Business in Singapore
Finding the right hub for business in Asia has never been easy. But Singapore has made it easy for you. With is excellent business platforms, Singapore has established itself as a business center in the Asia Pacific region. You should consider doing business in Singapore.
The island republic of Singapore, although small, is home to one of the most rigorous and highly developed economies in the world. The trade-oriented market economy has been ranked as the most open in the world, most pro-business and 5th least corrupt as well as having low tax rates and having the third highest per-capita GDP in the world in terms of Purchasing Power Parity (PPP).
The reasons why you should invest in Singapore - ACE
- Businesses do not exist in a vacuum – they need a supportive political infrastructure to grow and thrive. Singapore has one of the most stable political environments in Asia, offering entrepreneurs and investors a strong sense of security and comfort. Its judicial system has been recognized as one of the most efficient in Asia, enforcing anti-corruption laws so that investors can conduct business without fear of bureaucratic malaise.
- Moreover, through strict law enforcement, Singapore has a persistently low crime rate and offers residents a high degree of personal safety. In the event of cross-border disputes, businesses can rely on Singapore’s reputation as a world-class arbitration facility
- According to the ‘2017 Corruptions Perceptions Index’ that was released by Transparency International, a global coalition against corruption, Singapore was perceived as a “very clean” and non-corrupt country and was ranked #6.
- The WEF’s ‘2017 – 2018 Global Competitiveness Report’ also reveals that Singapore has the highest public trust of politicians and the least burden of government regulation.
Ease of Starting a Business
- According to World Bank’s Doing Business 2016 report, Singapore has been consistently recognized as the world’s best place to do business in the World Bank’s annual survey of 189 economies around the world. Compared to many countries that are considered as business hubs, it is easier and quicker to start a Singapore company as the process takes only one day to complete, given that all the proper requirements are fulfilled, and the application is duly submitted.
- Singapore’s labour regulations and workforce have consistently been rated highly by leading international organisations such as the World Economic Forum and Washington-based risk consultancy agency, Business Environment Risk Intelligence (BERI).
- Singapore has earned the following recognition for their labour regulations and workforce from international organisations:
- Top position in BERI's Labour Force Evaluation Measure
- Among the top 10 in Asia for the best skilled labour
- Among the top 5 in the world for the most business conducive labour regulations
- Foreign talent rank Singapore as Asia's best country to work in
- Singapore’s immigration laws for foreign talent highly-regarded for being business-centric
- Singapore is a unique convergence of the East and West. The social fabric consists of a mix of Asian, European and American influence making it attractive and friendly to the international business community. Major international banks, multinational organizations and financial institutions all over the world have established their branches in Singapore, often making the country the location of their branch office in Asia.
- Singapore is consistently ranked highly in international surveys
#2 in the world for the Easiest Place to Do Business: Doing Business 2018 Report, World Bank
#1 Best business environment in Asia Pacific and the world: Business Environment Rankings (BER), The Economist Intelligence Unit
#1 in the world for best labour/employer relations in Asia: GCR 2015-2016, WEF
- Free Trade Agreements
- Singapore has the most extensive network of FTAs in Asia. Agreements have been signed with key economies such as US, Japan, Australia, New Zealand, members of the European Free Trade Association, Jordan, China, Chile, South Korea, India and Panama. Our network of DTAs with more than 70 countries works to the advantage of companies using Singapore as their regional or global hubs.
Conducive Pro-Business Environment
- Singapore has long been recognised as one of the best cities for business. This is what a World Bank report had to say about doing business in Singapore "It takes an entrepreneur just over 6 working days to get a new business going in Singapore, with low start-up costs. Overall, considering other factors, including business licensing, taxes, credit legal rights and investor protection, Singapore has about the most business-friendly regulation in the world."
- Singapore’s pro-business environment has earned the following recognition from international organizations:
- The world's easiest place to do business (World Bank Doing Business 2012 2016 Report)
- Among the top 2 most competitive countries in the world (The Global Competitiveness Report 2015-2016, World Economic Forum)
- Most "network ready" country in the world (Global Information Technology Report 2015)
- Geographical Location
- Singapore has built on its advantageous geographical location to become one of the world’s top trading and transportation hubs. Located right in the middle of the Asian time zone, Singapore maintains excellent connectivity and proximity to major Asian economies.
- Foreign income exemption
- Singapore-based holding companies or headquarters can repatriate dividends from their directly held foreign subsidiaries to Singapore free of Singapore tax. Those whose foreign subsidiaries are engaged in substantive economic activities but are unable to meet the qualifying conditions for this tax exemption may apply for a specific exemption.
- Attractive Corporate Tax Rates
- Besides its vast network of free trade and tax treaties, Singapore also offers one of the most attractive corporate tax structures in the world. Although its marginal rate is the third lowest in the world, its effective tax rate is even lower, compared to other more developed countries. The first three years taxable income of non-resident corporations are exempted from taxes where it is considered a “zero tax” jurisdiction. Avoidance of Double Tax Agreements (DTAs) are also entered into by the Singapore government with other international jurisdictions to ensure the country’ financial success and prosperity.
- By situating their international HQs here, companies benefit from Singapore’s network of 76 comprehensive Double Taxation Avoidance Agreements. They also gain from Singapore’s many free trade agreements and the Investment Guarantee Agreements.