Special Benefits To Expect For Opening A Company In Singapore
by Arnab Dey Business Development 13 August 2022
Every time Singapore is mentioned, most entrepreneurs will tell you one thing, “it is the perfect gateway to the rest of Southeast Asia.” In 2020, the gross domestic product (GDP) of Singapore was 340 billion, and its trade-to-GDP ratio is one of the highest in the globe.
So, whether you want to grow your business abroad or the one back home is not working well, Singapore’s doors are open, and you can count on its market for rapid growth.
As you make up your mind to open a business in Singapore, it would be crucial to start by understanding the expected benefits.
Important Facts About Singapore’s Economy
- Singapore has a population of 5.7 million people (2020 estimates).
- The GDP growth of Singapore over the last four years was 3.4% (2018), 0.7% (2019), -3.5% (2020) and 5.5% (2021).
- Services contribute 75.2% of the GDP, while industry (24%) and agriculture (0.5%) follow in the second and third positions, respectively.
- Singapore, because of its strategic position and proximity to Asia-Pacific, is a regional and global hub for the operations and management of top multinationals.
- The main country’s exports are electronics, services, and chemicals.
- Singapore is a major international tourism destination for most urban, medical, conference, exhibitions, and business types of tourism.
Major Benefits Of Opening A Company In Singapore
Looking at the numbers and facts we have listed above, one notable thing is that Singapore is a highly potential jurisdiction.
So, let’s expound on the main benefits that you should anticipate for forming a company in Singapore.
1. Strategic Location in the Far East Market
Positioned close to the leading superpowers, such as Japan and China, Singapore is considered the perfect nesting point for firms that want to do business with the entire neighboring markets.
In the jurisdiction’s capital, Changi, the Changi International Airport serves about 80 international airlines that connect over 330 cities across the globe. In 20`9, the airport served 68 million passengers.
Whether you are running a supply company for manufacturers in Japan and China or offering support to pharmaceutical firms, among other areas, Singapore is one country that will never disappoint. You can even work with companies in Oceania and the Middle East
2. Singapore has One of the Most Favorable Tax Systems
Singapore has one of the most competitive tax structures in the globe. For example, the corporate tax is only 17%, which makes it one of the lowest compared to other nations that charge way higher than that. This means that once you open a company in Singapore, your company will be able to retain the bulk of profit made from its operations.
3. An Excellent Choice to Help You Avoid Double Taxation
Another unique thing about Singapore is that there is no tax on capital gains. Indeed, income tax is only charged on the profit made locally. If your company runs a subsidiary, profits made outside the jurisdiction will not be taxed. Singapore has also signed Double Taxation Agreements (DTAs) with more than 50 countries to help its companies avoid double taxation.
Seek The Help Of An Expert To Register Your Company
The benefits we have listed in this post are only a drop in the ocean: Singapore has way more to offer. Others include impressive support from the Singaporean administration, availability of an educated workforce, and impressive ease of doing business.
After understanding the benefits, there is only one step required for you to enjoy them: company incorporation in Singapore. This will give your firm the legal basis to exploit the huge local and regional market. The best way to start a company in Singapore is to seek the assistance of an agency of experts.
The experts can help you professionally prepare all the documents required for company registration in Singapore and finish the process fast. Indeed, a good agency will not leave it at that.
The professionals will also be there to help with other executive services, including crafting market entry strategies, payroll management, and accounting needs.