Singapore has come a long way since its independence in 1965, transforming from an infamous shipping port into one of the powerhouse economies of the Asia-Pacific region and a world leader in education, city infrastructure, and economic openness.
In recent years, it has consistently been voted one of the best places on the planet to set up a business. The city-state is extremely friendly towards enterprise and entrepreneurship, welcoming companies and individuals from all around the world to set up shop within its economy. In fact, many consider it to be the easiest place in the world to start a business. This article is going to explore the reasons why.
Here, we will look at the benefits of setting up a business in Singapore and what kinds of businesses do best there.
1. Little red tape and bureaucracy
Singapore frequently finds itself at or near the top of lists of countries where it’s easy to do business, like the one that the World Bank puts together each year. Part of what makes it such an easy place for enterprise is that joining the business register in Singapore can take as little as one day if you’re well-prepared. The average time for approval is somewhere between one and three business days unless you need special permissions from the authorities.
The requirements for registering a company are minimal too. You only need $1 in capital, one shareholder, and a company secretary, but you do also need a Singapore address for your business and at least one local director. However, there are local companies that can provide these things for you.
2. Low taxes
Singapore is very small, only around half the size of London, and accordingly it does not require a lot of tax income to take good care of its citizens. The personal income tax rate there starts at zero and reaches a maximum of 22% for those on high incomes. This is far lower than many countries globally, even those with larger economies.
The corporate tax rate is 17%, which is also low in comparison with other countries, and only corporate income is taxed. Capital gains from the sale of shares and dividends distributed to shareholders are exempt. There is a consumption tax similar to VAT, but at 7% this is less than half the global average rate.
3. Educated and skilled labour
Singapore is home to a highly skilled and motivated workforce, and it has very business-friendly labour regulations. Even companies that are not incorporated there often make use of SIngaporean labour through outsourcing, and there are skilled people there operating in almost every industry, from copywriting services to human resources and finance.
4. Excellent infrastructure
In our modern world, fast and reliable internet facilities are essential for practically any business. Singapore certainly delivers on this front, with an ultra-high speed fibre optic network spanning the entire city. Its telecom services are of equal quality.
The country also has excellent transport infrastructure, including one of the most modern and well-connected airports in the world.
5. Proximity to Growing Markets
Singapore’s location in Southeast Asia means that it is close to developing markets like Indonesia, Malaysia, the Philippines, and Thailand. However, it is also just a relatively short flight away from larger, growing markets like China and India, and developed ones such as Japan and Australia.
6. Favourable immigration policies
While not a necessity if you have a local director, relocating to Singapore to set up your business is quite simple compared to other destinations.
Conclusion
Overall, it is hard to find anywhere in the world that’s as easy for setting up a business as Singapore. Speedy processing time and low taxes are major benefits for budding entrepreneurs, but the benefits of a highly skilled labour force and connection to other large and growing economies shouldn’t be overlooked.
