What makes Singapore so attractive for business incorporation?
Be it the threat of the global pandemic or continued technological disruption, businesses and investors around the world are still coping with an uncertain and volatile landscape. Yet amidst this game-changing disruption that’s happening around the world, Singapore has emerged as a hub for innovation, a reputable financial and trading centre.
According to data shared by the World Bank, Singapore has been ranked second across the globe as an economy that’s easy for business incorporation. The regulatory environment has made it more conducive for business incorporation in Singapore.
Here are some reasons why business owners love to get their company incorporated in Singapore:
1. Political Stability
Boasting one of the most stable political environments in Southeast Asia, Singapore offers businesses a strong sense of comfort and security. With strict anti-corruption laws in place, Singapore’s judicial system has been recognised as one of the most efficient in Asia. Also, in a recent survey conducted by the World Economic Forum, the country is ranked top in Asia for having the best Intellectual Property (IP) protection in the world. All these factors combined have led to Singapore being labeled as the most transparent country for start-ups and company incorporation.
2. Strategic Location
Whether it is ‘unicorns’ such as Grab and Lazada, or tech giants such as Dyson Limited, there’s no doubt that Singapore’s strategic location contributes to it being a home to the world’s top companies across a wide array of industries. Not only is Singapore located in the heart of Southeast Asia, close to emerging markets such as India and China, its Changi International Airport currently serves over 80 international airlines. This has ultimately led to the country having connections to more than 330 cities worldwide, and thus being rated top in Asia for excellent logistics performance.
Business operations are also made easier, more convenient and efficient with daily inbound and outbound flights. Not only does this aid in logistics performance, but it also preserves the connection with other countries in terms of trade. Plus, under the Free Trade Area agreement, it’s now easier and less costly for a Singapore incorporated company to trade across borders and expand their operations.
3. Ease of Starting a Business
Compared to other countries like the United States of America, or China, it is easier and quicker to incorporate your company in Singapore. A company incorporation process in Singapore can take as quickly as a day to complete given that the documents and forms are submitted correctly.
Anyone, including foreigners, can own a company in Singapore. Plus, with the Singapore government pushing hard for innovation through a slew of initiatives, the city has set itself up as a business-friendly ecosystem for Singapore incorporated companies.
In addition to the three general positives of why Singapore has a business-friendly landscape, here are three advantages of getting your company incorporated in Singapore.
1. Competitive tax policies
Incorporated companies in Singapore are taxed at lower rates as compared to business owners running a sole proprietorship. In addition to that, Singapore is known to have one of the lowest corporate tax rates globally; with business corporations being exempted for the first three years of tax filings.
2. Attainment of better credibility
Incorporating a business helps to establish a professional identity. This in turn leads to an increased sense of credibility amongst customers and suppliers alike. In certain industries such as medical and pharmaceuticals, having a formal business structure is a prerequisite to securing contracts or projects.
With terms such as “Inc.” and “Pte Ltd.”, also provides the incorporated company a form of security and protection against theft of identity or intellectual property. This prevents other businesses or sole proprietorships from using a similar name to an incorporated company.
3. Easy access to funds
Private banks, fund managers, and other private investors seek investments with minimal risks. Having a business incorporation in Singapore reduces liability, making it more attractive to investors as compared to a sole proprietor or partnerships.
Overall, having a Singapore incorporated company keeps your business more protected whilst enjoying more benefits, with a greater potential for expansion and success. Engage in Express Corporate Services, a corporate service provider, if you’re looking to incorporate your company today.