The Republic of Singapore is a gem in the Asian subcontinent. After gaining independence from the British only in the 1960’s, it has quickly transitioned itself from a developing to a developed nation in a single generation. For decades, the country has been on the top of the World Bank’s “Ease of doing business report”.
So, what has made this island country a popular choice among business houses? Let’s explore.
Attractive Tax Structures
Tax rates and compliance obligations are important factors for a business to build its headquarters in. Singapore is a leading example where business friendly tax policies help both the government as well as business. From personal to business, the country follows a simple tax structure to attract growth.
The normal tax rate for both local and foreign companies is 17%. However considering the various deductions available, the effective tax rate for a new company is just 4.25% for its first SGD 100,000 of income.
There is no tax on capital gains, no tax on dividends and no alternate minimum tax. Even for residents, only the income earned or received in Singapore is taxable.
Easy business registration and compliance
Registering foreign businesses is easy in Singapore and requires minimal documentation. One can complete the registration process within a day or week depending upon the complexity of business. There is no minimum paid up capital.
All processes are online and an experienced agent can complete the process without any hassles.
100% foreign shareholding
Singapore allows 100% foreign shareholding in companies without any restrictions.
Location and Free Trade
Singapore sits on one of the most important trade routes i.e. the Malacca Straits. By being on the entrance of the South China Sea, Singapore also forms the gateway between the East and the West. Singapore’s Changi International airport serves over 80 international flights, connecting more than 300 countries. The country is a winner when it comes to well designed ports with around 200 shipping lines, linking 123 countries.
When it comes to trade agreements, Singapore has 21 bilateral and regional FTA’s in force and 41 investment guarantee agreements.
Melting pot of cultures
Being a former British colony, Singapore boasts a combination of Asian and Western cultures. The legal, taxation and administrative policies are somewhat similar to the English law. This attracts business owners as they can easily adapt to the Singaporean way of doing business. Not only this, the country has continuously strived to present itself as a good work destination to western countries by adopting their languages ( has the largest number of English language speakers) and ways to work.
Intellectual property protection
Singapore has worked hard to provide robust regimes to protect a company’s Intellectual Property (IP) rights, which are critical to any business. It offers generous incentives to encourage development and registration of IP like the Productivity and Innovation ( PIC) credit to companies that register IP.
When it comes to defending IP, Singapore does it efficiently with its copyright and patent laws. The legal system of courts and dispute laws are designed keeping IP rights protection in mind. The country has also established an IP court that is next to only the one in Geneva.
Work Passes
Once you have a company in Singapore, you can apply for Work visas or pass like Employment Pass or Entre Pass can also be easily obtained to gain the right to work in Singapore.
Let us know
If you are planning to start a business in Singapore, we at Fideserv are all here to help you.
We are one of the fastest growing corporate services company in Singapore assisting start-ups on company formation, accounting, taxation and immigration matters. Contact Us to know how you can benefit from setting up in Singapore.