In 2018, there were more than 61,000 companies incorporated in Singapore, illustrating the attractiveness of Singapore for both local and foreign entrepreneurs. Why is this situation so? What benefits can Singapore offer you? Let’s dive in.
Why Singapore ?
Attractive tax system
Singapore is among the top 10 countries with the lowest tax rates in the world. The corporate income tax rate in Singapore is 17%, which is very competitive, compared to other countries such as India (34%), Australia (30%), Vietnam (20%) and Switzerland (17.92%).
On top of that issue, there are other partial tax exemptions for small and medium-sized enterprises (SMEs) in the first 3 financial years after incorporation. According to The Inland Revenue Authority of Singapore (IRAS), in 2018, the first S$ 100,000 of taxable income will be exempted from 75% of the corporate income tax. The next S$ 100,000 taxable income will be exempted from 50% of the income tax. The taxable income of S$ 201,000 onwards will be charged at the normal tax rate of 17%. This position means that the effective tax rate for new businesses is even lower than 17%.
In addition, Singapore has adopted a single-tier corporate income tax system, which means there is no double-taxation for stakeholders. Thus, there is no tax on capital gains or dividend income. Also, Singapore maintains one of the lowest Goods and Services Tax (GST) rates in the world, at 7%. By contrast, the world’s average VAT/GST rate is 16.4% and the average in the Asia-Pacific region is 10.5%.
For more information on Singapore’s tax incentives, contact us.
Transparent Law and Regulations
Transparency International’s 2018 Corruption Perception Index ranks Singapore in 3rd place out of 180 countries. Similarly, in the Political and Economic Risk Consultancy’s 2018 Report on Corruption in Asia, Singapore is deemed the least corrupt country in the region, a position it has held since 1995. Singapore is also ranked fourth for the absence of corruption in the 2017-2018 Rule of Law Index compiled by the World Justice Project and it is the top Asian nation out of 113 countries.
The transparency, stability, and lack of corruption bring all business owners peace of mind when operating their businesses in Singapore.
For more information on how to stay compliant with the local regulations, contact us.
World-class Infrastructure
On the Global Competitiveness Index (GCI) published by the World Economic Forum in 2019, Singapore is the most competitive economy in the world, and it is ranked first on three pillars: infrastructure, health, and labour market. Its world-class airports, highways, ports, commercial buildings, and many more positive elements ensure smooth operation for your business.
Besides, the government’s high technology adoption rate enables businesses to do almost everything online, from submitting annual reports, to receiving government notifications, to paying taxes, etc. Singapore’s high-speed internet and advanced technologies allow foreign business owners to manage and control their companies from anywhere in the world.
For more information on what Singapore can offer you, contact us.
Advanced financial and banking system
Singapore is a leading financial center in the world with an extremely stable and secure banking system. More than 100 banks and financial institutions are legally registered here, including the top banks in Asia and all other continents. This ensures that your business can have solid capital and your banking needs will be met. The government’s tight regulations over fraud make Singapore an ideal place to keep assets for business owners from all over the world.
On top of that, thanks to the advanced technologies that the banks here have adopted, account holders can manage their accounts online and carry out international transactions in an easy, secure, and seamless manner.
For more information on how to open personal or business bank accounts in Singapore, contact us.
Flexible immigration policies
A foreigner who owns a company in Singapore and wishes to immigrate to Singapore to manage and control the business can apply for work passes to legally stay and work. The two most common passes are the EntrePass and Employment Pass (EP). It is recommended that you apply for an Employment Pass instead of an EntrePass because of the simpler requirements and application process .
When applying for an EP in Singapore, the following points are requirements for applicants:
- Own a company in Singapore (Note: the company should be registered for at least 6 months); or
- Get a job offer with the company in Singapore (in this case, the company in Singapore will support its employees to apply for an EP card with the Ministry of Manpower)
And
- Get minimum wage of $ 3,600 / month; and
- Higher educational attainment (degrees and other good achievements from reputable universities are advantages)
For more information or support with the application, contact us.
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