Incorporating in Singapore is known for its business-friendly policies and received many accolades from international organizations. For the last several decades, the country has made a mark and is now the most sought after globally.
According to a survey, Singapore took the top spot for being business-friendly. It has a robust economy, a rational tax system and an efficient process for running a new enterprise.
Singapore has a strategic geographical location with an excellent infrastructure. It has a well-trained and productive workforce. Not many restrictions are imposed on the repatriation of profits or import of capital. The country follows a strict laws and has a stable political and economic climate. The government functions well and offers an excellent quality of life.
During the pandemic, many small and big companies adapted to a different medium to expand their business. Digitalization was at the fore and helped in the survival of different industries. Even the education sector was widely impacted. Many tutors were available online to help students with several topics. Everything is available on the web, be it how to start a business from scratch or looking for Homework help.
There were vast changes in the workflow of many countries based on the location. Singapore also encountered the situation well. We discuss below the many factors that make Singapore a beautiful place for incorporating a new enterprise.
A stable economy
Singapore is known to have a well-developed free market economy based primarily on trade, finance and manufacturing. The unemployment rate in the country is low, and it also maintains low inflation. The service sector majorly contributes to the employment workforce. There are no external public debt and a growing current account surplus. Singapore actively invested its capital abroad, and there is a reasonable use of the financial conditions. The housing, education, transport, and health facilities are well-established. Apart from that, there are other subsidy programs too.
One can say that the country’s founding leaders planned the country well. Even though Singapore has limited natural resources, it has a robust economy which speaks volume about it.
A rational tax system
Entrepreneurs are attracted by the country and wish to build their business here. Singapore can vouch for having the world’s most straightforward and most rational tax system. No tax is imposed on capital gains or dividends received from a business.
It implies a tiered tax system for both personal and corporate taxes. New firms receive significant tax breaks during their first 3 years. This helps in reducing their tax rate to almost nil. The corporate tax is also capped appropriately.
There is a minimal personal tax rate which rises above a particular slab. Corporate profits are not double taxed when passed onto shareholders. It implies that the dividends are distributed to shareholders tax-free.
We can conclude that Singapore charges one of the lowest value-added tax rates in the world.
No doubel taxation system
The country boasts of an extensive network of Avoidance of Double Taxation Agreements (DTAs) with over 50 countries. Going by the agreements, the economic transactions between Singapore and the treaty country do not suffer from double taxation.
Singapore also provides Unilateral Tax Credits (UTCs) for countries which do not have a DTA. So, a Singapore tax resident company will not likely suffer from double taxation.
Providing foreign ownership, no currency controls
A foreigner can own 100% of the stock of a Singapore incorporated company, and local partners or shareholders are not required. It facilitates companies with different capital structures to start a company they wish and distribute its ownership to investments.
Also, there are no restrictions on the amount of capital one can invest in a company in Singapore. The country imposes no restrictions on the repatriation of profits. One must keep a note that no taxes are imposed on capital gains from the sale of a business. In a similar way, no tax is levied on dividends paid to the shareholders.
There is a seamless movement of funds as there are no restrictions on the movement of foreign currency into or out of the country. It offers immense flexibility to many businesses in comparison to other countries like China and India, which impose the huge tax and makes.
Ideal for startups
A pro-growth and innovation-friendly policy is prevalent in the country, which provides many grants, tax incentives and in-kind assistance schemes to startups. Considering preferred sectors, the government can also subsidize the labour costs of a new business. Both local as well as foreign-owned companies can avail the benefits. Singapore has nurtured its venture funding community well and is a prime venue in Asia for venture funds. The workforce is supportive and very productive too. There are many educational startups too which offer assignment help to students.
Singaporeans are known to have a reputation for being hardworking, rule-following, and productive. They are highly educated too, which makes the workforce stronger.
A liberal immigration policy runs in the country that helps in the survival of global talent in the country. Foreign professionals can obtain and maintain work visas or permanent residence (PR) status without hiccups.
Singapore has an ideal location in Southeast Asia which makes it accessible for many. It is well connected to China, India, Malaysia and Australia, some of the most important economies of the world. The port of Singapore is classified as a central International Maritime Center. World-class Singapore’s Changi Airport caters to approximately 20 million passengers every year. It offers convenient flights to every major city in the world. Singapore has a world-class infrastructure – the highway system, subways, internet infrastructure, commercial buildings, museums, hotels, and public parks are simply outstanding. The infrastructures are modern and new, and it creates a pleasing work environment.
Good regulatory framework
In the civil service, only the best and brightest citizens are recruited. The pay is highly well, leaving no room for corruption. The country imposed harsh punishments for any official misconduct. Due to stringent policies, the country stands tall as one of the least corrupt countries in the world. A modern regulatory framework gives strong protections for intellectual property. The commercial courts function well, and expropriation of the country’s wealth by its elites is almost negligible. The government is free of corruption, and ex-pats can work smoothly.
In Singapore, there is the ease of incorporation and operation due to the bureaucracy-free regulatory frameworks. The requirements for incorporating a company are straightforward, and the procedure for doing so is not cumbersome. It is seen that it takes less than a day to include a new company and the annual compliance requirements are simple. There is no unnecessary or complicated paperwork required.
The workforce in Singapore is mostly English, and it is acknowledged that Singaporeans are some of the most productive and well-trained workers in the world. It has an excellent education system and produces a good workforce.
Singapore is a well-functioning, modern and honest country. A positive perception of the brand rubs on its businesses too. Those who locate their business in Singapore can expect a lot of professionalism and quality. The company will get the first impression of being a professional, competent, honest, and well-run firm.
Are you a startup or an established company? Thinking of expanding and incorporating business in Singapore? Find out in the blog why to choose Singapore as an ideal spot. We mention the top reasons to start a business in Singapore
Author Bio: Rose Haughes works in an MNC in Singapore. She wanted to run a start-up initially and collaborated with an online portal to support students. Rose is also a part of MyAssignmenthelp.com.au and helps students from different learning backgrounds.