(PRWEB) July 20, 2011
Rikvin’s comments comes on the sidelines of the recently held Iron Ore Summit in Singapore and Rikvin’s recent publication – of a guide to setup a trading company in Singapore– on its website.
In conjunction with the FIMI’s (Federation of Indian Mineral Industries) Iron Ore Summit that was held in Singapore between 27th - 28th June, the federation also held discussions with International Enterprise Singapore (IE Singapore) and Enterprise Development Board (EDB) to explore the potential of engaging Singapore as a major trading hub for the Asian markets. The discussion hovered around the prospects of increasing the presence of Indian iron ore exporters in Singapore.
Satish Bakhda of Rikvin Consultancy spells out certain unique traits of Singapore that will open up opportunities for metals and mineral traders who choose to setup their regional base in Singapore.
“Singapore’s growing position as a regional and global trading hub for the iron and steel industry – with 41 companies as of 2009, is a sign that the trade is gathering a critical mass. The trading companies manage a wide array of their commercial activities apart from marketing and trading. The well developed financial sector aids the companies to gain synergies in terms of trade financing, insurance, etc. The presence of world class logistic services helps them to effortlessly manage their shipping and logistic activities. Apart from the well integrated ecosystem that helps the industry players there are several other unique factors that will continue to complement the traders in Singapore.”
He adds “Singapore’s strategic geographic location makes it an ideal gateway to South-east Asia and North Asia. Singapore’s strong economic ties with India, ASEAN and China especially, serve as an added advantage for companies with trading activities in Singapore. When the global economic downturn took the wind out of the sail of many from the trading sector, it was the infrastructural projects and industrial growth of these Asian economies that helped the commodities and mineral sectors to keep afloat. Singapore’s close proximity to the major producers such as Australia, Brazil, China and India and also the consumers makes it a compelling hub which traders cannot afford to overlook. Singapore’s pro-business environment, political and economic stability, efficient legal system and a highly-qualified workforce also further enhances its position as a regional trade hub.”
He further points to the policy level aspects which favor the traders, “To develop international trading activities, International Enterprise (IE) Singapore launched the Global Trader Programme (GTP) in June 2001. GTP encourages global trading companies to make Singapore their regional or global base to conduct activities along the total trade value-add chain from procurement to distribution, in order to expand into the region and beyond. Today, more than 270 global trading companies operating in sectors such as Oil & Chemicals, Agricultural Commodities as well as Metals & Minerals have chosen to anchor their regional and or global business operations in Singapore. Well established international companies that hub their commercial activities in Singapore are given a concessionary tax rate not exceeding 10% (as against the 17%) on their qualifying offshore trading income. This is especially attractive to international companies which choose Singapore as their regional or global.”
Satish Bakhda says “Singapore’s extensive Avoidance of Double Taxation Agreement(DTA) and Investment Guarantee Agreements provide tax optimization potential and assurance while dealing in high-risk markets which is common for miners and traders. The traders find it easy to start and operate a company in Singapore, for that matter, it is the case for all sectors and not limited to traders in metals and minerals alone. At Rikvin’s website, potential traders and existing foreign traders may access our Guide To Establishing A Trading Company to gain an overview on the trading sector and the regulatory requirements when it comes to Imports & Exports. It is an attempt by Rikvin to shed some light on the basic elements of setting-up and conducting trading operations in Singapore”
Those wishing to explore setting up a business in Singapore or forming a Singapore company registration and working in Singapore on an Employment Pass can contact Rikvin at +65-64388887 for expert consultation and advice.
Rikvin offers Singapore company registration, incorporation and business setup solutions for global entrepreneurs. Established in 1998, Rikvin specialise in company registration, offshore company incorporation, Singapore work pass related matters and related corporate services.