Singapore is known as one of the best places to do business for many reasons. From a great location and high living standards to quality health and a talented workforce, there are many factors in the country’s economic success.
Connectivity and Infrastructure
Singapore’s location and good connectivity keep it close to all the world economic hubs. It makes a perfect base for truly global businesses; its proximity to the rising Asian markets also gives the city an advantage. Singapore also enjoys one of the best communications infrastructures in the world. Within the country, Singapore has a compact layout and a very large and efficiently designed business district. Local transportation is of the highest standards so companies can afford to set up shop in the suburban areas too, away from the central business district.
One of the main reasons for Singapore being a business-friendly location is the local governance and the friendly ecosystem it provides young companies and startups. The authorities have given many incentives for companies to start up such as low taxes and quick paperwork. Singapore has one of the lowest corporate taxes in the world and there is no taxation on capital gains. It also boasts one of the most transparent public-business relationships in the world, i.e. the government agencies are well aware of business realities.
Singapore allows 100 percent foreign shareholding and this has been one of the major recent drivers of its economy. Completely foreign-owned companies form 40 percent of the total now, a sharp increase towards the end of 2017.
Incentives to do Business
Singapore is also one of the best places to be if you are looking for incentives to do business. The biggest obstacle for start-ups is capital. There are many government agencies that have been formed to provide assistance and consultancy to new companies and startups. Equity finance and cash grants are just some of the many ways your business can get momentum. In the last quarter of 2017 alone, more than 14,000 new businesses were formed in Singapore. Private limited companies have increased by close to ten percent, an indicator that the economic landscape is very fertile and full of potential.
The Private Limited Option
There are certain features and prerequisites that you need to be aware of when forming a private limited company in Singapore. A private limited company that has been registered in Singapore has the right acquire property and is recognized as a legal entity. The company cannot have more than 50 shareholders and succession is perpetual.
The company will need to have at 1 shareholder and director; it could be the same person. In case there are multiple directors, at least one of them will need to be either a resident of Singapore (holding citizenship or permanent residence), has a valid employment pass or a dependent pass. Holders of an Approval-in-Principal employment pass are also eligible. A local address is another important parameter when you set up a private limited company in the city-state.
Managing Your Taxes
When you set up your business in Singapore, you will need to get your books in order. Accounts maintenance and compliance is an important part of running a business in Singapore. GST returns will need to be filed on time and without any error. Therefore it is recommended that companies reach out to accounts and tax experts like Sandhurst Consultancy for smooth and efficient work. Some of the services that you would need as a business owner or representative are the preparation of a director’s report, the filing of annual returns, tax planning and corporate tax computation, personal tax computation and filing, and the various GST related taxation procedures.
Businesses that plan to migrate to Singapore can also avail of expert consultancy and related services. Prerequisites include a Singapore Employment Pass. The online process begins with the request for an authorization code, followed by the online application and an appointment with the Ministry of Manpower to collect your pass. The entire procedure normally takes around 4 weeks.
For more than a decade now, Singapore ruled the charts for ease of doing business. Commercial disputes get resolved in just a fraction of the time it takes in many other developed countries. With zero-corruption and an economy founded on the principles of business and finance, it is no wonder that more business owners are looking at Singapore to grow their presence. With the right consultants and the correct strategy, you can take part in this Asian success story.