Why is Singapore Preferred by Foreign Companies? – Ease of business
Singapore has always been a prime destination for businesses. The country’s solid economy, business-friendly regulatory environment and local talent make the country an opportune place to start a business. In this article, take a look at all the benefits business owners can expect from Singapore.
Ease of starting a business in Singapore
Luxury Accommodation in Singapore for perfect Business staycations | Image via Park Royal Serviced Suites Official site
Registering a business in Singapore is straightforward and easier than in many other business hubs. The process takes only a day to complete if you have fulfilled the requirements and submitted the application properly. Moreover, the country offers plenty of business-concented amenities. For example, the best serviced apartments in Singapore provide easy access to the business centre. Accommodation options such as the PARKROYAL Serviced Suites Singapore offer less than 10-minute access to the business district. As for incorporating a business, the online system makes registering easy and accessible to all qualified business owners.
The strong legal system and robust personal safety in Singapore
As a politically stable country, Singapore assures investors and entrepreneurs a secure and comfortable environment for business and personal growth. The judicial system is efficient and the anti-corruption measures ensure that businesses can operate sans the fear of malaise. In addition, the crime rate in Singapore is low. In the case of a cross border dispute, investors and business owners can readily rely on the country’s sophisticated arbitration facility.
Singapore’s strategic position and trade agreements
Singapore is not only home to the world’s crucial players in all industries but also provides a gateway to the rest of the region’s business epicenters. The busy airport in Singapore, makes air travel efficient with frequent inbound and outbound flights scheduled on a daily basis. Changi Airport facilitates over 100 airlines, connecting 400 cities and over 100 countries. Moreover, Singapore consistently maintains healthy international connections with countries across the world. The 21 bilateral Free Trade Agreements and 41 Investment Guarantee Agreements in operation facilitate business and trading across barriers from Singapore more effectively and less costly.
The robust financial centre and access to funding in Singapore
Since 2018, Singapore has operated a wealth management hub with 124 commercial banks, 365 fund managers and 531 capital market services license holders. As such, entrepreneurs have ample access to funding for business expansion at rates as low as 1 percent per annum. Moreover, Singapore is home to the fourth largest forex trading centre in the world.
Ample Intellectual Property protection in Singapore
Enterprises and startups can rest assured of comprehensive and effective intellectual property rights in Singapore. The country’s IP framework comes second in the world right after Finland and Luxembourg. Businesses operating from Singapore would have a thriving ecosystem that provides assurance on intellectual property and values originality.
Foreign income exemption in SingaporeThe country’s business friendly regulatory framework allows Singapore-based holding organizations to repatriate dividends from foreign subsidiaries (directly held) to Singapore without a tax payment. Even the businesses that don’t meet the listed qualifications, yet make impactful economic activities can apply for exemptions in this regard.
Progressive personal tax framework in SingaporeThe sustainability conscious tax frameworks in Singapore are attractive. The marginal rates start from 0 to 22%, while the rules grant residents numerous reliefs. This lowers effective payments on personal tax.
Progressive corporate tax rates in SingaporePerhaps, more importantly for businesses, Singapore has designed a network of free trade and tax treaties to cater to business organizations. During the first three years of business, non-residents benefit from a ‘zero tax’ jurisdiction, meaning that non-resident corporations are exempt from tax payments during this period. The country has entered into Avoidance of Double Tax Agreements (DTAs) with international jurisdictions.
In a nutshell, the country offers enormous business benefits to both investors and entrepreneurs to establish and grow in a viable manner.
