Many foreign business owners set up a company in Singapore for expansion in the Asia-Pacific region. The country’s many business-friendly policies, as well as its vibrant and flourishing corporate atmosphere, have made it much easier for businesses to develop themselves and then conduct business in this Southeast Asian market.
Aside from having one of the lowest corporate tax rates, Singapore is widely regarded as the gateway to ASEAN. Furthermore, the country’s many business-friendly policies make it simple for corporations to set up and operate their operations in this Southeast Asian country.
Singapore has established itself as the gateway to ASEAN and a favoured jurisdiction for companies of all sizes to base their Asian operations, in addition to being ranked fifth in the top 20 host economies in terms of FDI inflows and the third Asia nation to be ranked. In this post, we will look at some of the main factors that lead to Singapore’s success in attracting international companies and entrepreneurs.
Corporate tax rates are low
Perhaps the most important reason why foreign corporation owners set up a company in Singapore is that the corporate tax rate in Singapore today is one of the lowest in the world. Singapore’s corporate tax rate is 17 per cent, which is significantly lower than that of virtually any other government.
As a result, company formation Singapore owners would almost definitely have to pay much less income tax after relocating their business to Singapore than they would if they were to do business in their home country. Furthermore, Singapore has no capital gains levy. Those who set up a company in Singapore may also be liable for some tax breaks offered by the Singaporean government in order to increase the level of entrepreneurship in the region.
Having said that, it can not always be easy to appreciate all of the tax responsibilities and tax benefits in Singapore that may apply to you.
Extensive double taxation agreements
Singapore is a signatory of several double tax deals with countries on all seven continents. These double tax treaties mean that no one who pays taxes to Singaporean authorities must also pay taxes to the tax authorities of the other country participating in the tax treaties. As a result, Singaporean taxpayers will use double tax treaties to reduce their total tax burden. This reality also attracts a large number of foreign business owners to Singapore. This is because the double tax treaties from which they would benefit while in Singapore would enable them to save a significant amount of money. They would otherwise have had to pay in the form of taxes.
International connectivity at a high level
As one of the world’s smallest nations, it is important for Singapore to ensure that its citizens have reasonably easy access to other countries. As a result, the government of Singapore has ensured that Singapore has a high degree of international connectivity. Singapore Changi Airport is one of the best in the country; from there, one can fly to virtually every major city in the world. Singapore also has one of the busiest ports in the world, so travelling by sea from Singapore is not difficult. Furthermore, despite being an island, Singapore has road and rail connections to Malaysia, it is a neighbouring nation.
As a result, some of the reasons why international business owners have set up a company in Singapore apparently. There are many benefits of relocating a multinational business to Singapore.
What makes Singapore an excellent place for ex-pats to establish a business?
Singapore is potentially one of the best places in the world for an ex-pat to start a company for a number of reasons:
- Corporate taxation is fair.
- Business is open.
- Cultures from various countries.
- A diverse and talented population.
Setting up a business in Singapore is reasonably simple if all of the required criteria are met.
An ex-pat who wishes to proceed with company formation Singapore procedures, industry, business division, or offices in Singapore must have an Employment Pass (EP). With an EP, the ex-pat will remain in Singapore and apply to establish a business. His legal entity may be formed by registering it with the ACRA (Accounting and Corporate Regulatory Authority) via BizFile.
A foreign company formation Singapore entity must have both a resident director and a secretary. The secretaries and directors must be Singapore nationals, either with a jobs pass (EP) or as permanent residents.
Timetable for obtaining an Entre Pass
The timeline for obtaining the Entre Pass may be up to 14 days, and extra written paperwork is required; however, this is all dependent on the form of business the ex-pat is establishing.
The ex-pat must include the following documents when applying for an Entre Pass:
- Business strategy for CV
- The reasons and manner in which the ex-pat wishes to do business in Singapore.
- Qualifications should be photocopied, and the expat’s former employers’ “job certifications” should be added.
- Work experience.
The material of any paper should be correctly spelt, descriptive, and succinct to make it easier for the reviewer to check the documents, and the ex-pat will possibly gain positive points for this.
Setting up a fixed-term savings account while waiting for the Entre Pass is a smart idea. He will then be sent the Banker’s Guarantee note, which will be based on a blueprint provided by the Ministry of Manpower (MOM). After a week or so, the ex-pat submits his guarantee, note, and passport to the MOM, and after paying a small fee, the ex-pat collects his green card. The ex-pat is then given one month to send information about his new business to the MOM.
The benefits of beginning a company formation Singapore process
- Government benefits and assistance. Singapore’s EDB (Economic Growth Board) has a list of development programs and benefits to support enterprises, including various tax and financial incentives.
- Standards, Productivity and Innovation Board Singapore, which is also available for young start-ups, offers assistance with funding, skills as well as managing growth, innovation and technology, and business access for start-ups.
- Singapore’s Free Trade Agreements with major global economies favour foreign companies in the country significantly because import duties are lowered as a result.
- In Singapore, there is no capital gains tax levied on companies.
- There is no limit to the number of EPs (Employment Passes) that an organization, regardless of size, may hire, and each EP applicant is evaluated on its merit.
Incorporate your business today
If you are a foreign business owner interested to set up the company in Singapore, we at WLP Group will assist you. We will assist you in completing the relevant paperwork and details prior to your move to Singapore. After your business has been relocated and we have completed all necessary tasks on your behalf, you will resume operations at your newly relocated location.