In addition to having one of the lowest corporate tax rates, Singapore is widely regarded as the gateway to Asia and one of the most competitive economies worldwide by key ranking reports.
The country’s free trade policies make it easy for companies to set up and run their operations, and also allows the ease of access to world-class workforce, capital and finances. In this article, we will examine the advantages of setting up your company in Singapore, as well as the requirements.
Advantages of Singapore
Strategic Gateway to Asia
Due to its geographic location in the heart of South-east Asia and close proximity to emerging markets of China and India, Singapore is an ideal location for many global businesses of all sizes.
Strategically located at the crossroad of the global trade routes, Singapore’s Changi International Airport serves over 100 international airlines with connections to more than 400 cities in 70 countries and territories. Additionally, the country’s seaports continued to maintain their status as the world’s top maritime centre for the 8th year in running.
Attractive Tax Regime and Open-Economy
Singapore offers one of the lowest corporate tax rates in the world, with its flat rates being capped at 17%. Employing the single-tier income tax rates system, the country has signed over 80 Double Taxation Avoidance Agreements (DTAs) with various countries, to avoid double taxing its business stakeholders. Additionally, all dividends distributed to shareholders by Singapore-resident companies are tax-exempted.
Singapore also has a well-developed free market economy that is based primarily on trade, finance and manufacturing. With the government’s strict enforcement of strong intellectual property laws to maintain protection for your ideas and innovations, Singapore is an ideal destination for entrepreneurs and business start-ups who want to incorporate and build a new business.
Stable Socio-Political Climate
Stable political climate, together with the supportive government policies make Singapore an appealing place for foreign investors and companies alike. Singapore’s legal system is renowned globally for its efficiency and integrity, and the country enforces anti-corruption laws so that investors can conduct business without fear of bribery or bureaucratic red tape. Furthermore, Singapore has a low crime rate and offers residents and their families a high degree of safety.
Singapore is renowned for being a multi-racial society that is diverse and cohesive. The citizens originated from diverse racial backgrounds, giving it the capacity to offer workforce solutions requiring multilingual and multicultural sensitivities.
Singapore has an excellent world-class infrastructure with state of the art communication facilities and transport systems. This includes the country’s airport, sea ports, public transports, telecommunication and information technology, commercial buildings, hotels and public facilities.
Singapore is also highly developed in technology with high speed internet access nationwide. Depending on the nature of your business, most of your business transactions and communications can be done digitally and via online channels.
World-Class and Multilingual Workforce
In addition to being a business hub that attracts the gathering of foreign talents, Singapore also offers access to a highly educated local workforce that has been trained under a globally recognised education system.
With 58.3% of the local workforce having completed a tertiary education and the majority of them being bilingual, your company’s pool of talents will be vastly competent on a global scale.
Requirements for Foreign Companies
As a foreigner, you may consider setting up a private limited company in Singapore as the most suitable choice. A private limited company in Singapore is a separate legal entity and distinct from its shareholders and directors, providing its shareholders the protection from debts beyond the amount of capital they contribute.
The requirements for incorporating a company in Singapore are straightforward and the procedure for incorporation is relatively simple. In most circumstances, incorporating a new company takes less than a day.
Similarly, the annual compliance obligations are easy to follow and free of unnecessary and complicated paperwork, making Singapore an ideal location to explore the numerous business opportunities in Asia.
How to Start your Business in Singapore
In order to incorporate a Singapore private limited company, you are required to have:
- Name of your Company
- Description of Business Activity
- A Local Director or a Foreigner with an Employment Pass (EP)
- Shareholders (A minimum of 1 and a maximum of 50 shareholders)
- Share Capital (Minimum paid up capital of SGD $1 or equivalent)
- A Company Secretary
- A Local Registered Office Address
- Local Corporate Bank Account (Optional but recommended)
Leftright Corporate provides hassle-free incorporation packages to suit your needs and we have helped establish multiple foreign owned companies in Singapore. We understand the ins and outs of business incorporation requirements and corporate compliance. Additionally, we also have multiple partnerships with many of the local banks to ensure you have everything you need to commence business in Singapore.
Alternatively, you may also contact us, if you have any further inquiries or require our assistance.