9 Reasons why we recommend you of incorporating a Singapore company
Singapore is known as one of the “Four Little Dragons of Asia” and is the fourth largest international financial center after London, New York and Hong Kong, as well as an important pivot point along the “Belt and Road”. More and more of our clients from all over the world are recently looking to Singapore as a location for development in Asia. Why is Singapore the “little red dot” favored by entrepreneurs from all over the world? Today we will analyze the benefits of incorporating a company in Singapore in terms of business development, tax benefits and personal life.
Reason 1: Easy Incorporate Procedures
Incorporation of a company in Singapore is very simple and quite inexpensive, thus attracting a large number of companies. For foreigners (over 18 years of age) who want to register a local company in Singapore, you need at least one local Singaporean or PR as a nominee director and the registration process can be completed in just 1-3 working days. At the same time, the incorporated company can conveniently operate both local and offshore business. You can also contact us at any time to answer your various questions regarding Singapore company incorporation.
Reason 2: Generous registered capital
For Singaporean nationals, the minimum capital required to register a new company is only S$1. For foreigners, there is also no requirement of registered capital. Usually, our service team will recommend the amount of registered capital that is suitable for our clients based on their actual business, the industry they are in, and the difficulty of opening a corporate bank account. In addition, the Singapore company law provides for the establishment of a company on a subscription basis, and no capital verification is required, shareholders can pay the full amount of capital or decide to increase the registered capital at any time, you just need to contact TASSURE ASIA GROUP, our team of secretaries will fill in the forms and pay the fees in accordance with the requirements of the Accounting and Corporate Regulatory Authority of Singapore (ACRA), to assist you to successfully complete the matters related to the change of registered capital.
Reason 3: Exemption from double taxation and ultra-low corporate tax rate
Singapore has signed double taxation avoidance agreements and investment protection agreements with most countries in the world, and has a unified corporate income tax policy for both domestic and foreign companies. For local companies in Singapore, the government also has a strong Corporate Income Tax Rebates and Tax Exemption Schemes: in terms of the latest policy, for new start-up companies (where any of the first 3 YAs falls in or after YA 2020), the first S$100,000 of chargeable income is 75% tax-free; the second S$100,000 of chargeable income is 50% tax-free. Corporate income tax is 17%. In addition, the personal income tax rate in Singapore ranges from 2% to 22%, and no personal income tax is payable on dividends to shareholders. The Singapore tax relief is one of the most attractive conditions for many businesses.
For the latest Singapore Corporate Income Tax details, you can visit the Inland Revenue Authority of Singapore (IRAS) official website by clicking on the following link.
Reason 4: Relatively lenient tariff and VAT policy
Except for alcohol, tobacco (including cigarettes), petroleum, and motor vehicles, Singapore exempts all imported goods from customs duties. International transport services and transport services related to import and export, as well as services related to import and export of goods handling, insurance and other services are applicable to the zero rate. In addition, the Singapore excise duty rate, currently at 7%, is also relatively low, and the rate applies to most goods and services transacted in Singapore.
Reason 5: No Exchange Control
As the fourth largest financial center in the world, Singapore has abolished all foreign exchange controls, and holding companies can apply for listing on the stock exchanges of many countries. There are no restrictions on the remittance of corporate profits out of Singapore and no specific taxes or fees, and Singapore also offers favorable financing terms for foreign companies.
Reason 6: Numerous government policies and business subsidies that value business development
As with the international business environment, there is competition among offshore company domiciles. In order to maintain its advantages, Singapore has introduced many policies to promote business development (Regional Headquarters Program “RHQ”, International Headquarters Program “IHQ”, Global Trader Program “GTP “, etc.), supplemented by very low tax rates and a large number of tax incentives, to attract capital from all over the world to settle in Singapore. During the epidemic, the Singapore government even introduced various subsidies for supporting local enterprises. The support of government policies and the help of industry subsidies have enabled more companies to successfully compete for a place in Singapore’s business environment.
Reason 7: High degree of liberalized trade
Singapore has a free trade policy and is a leader in trade facilitation. Singapore currently has the most extensive network of free trade agreements in Asia: Singapore has a network of 25 free trade agreements (FTAs) globally (Source:EDB) that will allow you to trade freely and easily with major economies in the world and easily enter international markets.
Reason 8: Easy Overseas Asset Allocation
By registering a Singapore company and conducting business with it, you can legally retain your income overseas for the purpose of overseas asset allocation. At the same time, Singapore’s tax policy is very friendly to HNWIs, with minimal corporate tax and personal income tax, and no property value-added tax or inheritance tax, which is conducive to asset preservation and inter-generational inheritance.
Reason 9: Diverse Immigration Policies
There are several ways to obtain a permanent resident (PR) in Singapore. For SME owners, you can apply for an Entrepass or an Employment Pass for yourself to obtain the right to stay legally in Singapore after setting up your business in Singapore. Once you have been operating your business in Singapore for a period of time, have legally employed local staff and paid CPF for them, and both you and your company have legally paid taxes, you can submit an application to the Immigration & Checkpoints Authority (ICA) for Permanent Residency (PR); For business executives or high net worth individuals, you can also apply for a work pass (Employment Pass) for yourself by setting up a family office to gain immigration opportunities.
After analyzing these nine reasons, are you also tempted to set up a Singapore company as a quality option to expand your business in Southeast Asia? Are you also considering the long-term development of your family while running your company? You can always contact TASSURE ASIA’s service team to answer your all your concerns.