Open Company in Singapore To Access The Appealing Taxation System Of World
Singapore, although known for being the freest economy in the world; the strongest international trading links and the highest gross domestic product in Asia helped a great deal to take Singapore where it is, today. Everything you require for starting and growing a new business is already available there; you just have to Open Company in Singapore.
Singapore continues to attract foreign entrepreneurs and investors for business incorporation. The favourable business policies, strong economy, and equally affordable tax regime make Singapore an obvious choice to incorporate a company. The ease with which you can start a company in Singapore is a testimonial to the fact that more and more foreign conglomerates are willing to register a Singapore company.
The best feature to layout the efficiency and speed of Singapore company incorporation is, you need only a few hours to register your company in Singapore, provided that you have all the documents ready and prerequisites fulfilled. The process to incorporate a company in Singapore is so easy that even small-scale investors are tempted to set up their operations in the country. Not just that, the Singapore taxation is also quite competitive as compared to the rest of the world.
The convenient process of immigration and distributing visas and Passes to the foreign nationals, so they can easily arrive in Singapore for work, business, education and as dependents are also one of their highlighting points behind choosing Singapore for business incorporation. So, let us shed some more light on the reasons to choose Singapore for business.
Exemplary Business and Investment Potential
The economic and business policies of Singapore are indeed one of the best in the world. Due to this, many foreign investors are turning to Singapore for business and economic reasons. As of now, the trend of setting up of a subsidiary company in Singapore is a hot favorite amongst the majority of foreign entrepreneurs. A subsidiary company not only gets an independent legal status, but also becomes liable for all the business incentives and tax benefits provided by the government.
Additionally, a slew of private firms in Singapore offer accredited company incorporation services, giving you; an opportunity to choose either the cheapest or the best firm that will help you in setting up or registering your business in a cost-effective manner.
Wide Array of Immigration Visas
In order to encourage the foreign professionals and entrepreneurs to relocate to Singapore, the government has introduced a number of work visas or passes meeting the specific needs of a foreign individual. The Singapore work visas or passes include Employment Pass Singapore, Singapore EntrePass or Entrepreneur Pass, Personalized Employment Pass (PEP) and many more.
Stable and Progressive Singapore Government
Nothing but respect for Minister Lee Kuan Yew for leading Singapore to independence and then serving as a visionary prime minister for next 31 years. Definitely, he is the architect of the modern Singapore. Leading Singapore from one of the lazy, sleepy islands of Southeast Asia to become one of Asia’s topmost nations, Mr. Lee led Singapore to its present glory and prosperity. Following his footsteps, Singapore is pledged to uphold good governance as a key pillar of its development and stability.
Due to responsible and sustainable financial management, pro-business policies thrive in Singapore. Additionally, the bureaucracy devoid of corruption and with zero corruption rates enables Singapore to embark on the next stage of nation building and to build the next generation of Singapore.
State of the Art Infrastructure
The world economic forum recently in its report recognized Singapore as having the best infrastructure coupled with the impeccable connectivity network. Singapore has an endless list of excellent hospitals, educational institutions, transportation, roads, etc. This has enabled normal Singaporeans to lead a quality, safe and luxurious lifestyle.
Quality and Productive Work Force
Due to the strong education system of Singapore, it becomes easier to groom a high-quality workforce, which not only contributes to the productivity of the companies in Singapore, but also to the work environment. The Singapore workforce is self-motivated and hard working, accomplishing their tasks in an honest and sincere manner.
The Singapore government has placed in action some exceptionally harnessed educational and skill development policies. Due to such policies, Singapore is having one of the best educational systems in the world grooming a highly educated generation. Additionally, different schemes and policies to develop skills amongst job seekers and job goers ensure a Singaporean worker is never aged to develop different skills necessary to earn their livelihood. The availability of a large pool of highly educated and specifically skilled workforce in Singapore is one of the key reasons why entrepreneurs from all over the world are interested in Singapore company registration.
Highly Competitive Tax System
The progressive taxation regime in Singapore is considered as one of the best in the world. Singapore accounting services advise that as a new Singapore company owner, you are entitled to avail different tax benefits. Under Start-Up Tax Exemption scheme, for the first 3 years, you can claim a 100% tax waiver on the first S$100,000 of company’s taxable income and a further 50% tax deduction on its taxable income of up to S$300,000. There are many firms in Singapore offering knowledgeable and complying taxation service at affordable rates.
In addition to this, the personal tax rates in the country are also quite low thanks to the Singapore government. Overall, these reasons definitely spur a foreign national to initiate the Singapore company registration process.
How Singapore’s Tax system is more appealing?
- Singapore has a progressive individual income tax and single-tier corporate income tax regime.
- According to the single-tier tax system, if the profits are taxed once; then the concerned business entity is free to dispose of tax-free dividends to their shareholders.
- The headline corporate tax rate is capped at 17%, which is one of the lowest in the after Hong Kong having tax rate capped at 16%.
- The progressive income tax rate of Singapore starts at 0% and ends at 20% above S$320,000. From YA 20174 onwards new tax treatment prescribed in Singapore budget 2015 will be applicable.
- GST Singapore is capped at 9%, which is supposed to remain same for few more years. Compared to other countries in the world, having an average VAT rate of 16.4%, GST in Singapore is convenient and very much favorable.
- The full tax exemption scheme introduced by the Singaporean government for newly formed businesses is also one of the best reasons of increasing Singapore company formation.
- According to the scheme, a newly formed business entity is exempt from income tax for first S$100,000 profits earned in the first three Years of Analysis.
- The Singapore taxation regime does not entertain or does not impose any Capital Gains or Inherent Tax and it does not have any Withholding tax on disbursed dividends.
- The Double Taxation Treaty signed by Singapore with numerous countries offers an added advantage to the global entrepreneurs in Singapore in avoiding dual tax on their income.
The attractiveness of Singapore as a business hub is still maintained as there are many accolades this city offers to the businesses, seldom offered in any other country of the world. Amongst all, the liberal and the simplistic taxation regime in Singapore is the key determinant motivating foreign company owners to take the final plunge and open company in Singapore.