The global economy is leaning towards an Asian base. The vast and untapped domestic market combined with an infrastructural boom and skilled labour force has drawn many corporate brands and start-ups. Singapore is one such destination with a business-friendly environment and insistence on high-growth, high-impact entrepreneurial enterprises.
Singapore has been consistently ranked among the top three countries for its ease of doing business by the World Bank. Besides, its strategic location, reliable legal system, government policies, political and macroeconomic stability, and a very inspiring tax system have ensured that almost 50,000 new businesses are formed here annually.
Here are some more reasons why entrepreneurs are choosing to do business in Singapore:
Pro-Business Incorporation Policies: Company incorporation in Singapore is quite efficiently handled, is a simple process, and quickly undertaken. The compliance with corporate rules is easy, and for start-ups this means that there is no red tape or prolonged process to be intimidated with. It takes just 1-2 days for incorporation.
No Financial Burden for Start-ups: Singapore’s low personal and corporate tax rates and effective policies extend benefits to companies owned by foreign-owned businesses. Open ownership rules and minimal controls on currency movement enables start-ups to adopt a convenient capital structure. Thus, entrepreneurs can function freely, with easy access to funds and without onerous laws.
Effective Start-up Eco-system: Entrepreneurs launching start-ups require a peer support network along with seed, angel and venture capital investors, research institutes, service providers, accelerators, co-working spaces, etc. Singapore is a successful start-up incubator with resources like grants, tax incentives, and in-kind assistance.
Access to Workforce: According to the World Bank, Singapore is best at developing human capital. The education system and institutional framework is globally lauded for producing talents. Moreover, the multicultural country attracts foreign workforce through flexible immigration policies and as a knowledge-based economy.
Intellectual Property Protection: Singapore has Asia’s best and the world’s third best IP protection, according to the Global Competitiveness Report 2018 by World Economic Forum. A modern legal framework ensures patent, copyright and trademark laws, trade secrets, and industrial designs protection.
Attractive Taxation: Tax breaks for start-ups in the first three years of operation can reduce tax rate to 0% (from 2020, the rate will be reduced to 25%) for the first 100,000 SGD of income, while the rate for corporate taxes is capped at 17%. Singapore has no capital gains tax or inheritance tax. The Goods and Service Tax (GST) is charged at 7% and this broad based consumption tax, is one of the lowest in the region. Also, the country has Avoidance of Double Taxation Agreements (DTAs) with many countries and provides Unilateral Tax Credits (UTC) for countries without DTA.
Singapore is an ideal destination for incorporating a company in the Asian region with the best connectivity and opportunities reaching both sides of the hemisphere, numerous accolades, and a thorough business support system. Let Bestar assist you with EntrePass and company incorporation formalities as you look forward to the merits of doing business in Singapore.