Why Singapore Is So Attractive For Small Business

An offshore company is a business that is incorporated in a jurisdiction other than the country where its owners or directors live.

Offshore companies operate according to the local regulations and laws. Investors and owners choose jurisdictions that have more favourable policies than their home countries. Corporate giants do this all the time. Apple, Google, Samsung, Berkshire Hathaway and other behemoths establish offshore companies as subsidiaries in many countries. Using favourable local policies while still complying with local governmental regulation these corporation legally reduce their payable taxes by a significant amount.

You don’t need to have a business as large as this to consider register a small business in Singapore.

Strategic Location

Singapore is nestled in the heart of South-East Asia. Located on the southern tip of the Malay Peninsula. Surrounded by Malaysia, Indonesia Thailand, Cambodia, Vietnam and the Philippines Singapore is strategically located and has developed into a world hub of business, finance, and shipping.

Singapore is one of the busiest container ports in the world. Twenty per cent of the world’s trade passes through its port every year.

It has a world-class airport that serves more than 80 international airlines and connects to more than 330 cities around the world. More than 20 million passengers pass through Changi International Airport every year.

Established Infrastructure

The city-state has a highly developed infrastructure. This includes commercial buildings, internet, airports, highways, subways and public parks.

Since the majority of its infrastructure is new, its modern design can meet the growing demands of business. Singapore consistently ranks among the leading countries in Asia in terms of infrastructure

Economy

Singapore has a fast-growing free market economy. This makes it ideal for established companies as well as startups. The country has an extremely low unemployment rate, high government revenue, no foreign debt, and positive surpluses every year.

Tax System

Singapore has one of the most competitive tax structures in the world. The highest corporate tax rate is 17%. Capital gains are not taxed, and income tax only applies to locally generated income. Foreign subsidiaries’ earned income is exempt from tax, which makes it appealing for creating holding companies.

Businesses

Singapore’s sustained growth is the result of its ease of doing business. It is open to global capital and technology. It supports free-market competition and has investment-friendly policies.

The country has a AAA rating, which indicates its exceptional financial stability. Due to its economic stability and reliability, it’s an ideal location for international expansion. The area has become an international leader in investor protection, international trade, insolvency resolution, and construction permits.

Incorporation

As one of the world’s easiest places to do business, setting up a corporation in Singapore is seamless and efficient.

It’s possible to open a company in Singapore with a minimum of one shareholder, one director, one local company secretary, and local address and a share capital of just one dollar.

The process is simple. Choose a business identity, set up a company constitution, and open a bank account. Private limited companies are recognized as taxable entities and shareholders are not liable for losses or debts beyond their share capital.