August 31, 2022
Singapore is the ideal location for a business to launch operations in Southeast Asia due to a number of characteristics. Singapore has the largest overseas market of any country, due to its booming economy and enticing tax incentives. It is also one of the global markets that is growing the fastest, with a growth rate of 16%.
Foreign companies are drawn to invest in Singapore due to its 17% flat tax rate. Since there are no taxes on capital gains, dividends, or foreign revenue, it is a tax haven for foreign corporations.
Companies can sell their interests or assets without generating any taxable profits when there is no capital gains tax. For foreign businesses considering expanding in Singapore, this is a compelling factor.
Singapore has many tax benefits in addition to its flat tax rate of 17%, which can help certain businesses reduce their corporate tax rates even more.
Additionally, there are no restrictions on foreign exchange or currency when sending or receiving money into or out of Singapore. This allays the concern for businesses that often shift money and end up paying taxes.
The Employment Pass (E Pass) and Entrepreneur Pass (EntrePass) are the most widely utilised and well-liked among Singapore's several immigration permits or visas. These two are suited for expats, businesses, people and professionals who wish to settle in Singapore.
However, we frequently see clients who have trouble setting up these passes and who get their passes refused. As a result, we strongly advise consulting a professional like us to assist you in obtaining these necessary documents.
A company may be entirely owned and run by foreigners in Singapore, granting complete authority to business owners over their new branches. The main downside to this is that local shareholders are frequently required in order to qualify for several tax benefits or grants in Singapore.
One of the primary motives for firms to expand to Singapore is due to Singapore's strict enforcement of anti-corruption laws and general regulatory compliance. With government anti-corruption ranked third in the globe, business owners need not worry about security, political unrest, or appeasing authorities.
Along with this, any Singapore-incorporated company must maintain regulatory compliance. The Accounting and Corporate Regulatory Authority of Singapore (ACRA) upholds a continual demand for enterprises in Singapore to be regulated in order to avoid any fines.
As a foreigner wanting to grow into Singapore, this may end up being a fairly exhausting procedure. We strongly advise you to work with experienced services like ours who are familiar with Singaporean legislation from the outset.
Situated at the geographic middle of Southeast Asia. Numerous more nearby nations frequent Singapore. Before trying to expand to other areas like Malaysia, Philippines, Indonesia, etc., business owners can look to test the waters in the secure environment outlined in point 4.
Singapore expansion is a fantastic choice for multinational corporations. You should think about developing your business here for a variety of reasons, including the 17% flat tax rate, the availability of work visas and passes, international ownership laws, the absence of corruption, access to other SEA areas, and international ownership rules.
Speak to our team right away if this seems like something that would interest you or if you need assistance setting up in Singapore. Get in touch with us!