SINGAPORE - Economy and Opportunity
Singapore Showcase
Next global destination for your business
Singapore plays an important role as a corporate hub in the heart of Asia. With a business-friendly regulatory environment and a very low unemployment rate, it is one of the world’s most prosperous nations.
Singapore Economy
Singapore’s economic freedom score is 83.9, making its economy the world’s freest in the 2023 Index. Singapore is ranked 1st out of 39 countries in the Asia–Pacific region, and its overall score remains significantly higher than the world and regional averages. 41 nations have signed Investment Guarantee Agreements with Singapore.
Foreign Direct Investments
In 2020 the stock of FDI was about USD 1.9 trillion and reached 2 trillion in 2021. Singapore was the 7th largest recipient of FDI inflows in the world in 2022. It is also the tenth largest investor abroad, FDI outflows stood at USD 47.39 billion in 2021 and 52 billion in 2022.
Opportunity Mapping
Singapore maintains strong regulations, a stable currency, and most importantly, it is easy to get started on investments here. The large and robust financial markets are tightly regulated by the Monetary Authority of Singapore (MAS). It provide many opportunities for digital marketers, information technology workers and compliance specialists.
India in Singapore
India and Singapore have signed the Comprehensive Economic Cooperation Agreement (CECA) and strategic-
relationship agreement in order to increase trade, investments and economic cooperation, and expanded bilateral cooperation on maritime security, training forces. Singapore is the 8th largest source of investment in India and the largest amongst ASEAN member nations. Notable Indian firms such as Tata Group, Mahindra & Mahindra, Reliance Industries, Infosys and Wipro all have bases in Singapore.
Singapore offers you the option of having limited or unlimited liability, giving you the freedom to choose the structure that best meets your company's needs.
Corporate Tax
Singapore Corporate Tax rate is capped at 17%. It is levied on profit and not on revenue. Singapore follows a single-tier corporate tax system, where tax paid by a company on its profits is not imputed to the shareholders.
Dividend Tax
Singapore adopts a one-tier taxation system, under which all dividends paid by Singapore-resident companies are tax-exempt in the shareholder’s hands.
GST
The current GST rate is 7%. The balanced mix of tax on consumption and income reduces the vulnerability of revenue
intake to adverse changes in economic conditions and strengthens the resilience of Singapore’s fiscal position.
Taxation of Non Resident entities
Companies (resident and non-resident) that carry on a business in Singapore are taxed on their Singapore-sourced income when it arises and on foreign-sourced income when it is remitted or deemed remitted to Singapore. Non-residents are subject to withholding tax on certain types of income such as interest, royalties, technical service fees, rental of movable property where these are deemed to arise in Singapore.
Singapore has an extensive network of tax treaties, which help Singapore-based companies that conduct international business to avoid double taxation.
Branch Office
A branch office is registered in Singapore as an extension of its parent company and not as a separately incorporated entity. The liabilities of a branch office extend to its parent company. It is mandatory that 2 local agents must act on behalf of the branch.
Subsidiary Company
A subsidiary company is a private limited company incorporated in Singapore with the parent company as its shareholder. It is eligible for business incentives offered by the Singapore government and taxed at its own entity.
Joint Venture
There are 2 types of JV in Singapore, one is Corporate JV which requires formation of separate legal entity to act as the vehicle of collaboration and other is Contractual JV which do not requires formation of separate legal entity.
Singapore Business
The Ministry of Manpower (MOM) in Singapore gives entrepreneurs an opportunity to obtain an Employment Pass once they have incorporated a company in Singapore. Once it has been approved, you are then free to enter Singapore and begin work at your new company.MOM also approves EntrePass for eligible foreign entrepreneurs to start and operate businesses in Singapore that are either venture backed or possess innovative technologies.
