Various factors make it evident that Singapore has a thriving economy, and more and more companies are being incorporated into the company every day. The reason behind this is that Singapore has a business infrastructure that supports business ownership and entrepreneurship, making it one of the top choices for local as well as foreign investors.
But what makes setting up a company in Singapore ideal? World Bank ranked Singapore at the top of its list for the best countries to do business in 2016.
This blog will discuss multiple factors that make Singapore so business-friendly, along with why you should go for company incorporation in Singapore.
Factors Contributing to Singapore’s Business-Friendliness:
- Economic Boom:
Singapore is a small island country with very little population. Managing such a country with a small population must seem like an easy thing, but you can’t ignore the fact that it also has its disadvantages.
For example, you might expect such a country to be self-sufficient, but you will not expect it to be a major contributor to the world’s economy because of its lack of natural resources and limited workforce.
Against the odds, Singapore is a leading nation in service provision as services comprise 75% of its gross domestic product, employing 80% of its workforce. The country has also maintained a good per capita income while keeping inflation under control.
Such stable economic infrastructure makes it ideal for company incorporation Singapore.
- Tax System:
The tax system of Singapore is well-thought-out, is business-friendly, and enables companies to grow and reach their maximum potential.
One worth-mentioning characteristic of Singapore’s tax system is its tier approach for both individuals and corporations. During the first three years of setting up a company in Singapore, the corporates receive significant tax breaks to help them establish themselves. Coupled with the lowest value-added tax in the world, company incorporation in Singapore is the best option for startups.
Individuals also enjoy the same kind of facilitation as the tax starts at 0% and goes up to a maximum of 20% for people with S$320,000.
- Foreign Investment Policies:
Singapore is among the top few countries that are the most friendly for foreign investments.
A foreigner gets to own 100% stock of his company in Singapore without any requirement of partnership or shareholding with a local. The country also has no limitation to bringing foreign funds as you can invest as much as you want into Singapore’s economy.
The kind of flexibility Singapore provides to foreign investors with its no limitation policy of moving money in and around of country makes it extremely smooth for foreign investors to do business in the country.
- Company Incorporation Procedure:
Another reason setting up a company in Singapore is beneficial is because the procedure of incorporating a company is straightforward. In most cases, you can seamlessly incorporate your company in Singapore within a day.
The country also has very simple annual compliance requirements, so you can focus on the business without worrying too much about the technicalities.
- Startup Support:
Besides creating ease and simplifying the process, Singapore’s government also actively supports startups. Singapore frequently rolls out schemes, plans, and initiatives that startups can benefit from.
The initiatives include funding mechanisms, tax relief, and much more. The facilities are available to both local and foreign nationals.
The core machinery that makes any business successful is its workforce. Singapore’s education system is among the most refined education systems in the world and has proven on multiple occasions to be at par with the global requirements.
The education system is frequently updated to ensure the students’ availability of the latest and most useful knowledge and skillset. These students eventually become professionals and provide the same value with their educational system’s work inculcated in them throughout their student life.
In addition, Singaporeans are known for their work ethic and dedication towards their job, making them ideal for induction in companies that wish to grow.
Singapore also hosts a variety of skillset as it has lenient immigration policies, allowing foreigners to become a part of its workforce through easy visa approval and permanent residence option. Currently, around one-third of Singapore’s workforce is from abroad, giving it a nice blend.
- Geographic Growth:
Setting up a company in Singapore gives you access to a vast geographical market. Singapore holds a central location in Southeast Asia, with some of the world’s biggest markets a short flight away.
If you successfully establish your business in Singapore, you will get plenty of opportunities to expand across the borders and tap into the markets of China, India, Australia, and Malaysia.
With such growth potential, company incorporation Singapore is the best deal you can get yourself.
One of the most critical factors that determine a business’s success in a country is its infrastructure. If the infrastructure is poor, you will face undue difficulties in the execution of your ideas, regardless of how brilliant they are.
If the country has a solid infrastructure with developed roads, planned commercial buildings, easy-to-access air, and seaports, you will not have to waste your time, money, and energy conducting your business.
Singapore has seen revolutionary advancement in its infrastructure in the past decade, so it is quite suitable to be productive. The design of the infrastructure is also modern, and as per the contemporary standards, so you can expect to reach your maximum potential without any hassle.