Since the turn of the millennium, Singapore has been climbing up the ranks in global competitiveness. Where once we were ranked at a lowly 25th position back in 2003, we have now leapfrogged to 4th place in just 10 years. The World Economic Forum credits this phenomenon to our constant investments into innovation and technology, which enhance productivity within society.
With emerging markets like India and China headlining the news, it is easy to see why many overlook Singapore’s success story. Yet the tiny red dot has evolved into one of Asia’s most thriving business hubs, attracting some of the region’s biggest names in commerce. In fact, multinational corporations (MNCs) have been flocking to Singapore in droves. In the first half of 2013 alone, a total of 576 companies set up shop here, doubling from 282 during the same period last year.
The numbers speak for themselves: with attractive tax incentives and a highly-skilled workforce that is proficient in three languages (English, Chinese and Tamil), it’s no surprise that Singapore has become the darling of MNCs.
This positive business environment is just one of many reasons why you should consider doing business in Singapore. From low costs and efficient management to a strong infrastructure and an advanced technological base, there are plenty of incentives available for entrepreneurs to take advantage of. Best yet, if you want your business here, you’ll have the support of both the public and private sectors.
Best Infrastructure to support business needs
Now is the best time to start up your own business, no matter where you are in the world. With new technology, like cloud computing technologies and broadband internet, the world has never been more connected than it is today. And what better place to do business than Singapore? The island-city state on the Southeast coast of Asia truly does have something for everyone, including the entrepreneur.
Singapore is an excellent place to start up your own business because it has many of the necessary requirements that you need to be successful. First of all, Singapore is ranked first in Asia and second globally for having one of the best infrastructures around (the World Economic Forum’s Global Competitiveness Report). The island-city state has an excellent transport system, with Mass Rapid Transit (MRT) lines crisscrossing the entire island.
As well as having excellent infrastructure, Singapore also has many talented citizens who are literate and speak English fluently. With so many citizens speaking English it makes communication between managers and employees very easy, cutting down on unwanted expenses. Having these two factors in place means that it is easy to remotely control and manage a business or company from anywhere in the world.
Low Tax Regime and Amazing No Capital Gains Tax
Singapore has one of the lowest tax rates in the entire world, with a corporate tax of 17%, making it an attractive place for investment. This low taxation rate also makes it easier to do business because there are no complicated rules regarding taxes and you never have to worry about any sort of audits or fines.
In a survey conducted by Ernst and Young , Singapore was ranked as the best country in which to do business for three consecutive years, from 2010 to 2012. Many factors were taken into account for this survey including taxes, infrastructure, availability of skilled labor and much more.
There are also numerous tax incentives introduced by the tax authorities, Inland Revenue Authority of Singapore, to reduce the tax burden on new startups.
There is also no Capital gains tax under Singapore tax regime, That means that when you sell your very successful business and cash in, there will be no Capital gains tax to take away what you have worked so hard for.
Ease of doing business
Singapore is an excellent place to start up your business because it is very easy to do business in. There are no complicated rules and the businesses laws are very easy to understand. In addition, Singapore is a much friendlier environment for foreign investors than other countries, such as China which has much stricter rules regarding businesses.
Private exempt companies are also not subjected to audit requirements if they meet the exemption criteria. Many government services are available online and information is readily available on government websites.
In Singapore, you can even get a company incorporated within one business day! That is how easy it is to do business in Singapore.
To conclude, Singapore is the perfect place for entrepreneurs to start up their business. With its world-class infrastructure and low taxation rate as well as ease of doing business it makes it a very attractive choice. Singapore is definitely the best city in Asia to do business in which has no capital gains tax!
One question remains, are you ready to start your own business in Singapore?