The rapid economic growth in Singapore in recent years is one of the flourishing regions for establishing companies. Many new as well as existing entrepreneurs have chosen Singapore over other countries, due to the excellent supportive environment and the business-friendly policies. The incorporation procedure of a company is an elaborated task that includes company’s director’s nomination, name check and reservation, business monitoring and auditing, handling corporate compliance with disclosure requirements and other business regulation.
Now the entrepreneurs are choosing Singapore over other countries as, there are many other advantages for the private limited companies, such as; it can be wholly owned by foreign shareholders. The most important advantage in any circumstances is that the profits companies registered in Singapore earned in another country are exempt from taxation. The other advantages of company’s incorporation in Singapore are as follows;
- The flexibility of Ownership:
In accordance with the Singapore Companies Act, the only requirements to incorporate a company in Singapore is that the company has at least one local director, who has to be a Singaporean Citizen, Permanent Resident or EntrePass Holder and a local company secretary, of at least 18 years of age without prior bankruptcy record. Also, Singapore allows for 100% foreign ownership, and complete repatriation of capital and profits. Thus the entrepreneurs from abroad are registering their company in Singapore, as the complete incorporation procedure can be completed from abroad. They only need to be physically present in order to open a corporate bank account.
- Simplified taxation:
The business owners from all over the world come to Singapore for the benefits, rebates, and incentives that it offers through its tax system. Here the personal income tax is comparatively low in regards to the other neighbouring countries, and this is very favourable for the companies like SME, thus many entrepreneurs are choosing Singapore for doing business, over other countries. Also, for the shareholders the dividends are exempted from taxation, due to the simplified Singapore taxation system. Also, the Singaporean tax exemptions are mainly aimed at supporting the activity of newly founded companies in Singapore. Therefore, the first SGD100000 in profit earned in Singapore is exempt from taxation until three years after company’s incorporation in Singapore. To highlight Singapore’s tax advantages, the city-state has been voted as having the least burdensome taxes in the world.
- Business-friendly regulations:
Singapore has one of the simplest and most bureaucracy-free business regulatory frameworks the world over, as the most streamlined business cultures present here, that helps business persons to establish and run their business with ease. It has one of the hassle-free statutory compliance requirements and is located close to the Asian markets. Incorporating a company in Singapore is so easy and straightforward in fact that it could be done within a day or two if there are no document related errors and the availability of the company name has been checked.
- Governance Structure of the company:
The governance structure of a company is order to form a corporate entity and ACRA is the national regulator for business entities, it also plays the role to assist for the development of business entities in Singapore. The governance structure of a company and the relation or terms between the company and its shareholders is governed by the company’s constitutional documents that is the Memorandum of Association and the Articles of Association, as well as by the provisions provided by the Companies Act.
Here we mentioned the prime advantages for the company’s incorporation in Singapore in the aforementioned points. As it is strategically located in the heart of South East Asia and is recognized as one of the fastest-growing economies in the world. Also, the prime reason for increasing the number of business entities in Singapore is the investors and entrepreneurs that want to set up a company in a country, which offering favourable political environment, stable economy and low tax rates, along with good quality of life, and these factors made the country ideal for the business, as well as for corporate leads. Therefore they are choosing Singapore as their business location in order to gain some profit from the fastest-growing economy.