Inside This Article:
We once lived in a world where few countries enjoyed economic prosperity while the majority of countries looked on with envy, desiring to have similar opportunities.
Today, we live in a global economy where all countries can participate and benefit from the trading of goods and services that occurs on a global scale.
As the global economy has opened up the trading borders of nations, some countries have prospered tremendously, while countries that are considered superpowers have seen their economic power decline.
This argument can be made with regard to China’s growing economic power compared to the United States’ stagnant economic growth. But beyond China, there is another Asian country that is reaping the benefits of being a major player in the global economy – Singapore.
What is so significant about this?
Open borders for business means that entrepreneurs have the opportunity to expand their businesses beyond their local community.
Countries are welcoming entrepreneurs with open arms because entrepreneurship promotes innovation and economic development.
Many entrepreneurs are moving their businesses beyond their national borders as doing business on an international level is looking more and more attractive.
Singapore’s strategic location in the heart of Southeast Asia and its proximity to the emerging markets of India and China contribute to its status as the base for leading global companies across various industries. As Singapore is a has emerged as a hotspot for this global economic activity, the great business environment and economic opportunities in Singapore attract more entrepreneurs, corporations, and investors.
Why Are Entrepreneurs Choosing to Relocate Their Businesses to Singapore?
Singapore has several outstanding achievements that make it such an attractive place for foreigners to expand their business operations to the flourishing city-state, such as:
- It is ranked the world’s best business environment to do business in
- It is ranked the 4th most competitive economy in the world, just after Denmark, Ireland, and Switzerland.
- In the Logistics Performance Index, Singapore secured the top position in Asia for logistics performance.
- It ranks 1st in Asia for intellectual property (IP) protection and 2nd in the world, which protects your valuable ideas, trademarks, and innovations
- Singapore ranks 5th on the Sustainable Trade Index for the sustainability of its international trade practices
- Singapore is rated 2nd in the world by the World Bank for the ease of doing business
- Singapore is ranked the 2nd wealthiest nation in the world according to the International Monetary Fund (IMF)’s data, after Luxembourg
- Singapore is rated 1st as the most politically stable country in Asia and 3rd in the world
- Singapore is rated 1st in Asia for quality of life
- Singapore’s corporate tax rate remains a flat 17%. In 2024, businesses will also benefit from a 50% Corporate Income Tax (CIT) rebate, capped at S$40,000, helping mitigate rising operational costs.
- There are no dividend or capital gains taxes in Singapore
- There is no estate/death/inheritance tax in Singapore
- Personal tax rates start at 0% and max out at 22%
- Singapore’s network of over 100 comprehensive Double Taxation Avoidance Agreements (DTAA)
- Singapore’s many free trade agreements and the Investment Guarantee Agreements (IGA)
- Robust local talent pool and a number of attractive schemes to entice foreign talent in talent-scarce areas, such as technology
The facts listed above illustrate why Singapore is a favorite destination for entrepreneurs wanting to relocate themselves and their businesses entirely or simply expand their operations globally.
Take for instance, the ease of doing business in Singapore. The country has a score of 86.2, compared to 84 for the United States. On average, entrepreneurs in Singapore need only 1-2 days to set up a company.
Singapore provides many advantages for an entrepreneur who wants his business to grow in its prosperous environment. For instance, Singapore provides a great strategic location in Southeast Asia and serves as a springboard to the region.
Its location gives your business access to a market of 688 million people. Its pro-business environment attracts foreign investors seeking to invest in great business ideas.
Singapore provides structured pathways for entrepreneurs through schemes like the EntrePass and ONE Pass, which cater to various professional backgrounds. Both passes offer routes for long-term business operation and potential pathways to permanent residency.
How to Form a Company in Singapore
Generally, the process of starting a business in Singapore is simple. It takes just a few days to get the registration complete as long as you have the necessary documents in order.
We outline some of the key steps:
Entering Singapore
For foreign entrepreneurs, the Global Investor Programme (GIP) remains an option, but Singapore now offers the EntrePass and Overseas Networks & Expertise Pass (ONE Pass). The ONE Pass is particularly appealing due to its flexibility, allowing holders to concurrently start, operate, or work for multiple companies.
The GIP offers permanent residency (PR) to qualifying global investors who wish to propel their businesses and investment growth from Singapore.
Foreign entrepreneurs can also start a business in Singapore by obtaining certain work passes, such as an EntrePass or ONE Pass.
The ONE Pass is its newest work visa that allows successful applicants job flexibility, whether as an employee, business owner, or both. Otherwise, foreign entrepreneurs from overseas can also set up a company by engaging a registered filing agent such as InCorp to assist.
Registering a Company in Singapore
Businesses must register with the Accounting & Corporate Regulatory Authority (ACRA). If you want to set up a private limited company in Singapore, you must appoint a local registered filing agent to act on your behalf.
The agent must be a resident of Singapore – citizens, permanent residents, or foreigners with employment or dependant passes.
You must also adhere to the statutory and regulatory obligations as stated in the Singapore Companies Act, such as engaging a company secretary, conducting annual general meetings, and more.
Special licenses are needed for businesses that operate in banking, insurance, stock broking, and more. These licenses are also required for the manufacturing of cigars and firecrackers.
Government’s Assistance in Business Growth
Singapore works extremely hard to ensure businesses are given the best environment and assistance to develop.
The following agencies can be contacted when seeking help to grow your business:
- Economic Development Board (EDB) – provides complete investor support and promotes a first-rate business environment in Singapore
- Enterprise Singapore – a comprehensive agency that offers support in terms of tax incentives, grants, loans, business toolkits and more
- ACRA – oversees the registration and regulation of business entities and public accountants. This agency also provides information on new business structures, compliance requirements, and governance practices.
Great Labour Force
Singapore has an attractive, world-class, and hard-working labour force. Great employees are needed for any business to succeed. Singapore is a knowledge-based economy and its labor force is educated and professionally qualified.
Its workforce is recognised for its focus on higher education, high level of productivity, technical knowledge, and work hard and work harder culture.
Employees can be found through online recruitment portals and recruitment agencies such as InCorp. You can also explore training programs that the EDB offers in partnership with many businesses.
Expand Your Business to Singapore With InCorp
Singapore is one of the top destinations for entrepreneurs seeking to expand on an international level. It focuses on continued economic growth in various key sectors, pushing to provide entrepreneurs with an environment where they can grow their businesses for continued success.
The country understands that a healthy, competitive business environment is what attracts continued investment into its infrastructure – both talent-wise and financially.
Take advantage of the business opportunities that exist in Singapore. You may soon find that the opportunity to build a business will no longer be so easy to take advantage of when more entrepreneurs learn about the vibrant business environment in Singapore.
FAQs About Doing Business in Singapore
- Yes, a foreigner can register a business in Singapore without immigrating here by engaging a local registered filing agent such as InCorp.
- Yes, a foreigner can obtain 100% shareholding of the business.
- The most ideal type of business entity is a private limited company as it offers multiple benefits such as flexibility, limited liability, and more.
Planning to start a business in Singapore?
About the Author
