Singapore’s strategic positioning on the crossroads of the world and major sea routes has earned it the reputation of evolving into a major center for trade, communication and tourism.
(PRWEB) July 30, 2011
Rikvin Consultancy has helped international companies to establish their subsidiary companies in Singapore. Satish Bakhda comments comes on the sidelines of a recent global survey in which the city state excelled. He has observed that over the years the interest of MNCs and small foreign companies in Singapore has consistently scaled up and it remained unfazed even during the peak of global economic stalemate, because the city’s merits were further fortified by the ‘Go East’ policy of MNCs.
A new study by CB Richard Ellis (CBRE) reveals that globally Singapore is the second most favored city by Multi National Companies (MNC) when it comes to setting up international offices. Hong Kong took the first place with a very slim lead. The two Asian cities have pushed behind the western cities such as London and New York. The findings are based on a new research by CB Richard Ellis (CBRE) - Business Footprints - the first study of its kind, which analyses the office locations of 280 of the world’s largest companies across 232 cities.
Singapore with 67.5%, 189 companies, took the second spot while it was closely overtaken by Hong Kong with 191 companies. Singapore is the top tier city for companies in the service and industrial goods sector, while financial service industries and media rank the country as one of its top five locations. With top western cities like Paris, London, New York falling behind the survey comes as a clear indication of the shift in economic balance. Tokyo, Shanghai and Beijing also came within the top 10 spots. The top ranking of the Asian cities testifies the widespread opinion that the era belongs to Asia.
Earlier this year, CBRE's annual survey mapped the global footprint of 323 of the world's top retailers across more than 200 cities, across a variety of sectors including Luxury and Fashion brands, supermarkets, coffee and restaurants, specialist clothing etc. In that, Singapore featured among the world's top 10 destinations for luxury retailers, with 69% of the global luxury and business fashion brands covered in the survey.
Singapore has all the essential elements to attract the MNCs to its shore. Given its first-world facilities, the cost of operating from Singapore is relatively low especially because of the competitive tax rates. Besides the headline corporate tax rate, at 17%, being low, there are special schemes in place to attract MNCs to locate their regional and international headquarters activities here. The qualifying companies are subjected to corporate tax rate not exceeding 10% for a specific period. Most importantly companies can capitalize on the wide network of DTA arrangements that Singapore has made with countries across the globe, this alleviates the risk of double taxation on companies that earn revenues by operating across borders.
Moreover in Singapore 100% foreign ownership is allowed and there is no restriction on capital movement. Singapore is politically neutral and also provides easy access to the fast growing emerging markets across APAC. The robust legal framework, political stability, visionary policies, enterprise ecosystem all complement the growth of companies that are expanding beyond their home countries.
Singapore’s strategic positioning on the crossroads of the world and major sea routes has earned it the reputation of evolving into a major center for trade, communication and tourism. Rated as one of the world's most sophisticated financial markets by the World Bank, it also has one of the largest stock exchanges globally. Most international banks have their regional headquarters in Singapore. It has consistently topped the World Bank’s “Doing Business” report, which scrutinizes various aspects of establishing and operating a business.
More importantly the availability of highly talented workforce with competence and the right attitude makes it a great fit for MNCs looking for a home to grow their regional operations.
Satish Bakhda of Rikvin says “Soft benefits such as clean & green environment, great entertainment options, socio-cultural harmony, low crime rate etc further add to the merits and indeed play a decisive role because MNCs do relocate sizeable portion of their executives and for them and their families these things matter a lot. The availability of professional agencies like us further eases the process of forming subsidiary companies. The availability of ultra modern office spaces and manufacturing facilities and superior infrastructure and the straightforward regulatory framework enhances the attractiveness of Singapore as a home for international companies.”
Rikvin offers business solutions and has successfully helped hundreds of foreign and local entrepreneurs form a Singapore company. The firm’s specialties include company registration, offshore company setup, incorporation and providing professional corporate services. Rikvin also provides professional services on accounting, taxation, immigration and processing of Singapore work visa for foreign workers to work and relocate in Singapore.
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