It’s certainly not a question of why incorporate in Singapore, or if and when Asia will dominate. The business world is already decades into the Asian century, and the continent’s emerging economies continue to attract all sorts of foreign and international companies.
In fact, if you ask Forbes, it’ll tell you that many of the fastest-growing global companies have already secured a strong foothold in Asia. And if you inquire further, it’s bound to reveal the one country that’s currently at the center of the whole Asian buzz- Singapore.
According to Forbes Asia's inaugural Best Over A Billion List, Singapore is home to 9 of the continent’s 200 top-performing billion-dollar companies. What’s more, the country features prominently in the global tech, finance, and business hall of fame.
Coincidence? We think not.
Forbes is just one of the many authorities that rightfully place Singapore at the peak of world business.
Read on to find out why, as well as discover why incorporating in Singapore is undeniably one of the best moves for all types of businesses.
As you’re probably aware, the World Bank usually analyzes hundreds of economies across the globe to establish their overall ease of doing business. The study reviews countries based on their business laws, contract enforcement processes, credit availability, property rights, trading regulations, and corporate taxes, among other relevant factors.
And, as it turns out, Singapore has never ranked lower than position 2 since the debut of the annual Ease of Doing Business report in 2006.
But, that’s not all. If you find that impressive, this will blow your mind- Singapore even managed to hold on to the first position for 10 years in a row. The Ease of Doing Business Index consistently placed it ahead of about 190 other outstanding economies.
This has a lot to do with Singapore’s well-trained professional workforce, flexible immigration policies, pro-business environment, favorable tax legislation, increased tech innovation, strategic country location, etc. More than enough to convince you why you should incorporate in Singapore.
While most countries seek to boost domestic home-grown companies, Singapore tries to encourage even foreign-based businesses to join its bandwagon.
So far, the government of Singapore has managed to sign tens of Free Trade Agreements (FTAs) with more than 27 of the largest economies in the world.
It doesn’t end there though. Foreign businesses also happen to benefit from over 76 additional Double Tax Agreements (DTAs). These, combined with the FTAs, should help you minimize your corporate taxes, as well as streamline the flow of trade across multiple jurisdictions.
But, that’s not all there is when it comes to taxes. There’s a wide range of tax benefits that you’re bound to discover if you look into the overall tax structure of Singapore.
Imagine, for instance, working with a corporate tax rate of less than 17% on your company’s taxable income, while paying zero tax on the corresponding capital gains and dividends.
That alone translates to huge tax savings. One more solid reason why you should go ahead and incorporate your company in Singapore.
As businesses continue to take advantage of the tax laws to minimize their operating costs, Singapore further allows them to build their finances through easy capital access.
The country itself happens to be one of the leading financial hubs in the world.
That’s why, for instance, the Global Financial Centres Index ranks Singapore as the world’s fourth-best financial center- after merging more than 100 relevant indices from reputable organizations such as the Economist Intelligence Unit, the Organisation for Economic Co-operation and Development (OECD), and of course, the World Bank.
Here, you’ll find more than 128 business-oriented commercial banks, an extensive variety of insurance service options, sophisticated risk management structures, and competitively priced trading.
Even processing funds from foreign banks should be a breeze, as Singapore operates the most expansive forex exchange system in Asia. Almost as big as London’s and New York’s, which are the only centers that outdo Singapore globally.
Going by what we’ve discussed already, Singapore is turning out to be a place with numerous favorable policies for companies. The Singapore government continues to build a conducive, stable, and seamless business ecosystem through flexible all-inclusive approaches.
And among the many, the World Bank identifies two particularly notable reforms that have lately reinforced Singapore’s position as the best in the world. The Doing Business 2019 report commends the country for consolidating its voluntary mediation framework and dropping corporate seals.
While the mediation policies support the administration of business contracts, doing away with corporate seals simplifies the process of incorporating a business in Singapore.
Apart from robust business policies, Singapore offers companies a strong and reliable legal framework.
So effective is it that even the level of corruption in the country is exceedingly low.
And to be precise, Singapore currently scores 85 in the Transparency International Corruption Perceptions Index, which analyzes, scores, and ranks countries on a scale of 0 to 100. The highest values represent low corruption levels and vice versa.
Hence, Singapore’s 85 makes it the fourth least corrupt country in the world, and the only Asian territory in the top 10.
Another legal reason why you should consider incorporating your business in Singapore is seamless arbitration. In case of any trade-related disputes, you can quickly iron things out through the active Singapore International Arbitration Center (SIAC).
What’s more, Singapore doesn’t lag behind when it comes to labor laws. Its legislations cultivate strong worker-employer relations, which happen to be one of the principal factors that place Singapore at the top of 141 countries in the latest Global Competitiveness Report by the World Economic Forum.
Still on the latest Global Competitiveness Report, it turns out the World Economic Forum additionally praises Singapore for its skilled and dynamic workforce.
This confirms reports in an earlier Business Environment Risk Intelligence publication, which named Singapore as the most invest-friendly location between 2014 and 2018- owing to, among other factors, high employee productivity.
And why is this so?
Well, for starters, Singapore has a robust education system. Then when you combine that with the country’s progressive training programs and favorable immigration policies, you’ll have yourself a highly diverse and skilled pool of talents.
It doesn’t end there though. After hiring the talents, you’ll notice that they maintain high levels of productivity, thanks to Singapore’s progressive company policies and work environment laws.
Singapore isn’t just about laws and policies. It’s also a giant in the world of tech and innovation.
In fact, the level of tech advancement here is so outstanding that the latest Global Innovation Index places Singapore ahead of other Asian countries. It’s currently the continent’s leading country and the 8th best in the world when it comes to tech and innovation.
Although most of the innovations come from the private sector, much of the credit goes to government-driven initiatives.
SGInnovate, for instance, is a government-owned organization that facilitates creatives in setting up deep tech startups. The same applies to the Fintech Regulatory Sandbox, which specializes in finance or monetary-based innovations.
All in all, tech is an integral part of the commercial culture here, regardless of the type of business you ultimately choose to incorporate in Singapore.
While Singapore is comparatively small, the city-state’s strategic location and world-class infrastructure admittedly make up for that.
The country is positioned right at the heart of South-East Asia, conveniently close to the fast-growing economies of Indonesia, China, India, Japan, and Korea. Additionally, you should be able to link up with the most important global commercial hubs via direct flights.
That’s why, when you come to think of it, Singapore has so far built a rapport with tens of international airline companies, which cumulatively fly to more than 330 cities across the world.
Moving goods is even easier, as Singapore ranks top of the Asian market in the Logistics Performance Index.
The World Bank created the system to benchmark the logistics performance of countries based on how they handle and process express carriers, plus freight forwarders.
That said, Singapore further enhances trade logistics for businesses through its well-developed infrastructure. At the center of it all is the Port of Singapore, which has cemented its position as the top maritime capital of the world since 2015.
Not only is it the world’s busiest transshipment port, it’s also the biggest seaport in Asia. Plus, it connects to more than 600 ports in major cities across the world.
Going by these pointers alone, it’s evident that Singapore is a perfect breeding ground for your business.
Now that we’ve answered the question of why incorporate in Singapore, how do you even get started? How can you incorporate a new company in Singapore?
While there are several approaches to incorporating your business in Singapore, strategic entrepreneurs chose to rely on WealthBridge.
We offer the type of corporate services in company registration that will not only get your business started, but also help it hit the ground running. We’re talking about company registration and incorporation services, as well as tax filing, accounting, employment visa applications, etc.
So, go ahead and get in touch with us today for the full range of corporate services in Singapore.