Reasons Why You Should Incorporate in Singapore 2022
If you are thinking of starting a business, you could start by answering, “What are the benefits of company incorporation in Singapore?” This place has enormous potential. This financial hub is ideal for small businesses and SMEs looking to grow out of their native place.
Singapore’s geographical location enables it to play the role of an entrepot. And to its credit, it does it very well and serves as the link between East and West. It has successfully attracted more than 17,000 foreign companies to its shores.
Let us see the key factors that can induce you to incorporate a company in Singapore.
Singapore Business Environment
In the last couple of decades, Singapore has successfully emerged as a favourite business hub in Southeast Asia. It has attracted business owners from all over the world by providing a pro-business environment. Once you are done with the company incorporation in Singapore, you have all the chance to turn it into a financial success. Here, you will find a well-supported startup ecosystem that you can rely on to execute your creative business idea.
It is easy to incorporate a company in Singapore. It is one of the highlights of ease of doing business in Singapore. With the right registered filing agent like SBS Consulting Pte Ltd, it will take you only 1-3 days to set up your business.
An agent that also acts as a corporate secretary in Singapore will assist and advise you in coping with the ACRA’s rules and regulations. You need to comply with these to incorporate a company in Singapore. They will visit BizFile+, a portal run by ACRA, to register your company name and to register your company.
If you want to relocate to Singapore and take charge of your startup, you will need a work visa or pass. They will apply to the concerned authorities to obtain an Entrepreneur Pass or Employment Pass for you.
Trade policies? Singapore has signed numerous free trade agreements and treaties with other countries. It has more than 70 Avoidance of Double Taxation Agreements. These arrangements greatly simplify the cross-border trade for Singaporean companies. It is why investors choose Singapore for investment.
Doing business in Singapore is easy. The World Bank report 2020 says so. The country ranks 2nd in this report for the ‘Ease of Doing Business indicator. The qualified and experienced managers, specialists, and executives beeline for Singapore. They have plenty of opportunities here to work at their carrier and prosper.
Singapore lies on the sea link between East and West that carries $5 trillion worth of goods. This city-state benefits from it as it is a trading economy and has the necessary logistics and transportation infrastructure.
- Singapore’s Changi airport is the best in the world. The world-class facilities it offers has enabled it to rank as the ‘Best Airport in the World.’
- Singaporean harbours serve more than 600 ports, making them an important part of the world’s supply chain management system. This country is a leading world-leading transhipment hub.
- Singaporean logistical support companies offer excellent solutions and services to move goods between destinations. The fine-tuned regulations have allowed them to cut down the delivery time.
Singapore is a low-tax regime that pro-investors. It is one of the factors that attracts huge amounts of Foreign Direct Investment (FDI). Even during the COVID 19 pandemic, the Q3 of 2020 attracted $15 billion in FDI. The country attracts startups by offering them many tax incentives, rebates, and benefits.
They benefit from Startup Tax Exemption Scheme and Partial Tax Exemption scheme. They also get to deduct their expenses incurred before starting their business activities. The existing business also gets a rebate in corporate tax.
- Singapore charges a flat rate of 17% of company income tax. However, the tax benefits bring it down to the range of 8.5%-9.5% for the companies
- The personal income tax ranges from 0%-22%. Individual taxpayers can claim tax relief
- The dividends disbursed by the companies and capital gains are tax-free
Intellectual Property (IP) Protection Laws
Singapore has attracted many Research and Development companies. It happened because it has strong laws to protect their Intellectual Property (IP) rights. These laws are transparent and stringent and encourage innovation.
The country ratified several IP conventions and treaties to install a tough IP infrastructure and legal system. Currently, this IP rights protection ranks 3rd in the world.
Singaporean workforce is a pool of highly qualified and certified professionals. It is a high-ranking workforce that has lured MNCs and tonnes of investment to this island country. The workforce comprises English-speaking professionals who helped Singapore cement its position as a top-class economic hub.
It has helped MNCs and foreign SMEs in establishing their roots in Singapore. The government, too, invest heavily in the development of its human resources through various grants and skill development programs.
Quality of Life in Singapore
Singapore has invested in world-class infrastructure and services. It has developed an available resource for the betterment of its citizens and ex-pats. The excellent facilities and services ensure the social security and well-being of each individual. It is no wonder that those living in Singapore lead a productive life. For a number of years, Singapore has held its position in the list of the top countries to live in. It is a place that professionals and business owners prefer to work and live in.
The availability of modern infrastructure also makes Singapore the hottest travel destination in Asia. It also means it is a place people go shopping to their heart’s content. Well-known malls, branded stores, and the opportunity to buy a variety of electronic goods from world-leading brands attract visitors. It is a place of joy for the shopaholics.
Singapore’s educational system is well-known for its high standards. The country sports many world-class schools and universities and is a place where students come to shape their future. This is a high dependant system that adds talented and highly skilled individuals to the Singaporean workforce.
Singapore offers a secure, steady, and clean lifestyle where the standards of hygiene are high. It is a highly dependent system when it comes to healthcare services. It relies on advanced medical technologies and expertise to care for the locals and foreigners.
What do business owners want? A politically stable country, legal protection to their innovative ideas, products and services, availability of easy and cheap funding, logistical support, ease in cross-border trade, reliable communication networks, and availability of trained workforce.
Yes, Singapore offers you all these things in plenty. It is why business owners prefer company incorporation in Singapore. Though it is a small market place, it has a long reach.