Companies find that majority of their business profits are coming from Asia and that it is beneficial to look East for business expansion.
(PRWEB) March 18, 2011
A recent analysis done by http://www.SingaporeSetup.com reaffirms Singapore’s role as a gateway to Asia for global companies. Singapore company formation statistics for January and February 2011 reveals that 10% of the newly formed Singapore companies were involved in activities of head offices and management consultancies, indicating Singapore’s popularity as a headquarters base. Furthermore, majority of the foreign corporate investors in Singapore-registered companies were from countries such as the British Virgin Islands, United States, United Kingdom, India, Malaysia, Cayman Islands, Hong Kong, Japan and Ireland. Ms. Catherine Lee - a senior editorial board member of the SingaporeSetup.com site, attributes Singapore’s popularity as a springboard to Asia to its investor friendly environment and business friendly policies.
Singapore has been consistently ranked as the easiest place to do business in the world. Singapore company setup is simple and easy, involving just two procedures and a time-frame of 24 hours. Singapore company law places no restrictions on foreign ownership of a Singapore company and 100% foreign shareholding in a Singapore company is permitted.
Foreign companies often find Singapore’s corporate tax rates and incentives to be one of the most competitive in Asia. Profits up to S$300,000 are taxed at less than 9% while profits above S$300,000 are taxed at a flat rate of 17%. Companies can also avail of numerous industry-specific tax incentives and exemptions.
The availability of a highly skilled and affordable talent pool, world-class physical and research infrastructure, a stable political climate, and a strict legal system are commonly cited as factors that attract foreign companies and entrepreneurs to Singapore. According to SingaporeSetup.com, the country’s strategic location at the heart of the world’s fastest growing market is also proving to be a huge draw for foreign companies.
Further analysis by SingaporeSetup.com shows that some of the world’s leading companies have set up a business presence in Singapore over the past one month alone. Medtronic, the world’s largest medical device manufacturer, recently opened its manufacturing facility in Singapore, which will serve as its international and ASEAN headquarters. Nestle Oil Corporation chose Singapore as the site for its renewable diesel plant that is reportedly the world’s largest. MediaTek, a leading fabless semiconductor company, has selected Singapore as its regional hub to expand its operations in the region. Menicon, Japan's largest contact lens manufacturer, picked out Singapore to open its first R&D center in Asia outside Japan.
“Asia’s changing role in the global economic order presents clear opportunities for foreign companies and investors. Companies find that majority of their business profits are coming from Asia and that it is beneficial to look East for business expansion. Singapore is an obvious choice as a regional operational base as it is within close proximity to key markets in Asia, offers a low tax regime, ensures the availability of world-class talent, provides excellent infrastructure, and is a politically stable country with a strict legal environment. Foreign companies can use Singapore as a launchpad for their regional expansion by either setting up a Singapore subsidiary company or a Singapore branch office,” said Ms. Lee.