5 Thing that Makes Singapore Great for Formation of Company
Singapore is well known for its business-friendly environment, and that makes it such an ideal investment destination for investors considering the incorporation of a company in Singapore. The country has such a rational tax system alongside a strong economy with a skilled workforce, which makes it great for entrepreneurs as well as multinational companies.
The process of operating an offshore company in Singapore is not as daunting as other countries considering the friendly business environment that’s been created by the government. Here are some of the reasons for considering the formation of company in Singapore;
Ease of incorporation of company
One of the reasons that motivate many entrepreneurs to consider the formation of company in Singapore is the ease of the process it takes. Singapore has been ranked consistently as the easiest place in the world for doing business, and this is due to the quick and efficient process of incorporating a company. It only takes about three days to register a company in Singapore, and the steps are also fully computerized.
The open policies for company ownership in Singapore are open and liberal. An offshore company that’s registered in Singapore gets to receive 100% ownership according to the liberal ownership policy. Foreigners that are considering the formation of company in Singapore don’t require any prior approval from the Singaporean authorities. However, engaging local director services is a requirement when registering a company.
Tax friendly regime
One of the key reasons why many foreigners prefer the incorporation of company in Singapore is the aspect of taxes. Foreigners who are considering the formation of company in Singapore get tax cuts such as capital gain tax, VAT, withholding tax, accumulated earnings, and sales tax. The corporate income tax rate is about 8.5% for profits that are up to S$300,000 and a flat rate of 17% for profits that are above S$300,000.
The newly registered companies also enjoy a 0% tax rate on their first taxable income of S$100,000 for each of the three first three tax filing years.
Politically stable environment
Singapore has a very politically stable business environment and is one of Asia’s least bureaucratic country. For those considering the incorporation of company, Governmental integrity, and the professional approach that they are accorded makes the country to be quite appealing for foreign investors. The country is also known to be transparent, rational, and corruption-free.
Wide choice of banking facilities
Singapore is a leading business hub not only in the region but also the world over. The country offers such a vast opportunity of banking facilities that makes it ideal for offshore banking. The investors and entrepreneurs that are considering the incorporation of company can opt for multi-currency accounts and get to transfer funds from their international banks into the local banks.
The Singaporean market also provides the formation of company package alongside bank account packages. The enormous opportunities for internet entrepreneurs and startups are a great attraction for foreign investors who are considering the formation of company in Singapore.