Singapore is considered the business center of Southeast Asia. It is one of the first countries business owners would consider when planning to do business in Asia. Many foreign businesses had decided to go through the process of company formation. You may have heard some good things about Singapore. In this article, we are going to confirm them.
Are you planning to start business in Singapore? If so, you’ll need the help of a company formation Singapore agency. However, first of all, you need to know what you will gain in doing business in Singapore. Below are the five key benefits of a foreign company set up in Singapore.
#1 – Less restriction for a foreign company set up in Singapore
There are many reasons why some companies are discouraged in starting a business in another country. One of them is because of foreign business restrictions. Most Asian countries are very strict with foreign investors. Some countries will only allow you to own 40% of your business shares. However, there are fewer restrictions in Singapore.
In Singapore, a business owner can have 100% ownership of a foreign company set up. There are also no limitations in the amount of capital you can use to start business in Singapore. For only 1 Singaporean dollar, you are now qualified to start a business. You also have the privilege to send money earned in Singapore back to your country.
Furthermore, the company formation Singapore process is very simple and direct. It is done online. It will only take less than a day if the documents are complete and no issues found. If you need help with a foreign company set up, hire a start business in Singapore agency.
#2 – Low taxes and other tax benefits for the foreign set up company in Singapore
The Singapore tax system is simple and sensible. It doesn’t impose taxes on capital gains. Thus, it offers flexibility for foreign company set up owners to expand their businesses in Singapore. New businesses are also given a tax break for their first three years. Their taxes are reduced to 0% during that time. Therefore, companies can use their fund to stabilize their businesses first.
Another benefit gained by a foreign company set up is the avoidance of double taxation. Every business is required to pay taxes. However, your home country might also charge you taxes when you repatriate your sales. Although, Singapore has double taxation agreements with over 50 countries. This will prevent you from getting double taxed. In countries with no double taxation agreements, Singapore offers a unilateral tax credit. Therefore, a foreign set up company will have fewer taxes to pay.
#3 – Reliable government support for a foreign company set up
The Singapore government is very supportive of newcomers that want to start business in Singapore. They support foreign businesses similar to how they treat local businesses. Apart from the double tax avoidance benefit, Singapore also offers other business benefits. They give grants, funds and labor assistance, and tax incentives. Thus, business owners are more encouraged to start business in Singapore.
Furthermore, Singapore is known as a country with little to no corruption. They recruit only the smartest and honorable citizens to work for the government. They also pay them well to avoid corruption. There are also very severe punishments for those who are proven to be corrupted. Thus, business owners won’t have to worry about being threatened to give bribes so they can do business freely.
#4 – Professional country image and fast-growing economy
Singapore has a robust economy. Its well-developed market consists of trade, manufacturing, and finance. It is also one of the few countries that have a high employment rate but with a low inflation rate. It has no external public debt. Instead, the country has continuously invested its capital in foreign countries. Therefore, starting business in Singapore guarantees profitable opportunities.
Singapore also bears a very professional image. Apart from an uncorrupted government, the country is also known for its modernized and honest environment. As a result, businesses that came from Singapore also bear the professional image.
Another thing that businesses like about Singapore is its strategic location. Many consider Singapore as the business gateway of Southeast Asia. Other emerging countries like India and China are only a few hours away by plane. In addition, Singapore’s airports and seaports are the busiest places in the country.
Another thing Singapore is known for is its modernized and world-class infrastructure. This Southeast Asian country has one of the fastest internet connections in the world. It also has a fast transportation system. As a result, a good working environment and productivity are given to foreign company set up businesses.
If you intend to live here so you can start business in Singapore, you don’t have to worry about the cost of living. Singapore has a reasonable cost of living. You can choose to live in a thrift and comfortable lifestyle. That is because there are cheap ways to live in Singapore. There are many budget restaurants and affordable accommodations all over the country.
#5 – Excellent and talented citizens
Singapore has an excellent educational system. As a result, the country can produce an excellent and talented workforce. Each student is trained to be productive and provide quality work results. In addition, almost everyone in Singapore can speak in English. Communicating with your local employees will not be a problem. They are also globally competitive and tech-minded individuals. They believe in the importance of using technology to make work fast and easier.
Those are the five key benefits of why you should start a business in Singapore. If you need help to start business in Singapore, we are here for you. Here at WLP, we provide all the services you need to be able to go through the company formation Singapore process.