Singapore is known as one of the most developed economies in the Asian region and also on a global level. With a diversified economy, the country has attracted over the years numerous foreign businessmen, who have benefited from a competitive taxation system and a straightforward registration procedure for any of the legal entities available under the local legislation.
We present to you the main reasons why you should consider starting a business in this city.
Singapore, a global financial hub
Singapore has gained popularity as being one of the Four Asian Tigers, becoming one of the world’s leading financial hubs. The country has maintained its position amongst the main financial hubs, ranking as the fourth economy regarding competitiveness. Its financial sector consists of fields such as banking, asset management, wealth management or insurance. As the financial sector is regulated by a set of rules of law, when starting a business in this industry, it is advisable to request for legal assistance from specialists experienced in opening a company in Singapore.
Commitment to strategic investments
The authorities from Singapore managed, through solid policies towards strategic economic sectors, to have one of the leading economies in the world. The country has one of the lowest corruption levels registered at a global level and it developed various strategies to push forward important economy pillars, such as electronics, pharmaceuticals, tourism or clean energy. Investors should also know that Singapore is one of the main economies for the protection of intellectual property rights.
Solid assistance from local authorities
When starting a company in a foreign country, investors should also verify the level of assistance that can be provided by the country’s competent authorities. In this sense, Singapore stands out as an attractive business destination, which has a low level of bureaucracy and a high level of communication between local authorities.
Assistance for startup businesses
Singapore sustains innovation in the business sector and aims at helping startup companies boost their projects on the local market. Thus, it provides a set of government schemes through which businesses can obtain grants and funding sources.
Tax exemptions for companies
Companies in Singapore are charged with a corporate income tax applicable at a rate of 17%. In the case of newly founded businesses, the tax system provides 100% exemption for the payment of this tax for a period of three consecutive years for a chargeable income of $100,000 and a 50% tax exemption for the next $200,000 taxable income.
Thus, Singapore offers a competitive environment, suitable for the expansion of a business on the local market, in economic sectors that were presented in this article and also for other types of business activities. The tax exemptions and incentives provided here, as well as the support of the local authorities, especially in the initial phase of a business, make it a great destination for investments.