Singapore is a gorgeous country in southern Asia with a very stable government. It has the best quality of life in Asia, it’s considered the best city in Asia for expats, and was ranked the 2nd safest city in the world.
In addition to being a fantastic place to live, Singapore is also a phenomenal place for a business to incorporate.
Those who look into it will find that the business benefits of incorporating in Singapore are undeniable. Read on to learn all the reasons why.
Singapore has put into effect many laws and policies to attract businesses. One of them is their swift and seamless incorporation process.
In order to register a company in Singapore, a business must have:
- Between one and fifty shareholders
- These shareholders are allowed to 100% foreigners
- A minimum paid-up capital of $1
- At least one director who is a citizen, permanent resident, or Employment Pass holder
- Lots of accounting and corporate agencies or law firms that assist with incorporation in Singapore can assist with this step
- A secretary from Singapore (resident or citizen)
- This secretary must be hired within six months of registering
- A registered address in Singapore
- A company name
There are those who claim that you can set up your company in Singapore in an hour!
There are plenty of companies and law firms that will help foreigners incorporate in Singapore and meet these requirements – look here.
Low Taxes and Other Business Benefits
What is the tax rate in Singapore? Generally, all businesses in Singapore are taxed 17%, regardless of whether they are local or foreign.
Keep in mind, the U.S has a corporate tax rate of 21% (plus state taxes) and the United Kingdom is set to collect 25% in the coming years.
What about other Asian countries? China and India both have corporate tax rates of 25%.
There’s more good news! A new company in Singapore can receive a 75% tax exemption on their first $100K of income for their first three consecutive years of operation.
Not to mention, that 17% tax rate only applies to profits over $300K. The first $100K you earn will be taxed 4.25% and the second $200K in profits are taxed 8.5%.
What are the other business benefits in Singapore besides the taxes?
- There is no auditing required for small businesses.
- Shareholders and investors who receive dividends from the company’s profit will not be taxed
- Singapore has one of the most skilled labor forces in the world
- Singapore offers various grants to some industries
- There is no restriction on the repatriation of profits and the import of capital.
These are just a few of the business benefits that Singapore has to offer, there are plenty more.
Take for example the highly skilled Singaporean workforce and the country’s access to Asian markets.
Incorporating in Singapore Makes Sense
Ultimately, incorporating a Singapore business just makes sense.
The Singaporean government has made it easy for businesses to incorporate in Singapore. There is also plenty of affordable help and experts a business can rely on when registering in Singapore.
The tax rate and business benefits in Singapore are also incredibly generous. In fact, the tax rate is significantly lower than comparable western and Asian countries alike.
Take this opportunity to go out and learn more about incorporating in Singapore for a company launch. The advantages will only become more apparent. If this article helped you out make sure to check out the rest of our business section.