Outline
Are you wondering about set up a company in Singapore? Singapore’s high ratings for ease of starting businesses attract significant foreign investments and entrepreneurs. Moreover, amid the COVID-19 pandemic, more business entities were incorporated in Singapore than in other countries. In this article, we’ll give you more insight into the reasons to set up a company in Singapore.
The pro-business environment, coupled with its strategic location, robust infrastructure, and favourable tax policies, makes Singapore an ideal choice for setting up companies.
Singapore As a Business Hub
Largely known as a business hub in Asia, Singapore is home to many MNCs, SMEs, and start-ups. The statistics and rankings tell a story of how open Singapore is as a country for foreign-owned and local businesses.
Check out the statistics and rankings below to see Singapore as a powerhouse in the world!
- #1 in the Best Business Environment 2020 by The Economist Intelligence Unit
- #1 in the Human Capital Index 2020 by World Bank Group
- #1 in the Economic Freedom Index 2021 by The Heritage Foundation
- #2 in the Ease of Doing Business Ranking 2021 by The World Bank
- #3 in the Corruption Perceptions Index 2020 by Transparency International
- #4 in the Starting A Business Ranking 2021 by The World Bank
- #5 in the World Competitiveness Ranking 2021 by Institute for Management Development
Reasons to Start Your Company in Singapore
Ever wondered why foreigners and locals are incorporating companies in Singapore over other countries like New Zealand or Hong Kong? There are 13 reasons why:
Ease of company incorporation
No frills and straightforward processes when you incorporate your company in Singapore. According to The World Bank, Singapore ranks 2nd in the ease of doing business. The incorporation process only takes one day should all documents be ready.
Medium of language
Language is a key component to consider when setting up a business in a country. In Singapore, English is the official business and administrative language and almost all Singaporeans are available to speak English, reducing potential communication obstacles.
Strategic location
Hailed as the gateway to Asia, Singapore is only a short plane ride away from Southeast Asian countries and Australia. Its strategic location enables you to expand to other parts of Asia Pacific easily, connecting your business to a diverse base of consumers and workforce.
For business expansion, you can tap on the Market Readiness Assistance grant supported by the government to reduce the overall expansion costs – find out more about the MRA Grant.
Complete company ownership
Any foreigner can set up their own company in Singapore without requiring a Singapore partner. As you have full control over your company, you can decide on the capital structure that best suits your business.
The low corporate tax rate
One of the most important considerations for investors and entrepreneurs is the corporate tax rates. No one likes to be taxed a hefty figure when doing business – as such, Singapore, boasting a low corporate tax rate capped at 17% is an attractive proposition for them!
Extensive double tax treaties
Likewise, paying double tax is never an ideal situation. To avoid double taxing, Singapore has been part of many double tax treaties with various countries across the world. This helps to ensure that those who pay taxes to the Singaporean tax authorities will not have to pay taxes to the other countries involved in the tax treaties.
Talent hub
Talents are aplenty in Singapore. With its open immigration policy and strong liveable conditions, more talents are opting to come to Singapore to live and work, making it easier for companies to get the skilled talents required.
No restrictions on the movement of foreign currency
Setting up a company requires a substantial amount of capital at the initial stage. The good news is you can bring in as much capital as you need from your home country when you set up a company in Singapore without any restrictions, unlike China and India.
Open economy
Ranked 1st in the Economic Freedom Index by The Heritage Foundation, Singapore stands out from its competitors by having stable political environment, a business-friendly tax system, openness to foreign investments, a labour market, and modern infrastructure.
Grants for businesses
The Singapore government encourages start-ups and SMEs by offering various grants that help these companies to accelerate their business ventures, even for foreign-owned businesses. Discover the list of business grants available for you to tap on!
Productive workforce
Singapore’s excellent education system produces high-scoring students on global comparative standards. These students then become part of Singapore’s workforce, providing quality work and outstanding performance. On top of this, Singaporeans are known to be extremely hardworking, law-abiding, productive, and highly educated.
Law-abiding
Singapore has a practice of recruiting its best citizens into its civil service, paying them exceptionally well so that there is little to no temptation for corruption. Singapore also possesses strict laws, meaning corruption and official misconduct are faced with harsh punishments. These government policies have resulted in Singapore ranking as one of the least corrupt cities in the world.
Excellent quality of life
Singapore’s public transportation is efficient and easily accessible, making it easy for people to travel all around the country. With international markets on every corner, access to fresh groceries is also convenient and hassle-free. The government has created a safe, clean, efficiently-run place to live, where business freedoms and the rule of law are well respected.
Starting A Business in Singapore
While there are many reasons to start a business in Singapore as a foreigner, the next important step is to identify which industries to enter. Check out the top business opportunities and growing industries in Singapore. Moreover, you can also get professional advice from Singapore incorporation services to ensure your smooth registration or incorporation of your company.
In addition, do take note of the business licenses required for certain industries such as financial services, trading, and more before making your decision.
FAQs
Yes, one of Singapore’s most well-known tax policies is that of the lack of taxation on capital gains. This policy was put in place to encourage the undertaking of business ventures in Singapore. Thus, it has contributed to the country’s economic development.
Yes, you must start a company when running your e-commence business. Find out more here!
The basic requirements to set up a company in Singapore include:
- At least one local director (Singapore citizen, a Singapore permanent resident, an EntrePass/Employment Pass/Dependent’s Pass’s holder with LOC, or a nominee director)
- At least 1 shareholder (full flexibility here, can be corporate or individual, 100% foreign owned is acceptable too!)
- At least S$1 paid-up capital
- A physical local registered address
- A company secretary
You can find out more about incorporation in our article here!
Some popular businesses in Singapore are food and snacks, transportation, consulting firm, home tutoring service, online marketing, laundry service, and personal trainer.
Yes, to run an e-commerce business in Singapore, you must set up a company.
Yes, one of Singapore’s most well-known tax policies is that of the lack of taxation on capital gains. This policy was put in place to encourage the undertaking of business ventures in Singapore. Thus, it has contributed to the country’s economic development.
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