13 Reasons Why Foreigners Choose Singapore To Start a Company
1. Singapore is the ideal place for your business
Singapore is your gateway to Asia’s resources, talents and markets. After all, 500 million people live in the Southeast Asia, and 2.8 billion in Asia. That means that nearly 3 billion consumers live less than a seven-hour flight away! Singapore itself has a multiracial population of approximately 5.3 million people. Your business ideas can reach out to these huge market!
The population consists of ethnically Chinese people (77%), Malays (14%), Indians (8%) and others (1%). The country boasts four official languages: Malay, Chinese (Mandarin), Tamil and English.
English is the language of administration and business, while Malay is the national language. Singapore’s literacy rate is among the highest in Asia. Registering a company in Singapore is a wise business choice.
2. Singapore: Perfectly located adjacent to the Asia-Pacific Region, China and India
Singapore is strategically located in a region of limitless opportunities. Located at the heart of Southeast Asia, Singapore is able to deftly serve the expanding markets of the Asia-Pacific region.
Helped by the growth of China and India, the markets across Asia are soon expected to exceed those in the rest of the world. Singapore has launched a series of initiatives that attempt to bolster its relevance and ensure that it stays connected to growing markets in Asia and beyond.
One of these initiatives is the launch of a series of Free Trade Agreements (FTAs) with other major economies, including those in the United States, Japan, New Zealand, Australia, and India. Singapore is involved in ongoing FTA talks with other countries. These FTAs provide privileged access to the markets of partner countries. Beyond the immediate region, Singapore is also building linkages with countries further afield, including those in the Middle East. These links attempts to capitalize on the growing trade and investment interests between these two regions.
With its strong historical, cultural and business linkages to its Asia-Pacific neighbours, Singapore serves as the springboard for many multinational corporations (MNC) and small & medium size enterprises (SME) owing to its proximity to major developing markets such as Indonesia, China and India. Many people have benefited from starting a company in Singapore by taking advantage of Singapore’s unique geographic position.. The advantages of company registration in Singapore include:
- Excellent physical, legal and social infrastructure
- A strongly pro-business tax system
- An array of available financing schemes
- A highly skilled domestic labour force
- An ever-expanding free trade agreement (FTA) network and investment guarantee agreements that help Singapore businesses access the global market
Find out more on Company Registration Options here.
Singapore’s well-developed transport and telecommunications infrastructure is one of the best in the world . The local airports, ports, business and financial centres, road transport options, industrial real estate, telecommunications networks and convention facilities are among the finest in the world.
International travel out of Singapore is extremely convenient. More than 60 international airlines service SIN, providing direct access to 152 cities in 51 countries worldwide. Company registration in Singapore just makes good sense.
4. Banking and Financial Services
Singapore is international financial centre and financial powerhouse, with an open banking and financial services sector. In addition to the local banks, there are many foreign banks with full licenses, restricted licenses and offshore banking licenses. This is in addition to as well as a number of foreign merchant banks, securities firms, investment banks, fund managers, futures brokers, leasing companies, etc.
All banks in Singapore are licensed under the Banking Act, which is administered by Monetary Authority of Singapore (“MAS”).
Financial institutions in Singapore trade around the clock with other Asia-Pacific centres and with European and American centres, making Singapore a significant hub for 24-hour trading in foreign exchange and securities.
5. Foreign Exchange Control
There is no foreign exchange control in Singapore. No approval is required for any payment, remittance or capital transfer in any currency or to any country. This makes company registration in Singapore extremely efficient and simple.
6. Goods and Services Tax ("GST")
GST is a tax imposed on goods and/or services made in Singapore. GST is payable on any taxable supply made by a taxable person in the course or furtherance of any business carried on by him; it’s also imposed on imported goods.
Singapore tax system is on a territorial basis. As a general rule, only the income that ones accrues in or derives from Singapore (or is received in Singapore from outside Singapore) is subject to tax.
To create a business climate that supports enterprise and attract investments in Singapore, the Singaporean Government recently announced a competitive tax regime. Now, certain types of foreign income earned in Singapore are exempt from local income tax.
Taxes are levied on company and individual income. Corporate taxes rates are at 8.5% (effective rate) up to $300,000 profits and flat 17% after that point. Personal tax rates start at 0% and max out at 22%. No capital gains tax currently exists.
8. Estate duty
There are fewer estate duties in Singapore than in other countries. There is no estate / death / inheritance tax in Singapore.
This makes Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here. More and more people are choosing to incorporate a company in Singapore.
9. Labour Law
There is very little labour unrest in Singapore's. Some employee groups are represented by trade unions, but membership is never mandatory.
The Industrial Relations Act regulates the procedure for collective bargainings and negotiations. The National Wages Council sets the guidelines for wage increases each year.
Singapore has a skilled workforce ready to meet industry demands. In addition to grooming the local workforce meet the demand of the industry, the country can offer those who register a company in Singapore an open door policy to international talent and expertise.
Singapore can offer foreign visitors and workforce an excellent environment for business. Singapore is unique in that its labour and immigration law differentiates among different categories of employees in terms of requirements, validity and accessibility of obtaining work permits. Hiring foreign workers is simple and common.
11. Working and Residing
Foreign nationals need a valid Work Pass in order to work in Singapore. Singapore's Work Pass Framework distinguishes following types of Work Pass:
- Work Permit
- S Pass
- Employment Pass
- Entrepreneur Pass
- Personalised Employment Pass
For corporate migration, Employment Pass or Entrepreneur Pass will be ideal.
12. Government Assistance
Financial and tax incentives are often granted upon application to target sectors and to significant foreign investors through the various government agencies, in particular the Economic Development Board, Trade Development Board, Spring Singapore, National Science and Technology Board, IDA Singapore, BCA Singapore etc.
For more information, contact the specific department.
13. Singapore can be the ideal Place for You and Your Family
Singapore is one of the safest and cleanest cities in the world with a longstanding socio-political stability, extensive and efficient network of public transportation, world-class healthcare and excellent education systems. This tropical country can boast a multi-racial and multi-religious society that offers residents an exciting mix of culture, entertainment and food.
Every business owner should consider incorporating a company in Singapore. This modern metropolis welcomes foreign investment, particularly in the services sector and in areas that develop technological, management and labour skills. Businesses and those who start them are viewed as valuable members of society and a positive force for economic growth. .
The following should be the deciding factors when it comes to company registration in Singapore.
- Singapore offers a strategic location
- Boasts excellent infrastructure
- Honest and open government with pro-business ethics
- Large labour force
- Few restrictions on the foreign ownership of businesses (although some types of businesses require special licenses from the government, such as banks, finance companies, insurance and stock brokerages).
- Capital, profits, dividends and royalties may be freely imported or repatriated.
- Low corporate and personal tax rates.
- Relaxed immigration policies for foreign investors, e
ntrepreneurs and business executives
- The Singaporean government offers a wide range of investment incentives for business owners. These include tax concessions designed to promote new investment in certain industries and to encourage upgrades of existing enterprises. When
- it comes to these concessions, no distinction is made between foreign and local investment capital.