Singapore is no longer a small player in the business arena. Home to several multinational corporations, Singapore has gained a strong reputation as the business epicenter of Southeast Asia.
According to the World Bank’s ‘Doing Business’ report for 2020, Singapore ranks second in the ‘Ease of Doing Business’ category, making it one of the best places to incorporate a company.
As a busy business and financial hub, Singapore is also the nesting ground for talent from all walks of life—perfect if you’re on the hunt for a vibrant new team.
With an efficient working environment and highly regulated safety systems, business owners worldwide have flocked to Singapore in search of the best opportunities.
7 reasons why you should incorporate a company in Singapore
1. Singapore has a stellar location
As one of the world’s busiest ports, Singapore sees a significant amount of business inflow and outflow every day. It’s close proximity to some of the world’s most significant economies—China and India—also make it a perfect spot to springboard into those markets.
How does Singapore fare in terms of accessibility? Well, Singapore’s Changi Airport serves over 100 airlines to more than 350 cities. Changi Airport has also consistently ranked within the world’s top three airports, making it a reputable and trustworthy point of contact for freight forwarders and carriers.
The efficiency and convenience of inbound and outbound flights also makes it easy for business owners to travel for business.
2. Developed capital markets
According to Former Commissioner at the US Securities and Exchange Commission Michael Piwowar, Singapore has become a model of capital market development for many developing countries in the world.
Unlike other nations with over-regulated legal processes, the Singapore government has developed an effective regulatory framework over the years that allows the country to remain competitive on a global scale. From a business perspective, no one would want to miss the opportunity to set up their company in a vibrant and emerging business hub like ours.
3. Beneficial and efficient tax regine
If you’re a new business owner, high tax rates are another uphill climb you’ll have to deal with. Not in Singapore. The Singapore government offers one of the world’s most rational corporate tax structures.
The corporate tax rate in Singapore is capped at a low 17%. New companies also receive significant tax breaks during their first 3 years of incorporation.
What’s more? Incorporating a company in Singapore also opens you to the perks of low tax barriers.
Singapore has signed over 20 free trade agreements with 27 global economies. This means that expanding your company and trading across borders will be easier if you incorporate your company in Singapore.
This is supported by an extensive network of Avoidance of Double Taxation Agreements with over 50 countries. That means that business owners that incorporate a company in Singapore are unlikely to suffer from double taxation.
4. Business-friendly ecosystem
The Singapore government acknowledges the creativity of smaller businesses and start-ups. It provides many tax-incentives, programmes and grant schemes to startups to encourage innovation.
As a financial hub, Singapore is also home to local and international banks, many of which are headquartered on the island. This gives new business owners a variety of options and access to capital resources. By incorporating your company in Singapore, you’ll be opening your business to the possibilities of these funding sources.
On top of that, starting a company in Singapore also creates opportunities for a highly diversified team. Singapore’s excellent education system has produced a highly competitive workforce. Its liberal immigration system has also caught the eye of global talent. This makes Singapore the perfect grounds for new business owners to capitalise on when forming their dream team.
5. Liberal foreign ownership policy
Probably the top reason for why Singapore remains attractive to overseas business owners is due to the open and liberal foreign ownership policy. For those who own offshore companies, this could be good news for you.
On top of zero restrictions on permitted business activities, foreign companies have multiple entry options to set up their business and are allowed to have 100% foreign shareholding in all sectors, which fully explains why Singapore continues to be one of the best countries to do business in the world.
6. Strong legal framework and enforcebility
With one of the most stable political environments in the Southeast Asia region, Singapore offers potential business owners and investors security.
The country’s low corruption and crime rates also make it an ideal place for entrepreneurs. So if you decide to incorporate a company in Singapore, rest assured that you’ll be protected against these unruly forces.
Singapore also has a strong record in dealing with internal and external corporate disputes. With efficient legal processes and systems, any cross-border or local disputes will be settled quickly and fairly.
7. Ease of incorporation
Incorporate your company in Singapore under 5 minutes? You bet! Singapore has one of the fastest incorporation frameworks worldwide.
The requirements for incorporating a company are straightforward and easy to complete. It usually takes under five minutes to submit all required documents, and less than a day for the incorporation to be approved.
How do I get started with incorporation?
Successfully incorporating your business in the Lion City is relatively simple. Instead of having to do it by yourself, there are multiple firms in the country that specialise in company incorporation and can get the job done for you in an instant. You will need the following requirements in order to complete to incorporation process:
- Company Name Approval: Prior to incorporation, the proposed name of your offshore company must be approved by the Singapore Company Registrar.
- Registered Address: Offshore or not, every company in Singapore must have a local registered address, which can be either commercial or residential. P.O. boxes are not allowed.
- Directors: A minimum of one local resident must be a part of the company’s group of directors. Directors must also be above 18 years of age.
- Shareholders: Likewise, a minimum of one local or foreign shareholder is required for offshore companies. A director and shareholder can be the same or different person, and can be an individual or a corporate body.
- Company Secretary: Along with the directors and shareholders, a company secretary is also compulsory in the incorporation process. However, a director/shareholder cannot act as the company secretary.
- Appointment of Incorporation Agent: Under Singapore law, foreign individuals or entities are not allowed to self-register as an offshore company. Engaging with an external firm is required to register a Singapore offshore company.
- Business Licenses or Permits: Depending on the nature of your business, there may be certain business licenses or permits that you need to obtain before commencing business operations.
How about a cheaper incorporation package by Aspire?
At Aspire, we offer four online company incorporation packages via Aspire Kickstart, of which two are tailored to foreign directors.
Local directors, we haven’t forgotten about you. Register your company online with Aspire Kickstart for only S$299. That’s 11% cheaper than if you incorporated your company online yourself.
The best part? Registration is 100% online. It takes just five minutes. Register your company in Singapore with Aspire Kickstart today.
Frequently Asked Questions
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