Doing business in Singapore tends to be a great idea for a lot of businesses large and small, and that’s mainly due to the country’s ability to support businesses with all they need to succeed no matter the cost.
Here’s 8 reasons why most businesses choose to do business in Singapore and why your next venture might just go there as well.
1. Easy Business Registration Process
Singapore has one of the easiest registration processes in the world. The government makes it easy to set up a company by providing legal services, including incorporation, tax filing, and annual renewal. In addition, you can register online or through an agent. You also have the option to file your taxes on paper instead of electronically if you prefer.
The only catch compared to other competitive markets in the region like Hong Kong, like the requirement to have a local resident as a director for your company. There are services that provide this, but it does add to the extra cost of doing business.
2. Access Global Talent
Singapore has overtaken Silicon Valley as the world’s top start-up ecosystem. Singapore’s workforce is effectively bilingual, with a high level of education. Singaporeans are highly skilled and competitive. They speak English, Mandarin Chinese, Malay, Tamil, Indonesian, and other languages.
Singapore has the best labor force in the world in terms of worker productivity and overall attitude. Because of strong business rules, a usually pleasant working environment, and appealing living circumstances in the nation, the staff is highly motivated.
Sound education systems, ongoing training programs, and appealing immigration rules all contribute to the availability of the region’s best talented labor pools.
Furthermore, owing to more open communication channels and camaraderie between employee and employer, Singapore has better working conditions and greater rates of productivity in terms of employer-employee relations.
3. Excellent Tax Benefits
A corporate tax rate of 17% is one of the lowest rates in the world. Your new startup business can also benefit from an annual tax exemption of up to $125,000 in the first 3 years. After the 4th year, you’ll get to save big on taxes since up to $102,500 of your company’s income will be tax-free.
Tax residents enjoy lower personal income tax rates than non-residents. Residents also benefit from other government services such as free public transport and subsidized housing.
The Singapore government has signed 21 free trade agreements (FTAs) and 76 complete avoidance of double taxation agreements with 27 countries (DTAs). These agreements make it easier to do business and trade across borders by lowering tax barriers to trade, investment, technological know-how, and experience. This, along with the absence of capital gains and profits taxes, as well as reduced withholding taxes, makes Singapore an attractive place to start a business.
Singapore also has one of the most appealing company tax arrangements in the world, with a corporation tax rate of 17 percent on taxable revenue. Despite having the world’s third-lowest marginal rate, the effective rate, which takes into account the different programs, is significantly lower.
4. Reliable Legal Framework
Singapore’s legal framework is based on English common laws and is ranked top in the world for having the best IP protection. Singapore’s legal system is reliable and uncorrupted thanks to regular elections and oversight. Singapore is your best bet to launch into Asia if your business needs the local government on your side.
Singapore has the most stable political climate in Southeast Asia, providing a strong sense of security and comfort to businesses and investors. Asia offers a diverse range of eating and entertainment alternatives, as well as world-class educational institutions and high-quality health-care providers, making it a great place to raise a family. Furthermore, firms may depend on Singapore’s reputation as a world-class arbitration institution in the case of cross-border conflicts.
In addition, the World Economic Forum classified Singapore as having the best IP protection in Asia in its Global Competitiveness Report 2015–2016. Singapore is ranked as the most transparent country in Asia with a stable business climate, according to the same assessment, due to its robust political infrastructure and policy-making procedures.
5. Tech-oriented Community
There’s a reason why companies use Singapore as a testbed for new technology. Innovation is an integral part of the country’s business culture. Connect with other innovators and tech giants at networking events such as the Singapore Fintech Festival.
Startups are welcome to apply for funding through the Incubation Centre of Excellence or ICoE. The ICoE provides seed financing and mentorship to help startups build their products and scale them globally. It also helps startups connect with potential partners and customers.
6. Reliable Infrastructure
Singapore is one of the world’s most technologically sophisticated ICT marketplaces and one of the most connected countries. Singaporeans are highly connected, keen technology users, and voracious data consumers. Wireless internet penetration was 173.2 percent in December 2020, while mobile penetration was 148.2 percent.
7. Strong Government Support
Singapore is a small country, but there are many innovative companies operating here. There are also many programs to help new businesses get started. For example, the Enterprise Zone Policy supports entrepreneurship and encourages funding for research and development.
8. Reasonable Costs of Living
Singaporeans should be careful when choosing what kind of lifestyle they want. Living in the CBD is expensive. Hawker centers offer cheap meals. Housing prices are high.
At Reliance Consulting, we’ll help turn your ideas and visions into business realities. We’ll work closely with you to develop an action plan that will lead to success. Contact us today!
Opening a business in Singapore
Starting a business in Singapore is not only beneficial because of the low costs involved in doing so, but because of its strong economy and stable government. If you’re looking to start a business in 2018, consider starting in Singapore.
Open a business with Air Corporate and our experts will walk you through everything you need to know to register and maintain your corporate body so you don’t have to.