Factors That Make Singapore Very Business Friendly
Singapore has emerged as the choice location for businessmen wishing to start businesses, and for multinationals intending to expand their operations globally. This island-state has been credited as an epicenter of business in the Asian continent, and a major player in the world’s economy. The city-state has an excellent political climate, a well-developed infrastructure, business-friendly legislation, availability of support services, and relatively easily accessible funding. All these factors make it an impressive business hub. Investors may choose to start new businesses in Singapore or open a Branch Office of their giant multinationals which will be just an outlet for their company that is not a separate legal entity. The only thing separating it from the main firm is being in a different location.
So what makes Singapore to be highly rated as a business-friendly location?
Accessibility and Simplicity in the Process of Starting a Business
Singapore, in comparison with other locations lauded as business hubs in the world, has far easier processes of starting a business. With all the requirements in place and having duly submitted the registration application, it takes only a day to complete the formation of a private limited company. Foreigners can also easily set up businesses. The straightforward online application procedure makes the whole process very quick and simple.
Great Tax System
Starting a business in Singapore will be of great gain to entrepreneurs due to the wonderful tax exemption scheme in place, especially for startups. The first S$100,000 income is tax-free for a new business. The next income, totaling S$200,000, will be subjected to corporate tax with 50% exemption. Also, the VAT is at 7%, which is very low compared to other countries globally. Furthermore, capital-gain is not taxed. Corporate tax is also quite low. Generally, the Singaporean tax system is among the best globally, empowering business operations.
Intellectual Property Safeguarding
Singapore has in place strong and strict laws that protect intellectual properties. The innovations, research, and development are well guarded under its laws.
Reliable Workforce and Professional Service Companies
Over the years, Singapore has developed a first-class, productive and well-educated workforce. There is also the huge inflow of very highly talented labor force due to the competitive market. Professional firms, such as accounting and IT firms, which render support to businesses, are also thriving and ready to serve. All these make it easy to start and run a business.
Availability of Financing Options
Singapore has witnessed a fast growing venture capital investment. The funding of business is available through various options, such as grants, or from various schemes such as iSTART. Singapore is home to over 120 commercial banks and numerous fund managers.
Great High-Growth Market Accessibility
Commencing operations in Singapore gives the business connection to the fast-growing and high-value markets that include China, India and other big markets.
Efficient air transport with extensive connectivity
The air transport facilities are one of the best worldwide, with the Singapore Changi International Airport serving no less than 100 airlines which fly to over 300 destinations globally.
Singapore is a great business destination due to all these factors, not to mention the open and flexible immigration policies that allow foreigners and potential investors to operate there.
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