Benefits of Doing A Singapore Company in 2024

Singapore stands out as a premier offshore jurisdiction for businesses thanks to its strategic location, a pro-business environment, attractive tax regime, and well-established infrastructure. Whether you’re a startup or multinational corporation, Singapore offers the ideal balance of stability, innovation, and growth potential. With that in mind, let’s explore five advantages of doing a Singapore company with LNT Consulting.

Geographical Location and Free-market economy

Geographical-location-and-free-market-economy

Being in the heart of Southeast Asia, Singapore is the key global logistic hub, easy to access major Asia markets with over 4 billion consumers. Singapore Airport and Port are also considered as one of the busiest and most efficient locations, allowing for quick and reliable movement of goods, making it a vital place for global trade. Singapore has membership in ASEAN (Association of Southeast Asian Nations) that further enhances trade opportunities within the region.

Singapore is also widely recognized by its robust free-economy, let’s take a look at what Singapore offers:

  • Has established free trade agreements (FTAs) with more than 20 countries, reduced trade barriers and enabled businesses to import and export goods with minimal tariffs and restrictions.
  • Promote foreign direct investment (FDI) by offering tax incentives and favorable policies.
  • Embraces a laissez-faire approach to its economy, allowing market forces to dictate prices, competition, and the allocation of resources fairly.

Financial Hub Reputation

Financial-hub-reputation

Singapore is one of the leading financial hubs with over 150 banks and institutions with representative branch offices. The Monetary Authority of Singapore (MAS) ensures a stable and well-regulated environment, while also promoting innovation in areas like fintech and blockchain. Therefore, more and more fintech startups and innovation labs were born here. The government initiative promotes the use of technology in financial services, providing businesses with opportunities to leverage cutting-edge solutions and gain a competitive edge.

Favorable Tax System

Favorable-tax-system

Companies (Private Limited Company) are taxed at a flat rate of 17% of its chargeable income (after deducting tax-allowable expenses), applied for local and foreign sourced income. Qualified new start-up companies can apply for the tax exemption scheme.

You can check more information on the tax system in Singapore via this link: https://lntincorp.com/understanding-corporate-tax-in-singapore/

Singapore also offers tax incentives for specific sectors that are of strategic importance to Singapore’s economy including research and development, fund management, legal firms, insurance, finance or shipping and maritime.

Moreover, Singapore has signed over 90 Double Taxation Agreements (DTAs) with other countries, which reduces or eliminates double taxation on income earned in other jurisdictions.

Fast and Simple Business Setup

Fast-and-simple-business-setup

The requirements to open a Singapore company are easy. Private Limited Company is the most common business type here with key feature below:

  • Foreigners must appoint a local registered agent, local residential address and local director.
  • The structure includes at least 1 local director, 1 shareholder and 1 controller. Shareholder is not liable for any losses or debts, beyond the number of shares they hold.
  • There are no minimum share capital requirements, must pay up share capital registered into the company bank account.

If you are foreigners, and would like to form a Singapore company but not familiar with local laws, you should appoint a company secretary who can help you navigate the complexity of documentation and local requirements, ensuring the seamless process.

Basically, the incorporation process is remotely and only takes 2-3 working days. Newly incorporated companies can search the business information directly via the bizfile, acquire or verify QR code of the business profile via ACRA (Accounting and Corporate Regulatory Authority (ACRA).

Support for SMEs Business

Support-for-smes-business

The Singapore Government provides a wide range of grants, funding, and subsidies for local and international startups such as:

  • Startup SG Founder (SSGF) programme: First-time entrepreneurs can enjoy funding of $20,000 to $50,000 with innovative business ideas.
  • Enterprise Development Grant (EDG): Offer 50% – 70% funding support for sustainability-related projects.
  • Angel Investor: Individual investors can invest SGD 25,000 – SGD 100,000 while a group of investors can grant around SGD 250,000 – SGD 750,000 in exchange for ownership share in the newly incorporated company.

There are a lot of grants and programs enabling you to launch and grow your Singapore company.

Singapore’s commitment to supporting startups stems from its desire to foster innovation, drive economic growth, and position itself as a global leader in technology and entrepreneurship. By offering financial support, infrastructure, and a conducive regulatory environment, Singapore creates the perfect conditions for startups to thrive, scale, and contribute to the country’s long-term economic success.

To sum up, starting a business in Singapore offers numerous advantages that make it a prime choice for business success. With its pro-business environment, competitive tax policies, and strong government support, Singapore provides the infrastructure and incentives necessary for businesses to thrive. If you still have any concerns on how to start and run the business here, don’t hesitate to reach out to the support team from LNT Consulting. We shall offer 1-1 tailored consulting services that help you to turn your ideas into a business.

Disclaimer: LNT Consulting aims to provide up-to-date and accurate information on this website. However, this information is intended for reference only and should not replace professional legal advice. For guidance on your specific case, please contact LNT’s customer service.

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