It is no secret that getting back to business post-COVID 19 will be hectic. But even so, a couple of countries dealt with the pandemic in a somewhat remarkable way. And Singapore is one of them. The government put in place at least three budgets to ensure that local businesses and their workers are not struggling. Although this is something that other countries also did, it is still a considerate move.
If you wonder which country to incorporate your company come 2021, you are not the only one. Company incorporation in the coming year will be challenging if you have no clue how the country is fairing business-wise. The challenges that come if there is no support in place for your new venture can drive anyone nuts. This article focuses on Singapore as the country for your company incorporation in 2021. Read along to find out more.
Why chooses Singapore?
When incorporating a company in any country, you probably want to know how it ranks with several organizations. Well, that is what we did as well. Taking a look at organizations that track the business friendliness of a country, Singapore fairs quite well. That is probably due to the ease with which you can incorporate a company there.
Singapore ranked as the best country worldwide in doing business. That was in 2016 ranking survey by the World Bank group of over 189 countries. But what is even more remarkable is that Singapore held that top rating consecutively from 2006. But it doesn’t stop there. There are numerous higher rankings and accolades that Singapore receives. Organizations such as BERI, Forbes, EIU, and WEF all ranked Singapore as an excellent country for company incorporation. That includes both foreign and local.
Singapore has terrific policies in place that ensure that your company fairs quite well. The Singaporean quality of living, strong economy, which is both open and efficient, and the tactical geolocation all have a hand in boosting its business friendliness.
Here are some benefits and ease that make Singapore so attractive;
The employment rate of a country says a lot about its economy. It will surprise you to learn that at least an 80percent of the workforce fuels the country’s economy. The low unemployment rate makes it even more attractive. The inflation rate in Singapore is also low.
In 2014, BERI ranked Singapore as the highest in the productivity of the workers. And that says a lot about the human resources you will be working in your company there. The county has one of the most developed free-market economies and mostly relies on manufacturing, trade, and finance as its bases. This robust economy makes it one of the top countries in terms of its GDP.
Interestingly, Singapore no current public debt. And very few countries can say the same. And at least a 50 percent of the GDP accounts for the gross national savings.
When starting a company in a country, it would be best to know something about the workforce. As mentioned earlier, Singapore has quite a productive workforce. The workers receive excellent training. And the incomes they earn are competitive with other countries and act as a perfect incentive for productivity.
But what you didn’t know is that a lot of its workforce speak English. It is a universal language and makes it easier for foreigners to interact with locals.
You can attribute this to the country’s great educational system. Singaporeans tend to be well learned and abiding citizens. Most middle-aged and young Singaporeans speak English. And as such, it makes it easy to incorporate your company in the country.
It will amaze you to note that productivity may be due to the open-minded immigration policy. Immigrants make up at least a third of the workforce. Therefore, you can expect to interact with numerous nationalities that add value to the already productive workforce.
They bring with them global talent that any economy needs to grow. What makes it so easy for professional immigrants to choose Singapore as their work destination is finding employment and retaining their work and residence visas. And as such, you should worry less about the workforce for your new company.
Many investors tend to avoid countries that corruption is the talk of the town. Singapore will amaze you with how it deals with crime. Apart from the dire consequences of engaging in corruption in the country, more measures are in place to ensure that you don’t need connections to get the best service. It explains why the country ranks as one of the least corrupt countries in the world. Your company will thrive on its own and through the legal system of the government.
One of those measures is the generous pay that the civil servants get. It makes it easy for them to conduct the best services without the greed of needing more. And what’s more, is that Singapore recruits only the best of the best for civil posts. You should therefore expect only the best.
Strategic Location in SouthEast Asia
Singapore is at the center of Southeast Asia. It makes it a strategic location for business ventures. And what’s more, you can quickly get to other neighboring giant economic countries like Malaysia. All you have to do is jump on the next short plane ride out of the country.
With world-class airports and ports, you should brace yourself for an incredible and exciting new business journey. And the top-notch infrastructure of the country will blow you away. In the last decade, Singapore did most of the best works, and therefore everything is still pretty brand new and modern. That will make your working environment perfectly pleasing. It indeed covers any doubt you may have about why the country ranks as one of the best cities to live in and work.
But even so, there are still more questions that you may have about the ease of integrating your enterprise in Singapore. Well, to cover and answer your most pressing concerns, here are several factors that make it easy to join your company with the other Singapore companies;
Singapore Taxes is Lower
As a primary concern you may have, you should know that Singapore’s tax system is simple. And it’s even more attractive if you look at it from this angle. VAT charges are one of the lowest in the country. But that’s not all.
Remarkably, you or your company will enjoy tax-free dividends from the business. And as a new company, you get tax breaks for at least the first three years of your business. And in the case your biggest worry is on double taxation, then worry less. Corporate profits in Singapore, if passed as dividends to stakeholders, don’t get a double tax. That would mean that you can distribute the free of tax to shareholders.
The country with over 50 countries, also has quite an impressive network of DTAs. These are agreements to avoid double taxation. That way, economic transactions are not double taxed between Singapore and the rest of the treaty countries.
But it shouldn’t worry you either if you are from a country that is not part of the treaty. The likelihood of your company getting double taxation is minimal. More so if you are a Singapore resident tax company. That is because Singapore still has UTCs with countries outside the treaty.
Policy on Foreign Ownership
It will amaze you to learn that as a foreigner, you can own the entire shares of the company. You have the right to choose your investors, local or foreign. The country has no restrictions in place for the amount of capital you can bring into the country. And even more incredible is the hurdle free process of moving foreign currencies in and out of the country. What more can anyone ask?
It is almost too straightforward to start a company in Singapore. It’s as if all the odds are working in your favor. The requirement for incorporation of your business there is simple, and the entire process efficient. It is undoubtedly a great country for business come 2021.