Singapore provides one of the best environments for business growth with its political, economic, and social stability. The city’s safe and business-friendly climate has allowed it to become a strong foundation upon which companies can launch into both Asian and global markets.
The Potential of Singapore
Before looking at the main benefits that come with opening a business in Singapore, it is important to take a closer look at this jurisdiction and understand its systems. Over the years, Singapore has been recognised by global institutions as one of the top places in the world to do business.
Here is a look at some of them:
- In 2020, the World Bank ranked Singapore the 2nd best nation for Doing Business. This was the fourth consecutive year that the country came second.
- In 2019, Singapore was crowned the most open and most competitive economy in the world in the Global Competitiveness Report by the World Economic Forum
With these accolades under its belt, here are the reasons why Singapore is such an attractive location for business:
1. Well-Developed Economy
One of the most notable things about Singapore is its liberal economy, which is anchored in finance, trade, and manufacturing. The services sector in Singapore accounts for 75% of the nation’s GDP. It also employs about 80% of its workforce. The city has also managed to push its unemployment and inflation to very low levels.
Every year, the country hits about $500 billion worth of exports and its gross national savings are close to half of its GDP. Furthermore, the country has enviable transport, healthcare, and education sectors. All the economic attributes make it a place that UK entrepreneurs would not want to miss.
2. Attractive Tax Regime
To grow a company, you need a jurisdiction that allows businesses to retain the bulk of their profits. Singapore has a very competitive tax rate. It is one of the countries across the globe with no tax on dividends or capital gains from businesses. As a result, it has become so attractive to entrepreneurs, especially those looking forward to building their businesses.
Singapore’s corporate tax rate is 17%; however, companies can enjoy the partial tax exemption and tax exemption for new start-up companies in progressive rate based on their chargeable income. More information can be found on the government’s IRAS page
3. No Double Taxation
To help businesses grow faster, Singapore has signed many agreements on the Avoidance of Double Taxation. These agreements help to ensure that a business is only taxed where the transactions were done. Singapore went a step further and developed Unilateral Tax Credits (UTCs) that businesses can use when doing business in countries with no DTAs with Singapore.
4. Ease of Company Registration
To take your business to a foreign jurisdiction, the first step is company incorporation. The process of registering a company in Singapore is pretty straightforward, compared to many other places.
If you are a UK entrepreneur and considering taking your enterprise offshore, Singapore is one of your best options. Top companies, such as Barclays and GM, have built huge presence in Singapore
Looking to incorporate in Singapore? Hawksford can help. With clients from 115 countries and an award-winning team recognised by peers and industry bodies, Hawksford promises impeccable client service to your corporate needs. Contact them here.