5 reasons to expand into Singapore in 2020!

Singapore has now been rated number #1 by the World Economic Forum as the most competitive county in the world in 2019. They received this along with 13 other global accolades showing Singapore as the global country of choice for business expansion. Whether you are a non-resident individual, small and medium company or a multinational, opting for Singapore company expansion will give you a launch pad to region’s other developing economies. This aside, you can benefit from Singapore’s wide network of trade agreements, ease of doing business, an attractive tax system, and sound intellectual property protection.

One.

You are not just expanding into Singapore – Asia becomes your oyster.

Singapore has a unique position in the global economy and a pivotal role as a business epicentre in the heart of Asia. The city-state has been consistently acknowledged as a global business hub – one that features developed infrastructure with education levels per capita among the highest in the world.

Global businesses will find it advantageous to site their headquarters in Singapore. Strong trade and investment make Singapore the most competitive Asian country and the world’s easiest place to do business. With access to local growth economies like China, India, Vietnam, Indonesia, Malaysia, Thailand, Taiwan, Japan, Korea and Myanmar; Singapore positions you perfectly to effectively expand via a hub and spoke strategy into your chosen markets with minimal investment. With all markets mentioned above, including Singapore, you can choose two routes. Company Incorporation, Singapore has taken much of the pain out of this but we would advise careful consultation on the process and liability. Or hit the road running and partner with a PEO (Professional Employment Organization) and have staff selling or operating for you within 24 hours.

Many multinational companies have chosen to set up their bases in Singapore, next to over 160,000 small and medium enterprises. Business owners all over the world regard Singapore as an ideal location to grow their businesses, with many of them using the country as a springboard to tap into other emerging markets in Asia. Flying is also a pleasure with up to 6.13 Million flight movements per month flying to neighboring countries is as easy and cost effective as it can be. In 2019 62.2 million passengers pass through the airport annually which also makes it one of the worlds largest business networking hubs.

Singapore has established itself as a reputable financial and regional trading center. It is the world’s busiest port and a top location for investments in the Asia Pacific region. Factors such as strategic location, a competitive workforce, pro-business environment, and forward looking economic policies have enabled Singapore to be the world’s gateway to Asia.

Two.

Trust, Political Stability & Corporate Governance.

Widely considered as Asia’s most political stabile country due to the stability of the ruling PAP party and their 54 year seat of power and zero corruption policies. Singapore’s open business policies and the use of English as the main working language all contributes being Asia Pacific’s second highest rated country in Corporate Governance after Australia. Singapore’s Company Act (C50) is strict and fair ensuring no wriggle room for the execution of company and individuals fiduciary obligations.  for intellectual property rights. 

In 2015 - 2016 World Economic Forum’s Global Competitiveness Report Singapore was recognized for offering the best IP protection, infrastructure and incentives in Asia. It also comes a close second in that ranking globally, next to Finland and Luxembourg, which tied in the first place.

All this leads to greater customer trust of your brand, those that choose to trade in Asia also choose uncertainty in many countries but Singapore offers a far greater level of surety for you and your clients.

Three.

Tax efficiencies & MUCH MORE.

Personal income tax rates are marginal rates between 0 – 22% only! This alone attracts many business activities to Singapore. Having corporate, sales, support or other key staff based in Singapore can be efficiently achieved with a PEO partner, we can also advise a the list of great tax offsets you may be able to apply (like a 0% relief on those that travel more than 90 days per year).

Another benefit is that 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.

This is because Singapore adopts a territorial basis of taxation. Foreign-sourced income is taxed only when it is repatriated back into Singapore. In addition, tax is not levied on foreign-sourced dividends remitted back into Singapore if – the dividends are received from a country with a headline corporate tax rate of at least 15%, some tax was paid in that country (such as withholding tax paid on the dividends or income tax paid on the profits out of which the dividends were paid), and the exemption is beneficial to the Singapore company.

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. Singapore, unlike some of its neighbouring countries and competing regional hubs have shown corporate tax softening as below.

Four.

Singapore’s government actually wants you here and makes it easy for you to bring wealth and knowledge to the country. 

Singapore makes entering and doing business in Singapore a breeze. They are consistently recognized by forums like World Bank’s Doing Business 2019 report. Again in 2019 they have been rated number 1 for being world’s best place to do business in the World Bank’s annual survey of 189 economies around the world.

We have set up entities in many counties which are well known to be “business hubs” and Singapore is still by far the easiest to country to enter. We can have your first employee engaged in a matter of hours or support incorporation within 1 day! Owning a company in Singapore can set up by anyone including foreigners and its all online!

Five.

 It’s where the party is happening; don’t miss out. Free Trade!

The World Economic Forum reported this year that by 2030 two thirds of the worlds consumers would live and consume in Asia. This coupled with the growing support for Singapore over other Asia counties by global MNC’s paints a picture of growth for the financial hub in the next decade. With tax concessions, a strong currency, political stability and world leading personal safety more and more business will be coming to Singapore and I urge you not to miss out. Beyond this the barriers of entry, and exit, along with risk is low to doing business in Asia from Singapore. If you would like to know more we available at your convenience to share information on all the above topics. Get in contact to have a comprehensive white paper on the payroll and immigration legislation per country in 2020. Connect via email or+65 3159 4151.