In spite of being one of the world’s smallest and youngest countries, Singapore continues to be globally recognised as a leading innovation and financial hub. Thanks mainly to the efforts of the government through the years, this former British colony experienced rapid industrialisation, evolving into a major business centre and a prime destination for investors, entrepreneurs, and multinational corporations seeking to expand their global footprint. Today, the country’s advanced infrastructure, its robust economy, and a stable political landscape are only some of the factors that continue to attract foreign companies to Singapore.
Setting up your own business in the city-state is not easy, but doing so in Singapore is sure to deliver more benefits than risks. In this article, we’ll explore some of the key reasons why setting up shop in the Lion City should be one of the best entrepreneurial moves you will make in your life.
You Can Quickly Incorporate Your Company
According to the World Bank’s 2020 Doing Business Report, Singapore ranks second out of 180 economies globally when it comes to the ease of setting up and running a business. Entrepreneurs and business owners seeking to establish operations in Singapore will find that the country has a fairly straightforward process for incorporating companies. The Singaporean government uses an online platform to process applications, preventing delays and other hindrances due to bureaucracy. All in all, it takes but just 15 minutes to register a company online, and around 1.5 days to incorporate your company in Singapore.
You’ll Get Strong Government Support for Your Business
The Singaporean government actively incentivises foreign business owners who choose to establish operations in the country. For instance, the country’s Economic Development Board (EDB) offers international headquarters (IHQ) and regional headquarters (RHQ) incentives, which allow foreign companies to enjoy tax rates ranging from 0-15 percent.
Singapore also offers one of the most straightforward tax regimes in the world. The country follows a territory-based tax structure and doesn’t impose a tax on foreign-sourced incomes. This means that companies and individuals are only paying taxes on income generated within Singapore. This business tax Singapore-based foreign companies must pay applies to taxable income after the first three years of incorporation, making it easy to save on operational costs.
Besides various tax exemptions, Singapore also has initiatives for early-stage companies. The government offers capital grants and mentorship programmes to support startups. Other initiatives include fintech sandboxes and accelerators to connect entrepreneurs and venture capitalists.
You Can Easily Relocate and Apply for Residency
Singapore has liberal immigration policies that help foreign nationals who intend to relocate to the country while setting up their businesses. Besides offering flexible work visa requirements, Singapore has various schemes designed to simplify achieving permanent residency for foreign professionals and their dependants. By easily relocating your family, you no longer have to stay far away from them as you work to grow your venture.
You’ll Enjoy Comprehensive Intellectual Property (IP) Protection
Singapore puts utmost value on IP protection and criminalises copyright infringement. But aside from having comprehensive copyright laws, Singapore also allows foreign companies to claim a writing-down allowance (WDA) for IP acquisition. Additionally, businesses can register for a global trademark since Singapore is a signatory to various major IP treaties and conventions.
You Can Benefit from Its Strategic Logistics Landscape
With its central location in the Far East, Singapore serves as the gateway to Southeast Asia and to North Asia. It has also been designated as an International Maritime Centre and global hub by several international logistics firms. Known as one of the busiest ports in the world, the Port of Singapore connects to over 600 ports and 200 shipping lines that account for approximately 15 percent of global container transhipment.
You’ll Operate in a Leading Business Hub
Singapore plays host to various global research and development (R&D) labs, Fortune 500 corporations, and hundreds of venture capital funds, accelerators, and incubators. Along with its vibrant tech ecosystem, Singapore has a solid export landscape and highly skilled labour force that play vital roles in fueling its economy.
The city-state’s strong position in merchandise trade is also supported by its network of free trade agreements (FTAs). Currently, Singapore has 41 Investment Guarantee Agreements and 21 regional and bilateral FTAs, including the ASEAN Free Trade Area (AFTA).
In addition, Singapore is considered a leading financial centre in Asia and one of the most competitive economies in the world. The Singapore Exchange (SGX) is the biggest stock exchange in Southeast Asia and the third largest foreign exchange centre globally.
You’ll Enjoy a High Quality of Life
Foreign nationals who wish to relocate with their families will benefit from the high quality of life in Singapore. In fact, Singapore ranks 34th in the Economist Intelligence Unit’s (EIU) list of most liveable cities in the world. Besides an excellent transportation system, Singapore also offers top-notch healthcare, excellent schools, a sustainable urban environment, and ongoing support for entrepreneurs, businesses, and professionals.
On top of all that, Singapore takes pride in its digital infrastructure and high telecommunication connectivity. The country has an 82 percent internet penetration and ranked fourth in the 2019 Global Connectivity Index.
Explore Your Opportunities in Singapore
With all the benefits that come with establishing and operating a business in Singapore, it’s pretty much a no-brainer to pick this country to establish your Southeast Asian operations. Aside from getting strong regulatory support, you’ll also have the benefit of living in one of the world’s most technologically advanced, business-friendly, and sustainable countries. Set up your business in Singapore today to start exploring a breadth of opportunities for you, your business, and your family.
