Advantage of Incorporation of a Singapore Company
Singapore is Asia’s business epicentre, straddling both East and West. In fact, it has been consistently hailed as “the land of opportunity” by many, including the Economist.
In recent years, a number of international corporations, have made Singapore its base for operating in Asia via Singapore. Besides having one of the lowest corporate tax rates, Singapore is also considered by many as the gateway to ASEAN. In addition, its many business-friendly policies make its easy for companies to set up and run their business in this South-east Asia country.
The Advantage of Singapore
Singapore has an extensive network of double tax agreements (DTA), with more than 80 counties across the global. The key benefits of a DTA will be:
This extensive DTA network, coupled with the absence of capital gains and dividend tax, makes Singapore a very attractive jurisdiction for business investment through a Singapore incorporated holding company.
Singapore’s tax system is straightforward, easy to understand and investor friendly. The main attractiveness of the tax system is i) corporate income tax rate is at a flat rate 17% (one of the lowest in Asia), ii) no capital gain tax, and iii) dividend income received from Singapore resident company is exempted from tax.
For foreign investors that establish a Singapore holding company to acquire share or assets in (or outside) Singapore. The primary tax advantages that could arise are as follows:
Singapore is one of the best financial hub in the world with highly developed free-market economy. Singapore’s per capita GDP reached approximatelyUSD65,000. On top of that, Singapore is considered as one of the least corrupt country.
Singapore possessed a strategic geographical location to position itself as the connecting hub that connects Asia to the world. As a result of this, Singapore has one of the most bustling international trade ports in the world. Singapore also developed a top-notch and comprehensive public transportation systems that enable its resident to travel to every parts of the country at ease without the need of motor vehicle.
As one of the most affluent and safest city in Asia, a lot of skilled and enthusiastic individual from across the globe has relocated to this metropolitan. The ability to attract foreign talent has made Singapore to be in possession of one of the most productive and motivated workforces in the region.
The population of Singapore originate from diverse racial backgrounds, giving it the capacity to offer workforce solutions requiring multilingual and multicultural sensitivities.
Among its neighbors in the Southeast Asia or even Asia, Singapore is renowned for having one of the most stable political environment, clean and corruption-free image, as well as its transparent and efficient bureaucracy.
Corruption in Singapore is generally recognised as one of the lowest in the world, thus allowing business owners to conduct business without fear of bureaucratic manipulation. Aside of low corruption, Singapore is well known for its persistently low crime rate and high personal safety.
Singapore is home to 125 commercial banks, of which five are local and the rest are all foreign banks. The five locally-incorporated entities are owned by the banking groups – Development Bank of Singapore (DBS), United Overseas Bank (UOB), and Oversea-Chinese Banking Corporation (OCBC), which have consistently ranked among the strongest in the world.
Once you have decided on the bank, opening a bank account in Singapore is simple. While some requirements may differ, generally banks in Singapore will need your work visa, passport, employer’s letter and proof of the mailing address to open an account. Notably, most international credit cards are accepted in Singapore, especially at hotels, retailers, restaurants, supermarkets, travel agencies, and even in taxis.
Singapore is a known for its blend of the best of East and West. This applies to the country’s cultural scene as well. Moreover, Singapore has four officially declared national languages – Malay, Mandarin, Tamil, and English. English is the medium of education and business, making the country one of the most easily adaptable in Asia.