Singapore has a thriving business environment that's perfect for entrepreneurs and newbies looking to start their own side hustle. From low taxes and progressive banking benefits to other great features, there are plenty of reasons why this bustling Asian city-state is an ideal place to set up shop. In this article, let's take a closer look at the top 7 advantages you could get by incorporating your business in Singapore.
1. Singapore is well-known for its business-friendly environment
Setting up a company in Singapore can be done painlessly online with the country's advanced technological platforms and the help of competent corporate service providers like ATHR. The Accounting and Corporate Regulatory Authority of Singapore, or ACRA, is responsible for overseeing all aspects of business in the city-state.
ACRA's BizFile+ easy and secure business filing portal allows entrepreneurs to apply online, complete all necessary paperwork and receive approval within just a few hours. Integrated with other systems such as Singapore's Myinfo Business, these e-services help corporate entities and businesses manage their data securely for more seamless digital transactions and reporting.
2. Singapore has a favorable taxation system
Singapore is a paradise for entrepreneurs looking to get register and start their own businesses with one of the most favorable taxation systems among global peers. Companies here qualify for tax exemption or pay low taxes, freeing you from worries about your profits being stripped away by hefty levies.
Singapore boasts one of the lowest Goods and Services Tax (GST) rates compared to other countries. Even with a recent GST hike from 7% to 8% this year, Singapore's GST rates ranked competitively against the global average of about 19% and 11.6% in Asia for the year 2021.
3. Entrepreneurs enjoy low business costs in Singapore
In addition to offering robust government support platforms and favorable tax systems, Singapore is home to affordable incorporation fees and reasonably priced secretarial services. Setting up a company in Singapore is inexpensive compared with other countries and running your business can even be less time-consuming and cost-efficient if you choose to outsource administrative tasks to professional firms.
Corporate service providers like ATHR can take care of your compliance and reporting requirements by offering reasonably priced packages for every business size and company structure. For example, incorporating a private limited company in Singapore requires only $315 which covers your business name application ($15) plus business registration (just $300).
4. Singapore is regarded as a strategic global business hub
Singapore’s strategic location at the heart of Southeast Asia makes it an ideal hub for trading, shipping, air transport and much more as businesses have access to five time zones within a four hours’ radius!
As well as being close to major markets such as China, India and Australia, there are also over 70 double taxation agreements signed with various countries around the world – enabling businesses to benefit from lower taxes or even tax exemptions when dealing with those countries directly.
5. Generally, Singaporeans enjoy a high quality of life
Singapore boasts an impressive quality of life due to its first-rate education system, excellent healthcare system, affordable housing options and modern infrastructure that provides reliable public transportation links throughout the country.
Furthermore, the stable political climate in the country offers protection for business, compliance with laws and a level of trust across the whole population. This allows businesses to flourish as well as generating jobs and fostering economic growth.
6. Singapore has many streamlined and progressive banking facilities
Ranked as the 3rd largest international financial center globally by the Global Financial Centres Index (GFCI) in 2022, Singapore has attracted international banks which offer competitive banking products featuring low-interest rates that further support regional expansion plans by companies based here.
Among these are some big-name financial institutions such as DBS Bank Ltd., Oversea-Chinese Banking Corporation Ltd., United Overseas Bank Ltd., Citibank N A., and HSBC Bank (Singapore) Limited.
7. Singapore also hosts a flourishing Fintech Hub in Asia
In recent years, Singapore has become one of the global fintech hubs due to its supportive regulations and investments made by government agencies like the Infocomm Media Development Authority (IMDA). These initiatives have encouraged many startups and established firms alike to focus on development and deployment of new technologies like blockchain, artificial intelligence, robotics, etc., which will revolutionise the finance sector over the next decade.
Such approaches benefit the companies registered in Singapore, as they have access to a greater variety of financial technology products which could meet all their needs. And in this fast changing world, having that kind of advantage makes the difference.
In conclusion, Singapore has a lot to offer young entrepreneurs who are looking to make their mark with a side hustle or start their small business from scratch. For more tips on what you need to know to start growing your venture, check out our helpful guides on the ATHR blog for all the tools and guidance you need to get your business up and running.
