5 Compelling Reasons to Establish Your Business in Singapore
If you are starting a new company, it would be a great idea to register it in a country that makes it easy for you to grow. Ready? Here is why you should choose Singapore for your business incorporation.
Why Choose Singapore?
Singapore ranks 2nd for the ‘Ease of Doing Business’ indicator. This city-state is an ideal place for starting a new business and offers you,
- Fast company incorporation
- Affordable taxation
- Easy compliance
- The least amount of red tape and corruption
- Political stability
- World-class infrastructure
- Best communication networks
- Reliable air and sea connectivity to outside world
- Secure and high quality of life
All these factors contribute to your success as a business owner. If you already run a business in your native place and want to expand it overseas, choose Singapore for your business registration. This move gives you a foothold in Southeast Asia and a chance to tap the emerging markets in Asia in future.
Reasons You Should Choose Singapore for Your Business Incorporation
International business community has a strong presense in Singapore. The country is home to 7,000+ MNCs, 300+ venture capital and private equity funds, international banks, and almost 50% of Asian regional Hqs.
The Singaporean startup ecosystem is also well-established and provides adequate support to new businesses through the SPRING initiative.
Mature and experienced entrepreneurs prefer to register company in Singapore. Here are a few more reasons for you to choose Singapore for your business registration:
- Startups get tax benefits for the first 3 years
- Low company income tax rates
- Affordable personal income tax rates
- There is no capital gains tax on dividends
- Singapore has no inheritance tax
1 Strategic Geographical Location
Singapore is a well-known Entrepot because it straddles the sea trade routes worth $5 trillion between the East and West. It is a top International Maritime Center and is an important part of the global trade and supply chain.
Singapore is located in the heart of Southeast Asia and you can romp all over the place by air. Changi airport provides reliable connectivity to emerging markets in Asia and important places. Efficiency, services, and competitiveness-wise, it is one of the top airports in the world. It’s harbours, too, are efficient and cater to the shipping to more than 700 harbours spread all over the globe.
2 Singapore Taxation
Taxes are your liabilities that you must discharge promptly. They can really put contrain on your budget for research, and product development, and growth initiatives.
It is why you should seek low tax rates which will enable them to save money. You can do so by opting to register company in Singapore. Here, the personal and corporate income taxes are indeed low and affordable.
- Personal income tax is progressive and is in 0%-24% range
- Corporate income tax is a Single tier tax. It is capped at a flat rate of 17%
Singapore do not charge any tax on capital gains. In practise, it means after your company have paid its taxes, it can disburse tax-free dividents to you. In additon, there is no wealth or inheritance tax in Singapore.
You can transmit money out of Singapore anytime. There are no restrictions on moving your hard-earned profits out of Singapore and to a country of your choice.
Goods and Services Tax (GST)
In the past, Singapore companies and individual tax payers used to pay as much as 40% of tax on their chargeable income. However, government relieved them of the burden by introducing Goods and Services Tax. GST is a tax on consumption of goods and services in Singapore. The current GST rate is 9%.
3 Protection of Intellectual Property (IP)
Singapore has strong IP laws to protect your intellectual property. These copyrights laws are enforeced strongly and any infringement is treated as a criminal offense.
These IP laws reduce the chances of your competitors copying your product and benefitting from it. If it happens, you can go to court to address the situation. It is the reason why many Research and Development companies have setup their facilities in Singapore.
4 World-Renowned Labor Force
The success of any business depends on its employees’ skill set, communication, experience, Etc. And, knowing more about the Singaporean workforce will tell you why Singapore is good for business?
Singapore has raised a well-respected and productive workforce. It is made up of experienced, qualified, and skilled professionals. In 2023, it was 3.47 million strong. As per the Singapore Economic Development Board, 30% of these have university degrees, and 15% have diplomas or professional qualifications.
Singapore have world-class universities, colleges, and education centers which contributes to the workforce. In addition, this country has successfully attracted professionals from all over the globe to its workforce.
These are English-speaking professionals well accepted by multinational corporations for ease of communication on the work floor. So, you should stop worrying about any communication barriers.
5 Quality of Life
Why choose Singapore to relocate your family to Singapore after starting a company in Singapore?
Well, rest assured, this is a very secure place. It boast of its world-class eduction including schools and universities. It provides residents excellent rapid public transportaion system, top healthcare facilities, healthy living, and highly reliable communicaiton networks and air-connectivity.
Singapore is a home to many different cultures that works togather to make it an attractive place. As business owner, you get access to a proven business support system and stable political environment. You also benefit from the various Avoidance of Double Taxation Treaties (DTA) that Singapore has signed with other countries.
Here is why you should choose Singapore for your business incorporation in short. As a local company owner, you get access to tax benefit schemes for the startups and existing businesses. These help in keeping your overhead costs down. Low taxes means more money in hand to grow your business in a safe and secure enviornment.
Contact us at info@sbsgroup.com.sg or +65-6536 0036 to get answers to queries about different business structures available to you to register a Singaporean company.
Also Read: Why Singapore is Good for Business?
