Singapore as your Business Hub

 

Singapore has a gargantuan amount to offer to the international business community apart from its unique and fascinating lifestyle and culture.

Key Facts :

  • Singapore has been rated #1 in the world by the World Bank for the ease with which business can be done here.
  • Singapore has been ranked the third wealthiest nation in the world by Forbes magazine.
  • Singapore has been ranked third most globalized economy among 60 of the world’s largest economies in the Ernst and Young 2011 Globalization Index.
  • Singapore has been rated #1 most politically stable country in Asia.
  • Singapore has been rated #1 best labor force in the world.
  • Singapore has been rated #1 for quality of life in Asia.
  • Singapore offers corporate taxes of about 8.5% up to $300,000 profits and 17% above that.
  • Singapore does not have the system of dividends and capital gains taxes
  • Singapore does not have estate, death and inheritance tax.
  • Personal tax rates start at 0% and max out at 20% above $320,000 in Singapore

 

Attractions of Singapore for foreign entrepreneurs and firms

 

  1. Strategic location of Singapore
    1. Singapore is situated in the heart of Southeast Asia, a convenient location for entrepreneurs in search for location to relocate their business.
    2. The advantageous location gives the opportunity to a business to access a market of 2.8 billion people within a few hours.
    3. The country has been classified as a premier International Maritime Centre with its port being one of the busiest in the world.
    4. Singapore’s Changi Airport has been a hub in the Asia-Pacific region which has provided businesses with easy access to all major Asian markets. Its competitiveness, efficiency and service has made it the Best Airport in the World for 20 consecutive years with a total of over 15 million passengers annually.

 

  1. Business environment
    1. Singapore has become capable of attracting sizable foreign investments and business entrepreneurs with its pro-business environment. Ideas have turned into businesses with significant profits in Singapore.
    2. In Singapore , it takes only about 1-2 days to incorporate a company in Singapore with easy access to the government’s assistance.

 

  1. An outstanding tax system
    1. Singapore offers unique tax advantages like low personal effective tax and corporate tax rates.
      1. The personal income tax has been based on a tier system ranging from just 0% to up to 20% for income above $320,000.
      2. Effective corporate tax rate for Singapore private limited companies for profits up to $300,000 if below 9% and 17% for profits above $300,000.
    2. In alignment with its single-tier tax policy, Singapore doesn’t have any capital gain taxes.
    3. Singapore allows distribution of dividends to its shareholders tax-free for income that has been taxed at the corporate level.
    4. The Singapore government has adopted a more broad-based consumption tax called Goods and Services Tax (GST) which has helped reduce the dependence on income taxes and made the economy even more competitive.
    5. Singapore has maintained one of the world’s lowest GST rates (currently 7%) ranking significantly below the global average VAT/GST rate of 16.4% and the Asia-Pacific average of 10.5%.

 

  1. Flexible Immigration Policies
    1. Singapore’s open immigration policy facilitates the relocation of foreign nationals who wish to set up business here. Appropriate Singapore work visa provisions by the government are based on the anticipated needs of an entrepreneur who needs to relocate to Singapore to run a business or need to hire foreign professionals.
    2. Foreign professionals can easily gain Singapore Permanent Residence (PR) status with Singapore’s relaxed immigration policy. It has helped add value to individuals settling permanently.

 

  1. Comprehensive Intellectual Property Protection
    1. With serious considerations towards IP protection, Singapore has become a one-stop centre in management of the IP assets.
    2. Significant institutions that have ranked Singapore top in Asia :
      1. The World Economic Forum (WEF)
      2. The Institute for Management Development (IMD)
  • The Political Economic Risk Consultancy (PERC)
  1. Singapore government considers it a criminal offense for a person and company to conduct wilful copyright infringement. Hence, it has very strong copyright laws.
  2. Singapore business have the option of filing for global trademark registration from Singapore in addition to registering a trademark in Singapore.
  3. The country if a signatory to major IP conventions and treaties :
    1. Patent Cooperation Treaty
    2. Paris Convention
  • Berne Convention
  1. Madrid protocol
  2. Budapest Treaty
  3. Agreement on Trade-related aspects of IP rights
  • World Intellectual Property Organisation.
  1. Ideal Government
    1. Singapore’s stable and orderly government if a supportive political infrastructure that helps businesses to grow and thrive.
    2. With a vision to take the nation to the front in the league of industrialized nations, Singapore’s political system enacts proficient laws, diligently decides priorities and sets regulations using a rational, pro-business approach.

 

  1. World’s Best Labour Force
    1. With the essentials for the success of any business like attractive, world-class, and productive workforce, Singapore boasts the “Best Labour Force in the World” in the latest rankings.
    2. The country primarily has a knowledge-based economy creating educated and professionally qualified manpower force. The workforce in Singapore, cosmopolitan and international, has been recognized for its high level of education, high productivity, technical proficiency, hard work and smart culture and has been attracting professionals from all over the world.
  2. A Life High On Quality
    1. Quality of life has never been a matter of concern for new residents consisting of families of foreign born professionals and entrepreneurs who set up business and relocate to Singapore with easy accessibility to the following :
      1. Excellent public and private transportation
      2. Top quality healthcare
  • A safe and healthy living environment
  1. Easy access to many other nations
  2. Excellent schools
  3. An outstanding support system for businesses, entrepreneurs and corporations
  • Endless selection of cultural and educational opportunities

 

Reasons for local entrepreneurs to use a professional firm

It is always beneficial to hire a professional firm to guide oneself through the incorporation requirements of the Companies Act so as to focus on the running of one’s business.

  • Setting up directly with Accounting and Corporate Regulatory Authority (ACRA) offers company incorporation but other benefits like company secretary, company kit, bank account and accounting and tax filing service.
  • Engaging a professional firm provides oneself one-stop solution by providing company secretary, company kit, bank account, accounting and tax filing service along with company incorporation.
  • Working with a professional firm saves time and effort due to only one point of contact service provider rather than coordinating with several service providers.