In this article you will find all the preliminary information necessary to open a company in Singapore. We write it in collaboration with the agency that we recommend to open your company.
The advantages of opening a company in Singapore
Singapore is a safe and favorable environment for companies that have the backing of a respected government with consistent and transparent policies which protect the physical and intellectual property investments of companies.
There is a minimum bureaucracy to do business in Singapore and it is one of the least corrupt countries in the world. In addition, there is a well-developed infrastructure that meets all the needs of the business industry and is ranked as one of the best countries in the world for this purpose. Singapore is an ideal place for global companies to locate their headquarters. A business can easily engage a reliable professional that offers Singapore company registration services.
If you place the international headquarters in Singapore, your company will benefit from the following advantages:
A company is taxed at a fixed rate on its taxable income and as of 2009 (YA 2010), the corporate tax has been reduced to 17%. In addition, the capital gains are not taxable in Singapore;
All Singapore-based start-ups that meet the requirements for the complete Singapore tax exemption plan (ask your agency for the specific conditions necessary for this) will not pay any tax on the first $ 100,000 of taxable income during the year first three years and 50% of the current corporation tax rate for the next $ 200,000 of taxable income.
- The network in Singapore of more than 50 agreements to avoid double taxation
- Singapore’s numerous free trade agreements and investment guarantee agreements
- Protection of your ideas and innovations thanks to the strict application by Singapore of its intellectual property laws
- The financial assistance of the government has deployed a large number of initiatives and programs to allow new entrepreneurs to access capital or financing. These financing initiatives include cash grants, government funded financing plans, company incubator programs, and debt financing plans.
The drawbacks of opening a company in Singapore
Singapore directs its local workforce to higher value occupations such as finance, biochemistry and industrial engineering through education and propaganda. This generates scarcity of human resources in the hotel, restaurant, tourism and retail sectors.
In addition to the high labor costs, as we have noted, the price of land in Singapore is high due to the very limited size of the country and the strategic location of the port. It is expensive to buy and rent land in Singapore. Renting an office, building a semiconductor factory or even renting a store can be expensive compared to other neighboring Asian countries.
Singapore does not have natural resources and depends largely on the importation of raw materials and ready-made products from other countries. This increases the cost of living and the price of products, increasing overall costs.