What Are The Benefits of Starting a Company in Singapore?
If you have a creative business idea and you want to implement it. Where will you go? Which country you will select to realize it. For better results, you should execute it in a place that values initiative. Try company incorporation in Singapore.
In today’s business world, the copycats are plentiful. Coming with a unique business idea is difficult. The hard part is executing it to its fullest potential and further tuning it to earn customers’ acceptance. The hardest part is making it a profitable venture.
Singapore not only loves startups, but it also encourages them through startup grants, accelerator & incubator programs, and initiatives like Spring Singapore. FinTech is a great example of what Singaporean startups can do. Yes! This is the home for your path-breaking idea. Let us see the benefits of company formation in Singapore.
Key Benefits of Company Incorporation in Singapore
Singapore Company Incorporation Process
Singapore is the rule of law. The rules and processes are implemented efficiently. They are updated frequently to stay with the time. It means you do not have to wait too long for your company formation in Singapore. The process for company incorporation is efficient and can be completed in 1-3 days.
Company Incorporation in Singapore
If you have decided to opt for a company formation in Singapore, approaching a registered filing agent will serve you right. You need to be ready with:
- Bank reconciliation
- Minimum initial paid-up capital of S$1
- At least one shareholder
- At least one local director
- At least one company secretary
- Local registered address
Pro-Business Corporate Tax
Singapore’s corporate tax rates are affordable. Singapore company has to pay a maximum of 17% of company tax on its taxable income. However, in reality, the effective tax rate for a large number of these companies comes to between 8.5-9.5.
They get various tax benefits, exemptions, and rebates like a corporate tax rebate. In the case of startups, for the initial 3 years, they get 75% of exemption on their first S$100,0000. Next, S$200,000 gets 50% of the tax exemption of their taxable income.
Stable Political Environment
Singapore is a highly disciplined society. Since its independence, it has enjoyed a stable political environment. Well-directed and purposeful decisions by its politicians have allowed it to emerge as the most favored business hub in Asia.
- Singapore, as per the World Bank report 2020, ranks at the 2nd place for the ‘Ease of Doing Business’ indicator
- The country ranks 1st in the list of competitive economies
- It ranks at the 5th spot as the large financial center in 2020
- Singapore ranks at the 2nd place for talent competitiveness
Renowned for Protection of IP
Singapore has strong laws to protect the rights of individuals and companies to their Intellectual Property (IP). It also ranks second globally and first in Asia as per the Economic Forum’s Global Competitiveness Report 2019.
The country also encourages research and development activities by offering tax deductions on the expense incurred on these activities. In fact, it has successfully attracted a number of companies in this sector to its shores.
Qualified, Motivated, and English-Speaking Workforce
Singapore is a multilingual society. It appeals to both entrepreneurs, investors, and qualified professionals from all over the world. Its workforce is trained, skillful, and proficient in English. It offers to MNC’s exactly what they are looking for. The country ranks high on the legal framework, productivity, motivation, worker’s attitude, and technical skill-set.
Singapore’s geographical and strategic position helped in evolving as a trading economy. It is located on the sea-links between East and West. These trading routes are used to transport goods worth $5 trillion.
There are a number of agents that offer reliable company incorporation in Singapore. See if any of them offers freebies. SBS Consulting is an experienced agent that is operating in Singapore since 2010. Go through its promo company incorporation package to know the cost and free services that can minimize your initial investment.