Why Singapore Is The Best Place To Start Your Business

Singapore consistently receives top rankings in global assessments of business-friendliness. In 2016, the World Bank Group crowned Singapore as the world’s leading destination for “Doing Business,” marking its remarkable tenth consecutive year in this coveted position. This article explores the pivotal factors that render Singapore an exceptionally appealing hub for business incorporation and operations, catering to both local and international entrepreneurs alike.

Why Choose Singapore For Offshore Incorporation

Singapore’s business-friendly policies have earned it numerous accolades, bestowed by reputable international organizations. These rankings serve as independent validations of the nation’s enduring pro-business approach spanning several decades. These notable recognitions encompass:

• The World Bank consistently ranked Singapore as the world’s premier destination for Doing Business for a remarkable decade, starting in 2016, among 189 surveyed nations.
• The Economist Intelligence Unit (EIU) consistently positioned Singapore as the top-ranking nation among 82 surveyed countries for its efficient and open economy for seven consecutive years, starting in 2014.
• In 2014, the US-based Business Environment Risk Intelligence (BERI) research group conferred the highest ranking on Singapore for its workforce productivity.
• Forbes has positioned Singapore as the world’s third wealthiest country, based on its per capita GDP.
• In WEF’s Global Competitiveness Report 2014 – 2015, Singapore secured the second-best ranking for Intellectual Property protection.
• The IMD World Competitiveness Yearbook for 2014 heralded Singapore as one of the world’s least bureaucratic nations, ranking third globally and first in Asia.
• Mercer’s 2014 Quality of Living Worldwide City Rankings acclaimed Singapore as Asia’s premier city in terms of quality of living.

Singapore: The Allure

Singapore’s appeal as an ideal location for incorporating your new company is underpinned by several key factors, which include:

• A thriving and resilient economy.
• A rational and tax-efficient system featuring low tax rates.
• An efficient and streamlined process for company incorporation and operation.
• A strategic geographical position with excellent connectivity.
• World-class infrastructure supporting business operations.
• A highly skilled and productive workforce.
• A well-developed financial system with robust capital markets.
• Freedom from restrictions on profit repatriation and capital import.
• A strong commitment to the rule of law.
• A stable political and economic environment.
• A government is known for its efficiency, devoid of bureaucratic hurdles or corruption.
• An exceptional quality of life enhancing overall well-being.

Singapore: The Advantages

Attractive Tax Incentives

To attract more foreign investors, the Singapore government offers a variety of tax incentives for businesses, including:

• Corporate Income Tax (CIT): The CIT rate in Singapore is one of the lowest in the world, capped at 17%.
• Double Tax Deduction (DTD) for Internationalization: Businesses can claim a 200% tax deduction on expenses incurred to develop overseas markets.
• Tax Exemptions: There are a number of tax exemptions available to businesses in Singapore, depending on their industry and activities. For example, startups can enjoy up to three years of tax exemption on their first S$100,000 of profits.

These tax incentives make Singapore a very attractive place to incorporate an offshore company. Businesses can take advantage of these incentives to reduce their tax burden and boost their profits.

Global Recognition

Singapore earned acclaim as the premier business environment globally and in the Asia Pacific in 2019, according to The Economist Intelligence Unit. Additionally, it soared to the pinnacle of the Global Competitiveness Index 4.0 in the same year, surpassing the United States, as reported in The Global Competitiveness Report, 2019.

Trade Arrangements

Singapore is a staunch advocate of free trade and active participation in the global economy. Over time, the nation has diligently expanded its array of trade agreements, boasting more than 20 bilateral and regional Free Trade Agreements (FTAs) in addition to 41 Investment Guarantee Agreements.

Government Initiatives

Singapore is renowned for its pro-business and investor-friendly environment, with a government that consistently refines its policies to bolster business activities.

In response to the economic impact of the COVID-19 crisis in 2020, the Singaporean government unveiled a Stabilisation and Support Package amounting to $4 billion Singapore dollars. This package is designed to provide assistance to local workers and Singaporean firms, which includes:

• Jobs Support Scheme: The government will alleviate the financial burden on enterprises by subsidizing 8% of the wages for each local worker, with a monthly wage cap of $3,600, for a duration of three months.
• Corporate Income Tax Rebate: Corporations in 2020 will benefit from a tax rebate equating to 25% of their tax payable, capped at $15,000 Singapore dollars per company, with the overall cost totaling $400 million.

Furthermore, the government is set to enhance various tax provisions within the corporate tax system for a one-year period.

In conclusion, Singapore undoubtedly emerges as the ultimate destination for entrepreneurs looking to launch their business endeavors with confidence and success. As an advocate for global business expansion, Iris International is your trusted partner on this remarkable journey. Our commitment to simplifying the process of establishing a foreign company in Singapore aligns seamlessly with the nation’s attributes that make it the best place to start your business.

With a thriving economy, an unparalleled pro-business environment, an extensive network of international agreements, and a government dedicated to fostering entrepreneurship, Singapore presents unparalleled opportunities for growth. The recent government initiatives, such as the Stabilisation and Support Package, exemplify Singapore’s unwavering dedication to supporting businesses during challenging times.

At Iris International, we understand the intricacies of Singapore’s business landscape, and our expertise ensures that your company incorporation process is swift, efficient, and compliant with all regulations. We’re here to guide you every step of the way, offering tailored solutions that match your specific needs and aspirations.

Join the ranks of successful entrepreneurs who have chosen Singapore as their business haven, and let Iris International be your gateway to a world of possibilities. Together, we’ll turn your business vision into a thriving reality in the heart of Asia’s premier business hub.