Reasons to Avoid Setting Up a Singapore Company

Singapore is one of the countries usually deemed to be a world-class location for company incorporation. Among the reasons for the city-state’s business-friendly status is the general lack of bureaucracy which has been praised by the World Bank. Corporate tax rates and income taxes in Singapore are also low, there are no capital gains taxes, and chargeable income maybe receive certain Tax exemptions. It is also not difficult to hire a resident director or company secretary. However, not everything about Singapore company registration is positive. There are several dangers and risks to setting up a company there. Those who are not adequately prepared to handle these dangers should not incorporate a company in Singapore.

Lack of Press Freedom

One of the major issues that plagues companies in Singapore is the country’s relative lack of press freedom. According to the Press Freedom Index, Singapore ranks 151st in the world in this statistic. Thus, across the country, many people do not have easy access to certain press and media resources. This in turn will have an impact on those who start a business in Singapore. This is because it can be difficult to obtain more extensive media resources with which the word about one’s company can be spread, this limiting many companies’s ability to maximize their advertising. The lack of proper advertising may then lead to decreased revenue for the company. Therefore, the low level of press and media freedom in Singapore necessitates that companies there must often use different and sometimes unconventional methods to advertise in an effective manner.

High Overhead Costs

Overhead costs are expenses, not including expenses on labor, which have to be paid for the continued operational ability of the company. Some notable expenses which are among the most important overhead costs are those of utilities, advertising and promotion, office supplies, accounting and legal fees, and rent or mortgage payments. In Singapore, many of these expenses are relatively expensive when compared to those of other countries. Since overhead costs are unavoidable, the fact that they are relatively expensive in Singapore requires companies based there to be more careful and vigilant about managing their finances in the best way possible. If they do not adequately plan for expenditures on overhead costs, they might find themselves in a difficult financial situation.

Why Our Services Could Reduce the Effect of High Overhead Costs

Far too many people have run into financial trouble because their companies did not properly account for overhead costs. Many of these people made the mistake of not consulting a person or company with extensive experience and a proven track record in financial planning. Fortunately for you, Paul Hype Page & Co is one such company. Should you require any assistance regarding financial planning, we at Paul Hype Page & Co are able to help you. Our team will provide you with the financial planning services you need to overcome any financial difficulties you might face. We will work with you to help you handle Singapore’s high overhead costs by doing what we can to increase the revenue of your Singapore company and make it financially successful.

Want to Start business in Singapore
Want to Start business in Singapore

Lifestyle Issues

Foreigners who leave their country to live in Singapore for business purposes should be aware that in many ways, the lifestyle in Singapore will be very different from that of their home country. Those who are unprepared for these differences might not want to go through with company incorporation in Singapore.

One of the most striking features of daily life in Singapore is the extreme population density. It is the second-most densely populated country in the world, only trailing Monaco. As such, most major areas of the country tend to be rather crowded. Therefore, people who are uncomfortable being in large crowds or being in areas full of people might not be able to adapt well to living in Singapore.

The relatively high cost of living must also be considered. The Cost of Living Index ranks Singapore as the world’s 105th-most expensive city. While this ranking does not seem to be that high, it actually means that Singapore is among the top 25% of the most expensive cities in the world. In Singapore, daily necessities such as public transport, clothing, utilities, and food can easily be afforded by most living there. However, education, housing, and car ownership and maintenance can take up a large portion of one’s budget, as they are expensive for those who live in Singapore.

How We Can Help You Relocate to Singapore

It is obvious that there are several difficulties to which everyone who moves to Singapore must adjust. After reading this, foreigners might even have second thoughts about relocating and instead choose to remain in their home country.

However, if you would nevertheless like to relocate to Singapore in spite of these possible issues, we at Paul Hype Page & Co can be of assistance. Our team will arrange for you to obtain all the necessary passes and permits with as little trouble as possible. Whether you are seeking an Employment Pass, S Pass, Personalized Employment Pass, or any other work visa, we can steer you in a direction that will ultimately lead to your receiving of the visa. This will help you establish a functional company in Singapore.

Entering an Industry Unsuitable for the Singaporean Economy

Even if everything on the path to setting up a business in Singapore has been done in the proper manner, if the industry to be entered is not in good shape, then all of one’s efforts could come to bought. Certain industries in Singapore have been in a state of decline and continue to be in one. Among the businesses which have not been performing well include print and media companies, departmental stores, and travel agencies. Many print and media companies are currently losing print revenue money because of the high costs associated with operating such a company. Although these companies’ digital revenue has been increasing, it does not make up for the losses in print revenue they have suffered. The economic power of departmental stores has also been declining due to the ever-increasing power of e-commerce. The operating costs of departmental stores are much higher than those of e-commerce businesses as well. Travel agencies in Singapore also find themselves in a precarious position. This is because most people tend to use online or mobile methods to book vacations. Furthermore, travel agencies often have to spend much money for the purposes of rent or payroll. Therefore, people who are considering setting up a Singapore company in one of these industries should reconsider.

Conclusion

Singapore company registration is not for everyone because it carries major risks that may come back to haunt those who are not ready to do so. However, those who choose to incorporate a company in Singapore may find success. They can do so as long as they adeptly handle the problems that have been described and thus gain many benefits from their Singapore company.