Set Up a Company in Singapore to Enjoy Its Manifold Advantages
Singapore has been crowned the easiest place in the world for doing business. This reputation is likely to attract a huge pool of entrepreneurs across the globe to set up a company in Singapore. Over the years, the city-state has built an image as liberal, business-friendly hub that serves as an entry point to the Southeast Asian market.
The island nation is now a leading financial hub, one of the busiest ports in the world and most importantly, an entrepot of the trading business. Many new and growing industries have evolved over the years and thus, upgrading the business prospects of the nation to a new height. The emergence of digital media, biomedical sciences, clean technology, and fashion industry is letting all know how the industrial sector of the “Lion City” has continued to evolve.
Probably, these are the key reasons why global entrepreneurs are showing interest in company incorporation Singapore. Leaf through the article to know the various factors which make the Republic truly a business paradise for all.
Singapore: The Leading Financial Hub
In just a few decades, Singapore has established itself to be a booming financial center in the global context. It serves not only just the domestic market but also transcend into Asia-pacific region and beyond. The finance industry of Singapore offers a broad range of services including banking, insurance, foreign exchange, asset management, treasury services and investment banking. Singapore ranked one of the top positions in the world for its competitive financial sector. With liberalized banking sector, the domestic finance sector has become strong and effective amidst rising global competition. Being one of the leading financial centers, Singapore never fails to attract investors and entrepreneurs to its shores.
Advantages of Registering a Company in Singapore
With many international companies (including MNCs), the advantages of Singapore company registration are obvious. The benefits are visible in almost every aspect starting from registration process to taxation.
The Registrar of Companies i.e. ACRA (Accounting & Corporate Regulatory Authority) oversees the company registration process. It’s a two-steps method 1) company name reservation and 2) company registration. The process is computerized and takes very less time to accomplish. It is fast, simple and devoid of red tape hurdles.
One needs to undergo very less paperwork for the completion of the process. The foreigners are free to open and own a company with 100% ownership. They just need to appoint a local director (Singapore citizen, PR, EP holder) to represent the company.
When you incorporate a company in Singapore, it is considered to be a tax resident of the nation and entitled to all benefits and incentives. It is applicable to all locally incorporated company even if the owner of the company is a foreign national.
The best part of Singapore taxation is that it follows territorial-based taxation where income earned within Singapore is taxed. There are a series of tax incentives and benefits for the local tax residents. It is a single-tier tax policy and dividend earned by the shareholders are not taxed.
There are attractive tax exemption schemes. The zero-tax exemption & partial tax exemption schemes are worth mentioning. The newly incorporated company can enjoy full tax exemption for each of first three years up to the annual revenue of SGD100,000. The companies (both new and existing) whose annual turnover is between SGD 100,001 to SGD300,000 are eligible to enjoy the partial tax exemption scheme where the effective corporate income tax rate is 8.5%.
Many foreign entrepreneurs are drawn to Singapore due to its wide network of more than 70 Double Tax Agreements (DTAs). In addition, there is no capital gains tax under the Singapore jurisdiction. And, the GST rate of 7% is one of the lowest in the world.
The Provision of Work Passes in Singapore:
Although Singapore government has lately tightened the hiring rules for foreign labors in order to protect its local workforce, the country still has a fairly flexible immigration policy for the talented and skilled professionals to enhance the talent pool of the nation. There is work pass scheme based on the qualification, skill set, and experience of the professionals. Employment Pass (EP), EntrePass (Entrepreneur Pass), PEP (Personalized Employment Pass) and S Pass are the main work visas available for the foreigners. A person who bears EP or EntrePass is allowed to incorporate a company in Singapore.
The city-state is home to a decent pool of highly talented, educated, dynamic and highly productive English-speaking workforce. Hence, you get the chance to tap into the productive workforce of the nation to grow your business at an exponential rate.
Government’s Grants for Startups
The role of government in turning Singapore into an Entrepreneur Paradise is praiseworthy. It has invested tons of money in cash grants, incubator schemes, equity programs and so on. The key motive is to provide succor to the SMEs (Small and Medium Enterprises) of the nation. It is a part of its initiative to nurture the startup ecosystem of the city-state. Capital being the crucial part a business venture needs to be taken care by each and every entrepreneur carefully. What else do you need when you have such a supportive government with you? It is a legitimate reason to set up a company in Singapore.
As you are getting these advantages from the company incorporation Singapore, why to wait and search for other destination? This island nation is the place that ensures a bright and promising future ahead.
SBS Consulting is a Singapore-based firm that specializes in company registration, accounting, bookkeeping, corporate taxation services (Form C / C-S, ECI), XBRL services, corporate secretarial services, AGM filing, payroll and so on. With its unmatched services, innovative ideas and profound concept, the firm has built a huge client base among the small and medium businesses in Singapore.