40 years ago, Singapore had only half a million people, but now, 40 years later, the country has grown tremendously not only based on population but also the economy. According to recent reports, it has the largest foreign currency reserve per capital in the world.
Thousands of companies are now setting camping in the country in a bid to take advantage of the emerging markets and the many business incentives offered by Singapore government. Here are some of the pro reasons why you should choose Singapore for company incorporation.
Excellent Taxation System
Tax is one of the primary factors that any entrepreneur considers when venturing into a new market. Singapore is well known for having one of the most outstanding tax systems in the world. The current corporate tax rate for all private limited companies that are registered in the county and generate S$300,000 revenue per year is less than 9%. For companies that generate profits above S$300,000, the set corporate tax rate does not exceed 17%.
Singapore also has a single-tier tax policy that dictates that for income that is taxed at the corporate level; the dividends can be shared among the shareholders’ tax-free. The government also recently introduced Goods and Services Tax (GST) that is tailored make the economy more competitive and reduce its dependence on income tax. Our GST is currently 7%, this is below the global average GST/VAT of 16.4% and Asia-Pacific region average of 10.5%.
Flexible Immigration Policies
The government has implemented an open immigration policy that allows foreign entrepreneurs who would want to set up businesses in the country to do so easily. If you are a new company and you want to hire foreign professionals to work in the firm, you will be pleased to know that the government has already put in place measures to make it easy for them to acquire work visa and permits.
Robust Intellectual Property Protection
Singapore government has one of the most robust and comprehensive intellectual property protection guidelines. The Institute for Management Development, The World Economic Forum, and Political Economic Risk Consultancy all ranked the country top in Asia.
For instance, apart from registering company in Singapore, you can decide to apply for a global trademark registration since the country is a signatory to all the major intellectual property treaties and conventions such as Berne Convention, Patent Cooperation Treaty, and Paris Convention.
Finally, Singapore has a pro-business environment that has so far proven to be capable of attracting a significant number of foreign investments. Compared to other western countries, it only takes 1-2 days to incorporate a company in the country, with government and corporate service providers assisting you along the way.