Benefits of Singapore Company Incorporation for Foreign Companies
Despite the global economic recession and talk of a slowdown in Singapore's economy for the next few quarters, the number of foreign companies trying to incorporate a business in the country has remained strong and the numbers are not expected to go down anytime soon. As a matter of fact, many expect more foreign owned companies being registered in Singapore over the next few years. This is mainly thanks to the incredible number of benefits of doing business in Singapore. The World Bank continued to rank the country in the number one position for overall ease of doing business in its annual Doing Business report. Needless to say it means Singapore is the easiest place on earth to do business and foreign companies have made a note of that.
Amongst the various benefits, one of the important advantages is that of taxation. Singapore follows a liberal taxation policy and has the second lowest corporate tax rate in entire Asia. Currently businesses are taxed at the maximum rate of 17 per cent. Companies in Singapore are also provided with a number of tax incentives. These include zero taxation for newly incorporated companies for income up to SGD $100,000 for each of the first three years the company is in operation. Foreign sourced income is also tax free as long as that income is not remitted to Singapore.
Singapore's infrastructure and business environment is amongst the key benefits foreign companies have in the country. Singapore has continually strived to create a win-win situation for businesses in the country and its economy. Infrastructure in the country is second to none and many foreign companies have been using Singapore as a base for research and development, innovation and setting up operations that require a stable and modern infrastructure.
Work force in the country has added to the benefits of doing business in Singapore as the working population is considered to be well educated and highly skilled. Over one-third of the working population in Singapore is currently made up of foreigners and hence availability of staff from various backgrounds and skill-sets is possible. Singapore has also developed an immigration policy that directly benefits its economy. Companies can employ foreigners with ease provided the overseas professional meets all eligibility criteria of the required work pass in Singapore. Foreign entrepreneurs are also allowed to incorporate a company in the country without even visiting Singapore and manage it from overseas. However, thanks to the immense growth in Singapore's economy and a growing consumer market, many entrepreneurs have started to apply for the entrepreneur pass and relocate to Singapore and manage their businesses.
Amongst the various benefits, one of the important advantages is that of taxation. Singapore follows a liberal taxation policy and has the second lowest corporate tax rate in entire Asia. Currently businesses are taxed at the maximum rate of 17 per cent. Companies in Singapore are also provided with a number of tax incentives. These include zero taxation for newly incorporated companies for income up to SGD $100,000 for each of the first three years the company is in operation. Foreign sourced income is also tax free as long as that income is not remitted to Singapore.
Singapore's infrastructure and business environment is amongst the key benefits foreign companies have in the country. Singapore has continually strived to create a win-win situation for businesses in the country and its economy. Infrastructure in the country is second to none and many foreign companies have been using Singapore as a base for research and development, innovation and setting up operations that require a stable and modern infrastructure.
Work force in the country has added to the benefits of doing business in Singapore as the working population is considered to be well educated and highly skilled. Over one-third of the working population in Singapore is currently made up of foreigners and hence availability of staff from various backgrounds and skill-sets is possible. Singapore has also developed an immigration policy that directly benefits its economy. Companies can employ foreigners with ease provided the overseas professional meets all eligibility criteria of the required work pass in Singapore. Foreign entrepreneurs are also allowed to incorporate a company in the country without even visiting Singapore and manage it from overseas. However, thanks to the immense growth in Singapore's economy and a growing consumer market, many entrepreneurs have started to apply for the entrepreneur pass and relocate to Singapore and manage their businesses.
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