For more than half a century now, Incorporation in Singapore has led itself to political stability and economic milestones. Singapore is now one of the leading manufacturing hubs for electronic components and the business incorporation hub of Asia. This is because of the city-state’s favorable business environment and economic fundamentals that it’s come this far.
As a result, more and more companies are planning to set grounds in Singapore. Singapore continues to improve its policies to entice more and specific industries to flourish within. Here are the top reasons why company incorporation in Singapore is advantageous.
Why Incorporate in Singapore?
Financial Hub in Asia
Singapore is on the top as the world’s financial center in terms of competitiveness. The range of products and services brimming here include banking, foreign exchange, bonds, equities, derivatives, and insurance. Starting a business is a financial hub like Singapore is very advantageous especially to businesses in the financial services industry.
Primarily, financial institutions like investment banks, securities exchanges, and investment advisory services benefit from Singapore’s financial environment and policies. This means that businesses in this industry are very profitable. Further, being in a financial hub also means it is more convenient to hold business meetings and conventions.
Business owners will always flourish in an economy that can sustain growth and expansion. Singapore offers just that with its very stable economic policies. For a geographically small country with very limited resources, Singapore has a very robust and well-managed economy, at $64,580 GDP per capita.
The city-state makes good use of its financial condition to improve its sectors holistically. It efficiently funds its education, housing, transport, and healthcare to support long-term growth and sustainability. Moreover, the country was able to achieve a very low unemployment rate while maintaining low inflation.
Advantageous Tax System
Singapore is not only famous for its outstanding economy. It is also known for its simple and rational tax system. More importantly, they levy no tax on capital gains and dividends from businesses. This makes Singapore even more attractive to entrepreneurs who wish to incorporate.
Singapore’s tax system is tiered for both personal and corporate income. Corporate tax is capped at 17%. Further, the government encourages the start-up of new businesses and allows them significant tax breaks. For their first three years of operation, their initial $100,000 income is tax-exempt.
For personal income, the tax rate starts at 0% and rises gradually to a maximum of 20%. Additionally, individuals don’t have to worry about double taxation because dividend distributions are tax-free.
Easy Foreign Investment
Singapore allows foreigners to hold 100% ownership of any incorporated company. This makes the country very attractive to foreign traders. While other countries have very strict and rigid rules about foreign stock ownership, Singapore allows foreigners to trade freely.
Firstly, you do not need local partners to incorporate. Additionally, there are no restrictions as to the amount of capital you bring from your home country. There are also no restrictions on the repatriation of profits here. This means that foreign traders can enable their desired business and capital structure with minimal limitations.
Lastly, Singapore’s non-imposition of restrictions on the movement of the foreign currency makes it very good to do business in the country. This mechanism relieves both businesses and individuals in their investments and dealings with foreign currency.
Easy Incorporation Process
Company incorporation in Singapore is now very easy and convenient. Singapore is one of the few countries with very efficient and bureaucracy-free regulations. This allows businesses to start up with only very minimal requirements and fees. For nine consecutive years, Singapore has been first in the World Bank’s Ease of Doing Business Survey.
The requirements to start a company in Singapore are very straightforward and simple. It could only take less than a day, on average, to incorporate a company here. Additionally, annual compliance requirements are also very simple and sans all the complicated paperwork.
Incorporate in Singapore Today!
Singapore has proved for years how advantageous it is for entrepreneurs to break ground in their economy. Are you looking for reasons why you should push forward on your company incorporation in Singapore? You’ve got your reasons now. Start your business today and avail of our Singapore incorporation services