Having a Singapore company can enhance the image of a company and add to its brand value; it is just one of the soft benefits apart from other tangible privileges of a Singapore company.
(PRWEB) November 4, 2010
singaporestartup.com – a leading business startup information portal has recently conducted an analysis that identifies key advantages of setting up a Singapore offshore company by foreign investors, entrepreneurs and enterprises.
According to the analysis, Singapore has rapidly evolved into a commercial nerve center of the east and as the ‘Look East’ policy is gathering momentum the city state is gaining a lot of traction among investors, entrepreneurs and enterprises. The resource challenged city state’s government has developed an investor and business friendly framework that attracts expanding enterprises, enterprising individuals alike. The analysis identified the following key advantages:
Advantage #1: Tax System. The lenient and uncomplicated tax system of Singapore is the key benefit to capitalize on. Singapore companies are subjected to only 17% tax on their income and after qualifying deductions a startup will be subjected to an effective tax rate of just 9%. Singapore has signed Avoidance of Double Taxation Agreements (DTAs) with over 60 countries, thus providing an edge for companies that ply their trade across borders. Owing to the DTAs, income generated will not be subjected to tax twice, namely the source and recipient territories. Moreover, Singapore companies can also leverage on Singapore’s wide spanning Free Trade Agreements (FTA) network.
Advantage #2: Legal Framework. Singapore has a very reliable and transparent legal system based on English Common Law. Neutrality, transparency, pragmatism, responsiveness are the cornerstones of Singapore’s commercial law that has evolved over time to meet the demands of the dynamic business environment. For this reason, Singapore law is widely accepted in this part of the world as a governing framework for commercial transactions. Singapore also has a robust Intellectual Property Rights regime facilitating registration and protection of trade marks and patents. When it comes to foreigners, Singapore companies act does not discriminate and does not impose special compliance requirements on foreign owners. 100% foreign ownership is allowed and most of the business sectors are open for foreigners without any caps on investment.
Advantage #3: Infrastructure and Workforce. Singapore is world class when it comes to infrastructure and workforce. Owing to its strategic location the island state has excellent connectivity to both the west and the east and most of the key business centers of the regional markets are within a four hour flight radius. Singapore’s seaports and inland public transport also command outstanding capabilities and efficiency. Singapore’s workforce is highly competent and also has an immense pool of international talent owing to its open and friendly immigration policy. It is easy for international companies to relocate their employees because of the high standard of living and clean and green environment and cosmopolitan culture. To facilitate the relocation of foreigners, Singapore government has designed special Employment Pass and Entrepreneur Pass schemes.
Advantage #4: Ease of Doing Business. Lastly it is the ease of starting a Singapore LLC that distinguishes it from other business centers in the region. The Singapore company registration process has been seamlessly streamlined; therefore a Singapore company can be set up in just one day. Moreover it does not call for the owner’s physical presence at the time of incorporation. The minimal cost of registration and simplified ongoing compliance requirements are icing on the cake.
According to Mr. Darren Leow, a senior member of the SingaporeStartup.com team “Singapore commands a positive global image. The ingenious governance, visionary planning and economic prudence of the policy makers have propelled the country to its global eminence. The city state has consistently performed well in all the global surveys such as World Bank’s Doing Business Report, World Economic Forum’s Global Competitiveness Report, Heritage Organization’s Index of Economic Freedom etc. Singapore’s ranking in such surveys testifies the city state’s efficacy as a system and the synergies it can provide to the business community. Having a Singapore company can enhance the image of a company and add to its brand value; it is just one of the soft benefits apart from other tangible privileges of a Singapore company”.
More information about starting a business in Singapore can be found at SingaporeStartup.com.