When it comes to registering a company in Singapore there is many good reasons. If you are a start-up and are planning According to World Bank’s Ease of Doing Business Report, 2016 Singapore ranks No.1. On world map it has successfully established itself as a lucrative business destination that offers prosperity and growth. Nowadays multinational companies and start-ups are flocking to set up shop in Singapore to boost their businesses.
The country offers a pool of resources that will help you succeed and get tremendous growth. For instance, Singapore has well developed infrastructure. It has cheap but highly efficient labor. The laws are straightforward and the politically the country is stable.
The laws are similar for everyone and do not favor any particular class, sex or race. For example, the labor laws out here do not promote strikes, lockdowns or give any special rights to employees or workers. They are well protected but cannot misuse the law to get undue advantages.
Then again, Singapore is a country that has been constantly trying to build an environment favorable for companies. It has also been trying hard to keep a check on double taxation. It has entered into treaties with other countries as well to remove the burden of double taxation.
It is a great country that has now become South Asia’s warehouse because of its geographical location. Singapore has a growing economy and it has a lot to offer to businesses. As an entrepreneur if you want to start your business in Singapore you must consider the following before taking a step further:
Understand the environment
Being an entrepreneur you must think a hundred times before reaching a decision. There is money and reputation on stake and you don’t want to lose either of them. Before you come to a decision of starting or not starting a business, you must analyze the country’s business environment, its economy and the country’s business interest.
For instance, a country might do things to lure investors but if its taxes and business policies are unfavorable then it will be foolishness to start a business in such a country. In Singapore not only the environment is favorable but the laws support it too. The government offers various incentives to investors and entrepreneurs who wish to invest in the country.
For instance, under a scheme it offers permanent residency to an investor who can invest $5 million or more for a period of more than 5 years. Here you can register a company in merely 15-20 business days if all your paperwork is up-to-date. To get a better understanding of the country’s corporate environment hire a professional consultant. He’ll enlighten you and help you out with all types of corporate secretarial work.
Taxes play an important role in a company’s survival and growth. In fact if you are planning for registering a company in Singapore then you must make yourself aware about the various tax laws. An entrepreneur must hire a professional company secretary or public accountant to take care of the tax matters. Tax evasion is illegal but tax planning is not. With better understanding of the law you’ll not only save tax but will also be able to increase your revenue. You can make use of the expertise to get an edge over your competitors and multiply your earnings.
In Singapore the taxation system is progressive in nature. It ranges from 0-22% for individuals. However, companies are charged at a flat rate of 17% on their annual earnings. Singapore also offers various exemptions and rebates to start-ups and small companies. For instance, newly formed companies have to pay tax at only one-third of their total chargeable incomes.
Singapore is also against double taxation. It has removed every form of cascading from its tax system. For instance, Singapore citizens working and earning outside the country do not need to pay tax in Singapore. Similarly, when dividend is distributed by a company, not a single penny of tax is charged to shareholders. The tax is borne by the company alone.
Raising capital is a big issue. You not only have to consider you own capacity but also need to convince investors to invest in your business. You have to pitch your ideas so that start-up ventures, angel investors, seed-funds can invest in your company.
Once you get your finances in order you’ll be able to work more freely and focus on increasing your business. To support entrepreneurs, Singapore allows them to form companies by investing SG$ 1. Here you do not need heavy capital investment to start a business. Just fill in the documents, hire a company secretary and appoint a director.
Know your competitors
Before entering a market you must first analyze it. Analysis is the key to success and the more information you’ll gather the better results you’ll achieve. Before entering a market study its composition, existing players, new entrants, its scope, capacity, saturation level etc. Invest only when you are sure that you will be able to gain.
Hence, from all of the above mentioned important points, you can very well judge that registering a company in Singapore is an awesome decision.
Come to Singapore and set up shop. Prosperity awaits you!!!