Singapore is a very large economy and is ranked one of the easiest places to conduct business by the World Bank. Numerous global companies have local operations in Singapore because of the benefits the country offers. This article will discuss these benefits that you can take advantage of.
Quick and easy registration
It’s noticeably easy to register a company in Singapore. The registration requirements are very straightforward, and so is the process of registering.
The Accounting and Corporate Regulatory Authority (ACRA) is the government body in charge of company registration in Singapore. You can file your incorporation application online or in person at an ACRA office. Application to incorporation can take less than in a day or a few days at most (if there are no further inquiries into your application).
Singapore has one of the simplest taxation systems for corporations. Your corporation will pay a flat 17% rate on its chargeable income, which applies to local and foreign companies.
Your business can take advantage of partial tax exemptions on the first S$300,000 of chargeable income; 75% of the first S$10,000 is tax-exempt, and 50% of the next S$290,000 is tax-exempt.
Note that the tax applies only to income from business operations conducted within Singaporean borders.
The country has a strong and still booming economy. Its gross domestic product is $400 billion, or over $70,000 per capita. Singapore is a high-income country with a median monthly income of over S$5000, so there’s enough money to support business activities.
Singapore exports over S$500 billion worth of goods annually, giving local businesses robust access to foreign markets. It has the 10th largest foreign currency reserves globally and no external public debt, so the economy remains stable in the foreseeable future.
Singapore is fondly called the heart of Southeast Asia. It is within a six-hour radius of any Southeast Asian nation, making it an ideal gateway into the region’s vast economy.
Singapore has reliable human and cargo transport systems, so it’s easy to ship goods within Southeast Asia and visit other countries when needed. It is the world’s top maritime capital and has world-class airports catering to tens of millions of passengers annually.
Singaporean infrastructure is very robust and well-maintained. Many visitors get stunned by the world-class airports, highway systems, hotels, public parks, subways, and internet infrastructure. Much of the infrastructure was developed in the last few decades, so is very modern and reliable. The publicly-funded infrastructure makes it a healthy place to conduct business.
No Currency Control
The country has no restrictions on moving foreign currency in and out of its borders. No taxes are imposed on capital gains from selling a business or shareholder dividends. As long as you follow the law, you’re free to expatriate your profits outside the country, making it an ideal location for global companies.
Exemption From Double Taxation
Singapore has formal agreements with over 50 countries to avoid double taxation. Hence, if you’re taxed on your profits in one of those countries, Singaporean authorities won’t tax you again.
For countries without formal agreements, the Singaporean government provides Unilateral Tax Credits (UTCs) that you can claim, making it easy to avoid double taxation.
Government Support For Startups
The Singaporean government offers significant support for startups that set up shop within its borders. Startups can access tax incentives, grants, and in-kind assistance schemes to propel their business further. The country also has business-friendly policies that help startups thrive.
We have listed the main benefits of registering a company in Singapore. If you want to do that and need help, Osome is available to provide it.