Singapore is strategically located in the heart of South East Asia and is recognized as one of the fastest-growing economies in the world, with GDP growth expected to be 4.89% for 2014. Thanks to the positive image of Singapore, a Singapore company is an excellent corporate vehicle to promote to customers, suppliers, investors, venture capitalists, governments and banks.
Key benefits of Singapore company registration
Social and political environment
- A Singapore company is not perceived as an offshore company in a tax haven. Singapore is a reputable, highly regulated, business jurisdiction.
- Singapore is ranked as the 5th least corrupt country in the 2012 Corruption Perceptions Index by Transparency International behind Denmark, Finland, New Zealand and Sweden. This provides reassurance for companies deciding on ideal location for their regional or global headquarters.
- Registering a Singapore company gives access to a highly competitive economy. It is consistently ranked as the world’s second-freest economy in the Heritage Organisation’s Index of Economic Freedom.
- Singapore company registration is straightforward and cost-effective. According to the World Bank’s Doing Business 2012 Survey, Singapore is the world’s easiest place to do business.
- The corporate income tax rate is 0% on the first S$100,000 taxable income for each of the first three tax filing years for a newly incorporated company. In addition, All Singapore resident companies are eligible for partial tax exemption which effectively translates to about 8.5% tax rate on taxable income of up to S$300,000 per annum. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 17%.
- A Singapore company enjoys access to comprehensive double taxation treaties with 62 countries including major trading jurisdictions.
- To highlight Singapore’s tax advantages, the city state has been voted as having the least burdensome taxes in the world.
Infrastructures, technology and telecommunication
- Singapore is one of the most modern cities in Asia, and the world. It is well equipped in terms of telecommunications, public transportation, and technology.
- According to the 2012 Quality of Living Survey by Mercer Human Resources, Singapore ranks highest in Asia in terms of infrastructure rankings.
Laws and government
- Singapore is an excellent location to register intellectual property (IP), including global trade marks and patents. Singapore is a signatory to international conventions including the World Trade Organisation’s (WTO) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), which helps protect against IP rights infringements. Singapore is also a signatory to the Berne Convention and the World Intellectual Property Organization Copyright Treaty.
- Singapore meets the international guidelines set by the OECD for disclosure of taxation related information.
- According to the United Nations Conference on Trade and Development (UNCTAD), business-friendly Singapore is the third-largest recipient of foreign direct investment (FDI) in Asia.
Company registration requirements
- Unlike some jurisdiction, it is not necessary to rent a physical office to register a company in Singapore.
- Singapore Company formation only requires a minimum of one shareholder, one director, one local company secretary, a local address and a share capital of $1.
Singapore has much to offer, not just within the Asia region but as an international business hub. Investors and entrepreneurs that want to set up a company in a country offering low taxes, stable economy and political environment, good quality of life will enjoy Singapore as the place for their business and corporate needs.