7 Reasons To Expand Your Business In Singapore In 2021
Singapore is one of the business epicenters in Asia. Its strategic geographical location along with considerable development in various spheres has made Singapore’s economy one of the best performing and most stable in the world. The market conditions are stable and offer immense opportunities for a business to flourish. Moreover, Incorporating a company in Singapore is a less complicated task due to its swift and organized procedures.
Here are the top 7 reasons why you should expand your business in Singapore in 2021.
Easy and Fast Incorporating Process:
Singapore is a liberal country and encourages foreign trade as well as investment. It does not have any stringent restriction of foreign ownership. Also, there is an end number of incorporation alternatives that allow one to relocate the business or operate the business in Singapore from overseas. The company incorporation service in Singapore is systematic, speedy, and straightforward.
High Degree of Personal Safety and Strong Legal System:
The legal system of Singapore is professional and reliable. This is one of the greatest reasons behind the stable political environment in the country. Personal safety is optimum. The companies can peacefully run and manage their business in Singapore due to the establishment of the International Business Development Division. Encouraging business policies and quick reforms allow one to grow and flourish the business multifold in Singapore.
Strategic Pivot Between East & West:
Globalization and fierce competition in International markets have made it necessary to be agile and well-connected. The strategic location of Singapore along with its cordial relations with major global economies and excellent logistic infrastructure makes it easy to connect west with the emerging eastern markets.
Strategic Position and Network of Trade Agreements:
The network of Singapore is exceptional. It is home to some of the top players in the industry. After signing FTA in the year 1993, the Singapore network has doubled up. Today, FTA features 21 bilateral and regional FTAs along with 41 investment Guarantee Agreements.
The abundance of Financiers and Affordable Rates:
The interest rates in the country are quite stable, affordable, and competitive. Currently, the interest rate in Singapore is around 2%.
Low Tax Rates:
Singapore has one of the lowest tax rates in the world. Presently, the income tax rate for corporations is 17%. Moreover, the efficient tax system of Singapore is progressive offering lots of benefits to companies such as waiver on capital gains, dividends, etc.
Excellent Legal Framework:
Incorporating a company in Singapore is safe and reliable due to the existence of a protective and transparent legal framework. Singapore is known to have the finest IP protection in Asia. The comfort and exposure to endless opportunities in global markets make Singapore one of the ideal destinations for expanding business.
Singapore ranks second on the recent Bloomberg Innovation Index despite COVID 19 pandemic and global unrest. Market stability has kept the country at the forefront without affecting its development, manufacturing capability, innovation quotient, and productivity. Thus, Singapore is one of the best Asian Markets to establish and prosper the business. Look for a professional company incorporation service provider in Singapore to boost your business internationally.
If you are a business enthusiast looking out for exploring opportunities in Singaporean markets or a foreign company wishing to expand the business with the help of a subsidiary company in the country? Then, you should be well acquainted with all the vital information concerning incorporating a company in Singapore and subsequent steps post the incorporation of the company.
After registering your company there are certain formalities That one needs to complete. The Singapore registration process is easy and comprehensive. It does not involve lots of documentation and tedious procedures. Once you have completed the Singapore registration process one must follow certain procedures to commence the business activities.
Apply for Business Licenses:
A business license is a must to operate your business in Singapore. The Singapore government agency provides a business license to a company that allows one to successfully conduct their business operations in Singapore. However, Not all business types require a Singapore business license to operate their business, certain business types are not required to get the business license. Some of them include a retail shop, hotel restaurants, spa, trading companies, medical clinic, travel agency, etc. One can seek help from a professional company offering incorporation service in Singapore to know if it is mandatory to obtain a business license to function their business.
Opening a Bank Account:
One of the most important steps that one needs to successfully complete while incorporating a company in Singapore is opening a bank account in the country. A business organization must open a corporate account in one of the leading and accredited banks and financial institutions to make any transaction for Singapore Company.
Appoint a Company Secretary:
As per the Singapore Companies Act, it is compulsory for all Singapore companies to appoint a company secretary within the 6 months of its incorporation in Singapore. A company secretary plays a significant role in ensuring that all the documentation complies with Singapore regulations. They have the fiduciary responsibility to keep shareholders, directors and partners of the company acquaint with annual filing and scheduling AGMs too.
Registration for the Central Provident Fund (CPF):
If you are willing to appoint staff and employees in your Singapore Company then one must apply for registration for the Central Provident Fund (CPF). As per the Singapore laws it is required to contribute CPF if the monthly salary of an employee is more than $50 per month. CPF contributions apply to Singapore citizens and Singapore Permanent residents working on a contract basis, full-time, permanent or casual basis.
Registration for SDL:
As per the SDL (Skill Development Levy) employers are required to pay a monthly SDL for rendering professional services in the country. This is applicable for foreign employees, temporary employees as well as casual employees. However, domestic servants such as gardeners, chauffeurs, gardeners, etc are exempted from SDL. SDL is payable 0.25% of the monthly income of an employee. The minimum payable as per SDL act is $2 whereas the maximum SDL payable is $11.25 for employees earning more than $4500.
The above-mentioned points help one to understand further steps that one needs to take post the incorporation of the company. Hiring a professional having considerable knowledge of company incorporation service in Singapore can assist you to meticulously form and operate a business in Singapore.
With favorable geographical locations, Singapore is one of the best countries to expand your business. However, the norms and regulations for company incorporation in Singapore are very different. Several factors come to play before incorporating a business in Singapore.
There are many leading company incorporation service providers in Singapore. But before stepping into the business world of Singapore and hiring any consultancy firm, one must have detailed knowledge as to how to invest and how to set up the business to get the maximum profit.
Types of Business Entities in Singapore
All the decisions needed to make for incorporating a company in Singapore, the most difficult is to choose the type of business structure.
- Sole Proprietorship
Businesses owned by one individual fall under sole proprietorship. The owner is fully responsible for the profit or losses that the company may incur.
- Company or Limited Liability Company (LLC)
The company incorporated under the ownership of two to twenty partners falls under this section. The Singapore incorporation law and regulation provide a separate legal entity to the company that is aloof from its owners. This means that the risks, debts are made in the name of the company and not the individual owners.
A Company Incorporated in Singapore Mainly Undertakes the Following Partnerships:
- Limited Partnership
This type of corporation has one general partner and one limited partner. The general owner can either be an individual or a corporation who is accountable for all the debts incurred during his period as the general partner. As for the limited partner, he is liable up to a certain limit as mentioned in the signing contract of the partnership.
- Limited Liability Partnership
Two partners are liable for the debts incurred by the company based on the amount invested. They are not liable for the debts incurred by other partners. An advantage for this option, limited liability partnership reduces the risk of personal loss.
Which Business Entity To Choose?
As the differences have been established, now comes the question of which one entity to choose. The answer lies in your situation and plans.
- You should be aware as to how much capital you are willing to invest
- Will you opt for single ownership or do you want partners?
- Are you willing to take limited or unlimited liabilities?
- What are the advantages and disadvantages of the various business structures?
How To Set Up A Company In Singapore?
Foreign companies must abide by the Singapore company incorporation norms to expand or set up their business here.
- The owner of the business must be at least 18 years old.
- Any business entity must have one representative residing in Singapore.
- A foreigner can apply for an Employment Pass under the new entity.
- The owner must also provide other documents as when required for the registration.
- After the registration, one must comply with the post-registration processes.
Contact the best company incorporation service providers in Singapore to get the best possible solutions and guidance on company incorporation in Singapore.
Either an existing foreign company intending to expand its reach or an individual looking for a reliable economy to venture out his new business, Singapore is undoubtedly the best place for both. Potential business owners are likely to pursue an economy filled with business-friendly policies, qualified workers, tax-efficient structure, supportive government, etc., and surprisingly, Singapore has everything under its belt.
Below are the five reasons you need to consider registering your business with the help of company incorporation service in Singapore.
Easy Company Incorporation Process
The process of company incorporation in Singapore is something you must consider before taking tactical and time-consuming hurdles. Still, Singapore is excellent.
Two necessary steps need to be taken, Business Name Reservation and Company Registration (filing the application form) as a requirement for starting a business in Singapore. The entire process is informative, making it easy, simple, convenient, and swift. You may incorporate the business, provided that the paperwork is in order, and is considerably less time.
Progressive Tax Structure
The tax structure is one of the main advantages of doing business in Singapore. The tax rates are comparatively low, and a variety of tax rates are available. It is not a personal reality that everyone wants to retain as many earnings by minimizing tax liabilities. Fortunately, the Government of Singapore has wisely planned the country’s tax structure making it pro-business. There are many company incorporation professionals in Singapore which can help in saving taxes and proper utilization of funds.
Quick Access to Business Funds
Enabling access to funds and capital for kick-starting a new company is of particular concern to newbies. It makes sense that, at the time of bootstrapping, people sometimes face financing problems. Thanks to the government of Singapore and other private investors, venture capitalists, and angel investors, who help entrepreneurs lay a strong base for the company by offering funding assistance.
You cannot deny that most of us are finding a conveniently accessible business location from our native place. Thanks to the strategic position of the island nation, this is situated at the East and West crossroads. Singapore’s historic port has long been renowned for foreign shipping. Individuals from both regions will travel to Singapore within a few hours. It is one of the added benefits of doing business on Singapore’s shores.
The country’s abilities, expertise, and skills must be taken into account when you decide to run a company out there. When it comes to efficiency, a company will gain from a highly skilled workforce. The involvement of internationally recognized universities, schools, and organizations ensures that a world-class education has been offered to the local workforce. They can do business in English, and are highly qualified in a global arena. Talent supply makes the island nation a regional or international centre of industry.
If you are looking to your company for endless business opportunities, there’s no better place for companies than Singapore. The above factors have already clarified very well the reasons for this. What are you waiting for, then? If you’re expanding your current company or bootstrapping a new one, look for the best company incorporation service provider in Singapore and escape from all legal problems.