Singapore has established itself as the preferred jurisdiction for companies of all sizes to set up their headquarters in Asia.
Double taxation treaties
Singapore has entered into a huge number of double taxation agreements with more than 70 countries from all over the world. The main benefits of this taxation system include:
- Avoiding double taxation,
- Lower withheld taxes
- A preferential tax regime.
All this plays an important role in minimizing the tax burden on the holding structure of the company. The extensive network, coupled with the absence of capital gains tax and dividend, makes Singapore a very attractive jurisdiction for business investment through a Singapore-registered company having a company stamp.
Attractive tax regime
Singapore’s tax system is considered “simple and investor-friendly”. The highest corporate income tax on taxable income is 17%. Capital gains tax and dividend income is 0%.
It is important that any income from foreign sources is exempt from taxes if income has already been taxed in a country with a declared tax rate of at least 15%. Singapore’s legislative framework offers equal opportunities for foreign investors without restrictions on foreign ownership and any exchange company stamp control.
Strategic location with a great message
Singapore has a unique geographical location. The country is strategically located at the crossroads of the world’s main trade and sea routes, including the main sea route between India and China.
The presence of a skilled and multilingual workforce
Singapore’s business environment is rightly attractive to skilled and dedicated workers from all over the world. The rapidly developing innovative work environment, together with its extensive local Singaporean workforce, is only strengthening the country’s reputation as having one of the most efficient and motivated workforce potentials in the region.
Thoughtful immigration policy
Singapore offers a variety of immigration programs for skilled entrepreneurs and practitioners. The Government is always trying to attract foreign investment and strengthen its local workforce with high-level professionals from around the globe, in line with Singapore’s liberal immigration policy.
A great place to move senior management and their families
Singapore is one of Asia’s most prosperous and stable countries. The country’s stable political environment, the convenience of services, and cosmopolitan environment make Singapore an increasingly attractive destination for expatriates and their families.
An effective legal system
Singapore’s legal system has gained worldwide recognition for its efficiency and integrity, and the country is considered the least bureaucratic in Asia, according to the IMD 2014 Annual World Competitiveness Index.
Business operations in Singapore are not burdened with clericalism and are not forced to slow down their operations due to bribery or slow legal procedures.
The best place in the world to do business
Leading institutions that monitor economic and commercial activities around the world are unanimous in that Singapore is attractive as a place of business. Over the past decade, the country has ranked first in the World Bank as the most business-friendly, second in the World Bank’s Global Competitiveness Index 2014-2015.
Options to enter the market for foreign companies:
Foreign companies interested in getting a company stamp for working in Singapore have several direct options, which are summarized below.
Usually, the registration of a Singapore subsidiary is the preferred option for small and medium-sized foreign companies intending to establish their presence in Singapore. Singapore allows foreign ownership of 100% of ownership in locally registered companies. Such a structure provides the necessary protection for the interests of beneficiaries and can also be very effective in terms of taxes.