Why Singapore?

Starting a business in Singapore has a lot of advantages, following are the main ones to be considered when starting a business in Singapore.

Singapore is #2 in Ease of Doing Business report

World Bank’s Ease of Doing Business lists Singapore #2 in the world (out of 190 jurisdictions)

Freest Economy

According to Heritage Foundation’s Index of Economic Freedom, Singapore is #1 in the world (out of 177 jurisdictions)

Fintech Hub

Singapore is a great country to register a Fintech company: there are more than 1,350 fintech companies in Singapore and this number is growing every year. To attract local and foreign fintech companies, the FinTech Office, a virtual entity comprising various government entities, including the Monetary Authority of Singapore (MAS), Economic Development Board, Infocomm media Development Authority and Spring Singapore (now Enterprise Singapore), was established in may 2016. The one-stop office advises nascent fintech firms on various fintech-related government grants and schemes and helps them navigate the regulatory requirements in the finance industry.

Crypto Currency Trade

When properly structured, a Singapore LLC can trade with crypto-currencies without requiring a local regulatory license and without paying any local taxes in Singapore.

Government Grants

In Singapore Government grants are available for tax-resident Singapore LLCs. For example, to encourage companies to improve their digitalization and productivity, the Singapore government, though the Infocomm Media Development Authority (IMDA), offers subsidies of up to 80% for companies engaging IMDA-approved vendors of HR, accounting and payroll services. Singapore’s StartUp SG grants companies early-stage funding to support their branding, funding, and talent attractions.

Most Innovative City

Singapore is ranked as the most innovative city in Asia for entrepreneurs, according to the Corporate Advisory Firm, Solidiance.

Competitive Economy

World Economic Forum’s The Global Competitiveness Report (GCR) lists Singapore as #1 out of 141 jurisdictions considered. Note: The Global Competitiveness Index integrates the macroeconomic and the micro/business aspects of competitiveness into a single index.

11th Richest Country

According to IMF, United Nations, and the World Bank reports on GDP per capita Singapore is the 11th richest country in the world.

AAA-Rated Country

According to Standard & Poor’s, Fitch, and Moody’s Singapore is a AAA-rated country with zero national debt and government savings of approximately US$330 billion. It is always recommended to use Singapore banks to store funds, especially during global recession, because banks in Singapore rarely declare bankruptcy.

Work Visas

It’s comparatively easier to relocate to Singapore through company formation than in other developed countries.

Incorporate from distance

Company director and shareholders are not required to travel to Singapore in person during company registration.

No paid-up capital and office requirements

Companies registered in Singapore are not required to pay up or inject any capital and they are not obliged to rent a physical office in Singapore.

Low Taxes

For e.g. tax resident companies in Singapore pay only 8.5% corporate tax from their SG$300,000 annual net profits due to government tax exemptions. Singapore LLC dividends are free of all local taxes, including withholding tax. Also, Singapore has no capital gains tax. As a result, company shares and assets can be bought and sold free of all local taxes. A Singapore LLC pays zero tax when trading with other members of the Association of Southeast Asian Nations (ASEAN) countries (currently: Brunei, Burma (Myanmar), Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam). A tax-resident Singapore LLC enjoys a corporate tax rate of 15% if it qualifies for Asian Headquarters Status, A tax-resident Singapore LLC enjoys a corporate tax rate of 10% if it qualifies for Global Headquarters Status.

Low Taxes

Tax-resident companies can also enjoy a tax exemption of 75% on the first SG$10000 of their income in Singapore, and further 50% on the next SG$290000, a total of SG$152500. Taxable profits over SG$300000 will be taxed at a fixed rate of 17%, this is the second lowest rate in APAC. A tax resident Singapore LLC has access to 88 double tax treaties, and these treaties can minimize withholding tax on repatriation of profits to overseas parent companies. Goods and Services Tax (GST) is only 7% in Singapore. After 12 months from the accounting year-end, corporate tax can be paid by installments over the following 12 months. An employee earning SG$150000 annual income only pays 9% personal income tax

Minimal Bureaucracy

Any licensing and other paperwork applications (when and if necessary) do not generally take long to process in Singapore.

Transportation Hub

Singapore is a great transportation hub: Connectivity is the hallmark of the Singapore port. Since 1986, Singapore has been the busiest port in the world in terms of shipping tonnage, with an annual average of 140,000 vessel calls. It is the focal point for some 200 shipping lines with links to more than 600 ports in over 120 countries worldwide.

Tourism in Singapore

Tourism is a major industry and contributor to the Singaporean economy, attracting 18.5 million international tourists in 2018, more than three times Singapore’s total population. Singapore is the 5th most visited city in the world, and 2nd in the Asia-Pacific.

Tax Haven

Singapore has been identified as a tax haven for the wealthy due to its low tax rates on personal income and tax exemptions on foreign-based income and capital gains. Individuals such as Australian millionaire retailer Brett Blundy and multi-billionaire Facebook co-founder Eduardo Saverin are two examples of wealthy individuals who have settled in Singapore.

Largest Foreign Reserves

Singapore has the world’s 11th largest foreign reserves, and one of the highest net international investment position per capita.

No paid-up capital and office required

Companies registered in Singapore are not required to pay up or inject any capital and they are not obliged to rent a physical office in Singapore.

No Corruption

Singapore is #4 in terms of least corrupt government in the world according to Corruption Perceptions Index.

English

Singapore has four official languages; English, Malay, Mandarin, and Tamil. English is the lingua franca and numerous public services are available only in English. Multiracialism is enshrined in the constitution and continues to shape national policies in education, housing, and politics.

Bank Credit

There are presently 119 foreign commercial banks in Singapore, of which 28 are Full banks, 54 are Wholesale banks, and 37 are Offshore banks. It’s relatively easier to get business credit approved through these banks for promising Singapore LLCs.

World Financial Center

Singapore is one of the world’s top financial centers, according to Global Financial Centres Index (GFCI) is #6 in the World.

Easy & Fast Incorporation

100% foreign ownership of companies is allowed in Singapore. It’s easy and cost-effective to set up a company in Singapore: A Singapore LLC can be incorporated within a week with only 1 shareholder and 1 director. No residency or nationality requirements for the shareholder, and clients will not have to travel to Singapore during company formation, No paid-up capital either.

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