Olimea Advisory

Singapore is one of the largest financial and business centers in the world and is also the gateway to Asia for most foreign companies who are looking to have a presence in Asia. Hence if you are looking to expand your business to the Asian market, then Singapore will most likely be one of the most ideal launchpad for your business here. It does not matter if you are a large Multi-National (MNC) or a new start-up looking to consider Singapore as your preferred place of business -Singapore will always rank highly as one of your most preferred business destination.

If you are still not convinced, we have tried to list some of the most compelling reasons as to why Singapore could be your destination of choice for your business

1) Robust Economy

Singapore has a well-developed free market economy that is based primarily on trade, finance and manufacturing. Services account for 75% of the country's GDP and employ 80% of its workforce. It exports nearly S$500 billion worth of exports each year with the result that this country with only 5.25 million people has amassed the 10th largest foreign currency reserves in the world. The country has no external public debt, a growing current account surplus and has been actively investing its capital abroad. The state makes judicious use of its good robust financial standing through subsidized local housing, education, transport, and health care. All of these attributes ensures that Singapore is highly regarded in the global markets as a key business center.

2) Ranked as one of the top countries in the world for ease of doing business.

Singapore has received many accolades for its business friendly policies. These rankings have been awarded by well-regarded international organizations and they provide an independent verification of the country's pro-business stance for the last several decades.

It's definitely one of the easiest places in the world to set up a company and do business. If you a local and you have a SingPass Account, you can easily set-up a company via an online application through ACRA or use our affordable company incorporation services for your business needs.

If you are a foreigner, you can approach any Corporate Service Provider (like ourselves). We will easily be able to assist you in your end-end business set-up in Singapore and ensure that all the regulator compliances are taken care of in an affordable manner.

3) Support for Startups

The Singapore government adopts a very pro-growth and innovation friendly approach to business. As such many grants, tax incentives and in-kind assistance schemes are provided to startups. Within certain preferred sectors, the government can also subsidize the labor costs of a new business. These benefits are available to local as well as foreign-owned businesses.

Over the last decade, Singapore has nurtured its venture funding community. It is now the premier venue in Asia for venture funds. By incorporating and locating your business in Singapore, you can avail yourself of access to these funding sources.

4) Non-Corrupt and Transparent Government

Most entrepreneurs shudder at the thought of dealing with unscrupulous officials in Asian economies where "connections" or bribes are often the only way to get things done. Singapore is the exact opposite and shines as a bright star in this aspect within Asia. The country has virtually no corruption because

a) The country believes in paying our government officials very well (as a matter of fact our Ministers are one of the most highly paid in the world)

b) There are severe penalties and harsh punishments imposed for corruption,

c) The country's founder Mr. Lee Kuan Yew has set a very high bar for moral rectitude and led the country by example.

Based on the above, if you incorporate a company in Singapore, you can be completely assured that you are not going to be at the mercy of corrupt officials; your business will succeed or fail on its own merits.

5) Highly Conducive Environment and Ecosystem to support start-ups

The Singapore Government offers a very conducive environment and ecosystem to nurture start-ups and they adopt a very pro-growth and innovation friendly approach. It provides many grants, tax incentives and in-kind assistance schemes to startups. Within certain preferred sectors, the government can also subsidize the labor costs of a new business. These benefits are available to local as well as foreign-owned businesses.

6) Extremely Strategic Location

Singapore is strategically located in the heart of South East Asia and it offers excellent connectivity to the 2 giants of Asia - China and India. It is also the most important tran-shipment and Aviation hub in Asia. Therefore, for those who are looking to expand their business in Asia, Singapore is certainly your gateway.

7) Open Immigration Policy

Singapore's liberal immigration policy ensures that deserving foreign global talent are welcomed into the country. You can apply for your relevant workpasses such as an Entrepass or an Employment Pass as long as you possess the right skills and qualifications. Even for the hiring of semi-skilled or unskilled foreign workers, there are ample provisions for the application of the relevant work permits and S passes. We have to mention though that in recent times, Singapore recently been clamping down on excessive unskilled or semi-skilled foreign workers resulting in more stringent requirements in getting work passes approved. Nevertheless compared to many other developed countries, the entry requirement is still a lot more generous.

8) Low Tax Framework

Singapore has easily one of the world's simplest tax systems. Basically it levies no tax on capital gains or on dividends received from a business. This makes the country very attractive to budding entrepreneurs who want to incorporate and build a new business.

Singapore uses a tiered tax system for both personal and corporate taxes. New firms receive significant tax breaks during their first 3 years reducing their tax rate to 0% to 25% for the first S$100k of income. The maximum corporate tax rate is capped at 17%.

Similarly, the personal tax rate starts at 0%, rises very gradually to a maximum of 20% for incomes above S$320,000. Singapore also charges one of the lowest value added tax rates in the world.

One key benefit is that Singapore-based holding companies or headquarters can repatriate dividends from their directly held foreign subsidiaries to Singapore free of Singapore tax which means double taxation does not apply. Those whose foreign subsidiaries are engaged in substantive economic activities but are unable to meet the qualifying conditions for this tax exemption may apply for a specific exemption. This is because Singapore adopts a territorial basis of taxation. Basically Foreign-sourced income is taxed only when it is repatriated back into Singapore. In addition, tax is not levied on foreign-sourced dividends remitted back into Singapore if - the dividends are received from a country with a headline corporate tax rate of at least 15%, some tax was paid in that country (such as withholding tax paid on the dividends or income tax paid on the profits out of which the dividends were paid), and the exemption is beneficial to the Singapore company.

9) Highly Skilled Labor Force

Most likely you have read about Singapore's excellent education system and the high scores its students receive on global comparative standards. These students eventually become part of Singapore's workforce and bring similar excellence to their work. Singaporeans have a reputation for being hardworking, rule-following, productive and highly educated with strong proficiencies in the English Language.

In addition, Singapore makes it easy for a foreign professional to obtain and maintain work visas or permanent residence (PR) status. Nearly a third of the country's workforce is from abroad.

10) Protection of Intellectual Property Rights (IPRs)

Singapore recognizes the importance of protecting IPRs to support an innovation-driven economy. Therefore, it has a comprehensive set of legislation for the protection of Intellectual Property Rights, which is also recognized as one of the best in the world. Singapore has been consistently ranked in the Top 5 countries by World Economic Forum for its strength in IP protection.

11) Safest City to live in with Great Quality of Life

Singapore is definitely one of the safest and most liveable cities in the world where and your family can stroll around the city or around the neighborhood all by yourself at night, without the fear of being a victim of any robbery or other crimes.

Singapore also has great transportation, good schools, food from all over the world, excellent healthcare, world class malls, great entertainment, tropical weather, access to live-in help making the island state extremely livable.

In Summary, you will most like get anything that you are looking for in Singapore. As an expat, it will not be difficult for you to settle right in as you get the best of both the eastern and western making this truly a global metropolis.

12) Overall Professional Image

Singapore is perceived as a rule following, well-functioning, modern and honest country. This positive perception of the Singapore brand rubs on its businesses as well. By locating your business in Singapore, you will signal professionalism, integrity and quality to your customers, partners and suppliers.

In Summary

Singapore is a very well-functioning first world country that provides a very business friendly environment for new entrepreneurs. Its healthy economy, strategic geographic location, attractive tax policies and a non-corrupt efficient government make it a very attractive place for starting a business here.

For over two decades, Singapore has also been a very popular destination for foreign entrepreneurs. A series of concerted policies by its government have made it a very business-friendly venue for foreign owned firms. Its key advantages include ease of doing business, low taxes, integration with global markets, premier geographic location, and a productive English speaking workforce. It is for these reasons that every year thousands of local and foreign entrepreneurs and companies make Singapore their new business home. A key testimony to this is that even during the Covid-19 Pandemic, Singapore's attractiveness as a business center did not decline and the number of new businesses set up actually was higher than that of the previous year.

Singapore - Your Ideal Business Location