What Makes Singapore Such A Great Place to Run a Business?
It’s no secret anymore that Singapore is one of the best locations on the planet to run a business. It’s within close proximity to emerging economies such as China and India, as well as several smaller countries in which the economy is on the rise. It is known for its low corporate tax rates, integrity, quality, reliability, high productivity, rule of law, availability of skilled manpower, and enforcement of intellectual property rights, which makes it one of the best environments for a company looking to expand. The process of Singapore business incorporation is also relatively simple compared to many countries, with many companies being available to show new businesses how to register a business in Singapore. So, what is it that truly makes Singapore such an amazing place for business success? Here are some of the key reasons.
Excellent Connections and Strategic Location
Singapore is home to many of the world’s top companies across several different industries due to several factors. Firstly, it’s extremely close to India and China. Changi International Airport serves over 80 international airlines with connections to more than 330 cities, which makes it ideal for companies who want to build connections in these regions, as well as logistics companies who want to expand the markets they offer logistics to.
As well as fantastic airport facilities, Singapore’s ports have been ranked the best in Asia for over two decades. The container ports are not only extremely busy but also highly efficient. They offer 200 shipping lines with links to over 600 ports in 123 countries. If you need to deliver, Singapore is the place to get started.
The Economy Is Designed To Nurture Startups
Starting a new business is no easy task. No matter where you choose to start your business, you will experience many hurdles that you will have to overcome. However, certain locations are certainly better than others to get started in. According to the World Bank’s Ease of Doing Business report, Singapore has continuously been the best location to start a business. This is due to its hassle-free business set-up process that makes Singapore business incorporation as smooth as possible. It also offers the best IP protection, infrastructure, and incentives in Asia according to the World Economic Forum’s Global Competitiveness Report 2015-16.
New entrepreneurs can experience easy access to capital when getting started and will instantly be operating in a triple-A rated economy and a stable location for business expansion and investment. In total, Singapore is home to over 128 commercial banks, many of which are headquartered in the country. If this wasn’t enough, there are also 31 merchant banks and 604 capital markets license holders in Singapore.
The Singapore Government has also played its part too in propelling the nation towards a thriving start-up ecosystem with several initiatives for new business. Its most popular initiative, Startup SG works as a launchpad for entrepreneurs. It provides them with a platform to access local networks and support initiatives, whilst simultaneously connecting them to global entrepreneur networks. Startup SG has six unique pillars for entrepreneurs to enjoy including support for startups who need a mentor, tech support, equity support, and a business accelerator for new companies who are thriving in the market. On top of this, the Startup SG Loan will also offer start-ups financing if they are unable to get it elsewhere.
Fantastic Tax Framework
When looking at how to register a business in Singapore, it’s likely that tax incentives have driven your decision. In total, the Singapore government has signed over 21 free trade agreements (FTAs) with 27 economies and 76 comprehensive avoidance of double tax agreements (DTAs). These agreements are designed to improve business and trading across borders, which is limited to tax barriers. On top of this, individuals do not need to pay out in capital gains and dividends tax and can also enjoy the benefits of lower withholding taxes which makes Singapore business incorporation a desire for many businesses.
In addition, Singapore also has one of the best business tax structures in the world. The highest level of corporate tax a business can pay is 17%. Its marginal rate is the third-lowest in the world and when taking into account several schemes, the effective rate is even lower.
In 2003, the country made a bid to increase its attractiveness as a wealth management hub. To do so, it relaxed its taxation policy on qualifying foreign-sourced remitted income. This means that Singapore-based holding companies’ headquarters can repatriate dividends from their directly-held foreign subsidiaries to Singapore free of Singapore tax. If a business is not able to meet the qualifying conditions for the tax exemption, they may also apply for a specific exemption.
The tax system is also great for personal tax as well as business tax. The tax rate ranges from 0 to 22% and the framework allows individuals to tap into several different reliefs. This helps them to lower the amount they actually pay in tax. As a result, highly qualified and highly skilled individuals often choose to live in Singapore due to the low rate of tax they pay. This means that the skill base of the country is extremely high compared to other countries, making the process of recruitment significantly easier.