Many will recommend you to set up a company in Singapore, but why is that so?
Is it the taxes or the economic conditions? Does the country have developed infrastructures or the government is supportive of foreign investments? Or maybe is it because of the geography and the buying power?
Hear us out- it is all of them! Singapore is arguably the most attractive place to run a company, and it has been listed as the easiest and the best place to do business in many analyses and studies.
Here are the reasons you need to open a business in Singapore:
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Economic Landscape of Singapore
Singapore is one of the most open economies in the world and the World Bank has added that the city state is the most pro-business in the globe. There is very little bureaucracy, and little to no corruption. Furthermore, with the good education system, almost all of the population is empowered to contribute significantly to the development and this has been reflected in the numbers.
Stable GDP Growth & Political Climate
The gross domestic product (GDP) was $337.451 billion in 2020, even amidst the pandemic, which is an impressive number as the population is only about 6 million. Furthermore, the human development index in Singapore is 0.938, which represents a highly developed economy. The biggest industries are manufacturing and services, and they are still climbing the charts with the innovations that the country already has.
It isn’t only about the GDP, but Singapore also has one of the most stable political climates. The ruling People’s Action Party has been in power since 1969, and the parliament sits for a maximum of 5 years. The Workers Party is the largest opposition, and honestly, both of these and other political powers have been doing good on their roles which can be seen from the sustained development in the city-state.
One-tier Corporate Tax System
In addition to the Government’s support to the companies, Singapore has one of the lowest personal and corporate tax systems. The corporate tax rate in Singapore is 17%, which also comes with a lot of discounts.
Furthermore, Singapore has various DTAs and a territorial tax system. This means that when trading with many countries, you only have to pay taxes in a single country and pay taxes in Singapore for the income derived in Singapore itself.
Government Grants
Government grants are one of the biggest reasons that both foreign and local investors want to start a company in Singapore.
Let us start from the partial tax exemption for companies- even if the base rate is 17%, the government has incentives depending on how much income the company made. For example, for the first SGD 10,000 income, you don’t need to pay taxes for SGD 7,500. For the next income upto SGD 290,000, you have an exemption of 50% (meaning that you don’t need to pay taxes for 50% of your income). All this means that for the first SGD 390,000 your company makes, you don’t need to pay corporate taxes for SGD 152,500.
Other popular government grants are Productivity Solutions Grant, Enterprise Development Grant (EDG), PACT, Double Tax Deduction for Internationalisation (DTDi), and many more. These grants can be incentives, loans, or even direct fundings from the government.
Geographical Location
The geographical location is another reason you would want to open a company in Singapore. The country is located in the heart of South East Asia, and is a part of ASEAN. Furthermore, the city-state has some of the busiests airports and seaports in the world, and has been able to maintain great relationships with the biggest markets in Asia and around the world.
When you register a company in Singapore, you open a world of opportunities. As shipping and receiving income is easy, you can easily do business and make profit from most of the places in the world.This can also be seen from the fact that the country already has 20 Free Trade Agreements.
The Singapore Government is still building good relations with other nations, which includes Bilateral Investment Treaties and FinTech Cooperation Agreements. Thus, in some time, we will hear the news that trading with countries from the Middle East, South America, and Africa has also become easier.
Talented Workforce
The estimated number of labor force in 2019 was a little more than 3.4 million, and the literacy rate is 97.4%.
With one of the world’s best education systems, Singapore citizens are very skilled.. People from all around the world are also moving to Singapore for job opportunities. This can be a good thing to investors as Singapore is already a highly competitive economy so only the best talents can thrive in the city-state.
With ongoing developments in technology, pharmaceuticals and chemical products, Singapore has created some of the best workforce in these areas.
Ease of Incorporation and Operation
Opening a company in Singapore is one of the easiest processes to do compared to other countries. It is easy to understand and there are no barriers for foreigners when it comes to ownership and operations.
Locals are able to incorporate a company themselves and foreigners will be able to hire a Singaporean representative to open a company on their behalf if they fulfil the requirements. Although there are some requirements to fulfill while operating a company, there are many incorporation service providers which are able to help you resolve these requirements.
3E Accounting Can Incorporate Your Company Within 2 hours in Singapore
If you want to open a company in Singapore , the first step would be contacting a registered filing agent. Choose an agent who not only helps you to register your company, but also the operations later on. 3E Accounting is a leading Corporate Service company in Singapore who has already helped to register more than 4000 companies till now. They have one of the cheapest yet, the best registration services, and also provide services for accounting, secretarial, human resource, tax, payroll. In other words, they provide literally every administrative support for your company.
For a company that has won various accolades and awards and has even been featured in various news, it is no wonder that they have splendid customer service as well. They are known for being kind and trend setters when it comes to office administrative support; just contact their incorporation services Singapore, and your entrepreneurial journey will start on the right foot.