Singapore has been continually attracting foreign investment for decades, weathering through global economic downturns many times over. Extensive double tax treaties, strategic location and high growth potential, economic and political stability, sound legal system, talent resources, innovative business environment and low corporate taxation are oft-cited reasons for Singapore’s success as a regional business hub and gateway to Southeast Asia and China, and why many foreign investors choose Singapore to set up a new company or subsidiary.
Register Company in Singapore for Foreigner
Singapore’s strategic geographic position, with its sea port linking to 600 other ports in 123 countries, enables easy access to Malaysia, Indonesia, Thailand, Vietnam, Cambodia, the Philippines and beyond. With world-class air, seaport and telecommunications infrastructure, Singapore stands out as one of the two Asian countries ranking in the top 10 for Global Competitiveness.
Regional Business Hub and Gateway to Southeast Asia and China
Currently growing faster than any other region in the world, Southeast Asia is projected to become the world’s fourth largest economy. Singapore is a founding member of ASEAN (Association of Southeast Asian Nations, which facilitates economic, political, security, military, educational, and sociocultural integration within the region and with other countries), and has always played a leadership role in its development and direction. International businesses have not only benefited from Singapore’s local pro-business policies and talent pool, but also from its time-tested trade and diplomatic connections with ASEAN and China.
Double Taxation Agreements and Low Corporate Income Taxes
According to IRAS, a DTA is an agreement concluded between Singapore and another jurisdiction (a treaty partner) which serves to relieve double taxation of income that is earned in one jurisdiction by a resident of the other jurisdiction. Singapore has DTAs with over 80 nations. When in effect, double taxes are avoided and withholding taxes are also lowered. Also, in addition to paying no capital gains, dividends tax and withholding tax on post-tax dividends, companies incorporated in Singapore also enjoy a flat 17% corporate income tax rate on any taxable income, with many exemptions and incentives that will further lower the rate. For example, start-up companies can take advantage of a tax exemption of up to $125,000 on the first $200,000 of income for their first three consecutive years of business. More information on Singapore Company Setup can be found HERE.
Availability of Skilled Workforce
Singapore is the only country that made the top 10 in the IMD World Talent ranking report. Not only does Singapore’s immigration and work permit policies make it easy for talented and qualified professionals and entrepreneurs to reside and avail their services, its very own pool of highly educated and well-trained local talent also reinforces Singapore’s reputation as the most productive, flexible and motivated workforce in the region. Its citizens comprise diverse races and cultures, which is an invaluable advantage when it comes to expanding into other markets in Southeast Asia.
Political and Social Stability
Decades long social, political and economic stability has made Singapore an attractive destination for overseas investors, as spate of crime and violence in the country is kept low, and economic growth projection is always optimistic. Its stability and steady development has created a quality standard of living comparable to first-world nations in the West. Residents enjoy efficient public and private transportation, first-rate health services, clean and healthy living environment, excellent educational services, and perhaps most pertinent, a reliable support system for businesses and corporations, both local and foreign. Register company in Singapore for foreigner is also streamlined and fuss-free with the assistance of a professional incorporation service provider.
Reliable IP Protection
Intellectual property (IP) is an extremely valuable resource for a business that needs protection from competitors and unauthorised use. Singapore is ranked second in the world and top in Asia for having the best IP protection in the World Economic Forum’s Global Competitiveness Report 2019. Intellectual property law in Singapore includes personal non-property rights, which is the right to recognise the subject as the creator of the IP object, and property rights, which is the right to use the IP object, the right to allow or prevent misuse, etc. Major global companies such as Procter and Gamble, Continental and Mead Johnson have all cited the nation’s strong protection of IP rights as a factor in their decision to locate investments in business and research & development in Singapore.
Effective Legal System
Singapore’s legal system is well-developed and has successfully evolved to serve its existing cultural, commercial and social environment well. On top of that, Singapore’s commercial legal structure is known for being fair, impartial and stringent, so that business operations are not hampered by red tape or worse still, bribery or other corrupt practices.