Many multinational corporations have opted for a new company set up process and headquarters in Singapore, alongside 154,000 small and medium-sized businesses. Singapore is regarded as a perfect place for company owners all over the world to expand their operations. Many of them are using the country as a launching pad to enter other Asian emerging markets.
Singapore has developed itself as a reliable financial and trading center for the area for new company set up procedures. It is the world’s busiest port and a top investment destination in the Asia Pacific region. Singapore has been the world’s gateway to Asia due to factors such as strategic location, a competitive workforce, a pro-business climate, and forward-thinking economic policies.
If you are a non-resident citizen, a small or medium-sized company, or a multinational organization, incorporating in Singapore would provide you with a springboard to the region’s other emerging economies. Aside from that, you will take advantage of Singapore’s extensive network of trade deals, ease of doing business, attractive tax regime, and strong intellectual property rights.
The developing economies of India, China, and other Southeast Asian nations, on the other hand, have meant that a growing number of companies are relocating to this area to take advantage of vast domestic markets, cheap labor supply, and booming infrastructure.
Singapore, with its low corporate tax rates, integrity, efficiency, durability, high competitiveness, rule of law, availability of qualified labor, and protection of intellectual property rights, offers the most favorable atmosphere for companies seeking to grow in the area. This is due to a variety of factors. In this article, we will look at only a few of them that make this country the easiest to do business. Also, we will be discussing why you should think of Singapore as your best place for a new company set up process.
#1 Corporate tax rates are low
Singapore has concluded over 21 free trade agreements (FTAs) with 27 economies, as well as 76 extensive avoidance of double taxation agreements (DTAs). These deals promote cross-border industry and commerce by lowering tax barriers to the flow of trade, finance, technological know-how, and experience. This, together with the absence of capital gains and dividends taxes, as well as lower withholding taxes. It makes a desirable location for the business registration Singapore process.
Singapore also has one of the most appealing corporate tax regimes in the country, with the largest corporate tax limit on net income at 17%. Even if its marginal cost is the third-lowest in the country, the effective rate, when all schemes are included, is even smaller. Overall, Singapore has a competitive tax system focused on territorial policies for business registration Singapore procedures. This ensures that individuals and businesses are taxed on income earned in the city-state as well as income earned abroad and remitted to the government.
Since 2003, the government has gradually relaxed the taxation policy on qualified foreign-sourced remitted income in order to improve the country’s attractiveness as a wealth management center. Dividends from directly-held overseas branches may be repatriated to Singapore by Singapore-based holding firms or headquarters tax-free. Those whose international companies participate in substantial economic activities but do not meet the qualifying requirements for this tax exemption may apply for a special exemption.
In addition, the Economic Development Board gives regional headquarters (RHQ) and international headquarters (IHQ) benefits to attract foreign corporations to move their headquarters to Singapore. Most notably, the personal tax system in Singapore is egalitarian. The marginal rates vary from 0% to 22%, and the system encourages tenants to take advantage of multiple reliefs, reducing their successful fees.
#2 A high level of personal protection is provided, as is the value of a robust legal system
Singapore has the most peaceful political climate in Southeast Asia, which provides entrepreneurs and businessmen with a good sense of security and comfort. Asia’s diverse dining and entertainment choices, world-class school programs, and high-quality healthcare services. It is a perfect place to grow a family and establish a new company set up process. Furthermore, business registration Singapore procedures will rely on the country’s status as a world-class arbitration center in the event of cross-border disputes.
The World Economic Forum rated Singapore as having the best intellectual property rights in Asia in its Global Competitiveness Report 2015 – 2016. According to the same article, Singapore is a nation with strong government infrastructure and policy-making practices, which has led to its ranking as the most open country in Asia with a secure market climate. It is also the least corrupt country in Asia, where accountability is highly respected. According to the 2015 IMD World Competitiveness Report.
#3 All-round effective governance
Both the general government policies and the country’s anti-corruption laws are among the strongest in the world, which greatly benefits the business registration Singapore processes that operate here. This country is also free of red tape and countless layers of paperwork, which contributes significantly to the ease of doing business. Many who get involved with legal disputes have access to an independent justice system that is easy to settle issues.
#4 Outstanding infrastructure
Singapore has the best-ranked infrastructure in the world, as well as being one of the safest countries to live in, in addition to a great strategic location. The country is well-connected to the rest of the world, with Changi International Airport ranking among the busiest in the world. Obtaining a Singapore visa is also a simple process. Wherever you are in the country, all you have to do is get the right documents and hop on a plane to Singapore to discover them. Once in Singapore, you’ll discover that it has everything you’d expect in a world-class area, including excellent telecommunications and internet access.
#5 Labor force competition
It is not just the country and its policies that rate so high when it comes to facilitating new company set up. Singapore also has the privilege of housing the world’s most professional and competitive labor force. So, no matter what industry you’re in, you should be confident that you’ll have access to a talented workforce to help you along the way. Because of its multi-ethnic and cosmopolitan nature, you would feel right at home regardless of your heritage. Singaporeans take pride in their tolerance for each other’s cultural sensibilities, and foreigners have no trouble mixing in.
In conclusion
There is no particular aspect that distinguishes this lively and competitive country as a highly desired investment location – all of the above aspects add to Singapore’s continued allure as a top business destination. So, if you’ve been looking for a new place to call home, we highly advise you to give Singapore serious consideration.
WLP Group is a corporate registry and incorporation firm that takes pleasure in aiding clients in dealing with relevant laws. We provide specialist advice and oversee regulatory and statutory responsibilities to ensure that the company complies with Singapore law as it grows and expands. Make an appointment with us today to get dependable and high-quality services.
