Benefits of Incorporating Company in Singapore
Incorporating a company in Singapore offers numerous advantages. The city-state boasts a robust legal framework, tax benefits, and a strategic location. Additionally, Singapore’s pro-business environment and access to global markets make it an attractive choice for entrepreneurs.
Attractive Tax System
Singapore has one of the world’s simplest and most rational tax system. It levies no tax on capital gains or on dividends received from a business. This makes the country particularly attractive to entrepreneurs who want to incorporate and build a new business.
Avoidance of Double Taxation
Singapore has an extensive network of Avoidance of Double Taxation Agreements (DTAs) with over 50 countries. These agreements are designed to ensure that economic transactions between Singapore and the treaty country do not suffer from double taxation. Furthermore, Singapore provides Unilateral Tax Credits (UTCs) for the case of countries with which it does not have a DTA. Thus, a Singapore tax resident company is very unlikely to suffer from double taxation.
100% Foreign Ownership and No Currency Controls
Singapore allows a foreigner to own 100% of the stock of a Singapore incorporated company. You do not need any local partners or shareholders. This enables you to start a company with the type of capital structure that you desire and distribute its ownership to suit your investment needs. Furthermore, there are no restrictions on the amount of capital that you can bring from your home country to invest in your Singapore company.
Singapore imposes no restrictions on the repatriation of profits. No taxes are imposed on capital gains from the sale of a business. Similarly, no tax is levied on dividends paid to the shareholders.
Singapore does not impose any restrictions on the movement of foreign currency into or out of the country. This frictionless movement of funds across borders can provide extreme flexibility to a business. Compare the situation with countries such as China and India, which impose huge hurdles to the free movement of foreign currencies.
Ease of Incorporating and Operation
Singapore has one of the most efficient and bureaucracy-free regulatory frameworks in the world. Singapore has ranked number one on World Bank’s Ease of Doing Business survey. The requirements for incorporating a company are straightforward, and the procedure for doing so is simple. It takes less than a day to incorporate a new company in most cases.
Productive Workforce
Geographic Location
Singapore’s central location in Southeast Asia makes it a physical and metaphorical gateway to the continent’s 3 billion people. Some of the most important economies of the world (China, India, Malaysia, Australia) are a short plane ride away.
Infrastructure
Rule of Law
Singapore recruits its “best and brightest” citizens into its civil service and pays them extremely well so that there is little temptation for corruption. If any official misconduct is discovered, Singapore has meted out harsh punishment for such corruption. As a result of these policies, the country now ranks as one of the least corrupt countries in the world. Furthermore, a modern regulatory framework provides strong protections for intellectual property, there is no expropriation of the country’s wealth by its elites, and commercial courts function well to ensure that contracts are enforced.
No Corruption
Professional Image
