Register a Business in Singapore? Understand the Advantages of Singapore

Company Incorporation | 2 mins read | Last updated on 30 June 2019

To be successful in a global world nowadays, countries need to build on comparative advantages. Countries, in another perspective, like companies, collaborate and compete with each another for short term and long term purposes, ultimately to provide better economical experiences.

Every country has their own way of success, and Singapore has its own way too.

Following are the 9 reasons why we choose to register a business in Singapore.

  1. Highly efficient infrastructure which is the key pillar for the economic development and competitiveness. For instance, Changi International Airport, International Telecommunications Hub, Modern Central Business District, Well-Planned Expressway Networks and Globally-Renowned Maritime Hub.
  2. Stable and secure business operating environment which reduces business risks. The country has virtually no corruption because most government officials are very well paid; very harsh punishments are imposed for corruption; the country’s founder Lee Kuan Yew set a very high bar for moral rectitude and led the country by example.
  3. Low company tax rates. Low corporate (highest rate is 17%) tax rate along with tax reliefs to reduce the effective tax rate. For instance, newly incorporated Singapore Company will enjoy 75% exemption on the first $100,000 of normal chargeable income and a further 50% exemption on the next $100,000 of normal chargeable income.
  4. Capital gains are not taxable. Example, gains on sale of fixed assets and gains on foreign exchange on capital transactions.
  5. Dividend paid by a Singapore resident company under the one-tier corporate tax system except co-operatives are not taxable.
  6. Low personal tax rates. From 0% and max out at 22% above $320,000. Individuals are taxed only on the income earned in Singapore.
  7. Ease of incorporation and operation. It takes less than a day to incorporate a new company in most cases. The annual compliance requirements are simple and devoid of unnecessary or complicated paperwork. Example, a company that qualifies as a small company is not required to appoint an auditor and have its accounts audited. We can set up a company without physical presence.
  8. Support for start-up Company. The Singapore government adopts very pro-growth and innovation friendly policies. It provides many grants, tax incentives and in-kind assistance schemes to startups. The government also subsidize the labor costs of a new business. These benefits are available to local as well as foreign-owned businesses.
  9. Singapore has no restrictions on foreign ownership of business. The repatriation of profits and the import of capital are freely allowed. Shareholders, including investors who receive dividends out of company profits, are exempted from Singapore tax.

Find the right business idea and start a business right now. Good ideas are important, but execution is key. Click here to find out how to register a Company in Singapore.

Alternatively, if you prefer a conversational method to understand better, please feel free to Whatsapp us or call us, +6597952800.