Singapore is known for its robust economy, strategic location, and business environment. Over the years, it has grown into one of the prime entrepreneurial as well as multinational companies destinations. If you are considering growing your business or starting a new one then you should consider Singapore as the best place to do that. Below there are ten compelling reasons that make setting up a company in Singapore an excellent choice.
10 Benefits of Registering a Company in Singapore
- Strategic Location
Due to the strategic location of Singapore, it gives the business community a great opportunity to tap into the Asian market. In the middle of Southeast Asia is Singapore which is a linking point to large economies such as China, India, and ASEAN member countries. One of the busiest airports in the world is Changi Airport, located in this city, handling over 68 million passengers in 2023. This connection makes traveling for business and goods very easy so that you can manage your operations all over Asia easily.
- Favorable Taxation System
Singapore’s taxation system is designed to support business. The corporate taxation rate stands at flat 17%, which is among the lowest globally. What’s more, new entities can enjoy tax exemptions and rebates. For instance, startups that qualify can get 100% tax exemption on the first S$100,000 of chargeable income for each of the three consecutive years of assessment. On top of this, there is no capital gains tax and Singapore has various double tax treaties with more than 80 countries around the world to reduce tax liabilities for its residents.
- Convenience in Company Registration
Singapore is frequently lauded for its ease of doing business. In 2023, it was placed second globally, for ease of doing business, by the World Bank. Registering a company here takes only 1-2 days, and the whole incorporation process is a breeze, thanks to the government’s online incorporation portal, BizFile+.
- Robust Legal System and IP Laws
Singapore’s legal system is robust and transparent, and offers peace of mind to business owners. The city-state ranks among the top, in contract enforcement and in its protection of IP. In 2023, it was placed fourth in the world, in terms of IP protection, by the World Economic Forum. Stringent laws ensure that your ventures and hard-earned investments are protected, and that innovation is encouraged and rewarded.
- Quality Manpower
Singapore’s manpower is top-notch and highly educated. Literacy here is above 97%, and the government’s huge spend on education and continuous training ensures a continuous supply of quality manpower. World-class universities and training establishments also contribute to a pool of knowledge workers who are knowledgeable and agile. In 2023, Singapore was placed second in the world, in terms of talent competitiveness, by the Global Talent Competitiveness Index.
- Infrastructure
Singapore enjoys state-of-the-art infrastructure which facilitates efficient operations. Its transportation, communication, and utility services and networks are among the best in the world. According to the Global Competitiveness Report 2023, by the World Economic Forum, Singapore leads the world in terms of infrastructure quality. Such extensive infrastructure ensures smooth operations and virtually no downtime.
- Government Incentives and Support
The Singaporean government offers grants, incentives and considerable support to businesses. The Economic Development Board (EDB) and Enterprise Singapore, among others, provide many schemes and financial support to enable business growth and expansion. For instance, the Productivity Solutions Grant (PSG) encourages adoption of information technology solutions and equipment to enhance business productivity and offers funding of up to 70% of expenditure incurred.
The Startup SG scheme provides mentorship, funding and networking opportunities for startups and encourages an entrepreneurial environment in which new businesses can thrive.
- Political stability and low corruption
In analyzing the prospective markets which the company should consider entering in the near future, it is essential to take into account the level of political stability and level of corruption in a given country.
It provides information on the level of corruption which is very low and politically Singapore has one of the most stable political systems in the region. Essentials: It is the third country in the Corruption Perceptions Index 2023 by Transparency International. The government’s powerful stance against corruption and its ability to efficiently enforce the laws provide a stable business climate that is free from corruption. It also helps plan or make investments for the long-term since owners/stakeholders know they will not be interrupted by further change.
- High Quality of Life
The country provides its citizens and residents with a fairly high standard of living, which can be appealing for expatriate families. It is an organized city, free of vices such as armed robbery, Boko haram attacks, and other security challenges; health care and school facilities in the city-state are well developed. As per the social quality index of Mercer’s Quality of Living Survey for the year 2023, Singapore is ranked number one in Asia in terms of providing its citizens with a good quality of life. This is because it can be an advantage for the various businesses to be in a position to attract and retain good employees from various parts of the world because people are willing to move from one part of the world to the next especially if the latter part provides a good standard of living.
- Access to Funding
Singapore offers many great opportunities for entrepreneurship, meaning that getting funding to support a business venture should not pose too many problems. Having a large number of financial institutions that include local and international banks, venture capitalists, as well as private equity firms makes the environment rather competitive as far as fundraising is concerned. The 2023 stats revealed that Singapore ‘s venture capital investment grew up to US$5 billion, showing that investor confidence in the local market was high. Also, government initiated solutions like the Enterprise Financing Scheme (EFS), where loans to SMEs are provided at cheaper rates, make it easier for the latter to source for funds.
Additional Tips for Registering a Company in Singapore
In order to maximize your choice on establishing a company in Singapore you should take into account the following hints:
- Connect with A Consultant: The local experts can help you to easily pass through the registration process and guarantee that all legal requirements are met.
- Opt for the Right Business Structure: Depending on your business needs you may opt for a structure a, a sole proprietorship, partnership or a private limited company.
- Understand the Licensing Requirements: Advertising and public relations work in many regimes is subject to health and safety regulations as well as development permissions. Make sure you comprehend these requirements to prevent any legal problems.
- Leverage Government Resources: Use all the support schemes and grants offered by the Singaporean government to escalate your business growth.
- Network and Collaborate: Be a part of local business associations, network to build relationships, find new opportunities within Singapore, and beyond.
By following the above tips, you can do it and take advantage of all the benefits that this vibrant city-state has to offer.
Conclusion
Registering a company in Singapore brings you countless advantages starting from its convenient location and great tax system to its qualified labor force and strong infrastructure. The attractiveness of the business environment in Singapore is enhanced by the strong legal framework, government support and political stability. Singapore, no matter if you are a startup looking for an environment to grow or an established multinational trying to expand in Asia, offers a very interesting business proposition.
With the decision to incorporate your company in Singapore, you are now part of one of the most dynamic and business friendly environments in the world. Economic, logistic and social advantages combined make Singapore an ideal place to thrive and succeed in the global market. If you're not sure whether starting a business or changing business structures is correct for you, Start an Idea can help you decide.
