It is vital to have a vivid picture of the long-term viability of a business when setting it up. You must scrutinize its growth capital and consider your preferences as well as your financial capacity. Moreover, you have to choose the business structure and decide whether you can run the business alone or you will need help from other people. After that, you will check external factors like demand and competition. Economic conditions and laws will also affect your business, and this information will determine the ideal market for your business.
Economies in Southeast Asia are proving to be one of the best business destinations. Foreign Direct Investments and company registration have steadily risen since the 1990s. This holds in Singapore, which has a thriving economy and excellent government policies encouraging startups.
Well, there is a reason why Singapore is referred to as the Silicon Valley of Asia. ByteDance, Tencent, and Alibaba are among the top companies with regional headquarters in the country. It has also seen a notable rise in tech-related companies.
So, why should you join the list of other investors setting up their businesses in Asia? This piece explores some of the reasons.
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The Country’s Strategic Location
One of the main advantages of company formation Singapore is the convenience you will get from the country’s location. Singapore is located in the heart of South East Asia, which makes it possible for your company to assess a market of billions of people.
The port in Singapore is one of the busiest worldwide, and the nation is ranked as a premier International Maritime Center. Its airport, Changi, serves over 30 million people annually, emphasizing service, efficiency, and competitiveness, making it among the best airports in the world for more than 20 years running. The airport will allow your business easy access to all major markets in Asia since it is a hub in the Asia-Pacific region.
An Outstanding Tax System
Any entrepreneur will look for taxes before setting up a business. They greatly determine whether one should set up a business in a country. One of the major advantages of Singapore is the low and effective corporate and personal tax rates. For personal tax, the tier starts at 0% and goes up to 22% for income above S$320,000.
On the other hand, the corporate tax rate is capped at a 17% cap rate on a business’s chargeable income. You will not pay capital gains tax in Singapore since the nation follows a single-tier tax policy. Income that has been deducted from the corporate tax will be distributed to shareholders tax-free.
The government in Singapore has also adopted a more broad-based consumption tax referred to as Goods and Services Tax (GST) to shift from the dependence on income tax. Singapore has the lowest GST rate at around 7%, below the global rate of 16.4%.
Friendly Immigration Policies
Singapore has an open immigration policy that allows foreigners who want to set up companies there to relocate to the country. The government provides the Singapore work visa to make it easy for entrepreneurs who wish to relocate to the country. Furthermore, value-adding individuals can settle permanently in the country since the country has relaxed its immigration policies. It is now easier for entrepreneurs and professionals to have the Singapore Permanent Residence status.
Singapore’s economic strategy, just like Hong Kong, was inspired by Japan. The two borrowed the idea of investing in education, and they did this heavily in the 1960s and 1970s. Consequently, the labor market improved with highly skilled workers. The grades that students in the country get are at par with the global comparative standards.
Citizens in Singapore do not become complacent despite their educational background. On the contrary, they remain compliant and hardworking. Moreso, the country has liberal immigration policies that allow skilled immigrants into the country. Your business will therefore get the services of the most skilled workers in the world’s labor market.
Stable Financial System
Another reason you must invest in Singapore is the country’s stable financial system. It remained unfazed during the financial crisis in Asia despite its reliance on investments. The country enjoys advantages such as a high savings rate, net export, and quick recovery.
Singapore never attempted to intervene in the capital market. It actualized a devaluation of its currency to cushion the impact. This strengthened its trade, and it started overtaking Hongkong after the crisis. At the moment, Singapore has a new initiative that fits current macroeconomic changes. Therefore, you will set your business in an environment that assures a stable financial system.
Singapore is a highly attractive business destination for entrepreneurs seeking to establish businesses. The above reasons indicate why you must incorporate your company in the area. You will enjoy a robust economy, great infrastructure, a great tax system, a diverse community, and a strategic location. Furthermore, you will not have the unnecessary hassles you experience in other countries. So, if you were on the fence about setting up your business in Singapore, now you have every reason to go there and make good money.