The global business landscape has taken a hit in recent years, hugely due to the Covid-19 pandemic that had struck the shores of many countries, including Singapore. Interestingly, despite the Covid-19 recession, there were more business entities that were incorporated in Singapore as compared to the same period.

This highlights the resilient nature of Singapore’s economy, and the investors’ and entrepreneurs’ confidence in the city state.

Singapore As a Business Hub

Largely known as a business hub in Asia, Singapore is home to many MNCs and SMEs. 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

10 Reasons Why You Should Incorporate 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 10 reasons why:

  • Ease of company incorporation

    No frills and straightforward process 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 are 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 to 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.

  • Complete company ownership

    Any foreigner can set up their own company in Singapore, and this can be done without a Singapore partner! As you have full control over your company, you can decide on the capital structure that best suits your business.

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TIP: Before setting up your company as a foreigner in Singapore, you must attain a visa – such as an Employment Pass, EntrePass, or Tech.Pass. Check out the differences in our article!
  • 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 livable 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 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, business-friendly tax system, its openness to foreign investments, 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!

Starting A Business in Singapore

While there are many reasons to start a business in Singapore, the next important step is to identify which industries to enter. Check out the top business opportunities and growing industries in Singapore

In addition, do take note of the business licenses required for certain industries such as financial services, trading, and more before making your decision.

Already had your heart set on incorporating a company in Singapore? We’re here to help assist you on your journey to success! Reach out to us for incorporation services, securing of your visas, corporate tax planning, and other corporate services now.

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FAQs

Is it true that Singapore does not have taxation on capital gains?2021-08-31T09:40:47+08:00

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.

Do I need to set up a company when running an e-commerce business in Singapore?2021-08-30T16:46:24+08:00

Yes, you must start a company when running your e-commence business. Find out more here!

What are the requirements to set up a company in Singapore?2021-08-30T16:45:25+08:00

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!

Can foreigners set up a company in Singapore?2020-11-13T09:00:36+08:00

Anyone can set up a company in Singapore and own 100% of the company. 

What are the popular business that I can start in Singapore?2020-11-13T09:00:51+08:00

Some popular businesses in Singapore are food and snacks, transportation, consulting firm, home tutoring service, online marketing, laundry service, and personal trainer. 

I want to run an e-commerce business in Singapore, must I set up a company?2020-11-13T09:01:28+08:00

Yes, to run an e-commerce business in Singapore, you must set up a company.

Singapore does not have Taxation on capital gains, is it true?2020-11-13T09:01:45+08:00

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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