Singapore is often referred to as the gateway to South East Asia. Its low corporate tax rate and many business friendly policies make it an attractive place for international companies to set up shop. Companies looking to establish themselves in Singapore will enjoy a range of incentives including special visas and exemptions from capital gains taxes.
Singapore is an island city state located in Southeast Asia. Since independence in 1965, Singapore has grown rapidly. Its economy is driven mainly by trade, services, financial services and manufacturing industries. As of 2021, Singapore had a GDP per capita of about $58,000, making it the richest country in South East Asia for individuals.
But being a hot cool Asian Tiger is just the broad strokes of why foreign companies are choosing Singapore. Here’s some hard-items that make companies pull the trigger.
Attractive Tax Laws
Singapore is an island nation in Southeast Asia with a population of 5.6 million people. Its government is highly centralized, with its policies determined by a small number of people. The country’s tax system is considered simple and investor friendly. The highest corporate tax rates on taxable income is 17%, while the tax on capital gains and dividends is 0%.
There is no withholding tax on post-tax dividends. Foreigners are taxed on their worldwide income, regardless of whether they reside in Singapore. However, there are no foreign ownership restrictions. The country’ s regulatory framework provides a level playing field for both local and foreign investors.
Singapore also offers favorable treatment for cross border mergers and acquisitions. It does not require any approval process for such transactions. This means that MNCs can quickly enter into new markets without having to worry about the regulatory hurdles that may be present in other countries. In addition, the country does not impose any restriction on repatriation of profits or dividends.
Wide Range of Double Taxation Treaties
Double Tax Agreements (DTA) with more than 80 countries around the globe. The main benefit of a DTA is the avoidance of double taxation. Double taxation occurs when two different governments impose taxes on the same income earned by a taxpayer.
This leads to higher tax rates than if the income had not been taxed twice. Lowering the effective tax rate is beneficial for companies because it reduces the cost of doing business. A low effective tax rate also increases the attractiveness of a country for foreign investment. For example, Singapore offers a favorable corporate tax environment for its investors.
Singapore is one of few countries that have signed bilateral DTAs with all major developed nations. These include Australia, Canada, Japan, Republic of Korea, Mexico, New Zealand, Philippines, United States and European Union member states.
High-Technology Focus
Singapore was ranked as the world’s top destination for high-tech startups in 2016. According to the World Economic Forum, the country’s tech ecosystem is growing at a rapid pace. More than 1,200 companies were founded between 2010 and 2015, many of which are focused on digital technology.
The Singaporean government encourages innovation through various programs. One of them is the Infocomm Media Development Authority (IMDA). IMDA aims to promote the development of information and communications technologies in the region. Another program is the Agency for Science, Technology and Research (A*STAR), which focuses on developing innovative solutions for industry and society.
The Government has also launched initiatives to attract foreign investments in science and technology. These include the National Research Foundation, which supports research projects, and the Singapore Institute of Manufacturing Technology, which promotes R&D activities.
Singapore is home to some of the most advanced industries in the world. Some of these include semiconductor manufacturing, pharmaceuticals, biotechnology, medical devices, life sciences, aerospace, defense, maritime, oil & gas, financial services and IT.
In addition, the city state is home to the headquarters of several multinational corporations such as Apple Inc., Google Inc., Microsoft Corp., Facebook Inc., Amazon.com Inc., MasterCard Inc., Visa Inc. and Standard Chartered PLC.
Great Financial Infrastructure
Singapore is also known for being a global hub for trade finance. The city state hosts several international organizations including the International Monetary Fund, Asian Clearing Union, Asia Investment Bank, International Chamber of Commerce, International Air Transport Association, International Maritime Organization, International Civil Aviation Organization and World Trade Organization.
Strategic Location
Singapore has an excellent transport system, with a well-developed road network, rail lines, and waterways. Singapore is connected to other parts of Southeast Asia through land and sea routes, making it easy to move goods around the region. Its ports are highly efficient, and there is a large number of cargo ships moving goods around the globe.
Singapore is located near the centre of the Indo-Pacific region. It is strategically positioned between East and West, allowing it to serve as a bridge between Asia and Europe. In addition, the city state enjoys good relations with both China and India.
With this in mind, it’s also positioned to help foster the transition of newer manufacturing to South Asia as India and it’s neighbors begin to up the anti with better infrastructure for manufacturing in order to compete with China. Singapore is poised to act as the facilitator state in this long term transitional period.
Easy Immigration
Singapore’s visa scheme for entrepreneurs and working professionals. The government is always looking to invest in foreign startups and attract top global talents. The startup visa allows young companies to stay in the country for three years while they grow, giving them access to capital, mentorship and other resources.
A Skilled Workforce
Singapore’s workforce is one of the best educated in the world. More than 80% of its citizens have tertiary education, compared to less than 50% globally. This means that there are more skilled workers available, which helps businesses find qualified employees.
The quality of work force is so high that many businesses choose to relocate their operations to Singapore from overseas due to the talent pool.
Registering a Company in Singapore
If you plan on setting up a business in Singapore, you must register your company first. If you don’t do this, you won’t be able to open any bank accounts or pay taxes. You can get registered at the Accounting and Corporate Regulatory Authority (ACRA) website.
Once you’re done registering, you’ll need to apply for a Business Registration Number (BRN). A BRN is like a social security number for your company. It will allow you to run your business efficiently and legally.
Once you’ve got your BRN, you can open a bank account, pay salaries and receive tax payments online.
Does this all sound like it’s a pain?
Open your Singapore company with Air Corporate today, and we’ll take care of the heavy lifting. All you need to do is provide some initial documents and sign your name when and where needed. Access your documents any time online and get in touch with our experts anytime.
The EntrePass visa is a non-immigrant work and study visa for foreign entrepreneurs who wish to start their own business in Singapore, or expand an existing one here. It enables them to come, stay, work, study, or do both in Singapore for up to two years.
This visa will allow you to:
- Start your own company
- Expand your current business
- Work as an employee of another company
- Study at any local university or polytechnic institute
In addition, it also allows you to apply for permanent residency after three years.
Key Facts about the EntrePass
The EntrePass visa has been introduced since 1 January 2012.
It can be applied for by anyone aged 21 and above who:
- Is not a citizen of Singapore
- Has sufficient funds to support himself/herself during his/her stay in Singapore
- Does not have a criminal record
- Does not pose a threat to public safety
- Is willing to comply with all conditions laid down by the Ministry of Manpower (MOM).
Countries Covered by the EntrePass?
You can apply for the EntrePass if you are from one of these countries:
| Belgium
Canada
Chile
Denmark
France
Germany
Ireland
Italy
Japan
Netherlands
Norway
Poland |
Portugal
Spain
Sweden
United Kingdom
USA
Australia
New Zealand
Philippines
South Africa
Thailand
Vietnam |
Singaporean citizens can apply for this visa on behalf of overseas companies they represent.
Eligibility for EntrePass
To qualify for the EntrePass, applicants must meet the following criteria:
- Be between 21 and 40 years old
- Have sufficient funds to support yourself while in Singapore
- Not have a criminal record
- Meet the requirements of MOM
- Have a valid passport that is valid for at least 6 months beyond the date of intended departure from Singapore
- Have no outstanding debts
- Have a good command of English
How to Apply for the EntrePass
Step 1 – Registering Yourself as an Overseas Company Representative
For every applicant, there will be one representative registered under him/her. This representative should be someone who knows the applicant well and has complete access to the applicant’s financial documents. For example, if the applicant is married, then he/she can register themselves as the spouse of the applicant.
Step 2 – Obtaining a Work Permit
The application form will ask for details such as:
- Name of the applicant
- Date of birth
- Nationality
- Address
- Email address
- Phone number
- Contact person
- Business name
- Type of business
- Registered office address
- Total number of employees
- Total annual turnover
- Employer’s bank account number
- Fiscal year end
- Tax identification number
Step 3 – Submitting the Application Form
To submit the application form, applicants need to fill out the online EntrePass application form. They may choose to use either a desktop computer or laptop. Applicants may also use a smartphone to fill out the form. However, they cannot use a mobile device to scan the application form.
Step 4 – Paying Fees
Applicants need to pay the $1,000 fee for processing the application. Payment can be made using credit cards or debit cards.
Step 5 – Waiting Period
After submitting the application form, applicants will receive confirmation via email. Once the application is approved, the applicant will get an appointment letter within 7 working days.
Step 6 – Appointment Letter
Appointments letters will be sent to applicants’ email addresses. If the applicant does not have an email address, then the appointment letter will be delivered to the applicant’s home address.
Step 7 – Interview
When the applicant meets the immigration officer at the airport, he/she will be asked about his/her background, employment history, family members, and assets. The interview process takes approximately 15 minutes.
Step 8 – EntrePass Approved
Once the interview is over, the applicant will be given EntrePass approval notice by the Immigration Department. The applicant needs to keep this document safe until their arrival in Singapore.
Step 9 – Arriving In Singapore
On arriving in Singapore, the applicant will need to present the EntrePass approval notice to the Immigration Officer at Changi Airport. He/She may also be required to provide other supporting documents like an invitation letter or an air ticket.
Step 10 – Re-Entry Into Singapore
If the applicant re-enters Singapore after having left it without obtaining the EntrePass approval, he/she will face a fine of up to S$5,000.
Passes for Dependants
The above information applies to individuals. But what about those who work with an entrepreneur? Can they apply for an EntrePass visa too? Yes! There are two types of passes that can be obtained from the government:
(a) Dependent pass
This type of pass allows dependents to travel into Singapore while the entrepreneur is staying outside of Singapore. It is valid for 30 days. A dependent pass holder must show his/her passport when entering Singapore.
(b) Non-dependent pass
A non-dependent pass is valid for 90 days. An individual holding a non-dependent pass can enter Singapore without showing his/her passport.
Note: Both types of passes require the entrepreneur to obtain a separate pass before leaving the country.
Permanent Residency Benefits
There are many benefits associated with permanent residency in Singapore. For example, you can live in Singapore indefinitely. You can also bring your spouse and children to live in Singapore. Permanent residents do not have to renew their passports every time they visit another country as often, as entering Singapore will no longer require a passport.
Visa Free Travel with EntrePass
Entrepreneurs who hold a Singapore permanent resident pass can travel freely between countries without requiring a visa. This means that entrepreneurs can travel to any country in the world and stay there as long as they wish. They will only need to obtain a tourist permit to visit Singapore.
FAQs
What documents do I need to apply for an EntrePass?
You need to submit the following documents to support your application:
• Your EntrePass Application Form
• Proof of identity such as a driver’s license or passport
• A recent photo
• Two copies of your passport
• One copy of your current passport
• Five bank statements
• Three years of tax returns
• Invitation Letter
• Air Ticket
How much does it cost to get an EntrePass? How long does it take?
It costs $1,500 and takes six months to receive an EntrePass.
I was rejected for an EntrePass What should I do?
In case you were rejected for an Entrepass, you can appeal against the decision. To do so, you need to contact the Ministry of Manpower at 1-637-7001 within 14 days of receiving the rejection notification.
I am planning on applying for an EntrePass soon… how can I prepare myself?
Here are some tips to help you prepare yourself for the process:
• Read through the guidelines carefully and follow them closely.
• Make sure all the documents submitted are complete and accurate.
• Ensure that you have enough money to cover the entire procedure.
• Keep track of the progress of your application and ensure that all relevant documents are sent to the right address.
• Do not forget to check if you have already applied for an EntrePass. If yes, then make sure that you provide proof of this.
Can I apply for Singapore permanent residence with my EntrePass?
Yes, you can! Anyone with legitimate business investment or business vehicle can apply. However, you cannot apply for permanent residence until after you have been approved for an EntrePass and received your permanent resident card from the Ministry of Manpower.
How long does it take to get an Entrepass in Singapore?
The average processing time for an EntrePass is 6 months.
How to collect your Singapore Entrepass?
After you have completed the EntrePass application form, you must send in the required documents by post to the Ministry of Manpower’s Immigration Department. The department will then issue you with an EntrePass. Once you have received your EntrePass, you may pick up your EntrePass from one of the designated collection centres located around Singapore.
Where do I start?
Part of getting the EntrePass for Singapore is to first have a registered business in Singapore. The experts at Air Corporate are here to help you. Talk to one of our experts or immediately register your Singapore business with us.