A holding company owns stock in other companies. It doesn’t provide goods and services of any kind. This makes it easy to set up a holding company virtually anywhere. However, there are still some considerations to be made before choosing a location for your holding company. The right location can offer many benefits to your company and allow it to grow exponentially. Singapore is one such location. Here are 5 reasons to set up a holding company in Singapore.
A Growing Economy
Singapore is a growing economy with a lot of foreign investment coming in. This is mainly due to the benefits provided here. Companies in Singapore can avoid double taxation and enjoy lower tax rates.
These benefits have made Singapore a viable option for a lot of foreign investors, thus driving up the economy. If your holding company resides in Singapore, then it can benefit by being a part of an economy that is slowly on the rise. This can offer economic stability that a lot of other nations may not be able to provide and safeguard your company against economic crisis.
Access to Skilled Workforce
According to the latest Global Competitive Index report, Singapore has a large population of skilled workers. If you still choose to hire people from outside Singapore, then you’re free to do so, so long as you prove that those niche skills cannot be found in Singapore. Although the city-state’s manpower policies have gotten tougher, it is possible to procure the right work visas for the right talent.
Easy to Set Up
Setting up a company in Singapore is relatively easy. Registrations can even be submitted online once you fulfil all the requirements. Finding an office in Singapore is also not that difficult. There are many business parks around the country where you can find the right office space. Getting the necessary permits is also effortless with the help of EnterpriseOne. You can apply for all the necessary permits on their website. It’s possible for you to set up a company by using your computer. How could things be easier for an entrepreneur?
Avoidance of Double Taxation
This is perhaps the biggest benefit of setting up a company in Singapore. Double taxation is a problem in countries like the United States, where they implement a worldwide taxation system. However, in Singapore you can avoid that. This is because Singapore has signed Avoidance of Double Tax Agreements with over 70 countries. The details of this agreement vary from country to country. In any case, your company won’t be burdened by double taxation. This can give you the edge that you need to compete on a global scale.
Attractive Tax Rates
Avoidance of double taxation isn’t the only benefit you get from Singapore. You also get one of the most attractive corporate tax rates in the world. Marginal corporate tax rates in Singapore can be as low as 17%, and with various schemes, the effective tax rate can be lowered further. All this makes Singapore one of the best places to establish your holding company. The amount of money you save by avoiding double taxation and paying less tax can be reinvested in your company. There are very few places around the world where you can get both these benefits.
We’ve already established the many benefits of setting up a holding company in Singapore. Not only is it easier to set up a company here, but it’s also more profitable. These are two things that every entrepreneur wishes for while starting a business. I reckon there aren’t many places around the world where you can receive such benefits. Who knows what other opportunities might emerge here? That is why it’s important to get a head start.
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