Need to Know
Singapore law guards fair pay, safe work, and lawful migrant labor. Any firm, domestic or foreign, must meet these points.
Central Provident Fund (CPF)
Employers pay a share of salary for citizens and permanent residents into CPF. Rates change by age and wage band. EOR Singapore already programs the exact rate for each staff member.
Income tax and monthly payroll
Salaries paid in or out of Singapore face tax at source rules. The EOR issues itemized payslips, withholds tax for foreign staff when required, and files statements each April.
Ministry of Manpower (MOM) passes
Employment Pass (EP) for high earners and S Pass for mid-skills need firm quotas and fair wage proof. An EOR Singapore entity holds the quota under its own account, so you can skip the queue for new entities.
Leave and benefits
Annual leave, sick leave, and childcare leave have set days by law. The EOR tracks balances and alerts you to approvals in real time.
Staying compliant earns trust with staff and avoids fines that can reach SGD 10,000 per breach. With an expert EOR, the risk close to zero.
CPF Rate Snapshot
- Age 55 and below: Employer 17 % of wage.
- Age 55 to 60: Employer 14.5 %.
- Age 60 to 65: Employer 11 %.
- Above 65: Employer 7.5 %.
EOR Singapore auto-applies each tier. This spares finance teams from manual math that could lead to errors and fines.
Work Pass Salary Floors
- Employment Pass: At least SGD 5,600 for new hires in 2025.
- S Pass: At least SGD 3,150 in 2025.
These floors rise yearly. A good EOR Singapore alerts you three months before an increase so you can budget raises.
What Is an EOR Singapore Service and How Does It Work?
An Employer of Record is a licensed payroll and HR firm that becomes the legal boss on paper. Your company keeps full control of daily tasks.
- The EOR issues a local contract that meets Singapore Employment Act rules.
- It opens CPF accounts, registers for Skills Development Levy, and buys work injury insurance.
- It runs monthly payroll, files taxes, and pays statutory levies.
- You lead the work plan, review performance, and approve bonuses.
Kuubiik, a trusted EOR provider, can launch this full stack in five working days. You share role details, they draft the contract, and the hire starts the next Monday.
EOR versus PEO
A Professional Employer Organization (PEO) shares employment duties with the client. An EOR holds the full duty alone. For first hires, EOR Singapore is simpler because there is one clear legal owner, cutting any room for cross-border mismatch.
Key Advantages of Using an EOR in Singapore
1. Speed-to-hire
EOR Singapore clears onboarding in days, whereas a new entity can take weeks for ACRA registration, bank setup, and pass quota creation.
2. Cost clarity
You pay one fee that bundles payroll, CPF, and admin. No hidden filing or audit bills pop up later.
3. Local insight
The partner briefs you on wage benchmarks, common perks, and interview style. That lifts your offer acceptance rate.
4. Reduced liability
The EOR holds the contract, so statutory breaches sit with them. They also keep personal data safe under PDPA, shielding you from privacy claims.
5. Easy exit or scale
If plans grow, you can flip to your own entity. If plans change, you can end the contract with a set notice. EOR Singapore keeps you light for both outcomes.
6. Multi-currency comfort
Pay from your HQ bank in USD, EUR, or any unit. The EOR converts to SGD, cutting FX admin.
7. Focus on core business
By outsourcing payroll duties, you free internal leaders to steer sales, product, and fundraising. No extra headcount is needed for HR.
8. Trial run for future entity
Running with EOR Singapore gives you twelve months of cost data. That data feeds your business plan for a branch, bank loan, or investor deck.
Step-by-Step: Hiring Your First Employee Through an EOR
Step 1: Compare Providers
Shortlist three EOR Singapore firms. Check license, data security, and full cost.
Step 2: Issue Role Brief
Send job title, salary band, bonus plan, and start date. The EOR maps each piece to the law and sends a quote.
Step 3: Review Compliance Pack
You receive a draft contract, PDPA notice, and CPF projection. Ask any query now.
Step 4: Sign the Service Agreement
This master deal sets the service scope, fees, and liability split.
Step 5: Candidate Contract
Your hire signs with the EOR Singapore entity. You sign a side letter on duties and goals.
Step 6: Work Pass Filing
For foreign staff, the EOR files the EP in the MOM portal. Average approval runs ten business days, but many pass in seven.
Step 7: Onboarding Kit
The EOR collects tax form, bank details, and emergency contact. They open the staff record in payroll and HRIS.
Step 8: First Payroll
On the set payday, the EOR sends a pay report. They debit your company card or bank two days prior.
Step 9: Ongoing Care
You get monthly cost sheets and leave updates. EOR Singapore answers MOM notices within one workday.
Step 10: Renewal or Exit
If the role expands, you renew yearly. If you set up a local entity, the EOR guides a clean transfer of contract.
Limitations and Considerations
EOR Singapore shines for one to ten people. Beyond that, per-head fees may climb above the cost of running your own payroll.
Brand image may matter. Some vendors use their own name on payslips, which can confuse staff. Pick a firm that offers a white-label payslip option if you need brand unity.
Long-term stock plans also pose a mix of Singapore and HQ tax rules. An EOR can track the plan, yet your own entity may gain better tax perks after you grow.
Data privacy is strong in Singapore, so ask the EOR how they store payslips and ID scans. A top firm will use ISO 27001 certified servers.
Conclusion
EOR Singapore lets foreign companies hire in Singapore fast, safely, and lean. It handles CPF, MOM passes, tax, and payroll while you lead work goals. You gain real market insight before betting on a full branch.
Use the steps above, pick a solid partner, and keep control of cost. EOR Singapore turns a complex hire into a short checklist. Grow with it, then graduate to your own entity when the time is right. EOR Singapore stands ready as your bridge between idea and full local scale.
