Why Singapore is Good for Business?
It can be rightly said that the American dream is long gone, and Singapore is the current place to be. Why you may ask? Well … the reasons are manifold. The penchant towards Singapore can be attributed to its strategic position, multi-cultural work force, and state-of-the-art infrastructure. In addition, the stable governmental and political system coupled with effective laws and regulations lay a strong foundation for business success in Singapore.
Leaf through some of the reasons why this city-state is preferred over others in the Asian sub-continent for business incorporation.
Singapore is Located in the Heart of Asia
This strategic location of Singapore makes it a great logistic focal point, for movement of goods and of people, in and out of the country. It becomes very easy to access the world outside, with just a few hours of flight or ferry. The port of Singapore is rated as one of the busiest port on the world, alongside the Port of Rotterdam. Singapore’s port ranks the highest in the terms shipping tonnage handled.
Besides the port, Singapore’s Changi airport has been ranked as the ‘second busiest’ in Asia and ‘fifth busiest’ airport in the world. Both these parameters, shows the capacity of the Singapore to handle the influx of foreigners.
Opportunities Galore; Here in Singapore
This city-state has a strong trade and investment potential. This feature makes Singapore the most competitive Asian country. The lenient rules for incorporating a business here makes it even more alluring. The World Bank backs up this fact by stating that, Singapore is the world’s easiest place to do business, in its ‘Doing Business’ 2009 report.
In contrast to many developed and developing countries, it takes only 24-48 hours to incorporate a company in Singapore. With government providing assistance throughout the incorporation process, it becomes a cakewalk to setup a Singapore company.
Singapore’s Liberal Tax Rates
One element, which always keeps bothering the entrepreneur, is taxes. High tax rates, paying the correct taxes and that too on time, have been the eternal point of weakness for an entrepreneur. However, Singapore brings relief to all these tax woes, by keeping the personal and corporate tax rates low and effective.
The personal income tax has a tier system. It starts from just 0% and goes up to 20% for income above S$320,000. On similar lines, the corporate tax rate for profits up to $S300,000 is below 9%, and is capped at a flat rate of 17% for profits above $S300,000. No capital gains taxes are charged in Singapore. In addition, the dividends can be distributed to its shareholders tax-free.
The VAT/GST tax in Singapore stands at 7%. It is broad-based consumption tax known as Goods and Services Tax (GST). It is way below the global average rate of 16.4%, and Asia-Pacific’s average of 10.5%. This is done to make the economy even more vying.
Everything Falls into Place in Singapore
Besides the points mentioned above, there are a few more advantages of incorporation in Singapore. To mention a few, lesser red tape rules, least corruption rates, relaxed immigration policy, rigorous policies for protection of intellectual property, strong copyright laws, and harsh copyright infringement punishments.
Even if all these parameters are in place, businesses need one more factor to thrive, and that is a supportive government. Pro-business environment can only be generated when the political framework of the country is conducive.
Therefore, it can be justifiably concluded that Singapore is the right place to be and to do business. In this regards, once the decision of incorporation has been taken, it is equally important to execute the process of incorporation of a business. Given below are a few reasons for incorporating early.
Advantages of Early Incorporation
Once you have decided that you will incorporate a company in Singapore, you should proceed with the Singapore company registration process at the earliest. There are a few advantages of incorporating early.
- Protection of Name – Once you incorporate your company, the name of the organization is sealed and protected. The owner can then take it up to registering the name as a trademark.
- Signing Legal Agreements – Only an established business entity has the capability of signing legal agreements. Incorporation gets you that benefit.
- Ownership of Intellectual Property – All types of future disputes about ownership of assets can be handled legally or avoided after incorporation.
- Ownership of Equity – Early incorporation helps you claim a larger part of equity, which will not be the case once value builds’ into it. On the other hand, late incorporation may dilute the share of equity that an owner could hold.
- Raising Funds – Investors are only interested in properly incorporated companies. They invest only when they are sure that the business is well set. Even banks and finance-lending institutes lend willingly to registered companies but not to individuals.
Besides, the points mentioned above, it is a fact that Singapore provides superlative quality of life in terms of excellent public and private transportation, top quality healthcare, a safe and healthy living environment, easy access to other nations, excellent schools, and endless options of cultural opportunities.
Want to incorporate a company in Singapore? Get in touch with us i.e. SBS Consulting at +65 6536 0036 or you can drop an email at email@example.com. We will be more than happy to help.