Are you looking forward to opening a new company offshore and have been wondering about the best jurisdiction? We have the answer for you: Singapore. For more than ten years, Singapore has stood out as a major business and financial hub that no investor wants to miss. To help you make the big decision on business setup in Singapore, let’s start by highlighting the primary benefits.
A Brief about Singapore
Singapore is a business powerhouse, an “investment paradise” that makes it the go-to option for brands that target global presence. Before we can look at the main benefits that come from the company set up in Singapore, let us start with some background and facts:
- Singapore is a developed and free-market economy.
- The country has low tax rates and the second-highest per capita GDP across the globe based on purchasing power parity (PPP).
- The main exports from Singapore are services, chemicals, and electronics.
- Singapore is a jurisdiction comprising as many as 64 offshore islands surrounding the main island.
- The jurisdiction is one of the greenest cities, with its skyscrapers filled with lush greenery.
- Singapore’s GDP in 2021 was USD378.65 billion and is projected to reach USD440.07 billion in 2024.
- Services contributed 75.2% of Singapore’s GDP, followed by industry (24.8%) and agriculture (0.5%).
The Main Benefit to Anticipate for Registering a Company in Singapore
The following are some of the benefits that you should anticipate for registering a company in Singapore.
An Attractive Tax System
If you take a closer look at Singapore, as said by GuideMeSingapore.com one of the most notable things is its rational tax system. The country has a tiered tax system for both corporate and personal taxes. For a new firm, there are significant tax breaks during the first years, which include 0% tax for the first stock of S$100,000. Anything beyond that figure is taxed at the normal corporate tax rate of 17%.
When it comes to personal taxes, the starting point is 0%, and then it rises to 20% for incomes over S$320,000. Also, Singapore does not charge profits passed to shareholders as dividends because that would qualify as double taxation. Value-added tax rates in Singapore are also very low, making the jurisdiction one of the most attractive to entrepreneurs.
Excellent Point for Avoidance of Double Taxation
After reducing the tax obligations for companies operating in Singapore, the country’s administration did not stop there. Further, it has signed a wide network of agreements to help avoid double taxation for companies with operations abroad. So far, the country has signed Double Taxation Agreements (DTAs) with more than 50 countries. These agreements mean that you are sure of keeping the bulk of your company’s profits for faster expansion.
Singapore Allows 100% Foreign Company Ownership
One of the things that make entrepreneurs hold back from venturing offshore is restrictions on foreign shareholding. Well, you do not have to worry about this in Singapore because it allows 100% foreign shareholding. This means there is no need for local partners or shareholders to get your company up and running. You will also have full autonomy in the company’s hiring, product development, and marketing.
Other notable attributes of foreign company ownership and operations include:
- There are no restrictions on profit repatriation.
- No taxes on capital gains.
- No restriction on the movement of foreign currency out of Singapore.
Other benefits that you might want to know include strategic location in the heart of the Far East, educated workforce, and professional image. No matter what angle you look at Singapore, it stands out as the perfect point for a company that targets faster growth and success.
In this post, we have demonstrated that Singapore is an awesome jurisdiction that you can count on to achieve the dream of global business expansion. However, registering a company in Singapore is never easy for many foreigners. Some have dozens of other things to do, lack the legal background to prepare good documents or scout for company secretary. Instead of trying to register the company in Singapore alone and getting stuck midway, consider working with an agency of experts.
The experts can professionally guide you through the process, prepare the right documents, carry out due diligence, and even help in designing strategies for entry. You can never go wrong with the assistance of experts in company registration in Singapore.