Singapore gained independence in 1965 and has quickly become famous, safe, clean, green, and orderly. Prudent economic management, first-class infrastructure, and low taxes make it attractive for investment, and it’s probably the best-run country in the world. However, you’ll still need the population’s different cultural traditions and backgrounds to maximize your success doing business in this country. In this article, we’ve outlined the benefits of doing business in Singapore.
#1 – Attractive Tax Rates
Singapore offers the most efficient personal and corporate tax regimes in the world. Based on the year of assessment 2012, people who are tax resident in Singapore have personal tax liability starting as low as 0 percent to a maximum of 20 percent for income that exceeds $320,000. While for corporate tax, newly incorporated companies are allowed a tax exemption of the first $200,000. For taxable profits above $300,000, tax rate is flat at 17 percent.
Capital gains in this country aren’t taxable, and dividends issued to shareholders are exempted from tax following a one-tier tax policy. In addition, Singapore adopted a broad-based consumption tax known as Goods and Services Tax. In order to maintain competitiveness, this country has maintained one of the world’s lowest rates at 7 percent.
#2 – Strategic Geographical Location
As Singapore is situated in the heart of South-East Asia, the entrepreneurs can venture easily into other Asia countries. The country is classified as a premier International Maritime centre and the port is one of the busiest in the world. The international airport, maritime centre, and strategic location make Singapore a prime location where entrepreneurs can venture out easily into other Asian countries for investments.
#3 – Multi-Cultural Population
In the fast globalizing world of today, we’re capitalizing on the strength of diversity. Singapore is a globally connected country that has the unique blend of lifestyles, religions, and cultures. When doing business in this country, it’s vital to remember that open migration policy has created a cosmopolitan environment in which one in four people are from abroad. Therefore, the diverse population that comprises predominantly of Indian, Chinese, and Malay doesn’t assume any identity yet different ethnic groups unite comfortably as Singaporeans.
#4 – Easy Company Incorporation
Known for its pro-business environment, an individual can easily turn ideas into business and achieve impressing profits in Singapore. Compared to other countries, the procedure usually takes approximately 15 minutes to incorporate a company in Singapore. However, it can take approximately 14 days to 2 months in case the application needs to be referred to other authorities for review or approval. For people who want to incorporate a local company but aren’t in Singapore, an online platform is available for them. Alternatively, you can also contact the incorporation consultant at http://www.nomineedirectorservices.com.sg to help with the incorporation procedure.
#5 – International Trading
For companies with income that arise from cross-border activities, this country has established avoidance Double Taxation Agreements with other international jurisdiction. In addition, Double Taxation Agreements makes clear the taxing rights between Singapore and her treaty partner on different kinds of income. These agreements also provide for tax exemption or reduction on certain types of income.
#6 – Thriving Economy
According to the Singapore economic Development Board, Singapore is ranked the third best worldwide as the easiest place to do business. It’s also ranked at the top as the most open economy for international trade and investment, and the best business environment in Asia Pacific. These conditions have made Singapore the most competitive Asian country and the best place to do business.
#7 – Smooth Efficiency
Singapore is known for quality, integrity, productivity, and enforcement of the rule of law. This well established country is also trusted internationally. According to the world’s competitive report in 2015, Singapore was one of the top three least corrupt countries in the world. In addition, the level of infrastructure is high and seems to operate flawlessly. The roads are perfectly constructed, the trains run on time, and the healthcare services are world class.
With a thriving multicultural free-market economy, it’s clear that international organizations can significantly profit from the above benefits of doing business in Singapore. However, international organizations that are doing business in Singapore or are employing Singaporean counterparts must have a series of cross cultural training programs. This is to make sure that they understand the subtleties of the business in Singapore and also the culture on all levels of business. Not that Singapore has doesn’t on foreign ownership of business. The import of capital and repatriation of profits are freely allowed. This is the best place to set up your business.