Singapore is one of the best places to start up a new business. In 2016 the country ranked 10th in the ‘Best country in the world to do business’ for the tenth consecutive year against 189 other countries. If you are an entrepreneur with a new business idea, you may want to consider incorporating a company in Singapore. This article will explore the major advantages of incorporating a company in Singapore.
Here is why you should incorporate a company in Singapore:
Free Market Economy
The initial point is that Singapore has a robust economy, the state has a “well developed free marketing economy” (Start Up Decisions, 2021). Services make up to 75% of the states GDP and 80% of employment. Housing, Education, Transport and Healthcare are all state funded showing how well off the country is.
The state also offers a simplified and rational tax system. With no tax on capital gains or dividends. Companies can distribute dividends to shareholders tax free, making it a great place for new entrepreneurs. Singapore also has Double Taxation Agreement (DTA) with over 50 countries while providing Unilateral Tax Credits (UTCs) for the countries which it does not have a DTA. This makes it really east for a Singapore based company to avoid Double Taxation.
Singapore imposes no restrictions on the repatriation of profits. No taxes are imposed on capital gains from the sale of a business. Similarly, no tax is levied on dividends paid to the shareholders.
Government Support for New Ventures
Singapore additionally provides a lot of support for new businesses, as the state is extremely ‘pro-growth’ and innovation friendly according to Start Up Decisions (2021). As a start-up, you can be offered grants, tax incentives and assistance schemes. In certain businesses, government may even subsidise labour costs for new start-ups. These schemes apply for both local and foreign businesses.
Educated and Productive Workforce
The work culture in Singapore is extremely productive, Singaporeans are known as one of the most productive, hard-working, and educated citizens. Singapore is known for their well-developed education system and high scores; these skills are then brought into the workforce making some of the best workers.
Geographical Location and Infrastructure
Singapore’s geography is an additional advantage for the state. Being at a central location, the country is located close to some of the most important economies in the world such as China, India, and Australia. Moreover, Singapore’s Changi airport is a world class airport with 20 million passengers each year connecting major cities. Similarly, much of the country’s infrastructure was developed in the last 15 years making it very modern well built. This applies to all buildings, highways, subways as well as parks.
Complete Foreign Ownership with No Currency Controls
Singapore allows a foreigner to own 100% of the stock of a Singapore incorporated company. This enables you to start a company with the type of capital structure that you desire and distribute its ownership to suit your investment needs. Furthermore, there are no restrictions on the amount of capital that you can bring from your home country to invest in your Singapore company.
If you would like to incorporate a company in Singapore, head to AKSC now!