If you’re expanding into Singapore or looking to hire locally before incorporating, one question often comes up: Is there a way to legally employ someone here without registering a company?
The answer is yes — through an Employer of Record (EOR).
For businesses wanting to test the waters, scale quickly, or avoid the complexities of setting up an entity too early, using an EOR offers a practical route. It allows you to hire talent in Singapore and stay compliant with local employment and tax laws — all without the overhead of forming a company just yet.
An Employer of Record (EOR) is a third-party organisation that formally employs individuals on your behalf. While you manage the employee’s day-to-day work, the EOR is responsible for everything that comes with being the legal employer, including:
In short, the EOR takes on the legal and administrative duties so you can focus on operations and growth.
Singapore’s Ministry of Manpower (MOM) introduced updated rules in early 2025 that impact how EORs operate.
The main change: foreign companies without a registered entity in Singapore can no longer hire foreign nationals through an EOR. Any role that requires a work pass (such as an Employment Pass or S Pass) now must be backed by a Singapore-registered company.
That said, you can still use an EOR to hire Singapore citizens and Permanent Residents, provided all legal and statutory requirements are met.
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An Employer of Record may be the right move in a few common scenarios:
If you’re assessing whether Singapore is the right place for your regional office, hiring one or two local team members through an EOR lets you operate without committing to company setup or long-term infrastructure.
Sometimes the opportunity can’t wait — a project needs immediate local support or a candidate is ready to start. EORs allow for quick onboarding without getting tied up in administrative processes.
If you’re not ready to handle payroll, CPF, IRAS filings, or employment contracts yourself, an EOR keeps your business light on admin while ensuring everything is done by the book.
If the role is temporary or tied to a specific contract, bringing someone on through an EOR is often simpler than setting up a full legal presence.
Here’s how hiring through an EOR generally plays out in Singapore:
The process is designed to reduce risk, save time, and keep you compliant with Singapore’s employment and tax laws.
Using an Employer of Record is a smart, flexible approach to hiring in Singapore — especially if you’re not ready to incorporate or build out your internal HR, payroll, and compliance capabilities just yet.
While the recent regulatory changes have narrowed how EORs can be used, they remain a valuable option for companies hiring locals or managing short-term needs without long-term commitments.
As always, make sure your hiring strategy aligns with local employment, tax, and statutory regulations — and that whoever you engage as an EOR has a deep understanding of Singapore’s legal and payroll framework.
Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.
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