Considering Singapore to set up or expand your business?
If you are thinking Singapore as best place to set up or expend your business, then you are right to explore further.
Being known for it’s pro-business governance , a highly skilled manpower, non tolerance culture towards corruption and definitely no natural disasters or social unrests happening here, Singapore is an excellence for businesses to strive.
With the growing Asian economies like China, India and other South-east Asian countries, many large multinational companies (MNCs) and private foreign investors have moved to Singapore, the gateway to Asia for factors such as it’s strategic location, a competitive workforce, pro-business environment, and forward-looking economic policies and using it as a launch pad to other developing economies in the region.
1. Taxation and Incentives
Internationally, Singapore is renowned as a tax haven for businesses. Its limited taxes and low tax rates make the country an ideal location for companies to flourish.
Companies in Singapore pay no taxes on their foreign-sourced income and are subject to taxes on the revenues they earned in Singapore only. This benefit makes Singapore an attractive option for international expansion.
Unlike many other countries, Singapore has no capital gains tax. Companies may sell their investments or capital assets without paying taxes on the funds they receive.
The corporate tax rate is in Singapore is low and several incentives by the Inland Revenue Authority of Singapore can reduce the corporate tax rate for certain companies who set up regional headquarter here or for startups.
Startup companies gain additional tax benefits. For their first three consecutive years of business, startups may qualify for a tax exemption of 125,000 Singapore dollars on their first SG$200,000 of revenue.
Certain industries benefit even more from Singapore’s generous tax code. Qualifying global trading companies, international banks, and offshore funds can all receive lucrative tax exemptions or special concessionary tax rates.
Another reason is the country enforces no limits on currency repatriation, so businesses can freely convert their funds into and out of Singapore dollars without restrictions or penalty.
2. Complete foreign ownership for companies
Most of the growing Asian countries requires a certain number of local shareholders. This practice risk a loss of control over the company’s operations and share in the company’s successes.
But Singapore, there is no such requirement. 100% of an incorporated company may remain in foreign hands. This allowance makes Singapore an attractive expansion destination for many international companies because they may retain full ownership and control of their new branches.
3. A skilled and educated workforce
Singapore’s labor force is highly trained, and its educational attainments are some of the most impressive in the world. And with a labor force that is largely bilingual and multilingual definitely provides bridge between west developed economies with the east growing economies.
Beside an educated local workforce, Singapore’s favorable immigration systems only add to the depth and quality of its labor force.
4.Transparency and Minimal corruption
Anti-corruption laws in Singapore are strict — accepting a bribe incurs a stiff penalty. With a stable political landscape offer certainty, the laws and rules are transparent and not ambiguous, does not change unlike other Asia countries.
With minimal risk of becoming ensnared in bureaucratic red tape or losing revenues to corrupt officials, business become more efficient and profitable, and have faith in the regulations and financial policies that exist.
5. Central Location and easy market access
Doing business in Singapore allows your company easy access to many other Asian markets. Singapore is centrally located in Southeast Asia, so some of the largest economies in the region, including China, India, Australia, and Malaysia, are only a quick plane flight away.
Singapore’s port is one of the busiest in the world and its airport sees heavy plane traffic as well. Singapore’s location and shipping and travel capacities mean well connected supply chain management that facilitate the robust relationships your business relies on.