Foreign Investment in Singapore: 3 Things to Know
Singapore is home to some of the top Company’s world over across all industries and this could be due to its location in part and due to the country being in close proximity with some of the emerging markets in Asia such as China and India. The country has become the go-to place for investors considering the formation of company due to the business environment that’s created within the country. According to the World’s Investment Report of 2019, Singapore ranks the fourth recipient of the FDI inflows.
This is due to the fact that the economic development of the country is quite proactive and designed to attract FDI through the country’s trade openness. According to the World Bank’s doing business report, Singapore ranks second in position in 2020. There are a number of factors that contribute to such favorable rankings, and having knowledge of them can be of help to foreign investors considering formation of company in Singapore.
Here are some of the things to know as you consider investing in Singapore;
Business Friendly Ecosystem
Singapore has such a conducive business environment that works quite well for startups and entrepreneurs who are considering the incorporation of companies in the country. The government has put mechanisms in place that helps with propelling businesses towards economic success. Some of the initiatives entail the creation of platforms where companies can access local support and connect with the global entrepreneurial network. The business ecosystem is quite enabling with accessibility to skilled manpower that has the capability of enhancing business growth.
If you are considering the incorporation of Company in Singapore, then the whole process is made easier with the health of professional service providers such as Onestop-ca.com. Another reason why Singapore is considered to have a business-friendly ecosystem is the huge number of free trade agreements that the government has assigned with various economies to help avoid double tax agreements.
Accessibility to Credit
Singapore is preferred by many for the formation of Company due to the possibility of accessing credit that can help with enhancing business growth. The government of Singapore has been quite supportive of SMEs, and such factors demonstrate why many investors prefer the country for the formation of Company. Singapore is also one of the Asian countries that rank quite higher in terms of innovation performance, according to a report by the Global Innovation Index.
For foreigners considering the formation of a Company in Singapore, they can easily engage professional service providers such as Onestop-ca.com since they have the required level of expertise and a highly qualified team of staff that understands all the dynamics of incorporating a Company in Singapore.
Corporate tax structure
Singapore has in place a very progressive tax framework, which is generally based on territorial policy. This means that businesses are taxed based on incomes generated from within the country and from the foreign-sourced income that’s remitted into the country. Singapore also offers one of the tax structures that’s quite appealing to investors. The personal tax structure is also progressive, with marginal rates ranging from zero to 22 percent.