Why Singapore is a great place to incorporate your company for a foreigner
There are countless variables to consider as someone looking to incorporate their company overseas. They range from quite simple to extremely complex – workforce demographics, taxation laws, environmental regulations. Depending on what your company needs are, you may stand to gain some benefit from doing business overseas. There could even be advantages for existing companies looking to expand their business elsewhere. It might be easier to register a company, employ skilled workers, work under regulations, and purchase or rent facilities in a different country.
Let’s say you decide to incorporate your company in a different country. Even after you make the decision, you still need to consider which business structure is best for you in relation to your long-term business strategy. There are three major options for company incorporation that exist for foreign companies. Out of these, the Singapore subsidiary company registration is most often the best choice regardless of the firm size.
In this context, Singapore is the best choice for a foreigner considering its business friendly environment.
Here are 5 reasons (out of many more) why registering a company in Singapore is best choice for foreigners.
1) It’s business friendly
The World Bank recently released a report that listed Singapore as the #2 country in the world for ease of doing business. Ease of doing business refers to the regulatory environment of a country, and how conducive it is to the starting and operation of a local firm. Moreover, Singapore consistently ranks at the top of this list, even taking the top spot in a previous year.
Global Business Ranking: Singapore was ranked 1st under ”Ease of doing business” category
2) Affordable tax rates
Another report, this time published by the World Economic Forum, listed Singapore in the top 10 list of countries with the lowest tax rates. Singapore’s corporate tax rate stands at 17%, which is considerably lower than other countries such as India (34%) and Australia (30%).
Corporate tax rates will have a great impact on the company of any entrepreneur. However, you should also consider other types of taxes. Personal income tax rates should also be at the top of any business owner’s mind. Singapore uses a tier system for personal income tax, starting from 0% and reaching a high of 22% for income over S$320,000. Additionally, the Singapore government has one of the lowest consumption tax rates at 7%, called the Goods and Services Tax (GST). This rate is far below the global average VAT/GST rate of 16.4%, and lower still than the Asia-Pacific average of 10.5%.
Singapore is the trading hub of Asia and has access to fast-growing markets in China, India, and Southeast Asia. These areas, just seven hours away by plane, can be accessed through Singapore’s Changi Airport. This airport is consistently listed as the best in the world, and offers access to major cities around the globe. Additionally, Singapore houses the busiest port in the world. The connectivity offered by Singapore and ease of travel to and from the country will certainly make trade dealings more convenient.
4) Flexible immigration policies
Singapore has an open immigration policy that makes it easy for foreign nationals to set up a business. The government in Singapore has measures and policies set in place should you need to hire foreign professionals or relocate to the country. Additionally, work visa provisions accompany a lax immigration policy. This means foreign professionals can gain Singapore Permanent (PR) status with ease.
Total population (migration & immigration)
5) Incorporation process is easy
In Singapore, setting up a business involves three procedures which can be completed in three days, at a relatively low cost compared to various other countries. The requirements are straightforward and can be completed without hassle. Additionally, you can incorporate your company in Singapore without huge funds – just a minimum share capital of $1.
However, you must use a professional firm to register a Singaporean company. Singapore law prevents foreign individuals or entities to self-register companies in Singapore. That being said, you have a lot of options! Check out our own website to find companies that can assist you in the incorporation of your business. Or, start your journey here (or follow the simulation below) to receive custom recommendations based on your needs.