Benefits of Company Incorporation Singapore
Every year, thousands of individuals and corporate opt for company incorporation Singapore. In Q3 2015 alone, more than 17,000 local and foreign entities registered their companies in this land of business opportunities. There are reasons for Singapore’s emergence as a developed Business Hub. The regime is pro-entrepreneur and has supportive start-up ecosystem in place.
Indulging in a Singapore company incorporation is useful for those who want to establish a holding company, set up a regional headquarter, register an international trading company or create an import and export hub.
Types of Business Structures Open to the Singapore Residents
The types of businesses that the Singapore citizens, permanent residents and a few of the work pass holders can form are as follows.
- Private Limited Company
- Sole Proprietorship
- Limited Liability Partnership
Of these, the private limited company is the most relied upon the business structure in Singapore. It is a dynamic and scalable business structure that is conducive to the growth of a business. A Singapore tax resident company greatly benefits from the tax exemptions and incentives offered by the authorities.
Read More: Private Limited Company Singapore: A Comprehensive Registration Guide
Types of Business Structures Open to the Foreigners
Foreigners who want to have a go at Singapore company incorporation and manage it on their own need to relocate to Singapore. They must obtain Employee Pass or EntrePass to work in this island nation. It is advisable for them to hire and let the Singapore incorporation services work on it.
- Subsidiary Company
- Branch Office
- Representative Office
Subsidiary companies registered in Singapore are considered as the local companies and are privy to all the tax incentive and exemptions.
Entities Benefiting From the Company Incorporation Singapore
The tax policies implemented by the Singapore authorities play an important role in attracting various types of industries and businesses to its shores.
Singapore income tax is levied on the locally generated income. That is why it attracts entities interested in forming the holding companies. The income earned by the foreign subsidies of these companies is tax exempted. In addition, Singapore levies no tax on the capital gains. Dividends received by the holding companies is tax-free.
Singapore has a reputation as a capable shipping and logistic center. Entities interested in international commerce also opt for company incorporation Singapore. If they set their international trading company properly, they can benefit from the tax exemption on the international sales.
Singapore plays a vital role in the trade between the East and West. The Singaporeans have exploited their geographical location to become one of the most important entrepots of the world.
Infrastructure-wise, Singapore is a very capable import and export hub. It has state-of-the-art port facilities and has the 2nd busiest port in the world. It offers great air connectivity to the outside world, especially to the immersing markets of Asia.
Even amidst the economic slowdown, Singapore as a financial hub has performed exceptionally well. It continues to attract the investors and start-up entrepreneurs and encourages them for a company incorporation.