There’s something about Singapore that makes an unforgettable impression on the visitors. Doesn’t matter if you have been here on a short holiday trip or to sign deals with local businesses; whichever way you head, the country is just superbly laid out to help your stay be the most enjoyable.
And you know what, things are even better for those who reside here.
Singapore has been a hot favourite with businesses from across the world for many years now. Businessmen are known to be careful with their money and discerning with their investments, so this ringing endorsement from a varied and smart community further underlines its status as a top business destination.
There are many reasons why this is the case. In this post we look at just a few of them which make this country the easiest place to do business in and why consider Singapore as your new place to do business.
A Pro-business Set-up
Successive Singaporean governments have well understood the importance of business-friendly policies for the betterment of the country’s economy, and have shown remarkable clarity and force of intent to foster an atmosphere conducive to business in the city-state.
Everything in Singapore is geared towards making the operation of businesses simpler, whether it’s the laws, the infrastructure, or the labour force.
It all begins with a very simple registration process, with easy-to-understand guidelines that are enforced consistently. If you meet these guidelines you can expect your business to get registered here in less than a week!
Low Corporate Tax Rates
The taxation rates in this country are music to the ears of foreign companies.
Corporate income tax rates for companies based in Singapore are among the lowest in the world, and if the trends are anything to go by, these rates are further expected to dip.
The corporate tax rate in 2010-2013 stood at 17% in Singapore. The small- to mid-sized companies have it even better. Newly incorporated companies and those with fewer than 20 shareholders pay no taxes at all on the first S$100,000 for three fiscal years. There are more tax exemptions and incentives that further reduce the taxes paid by such companies.
Singapore’s single-tier corporate income tax system means companies are only taxed once, i.e. on their taxable income. That’s it. Dividends paid out by the companies to their shareholders are exempt from taxation.
Compare this with corporate tax rates of almost 40% in Japan and the US, 30% in Australia, and 21% in the UK, and you will have your answer as to why so many businesses love Singapore. Even among the developed regions in this part of the world, only Hong Kong offer lower corporate tax rates, 16.5% compared to Singapore.
Efficient All-round Governance
Both the general government policies and the country’s anti-corruption laws are the best-enforced in the world, which tremendously aids the businesses operating here.
You will also find this country unencumbered by red tape and endless layers of bureaucracy, which is a major factor contributing to the ease of doing business here.
Those who do find themselves entangled in legal issues have access to an impartial judiciary system which is quick to resolve matters.
Excellent Infrastructure
On top of a great strategic location, Singapore has the best-ranked infrastructure in the world and is also among the safest countries to be in.
The country is well-connected to all parts of the world with its Changi international airport among the busiest globally. Gaining a Singapore visa is also a straightforward process. Wherever in the world you may be based, it’s only a matter of you getting the right papers and hopping onto a plane to Singapore to explore it. Once you are here, you’ll find Singapore has got everything you’d want in a world-class city, including excellent telecommunication facilities and internet connectivity.
Competitive Labour Force
It’s not just the country and its policies that rank so high when it comes to aiding business, Singapore also has the luxury of hosting a highly skilled and the most competitive labour force in the world. So whatever line of business you are in, you can rest assured that you will have access to a great pool of workforce to support you along the way.
Due to its multi-ethnic and cosmopolitan nature, you will not find it difficult to feel at home here regardless of your background. Singaporeans pride themselves on their tolerance towards each others’ cultural sensibilities, and foreigners have no problem blending in with the locals.
Conclusion
To put it simply, Singapore means business.
There is no one thing that singles out this vibrant and dynamic country as a highly preferred investment place – all of the above mentioned factors together contribute to Singapore’s continuing charm as a top business destination. And we have only scratched the surface with this post; Singapore offers a lot more. So if you’ve been scouting for a new place to set up shop, we strongly recommend that you give Singapore some serious thought.
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