Singapore government has made it possible for foreign companies to set camp here by providing tax exemptions and company incorporation processes that are favorable to businesses in all industries. However, there are some things that you need to know before you open new company in Singapore.
Singapore is ranked among the top 5 countries in the world with a robust taxation system that favors not only local businesses but also foreign companies. As a newly incorporate company in the country, it is recommended to hire a professional company secretary and accountant to take care of accounting and tax matters.
If your annual income is between S$100,001 – S$300,000, you will be required to pay 8.5% tax. If the annual income exceeds S$300,000, you will be taxed at a rate of 17%. Citizens of Singapore who work abroad do not have to pay tax back at home. Company dividends that are shared among the shareholders are also not taxed.
Raising capital is a major challenge for not only foreign companies but also locally owned businesses. As an entrepreneur, you not only have to consider your financial capability but also win the trust and confidence of potential investors. You have to pitch your business ideas to angel investors, start-up ventures, and seed funds. With the finances at hand, you will be able to carry out various tasks such as marketing your products and services to the target audience.
The good thing is that you do not need a large sum of money to register company in Singapore — just fill up the forms, appoint a director, hire a company secretary, and invest at least S$1 into the business. If your business ideas are viable and realistic, you will get an investor to help you materialise it.
Before venturing into a new market, it is important that you carry out a feasibility study. This study will help you to get a good understanding of its composition, scope, saturation level, existing players, new entrants, the degree of competition, etc. Analyze all the data before embarking on the company registration process.
Concisely, Singapore has proven to be one of the most reliable and trusted business hubs in the Asian-Pacific region. Foreign companies are setting up offices in the country to capitalize on the emerging markets especially in industries such as information technology, healthcare, finance, and retail.
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