Things You Should Know Before you Incorporate a Branch Office in Singapore
The steady performance of the Singapore economy over the last two decades has attracted numerous corporate from all over the world. A large percentage of these entities indulging in a Singapore company setup are Small and Medium Enterprises (SMEs) looking for a pro-business environment. If you are also contemplating to incorporate a branch office in Singapore, it is important to note that it offers a great opportunity as well as a great challenge to a newcomer to its market.
Foreign Corporate and Singapore Incorporation Process
Singapore incorporation process is a hassle-free online process that enables one to open a company in Singapore within 1 – 3 days. However, it needs SingPass ID and that is why the foreigners willing to incorporate a company in Singapore needs to take expert assistance from the Singapore incorporation services like SBS Consulting. But, before you go and commit yourself to a brand new Singapore company registration, know a little more about the aspects of doing business in Singapore.
Singapore ranks at the top of Ease of Doing Business indicator report and it is the second-most competitive economy in the world. A new entrant to this highly competitive market needs to find a well-entrenched local business partner. After incorporating a company in Singapore, owner’s ability to establish business networks, knowledge about the local business, and the reach of the local partners can prove to be a deciding factor in the its growth.
Start-up Ecosystem in Singapore
Singapore is rated seventh in the list of innovative countries in the world and is very supportive of its locally registered business. It is especially true for the start-ups trying to implement out-of-the-box and innovative ideas. This island nation is known as one of the best start-up ecosystems in the world. The government authorities support these trailblazers with incentives, rebates, and tax exemptions and schemes like,
- SkillsFuture Programmes
- SPRING Singapore
- Infocomm Development Authority of Singapore (IDA)’s Smart Nation
- Singapore Economic Development Board
The financial institutes, venture capitalists, and private investors in Singapore are also willing to invest in the new companies if they think the business idea is practical. Some of the Singapore banks loans money to these entities at a very lower rate of interests so as not to waste a creative business idea.
Singapore authorities provide tax exemptions to the start-up companies during their initial 3 financial years. Their chargeable income of up to S$100,000 is made tax-free and next, S$200,000 is charged at 50% or at the 8.5% of the corporate income tax. Existing companies also receive 30% of rebate in the corporate income tax. It helps them in managing their overheads.
One of the reasons why multinationals prefer Singapore over another jurisdictions is its ability to raise highly motivated and qualified workforce. These English-speaking and multilingual professionals enable the country in delivering a very high labor market efficiency and in maintaining a well-managed employee and employer relationship.
When a corporate decides to incorporate a company in Singapore it is not required to assess the readiness of the local infrastructure because it is of top-notch quality and capacity. A lot of professional expats choose to work in Singapore because of its clean air, educational facilities, and safe social environment. It simply allows the foreign corporate to relocate one of its key professionals after the incorporation of the branch office. Singapore also offers highly developed and intelligent transport system, subways, a highly dense WiFi network, dependable air links with the emerging markets of Asia and port facilities that are best in the world.