The following article is an interview we have done with the company incorporate professionals at Director Plus. They are the top Singapore company incorporation service provider who assist business owners to set up their business in Singapore. Through their years of business experience in Singapore, they shared with us some reason why 2017 is the year to form up your Singapore firm.
If you are hoping to start a company in 2017, finding the right place is a critical first step. Singapore has for years been lauded as a hub for business, and one of the world’s hottest start-up ecosystems. With more than 3,600 active start-ups, the country is ranked second in terms of business funding. The country is projected to experience rapid growth in the coming few years than previously expected. This is attributed to a number of factors, including political stability, ease of setting up a business, attractive taxes and flexible immigration policies.
We have rounded up 6 reasons why the global business community should consider investing in Singapore in 2017.
A Gateway to Southeast Asia
Often referred to as economic powerhouse of Asia, Singapore has its roots as a business port connecting East and West. A commercial and financial hub, Singapore is accessible by companies to the major Asian markets. Also, the best airport in the world – Changi Airport – serves more than 80 local and international airlines carrying millions of passengers to different cities every single day. A number of leading logistics companies are also based in Singapore ensuring that business connectivity as well as cross-border trade run smoothly.
Ease of Company Incorporation
Well-known for its business friendly environment, entrepreneurs can easily turn their ideas into business and get significant profits in the country. Setting up a company in Singapore is fast and easy, although the government has stringent rules to ensure legitimacy of the business and to maintain the country’s reputation. If all the documents are in order, the process can take 10-15 minutes. Realize that you may have to wait for 14 days to 2 months if your application needs to be passed to other government agencies for review or approval.
Attractive & Flexible Tax Policies
Singapore boasts one of the world’s most efficient personal and corporate tax regimes. People who are tax resident in the country have personal tax liability starting from 0% and goes up to 20% for income that exceeds S$320,000. While corporate tax is capped at 17% on the basis of the company’s income, the effective tax payable is much lower taking into account the many government incentives, schemes and subsidies. Add to it, 75 double taxation agreements and you will realize the reasons why thousands of multinational are headquartered in Singapore.
Singapore is known for a smooth-running bureaucracy, which works flawlessly to help startups thrive. The government is one that passes laws, decides priorities and sets rules using a rational methodology. The government also provides loans and grants to new start-ups and existing corporations in Singapore. Examples include SPRING Singapore which offers micro-loan programs, loan insurance scheme, Local Enterprise Finance Scheme and Start-up Enterprise Development Scheme. This is owing to the Singapore’s progressive nature and its hunger to become the region’s economic powerhouse.
Access to Skilled & Low-Cost Labor
We have heard a million times that a skilled labor force is a key factor for a successful business. Being a knowledge-based economy, Singapore boasts an educated and professionally qualified labor force. The workforce is both multicultural and international, attracting experts from all the four corners of the world. Unlike other countries, Singapore has no labor trouble and no minimum wage rules, making it an ideal place to incorporate a company. Although it should be noted that employers must pay Skills Development Levy (SDL) and Central Provident Fund (CPF) contributions for their employees.
Transparent Business Haven
Clear-cut rules, simple and effective laws, the best protection of intellectual property, speed and scalability are what you should expect in Singapore. The courts are under a common law jurisdiction, meaning they will handle your case fast and professionally. Compare this to other countries in the region and you will realize why some 8,000 multinationals are based in Singapore. Furthermore, the country works on a system that most countries are acquainted with in terms of culture, language as well as legal systems. It is one of the best, if not the best place to set up your company in 2017.
Singapore is one of the world’s largest financial centers. Being a leading financial hub, it offers an attractive place for the incorporation of companies. If you are considering setting up a company in the region in 2017, then Singapore is an excellent place to turn your ideas into money.