You may be wondering why in the world you should register your company in Singapore and not anywhere else. There are several benefits to incorporating in this country, which make the country stand out from the others. According to the World Bank, Singapore is the #1 country in terms of ease of running a business and conducting business activities. Forbes magazine thinks of Singapore as the third wealthiest country in the entire world. It is also considered to be one of the most widely globalized economy. The political climate in Singapore is rather stable and one needs not to be afraid of sudden changes in the political system that would make the act of registering a company in Singapore difficult.
The labor force is also strong there. People are keen on working and the standard of living is very high. In fact, Singapore is considered to be the country with the highest standard of living in Asia. If you Singapore company registration is what you are after, please be aware that the corporate tax rate equals 8.5 if your total revenue does not exceed $300,000 and 17% if it does. In terms of other taxes, there’s no requirement to pay tax on capital gains (which means the tax system for corporations is single-tier, the owners of a corporation do not need to pay taxes twice), nor is there an estate, death or even inheritance tax. As per personal tax (applicable to individuals who are considering registration of business in Singapore), the tax rate starts at zero and the maximum an individual can pay is 20% of the revenue if it exceeds $320,000.
Registration of Company in Singapore
The act of company incorporation in Singapore is made quite simple. Even though this article is not meant to be a guide on how to register a company, as it is only meant to highlight some of the many benefits of incorporating and company formation in the country, it is a good idea to mention at least the basics of how the incorporation itself is actually handled.
First you must understand that there is a different policy for foreigners and for domestic entrepreneurs. If you are a foreigner, you do not need to relocate into Singapore, you may run the business from abroad, however, you do need to hire someone located in Singapore to register the company for you. You’ll also need to hire a domestic resident who will bear the function of a director. This applies to a company, though. If you plan to work as an individual or be in partnership with someone, you don’t need to seek someone to be the director.
If you are located in Singapore, you may decide to either start a company or work as a sole proprietor. Partnership is also possible, as the business opportunities in Singapore are vast and you never know whether you’ll need to cooperate with someone on a regular and daily basis or whether you can get by by yourself.
Considering the country’s strategic location, tax-friendly environment, open and forthcoming government and the ease of starting a business in Singapore, it can be said that it is one of the best options for incorporation in the whole world.
Categories: Singapore Incorporation and Company Registration