The Advantages to Choose Singapore for Foreign Company Relocation
Businesses and entrepreneurs are actively seeking high-growth markets to expand operations while ensuring long-term business success. Asia, with its booming economies and lucrative market opportunities, has become a preferred destination for global investors.
Among these, Singapore stands out as the best place for opening a company due to its pro-business environment, stable economy, and strategic location. The country offers seamless company incorporation, competitive tax policies, and strong global trade connectivity, making it the ideal hub for setting up a business in Singapore. With world-class infrastructure, a skilled workforce, and transparent regulations, Singapore provides businesses with the perfect foundation for growth and expansion in Asia. Following are key reasons to relocate your business to Singapore:
Key Reasons for Establishing a Business in Singapore
Singapore, With its strategic location at the heart of Asia, Singapore has become the preferred destination for establishing regional headquarters. Serving as a gateway to Asia’s thriving markets, Singapore offers businesses seamless access to global trade, investment opportunities, and economic growth.
Companies of all sizes want to set up their business in Singapore due to factors listed below:
- An Attractive Tax Regime – Considered simple and investor friendly, the highest corporate tax rate that investors can come to expect from Singapore is 17%, while the taxes to be expected on capital gains are at 0%. When it comes to post-tax dividends paid from Singapore, there is no levied withholding tax in this area. And most importantly, foreign-sourced income is exempted from tax as long as the income is subjected to tax in a country with a rate of at least 15%. Thanks to its regulatory framework, Singapore has made its tax system a level playing field with no foreign ownership restrictions and exchange control for investors.
- Double Tax Treaties – Singapore’s double tax treaties are extensive and span to more than 70 countries globally. Some of the key benefits available under these DTAs include avoidance of double taxes, lower withholding taxes and the benefit of a preferential tax regime which all help to minimize the financial tax burden of companies. Together with the absence of capital gains and dividends tax, Singapore is looking like a very interesting investment destination indeed.
- Excellent location and connectivity – Being located along the main trade and shipping routes of the word certainly has its advantages, and it is no secret that Singapore has benefitted from it. Singapore is a renowned transportation hub and home to award winning Changi airport, plus it has been consistently voted as the Best Seaport in Asia for the past 24 years. This along with its world class telecommunications infrastructure and ranking by the World Economic forum as one of the top economics in the word, who wouldn’t want to invest in Singapore and reap all the benefits it has to offer the business world through Singapore company formation.
- Skilled and Multilingual Workforce – Singapore has a large talent pool which has played a role in reinforcing the country’s reputation as one of the most productive and motivated workforces in Asia. Consisting of citizens from many diverse racial backgrounds also offers the advantage of a multilingual workforce, making it an excellent choice to open a company in Singapore.
- Immigration Policies – Because Singapore welcomes foreign investment that can help develop the country, there are a variety of immigration schemes that qualified entrepreneurs can leverage on to begin working here.
- Great Family Place – Being one of the most prosperous and stable countries in Asia with plenty of public service conveniences, Singapore is the friendliest and warmest place in Asian for working individuals and families alike.
- IP Protection & Efficient Legal System – Singapore’s strong IP infrastructure is backed by a trusted legal system that is aimed at improving the IP landscape to further build it as the best IP hub in Asia. The country’s legal system is one that is globally recognised because it is so efficient and emphasizes integrity, and Singapore is one of Asia’s least bureaucratic countries, making it an ideal destination to start a business in Singapore. Businesses no longer have to worry about the burden of red tape, bribery or slow legal processes, making it an ideal destination for Singapore company incorporation.
Singapore is one of the best places in the world to do business and setup company, and it has been ranked so by the World Bank for seven consecutive years. Firms who are keen on establishing a base in Singapore and wish to open a company in Singapore have these options of business entities to select from:
- A Branch Office – Although a Branch office is a registered legal entity, it is still considered and treated as an extension of the foreign company and therefore, all liabilities will be extended to the parent company. The income from here is not eligible for tax exemption and incentives.
- Subsidiary Companies – A subsidiary company is generally the preferred registration option for small and medium enterprises. 100% foreign ownership is allowed if the company is locally incorporated.
- Representative Office – A representative office can be a good option for investors who wish to explore the opportunities in Singapore before committing to an established business venture. This is a temporary setup with no legal persona and will not be able to engage in any trading or business activities as such.
Despite the challenging global economic situation, Singapore still manages to do an excellent job of attracting investments from all over the world. As we can see from the reasons above, Singapore is poised for continued success as it continues to grow into a prominent business centre in today’s economy. Businesses looking to expand can check company registration in Singapore to take advantage of this thriving hub.
