Top Reasons to Set Up a Business in Singapore
May 25, 2022
May 25, 2022
The location of your business plays a significant role in its success. Remember, no matter how much you take care of the internal factors of your company, it will still face threats of failure if you don’t look into the internal environment. For this reason, you need to choose a place that will only give you little to no hassle from company registration to operations.
Well-developed countries like Singapore give company owners and aspiring entrepreneurs a conducive environment for business success. Here’s why:
Ease of Doing Business
Provides a Strategic Location
Excellent Tax Structure
Singapore constantly clinches one of the top spots when it comes to the best countries in the world to do business. As featured in Forbes, Singapore ranked eighth in 2018, while it is first in trade freedom and sixth in property rights in the same year.
Not only that, data from The World Bank revealed that Singapore ranks second in the ease of doing business index in 2019, right next to New Zealand. The reason being is that the country has business-friendly regulations.
Singapore has continuously proved these findings by being efficient in the company registration process and requiring only 1 Singaporean Dollar for paid-up capital. It will only take you about two days to incorporate your business in the country as long as you prepare the requirements beforehand.
Being in the central part of Southeast Asia, Singapore opens doors to countless opportunities for entrepreneurs. In addition, the country’s world-class ports pave the way for convenient flights to over 330 major cities in the world, which ultimately established connections with prominent countries.
For these reasons, Singapore’s logistics performance is among the best in the world—making it easier for businesses to complete economic transactions.
The country is also home to approximately 120 commercial banks, 30 merchant banks, and 600 capital markets services license holders. Therefore, business owners have a stable location and less risky investment possibilities.
One thing that adds a burden to business owners is the tax they have to pay to the government. In most cases, these are the types of taxes a business must pay:
- Income Tax
- Goods and Services Tax
– It is the money levied by the government based on the income a business earns. To determine how much tax t are obliged to pay, they need to file an income tax return on a yearly basis.
– It is the money collected by the government for the sale of goods and services. This is the additional percentage that the consumers have to pay when purchasing goods or acquiring services. However, businesses don’t directly pay sales tax to the authorities since the retailers collect it during the point of sale, then transfer it to the government. *You only need to account for GST if you are a GST registered entity.
So, what makes Singapore different in terms of taxes?
The simplicity and rationality of the country’s tax system is something that merits an acknowledgement. The governing body in Singapore doesn’t levy tax on a business’ capital gains and dividends. Moreover, Singapore’s headline corporate tax rate is only 17% as of this writing.
Reliable Legal System
Based on data from Forbes, Singapore ranks sixth as the least corrupt country in the world as of 2018. The country’s officials and its citizens value transparency, giving business owners an assurance that there will be no fiscal distortions and financial damage is less of a possibility.
Furthermore, the strong legal system of Singapore protects both investors and business owners from fraud.
Access to Exceptional Talent Pool
For a corporate entity, skilled workers are the lifeblood of their operations. Without these people, it will be impossible to deliver quality products or services to the customers.
In Singapore, the lack of skilled employees is not something you have to worry about. The country has exceptional talents, who are mostly bilingual—establishing effective communication between parties. The workers in Singapore are also productive and efficient, who follows good conduct and ethics.
Singapore’s world-class infrastructure is a great advantage for business owners. First, it enables the workers to report to work safely and on time. Also, it helps customers to go to your stores more easily.
The country’s world-class airport also provides a smoother path for trading, which can power business. Apart from ports, it also has an advanced highway system, towering commercial buildings, and modern subways.
Availability of the Latest Communication Technology
Now that we are in the modern era, having fast internet speed is essential, especially in the field of communication. It fosters good relationships and enables collaboration between teams. In Singapore, this is something you can enjoy. In fact, about 99% of the citizens have access to the country’s broadband network.
Start a Business Today!
Data from the Accounting and Corporate Regulatory Authority (ACRA) showed that Singapore has over 547,000 registered business entities as of July 2021. It is an increase of approximately 8,000 registrants from the 539,000 registered businesses last January 2021. As the country’s economy continues to rise, more and more entrepreneurs establish their businesses in Singapore.
Now that you know the advantages of setting up a business in Singapore, are you planning to follow the paths of the business people who succeeded in the country? If so, leave the company registration process to our skilled company registration consultants. Take care of your business plans while we set up your company in Singapore. Call us on 8666 3633 for company registration and secretarial matters, and let’s do business.