Singapore is known worldwide for being a leading country of choice when it comes to doing business internationally. So, why is doing business in Singapore so beneficial and businessmen from all over the world want to incorporate a company here?
Here are several main factors:
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Great location and infrastructure
The location of Singapore gives a unique privilege of having access to the entire Asia population, especially to other business spots like China, India, Malaysia, Australia, etc.. So, if you plan to establish a business in Singapore, you will also have an opportunity to create important and beneficial trade and other business connections across the region.
Robust economy and no currency control
Singapore has a successful free-market economy, and has been ranked as the most open in the world. Moreover it mainly relies on finance, trade, and manufacturing for growth. Singapore has the second-highest per-capita GDP in the world in terms of purchasing power parity (PPP). 75% of the country’s GDP comes from the services sector and it employs about 80% of the eligible workforce. Singapore has a low unemployment rate and low inflation. The government carries out judicious foreign investments and provides subsidies on housing, transport, education, and health to its people. All these factors are proof of a robust and stable economy.
There is also no limitation on profit repatriation and businessmen can brough foreign currency into or taken out of the country without restrictions. This makes Singapore especially attractive to large companies, who may face enormous taxes moving money otherwise.
The prestigiousness of running a Singapore company
Singapore's economy ranks 3rd in competitiveness, according to the latest International Institute for Management Development (IMD) World Competitiveness Ranking report. In 2021, its economy took the 5th position, while in the year prior, it was at the top spot. Therefore, having a company in one of the most developed countries is not only convenient, but also extremely prestigious.
Favorable tax policies and a simple taxation system
Singapore has one of the most friendly tax systems in Asia and it imposes no tax on dividends or on capital gains from a business. There is a tiered approach to both corporate and personal taxes in the country. For the first three years, new businesses receive considerable tax benefits that bring their liabilities down to 0% for the first income of S$100k. Moreover, corporate taxes are capped at a rate of 17%. The country also has Avoidance of Double Taxation Agreements in place with more than 50 countries.
Convenient and effective banking system
The Singapore banking system is one of the top-level systems internationally, with high levels of security and stability. There are various types of banks in Singapore, grouped into domestic and foreign banks. All commercial banks in the country are under the supervision of the Monetary Authority of Singapore.
Singapore companies have plenty of options when it comes to opening a corporate bank account. Most of the banks in Singapore offer attractive features such as multi-currency accounts, internet banking, credit cards, trade financing, freedom to move funds across countries, and much more.
Lack of corruption
In Singapore, public servants receive high salaries and there are strict penalty mechanisms in place for fighting against corruption. As a business owner, you are less likely to face a bribery situation in SIngapore, as both public servants and citizens strictly follow the rule of law.
Availability of a highly-skilled workforce
Singapore is known worldwide for its great education system. Therefore this country has one of the best available skilled workforces in the market. Singaporeans are known for being hard workers. In addition, the good immigration systems attract a lot of global talent that you can also recruit for your business. Another advantage is that Singaporeans are English-speaking, making communication with most foreign HQs easier.
The location of Singapore gives a unique privilege of having access to the entire Asia population, especially to other business spots like China, India, Malaysia, Australia, etc.. So, if you plan to establish a business in Singapore, you will also have an opportunity to create important and beneficial trade and other business connections across the region.
Robust economy and no currency control
Singapore has a successful free-market economy, and has been ranked as the most open in the world. Moreover it mainly relies on finance, trade, and manufacturing for growth. Singapore has the second-highest per-capita GDP in the world in terms of purchasing power parity (PPP). 75% of the country’s GDP comes from the services sector and it employs about 80% of the eligible workforce. Singapore has a low unemployment rate and low inflation. The government carries out judicious foreign investments and provides subsidies on housing, transport, education, and health to its people. All these factors are proof of a robust and stable economy.
There is also no limitation on profit repatriation and businessmen can brough foreign currency into or taken out of the country without restrictions. This makes Singapore especially attractive to large companies, who may face enormous taxes moving money otherwise.
The prestigiousness of running a Singapore company
Singapore's economy ranks 3rd in competitiveness, according to the latest International Institute for Management Development (IMD) World Competitiveness Ranking report. In 2021, its economy took the 5th position, while in the year prior, it was at the top spot. Therefore, having a company in one of the most developed countries is not only convenient, but also extremely prestigious.
Favorable tax policies and a simple taxation system
Singapore has one of the most friendly tax systems in Asia and it imposes no tax on dividends or on capital gains from a business. There is a tiered approach to both corporate and personal taxes in the country. For the first three years, new businesses receive considerable tax benefits that bring their liabilities down to 0% for the first income of S$100k. Moreover, corporate taxes are capped at a rate of 17%. The country also has Avoidance of Double Taxation Agreements in place with more than 50 countries.
Convenient and effective banking system
The Singapore banking system is one of the top-level systems internationally, with high levels of security and stability. There are various types of banks in Singapore, grouped into domestic and foreign banks. All commercial banks in the country are under the supervision of the Monetary Authority of Singapore.
Singapore companies have plenty of options when it comes to opening a corporate bank account. Most of the banks in Singapore offer attractive features such as multi-currency accounts, internet banking, credit cards, trade financing, freedom to move funds across countries, and much more.
Lack of corruption
In Singapore, public servants receive high salaries and there are strict penalty mechanisms in place for fighting against corruption. As a business owner, you are less likely to face a bribery situation in SIngapore, as both public servants and citizens strictly follow the rule of law.
Availability of a highly-skilled workforce
Singapore is known worldwide for its great education system. Therefore this country has one of the best available skilled workforces in the market. Singaporeans are known for being hard workers. In addition, the good immigration systems attract a lot of global talent that you can also recruit for your business. Another advantage is that Singaporeans are English-speaking, making communication with most foreign HQs easier.
