It comes as a no surprise that Singapore holds the number one position in the global context when it comes to company incorporation. Its economy is one of the freest and open in the world. Perched at the tip of the Malayan peninsula, the island nation takes full advantage of being located at the junction of West and East region. Enthusiasts from the both region come to the city-state to fulfill their dream career in entrepreneurship by embarking on company registration Singapore.
However, a section of people is still wondering, “Why Singapore attracts entrepreneurs the most?” This blog will unveil the answer to this question. The penchant towards Singapore has been contributed by a slew of attributes. With its strong regulatory framework, liberal government policies, the world-class workforce, state-of-the-art infrastructure, corruption-free society, multi-ethnic culture and robust economy, Singapore is the perfect Business hub for entrepreneurs from all parts of the world. Most importantly, legal policies are rigorous and tough on corruption.
This article will throw light on pros and cons of Singapore company registration.
Company Registration Singapore: Why and Why not?
A Simple & Easy Company Incorporation Process: One of the key perks of company registration Singapore is its easy and simple incorporation process. It has just two steps: 1) Company Name Reservation & 2) Company Registration (filing of application form). You hardly need to go through any bureaucratic hurdles. The process is online, transparent and speedy than most of other jurisdiction. The setup requirement for both locals and foreigners are a way less troublesome. Foreigners do not need to take permission to incorporating a company in Singapore. Fulfilling the minimal requirements of the authority are sufficient for it. 100% foreign ownership in a Singapore incorporated company in allowed by law.
The Presence of a Vibrant Startup Ecosystem: Singapore facilitates a vibrant business environment to entrepreneurs from all parts of the world. It fosters a thriving ground for entrepreneurship and government contributions in this concern is immense. You get every positive factor under the single roof: easy incorporation process, low tax rates, government-aided financial schemes, protective IP law, a pool of talented workforce, etc. Singapore is truly a utopia for business aspirants.
Gateway to South East Asia: Being the home to one of the busiest trading port and Changi Airport (one of the best airports in the world), Singapore is easily accessible to the people from all nooks and corners of the world. The city-state has excellent air connectivity with the world’s major cities. It takes just a few hours’ flight to reach the shores of the island nation. It is known to be the gateway to South East Asia. It believed that the business gets global exposure when they operate the activities in Singapore market.
Ease of Entry through Valid Work Pass: The immigration policy of the country is relatively flexible and allows talented professionals and entrepreneurs to work and live here. When you wish to incorporate a company in Singapore, you may obtain an Entrepreneur Pass (EntrePass). It allows you to immigrate and operate a business in Singapore. Being a bearer of Entrepass, the laws allows you to be the local director of the company. If a foreigner bears an Employment Pass (EP), he is also eligible to own a company under his directorship.
Progressive Tax Policy: One of the key drivers behind growing popularity of company incorporation Singapore is its attractive tax system. Schemes and incentives provided under the Singapore taxation system are transparent and clear. It has a territorial-based tax policy, which means you will be taxed on income generated in Singapore only.
The headline corporate income tax rate is just 17%. The newly incorporated companies are eligible to enjoy zero-tax benefits, assuming they fulfill a few pre-requisite conditions. This full tax exemption scheme can be enjoyed for first three years from company incorporation. Subsequently, they can get the benefit of partial tax exemption scheme wherein effective tax rate is 8.5%. Apart from these, there are a wealth of tax incentives available for the tax residents of the city-state.
Financial Supports: There is no dearth of people with cash to invest in business in Singapore. More and more angel investors and venture capitalists have set foot in the soils of Singapore to support the entrepreneurs with financial help. In addition, the government of Republic has also pumped tons of money in various cash grants, incubators, accelerators and equity funds. Entrepreneurs with a creative bent of mind and innovation can succeed their business venture by securing any of the government aided schemes.
These positive factors convert Singapore into an efficient business hub. Nevertheless, the jurisdiction is not free from few minor loopholes which can easily be overlooked by finding some alternative ways. High rental cost, tight labor market are the key challenges one may come across in the course of Singapore company incorporation. However, you may avoid renting a high-cost business space by using the residential address as the office address. There are many perks of starting your business from home.
The issue of tight labor market can be solved by outsourcing the jobs to overseas talents. So, it clearly indicates that the advantages outweigh the challenges. And, thus, Singapore would continue to be a favorite business paradise for global entrepreneurs.
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