Depending on your target audience and its needs, taxation laws, the nature of the local workforce and other factors, doing business overseas just might offer advantages to you that exceed those of the country where you live at right now.
Either an existing company looking to expand its reach or an individual looking to expand his or her business, there are times foreigners want to register company in a country where it’s easy to register, cost is low, skilled manpower is available and other facilities, as well as environment, are conducive to doing a profitable business without hassle.
Singapore in this context fits the best considering it’s business-friendly environment.
Here are 7 reasons why registering company in Singapore is best choice for foreigners. We believe that by knowing these reasons/advantages, you should be able to better decide whether or not you should incorporate company in Singapore.
1)Number one place for doing business
According to Ease of doing business report published by World Bank group, Singapore ranked amongst top 2 out of all the countries around the world, which means that the report ranks Singapore the most business-friendly country.
Notably, Singapore is being ranked amongst best places to do business in Ease of doing business as well as other prominent reports, research, and whitepapers from more than a decade on continuing basis.
This makes sense for a serious business or entrepreneur to register company in Singapore.
2) Affordable tax rates
According to The World Economic Forum's report, Singapore is the top 10 in the world in the list of countries having lowest tax rates. The Corporate Tax Rate in Singapore stands at 17 percent, which is way lesser comparing to most other countries such as India (34%), Australia (30%) and Switzerland (17.92%).
Taxes are often one of the major factors for any entrepreneur that influences the choice of country for setting up a business. Singapore does not only have a low corporate tax of 17%, but the personal income tax rate in Singapore has a tier system that starts from just 0% and goes up to 22% for income above S$320,000.
There are no capital gains taxes in Singapore, which follows a single-tier tax policy; for income that has been taxed at the corporate level, dividends can be distributed to its shareholders tax-free.
In an effort to move away from a dependency on income taxes and to make the economy even more competitive, the government has adopted a more broad-based consumption tax called Goods and Services Tax (GST). Singapore maintains one of the world’s lowest GST rates (currently 7%), ranking below the global average VAT/GST rate of 16.4%, and the Asia-Pacific average of 10.5%.
3) Availability of telecom and internet facilities
In a globally connected world and especially when planning to register company in a country different from its principal office, availability of fast and reliable telecom and internet facility is extremely significant.
The telecommunication infrastructure of Singapore spans the entire city-state. Its development level is high, with close accessibility to the infrastructure from nearly all inhabited parts of the country.
In 2010, internet service providers in Singapore rolled out the Next Generation Nationwide Broadband Network (Next Gen NBN) service plans. The Next Gen NBN is Singapore's nationwide ultra-high speed fibre network. It offers competitively priced broadband speeds of up to 1 Gbps at comparable prices to ADSL and cable connection.
In 2015, one of Singapore’s internet companies launched a 2Gbit/s fiber broadband service in Singapore, offering the country's fastest internet connection.
With such high-speed internet and telecom facilities, registering company in Singapore just seems a great idea as you can make sure that you’ll be connected and can get the work done with speed.
As shown in the graph below, we can infer that Singapore has 217 internet service providers, 43,000 over public Wi-Fi access points and 15 millions of mobile subscribers. Basically, internet service is everywhere in Singapore. Business owners can find themselves connected online almost everywhere to ensure their international transactions take place seamlessly without delays. Hence, registering company in Singapore is a wise choice for both local entrepreneurs and foreign companies.
4) Skilled labor
According to the Human Capital Report 2015 by Mercer and the World Economic Forum, 54% of Singapore’s workforce is highly skilled, relatively higher than the percentage in New Zealand and Australia. Singapore, in fact, has the highest proportion of high-skilled employment in Asia Pacific according to various surveys and reports.
As mentioned on the official website of Monetary Authority of Singapore,
Following are some of the notable facts about Singapore’s labor and workforce:
- Singapore’s labor regulations and workforce have consistently been rated highly by leading international organizations such as the World Economic Forum and Washington-based risk consultancy agency, Business Environment Risk Intelligence (BERI).
- Singapore has Top position in BERI's Labor Force Evaluation Measure
- Among the top 10 in Asia for the most motivated workforce
- Among the top 10 in Asia for the best-skilled labor
- Among the top 5 in the world for the most business conducive labor regulations
- The best labor/employer relations in Asia
- Foreign talent rank Singapore as Asia's best country to work in
- The first choice for Asian expatriates
- Singapore’s immigration laws for foreign talent highly-regarded for being business-centric
Access to affordable and skilled human resource alone is the biggest reason for so many companies and entrepreneurs to incorporate company in Singapore, as smart entrepreneurs know that an effective, affordable and skilled workforce can increase their business prospects multiple times.
5) Affordable and wide transportation network
At the heart of Asia Located at the crossroads of the east-west trading routes, Singapore provides access to fast-growing markets such as China, India and Southeast Asia, all within a seven-hour flight radius.
Singapore’s Changi Airport is considered the best in the world and provide you easy access to major cities in the Asia-Pacific, North America, Europe and the Middle East. Singapore is also home to the busiest port in the world and having the most extensive international port connections makes Singapore the top docking destination for trade.
6) Flexible Immigration Policies
At times, the entrepreneurs looking to incorporate company in Singapore might want to relocate to Singapore for setting up the business.
Singapore’s open Immigration policy facilitates the relocation of foreign nationals who wish to set up businesses here. If you are an entrepreneur who needs to relocate to Singapore to run your business or need to hire foreign professionals, the government has anticipated your needs and made appropriate Singapore work visa provisions. To help value adding individuals settle permanently, Singapore has a relaxed immigration policy, making it easier for foreign professionals to gain Singapore Permanent Residence (PR) status.
Foreigners can now find much flexibility in immigration procedure for foreign entrepreneurs to register company in Singapore.
7) Incorporation process is easy
In Singapore, setting up a business involves three procedures which can be completed in three days, at a relatively low cost comparing to various other countries.
There are some simple requirements to fulfill and following the steps on which a Singapore company can be incorporated without hassle.
Moreover, it's possible to incorporate company in Singapore from a minimum share capital of $1 thereby not requiring huge funds for the process.
As a foreigner looking to register company in Singapore, You must engage a professional firm to register a Singapore company. Singapore law does not allow foreign individuals or entities to self-register a company in Singapore.
Have questions about company incorporation in Singapore?
Contact us and we’ll be glad to help you successfully and quickly register company in Singapore ensuring that you comply with all local laws, while making sure that your business goals are achieved.