Strategically located at the crossroads of the East and the West, Singapore continues to invite a strong pool of foreign talents to its soil for last few decades. The nation has successfully established a robust trading reputation for itself. One plausible reason why the city-state stands forth among its neighboring peers when it comes to starting a business is because of its simple and fuss-free Singapore business incorporation process.
Why Choose Singapore for a Business Incorporation?
There are a few of the key reasons that make a nation a thriving land for global investors. Enforcement of stringent Intellectual Property law, attractive tax regime, and pro-business government policies are to name a few.
The companies from European and American countries choose to set up their Asia-Pacific bases here. Conversely, Asian companies from India, China, and other countries, incorporate companies in Singapore to gain access to the markets of giant economies like USA and Europe.
Foreigners intending to reap the slew of benefits that the nation has to offer to its subjects, usually prefer to set up their businesses in the form of private limited companies. Benefits such as Singapore’s wide network of Double Taxation Avoidance Agreements and Free-trade Agreements are worth mentioning.
Setting up a branch office is a lucrative option for those who wish to expand the business of their overseas parent company. Lastly, the representative office is for those foreigners who want to mark their presence in this South East Asian financial hub without having any intention to conduct any business activity before surveying the market.
Singapore Company Registration:
The Accounting and Corporate Regulatory Authority of Singapore (ACRA) oversees all functions relating to Singapore company incorporation. In general, the process of incorporation of a company in Singapore takes 1-3 days to accomplish and it can be done through electronic means i.e. BizFile portal. For this, you must have a SingPass ID to log in into the BizFile. You being a foreigner, might face problem to obtain SingPass ID. Thus, you are advised to engage an incorporation expert so that you can carry out the process in a smooth manner. These professional incorporation service providers take the burden of the task off your shoulders. The process of incorporation is quite easy.
Recruiting Manpower:
Singapore provides an edge to carve out the career of the local and foreign talents alike. Consequently, the nation possess a strong pool of highly educated, experienced, motivated, and productive talents from across the world. Entrepreneurs who open a company in Singapore can easily find efficient employees for their business using many online recruitment portals and head-hunting agencies.
Government-aided Assistance and Grants:
The potential business entrepreneurs can tap a plethora of networks that the Singapore government has rolled out to help the businesses grow. This is one of the reasons why Singapore is famed for its bureaucracy.
Businesses in need of funds can turn to government agencies such as Economic Development Board (EDB), Standards, Productivity, and Innovation Board (SPRING) and EnterpriseOne. These agencies are making constant efforts to create a pro-business and supportive business environment that is favorable for small and medium enterprises.
Similarly, these agencies along with the collaboration of Singapore government, are providing financial assistance through fund initiatives such as cash grants, equity financing schemes, business incubator schemes, debt financing schemes, and tax incentives.
Entrepreneur Pass (EntrePass):
Entrepreneur Pass is a type of work visa that facilitate the entry and stay to entrepreneurs who will start and operate a business in Singapore. EntrePass is issued by the Ministry of Manpower upon successful submission of a sound business proposal. For this purpose, an entrepreneur must have at least 30% shares of a company with a paid-up capital of S$50,000. The initial validity of the pass is up to 2 years and afterwards, can be renewed for 3 years. This pass allows the holders to bring their spouse and children below 21 years to Singapore by applying for Dependant’s Pass.
Singapore Taxation Regim:
When you compare tax system of Singapore with many other jurisdictions, you will find the regime to be attractive in terms of tax rates, benefits, allowances and policies. The headline corporate tax rate of Singapore is 17%. The existence of a wide network of double taxation treaties, no tax on capital gains, full and partial tax exemptions schemes for start-ups and existing companies and many more are the few instances. It attracts foreign entrepreneurs and corporate to visit the country and incorporate a company in Singapore so as to take the tax advantages. It is apparent that the tax is the prime factor that determines the net revenue income of a business. The Inland revenue Authority of Singapore (IRAS) oversees the regulations and functions of tax including Singapore tax filing.