Singapore is known for its well-developed financial and trade sectors, for its low tax regime and openness towards foreign investment. The city-state’s success is based on a well-developed infrastructure and favorable regulatory and taxation frameworks but also on a skilled workforce.
Here are some of the most important reasons why entrepreneurs should consider investing in Singapore.
Reasons to invest in Singapore
Singapore has a strong economy and it is a prime location for trade and financial companies in Asia. Its proximity to China is a significant advantage for many entrepreneurs and business owners who wish to invest here. Moreover, while it is true that the city-state is primarily a location for financial and trade businesses, its diversified economy presents multiple opportunities for investment.
The top three reasons to invest in Singapore include its proximity to China, its free trade philosophy and a diversified economy. What’s more, Singapore has a low taxation regime and a number of incentives and advantages are available for companies. There are special tax exemptions and tax incentives available for selected business fields and the Government also uses a Productivity and Innovation Credit Scheme that encourages business to invest in innovation and productivity.
The city-state has a low level of corruption, advanced infrastructure and a highly skilled workforce, comprised of both nationals and expats. Apart from its low corporate tax rates, Singapore also has a low personal income tax rate.
Among the most developed business sectors we can list financial services, the trade and shipping sectors, the tourism sector and the pharmaceuticals sector.
Companies in Singapore will need to have a registered office in the city-state. Investors who are just looking to start their business can use a virtual office in Singapore, which gives them all of the advantages of a traditional office, at a fraction of a cost.
Getting your business started in Singapore
The company formation process in Singapore is a quick and easy one, another important advantage for foreign investors. In order to start a company, entrepreneurs need to have an original business name and a bank account and draw up the company’s Articles of Association. The company registration form and documents are submitted with the Accounting and Corporate Regulatory Authority of Singapore.
Other options for investing in Singapore, apart from starting a business or purchasing a company, include opening an investment fund. Singapore is a strong financial center that offers a number of trade and investment options. Among them we can list the exchange-traded funds, mainly focused on financial and industrial companies.
Entrepreneurs are advised to contact a financial specialist who can provide adequate information on the types of funds, like the hedge funds, and the relevant laws that govern the formation of these investment vehicles in Singapore.