Singapore is the perfect environment for startups. Entrepreneurs from all over the world choose this beautiful country as their headquarters or startup location for good reasons. Man power is one of Singapore’s greatest strengths so it is no wonder why productivity here is through the roof. With around 5.6 million people, the work force has an abundance of hard workers ready to put their mind to the task. People here have a strong desire to be a part of and influence the fast and constantly innovated way of doing business.
The World Bank recognizes Singapore as the best producer of human capital. This is also because the country cares immensely about education for K-12. They strive to prepare them to reach above and beyond expectations. In short, this workforce is born ready for startups. Singapore also recognizes the advantages of foreign talent and intelligence and is welcoming to hard workers worldwide. Singaporeans are extremely efficient and analytical while a lot of foreigners who immigrate here are very creative and open minded. The city-state has a very liberal immigration policy to allow this foreign talent access. Entrepreneurs can get a working visa to incorporate a company and then also acquire them for workers they would like to bring from other countries. This makes it truly the best workforce pool, especially for startups. It also allows for faster team building and larger diversity.
The city-state is always finding ways to help small businesses and startups to encourage innovation and success. There are multiple government schemes in place to provide cash grants, mentorship, and other services for that first leap in business. For example, the Startup SG Equity grants that go up to two million dollars for general tech and four million for deep tech. There are also grants specifically for entrepreneurs. Startup SG Founders will grant $3 for every $1 raised by the entrepreneur. They will also provide services such as advice to assist learning and networking to develop the business even further. This one however is only open to Singapore citizens and permanent residents.
Singapore also has designated start up incubators such as Block 71. These incubators cater to specific industries and help startups network quickly and easily. There are also a plethora of angel investors and venture capital firms to help kickstart the company’s finances. Due to Singapore’s immense renown in the startup industry, firms from outside of the country and even the continent look to invest in Singaporean startups.
Law and Taxes
Law is a very important factor in business. Many entrepreneurs will avoid countries that do not have stringent and defined laws for doing business. Singapore ranks as outstanding when it comes to regulations and laws. This is because they want to assure entrepreneurs that they have a safe, fair, and equal chance at doing business to allow them to thrive. No one will want to start a business in a place that laws and rules are up in the air and undefined. It leaves too much risk and subjectivity to make sound investments.
Taxes in Singapore are also a huge incentive for businesses. All startups are granted huge tax breaks. For example, every startup is guaranteed a 0% tax rate for the first $100,000 of income. The cap for businesses is also 17% which is low compared to many other countries, even those who are also hubs for business. Many entrepreneurs also enjoy the low personal tax rate as well as no taxes on capital gains. Singapore has also worked endlessly to acquire agreements with over 50 countries for no double taxation.
Overall, Singapore is the perfect place for startups or business in general. There is a plethora of funding and networking available at fingertip length. Taxes stay low and create incentives for companies to invest and develop easily. Law is clearly stated and regulated to encourage foreign and local businesses of any industry. The workforce is also diverse, educated, in abundance, and ready to innovate. Finally, entrepreneurs from all over the world can easily immigrate and thrive in this accepting environment.