If you are looking to do business internationally and are looking for a place to base your company, more often than not, Singapore may crop up as one of the viable options. Let us look at the reasons why Singapore is seen as one of the best places in the world to incorporate a company for your business.

 

1) High legal security

Security over their assets is of paramount importance. Singapore has a good legal framework that ensures that the assets of a company cannot be seized or frozen without a valid reason. In fact, very rarely has this ever happened and if ever, there would have been proof of serious crimes such as money laundering being involved. This is the main reason why many business owners choose Singapore as a place to incorporate their company. They know that their assets and monies in the bank accounts cannot be seized by the government for no reason and that their company will continue as a legal entity as long as they chose to maintain it.

 

2) Efficient banking system

Singapore banks provide services like internet banking, chequing account and debit and credit card services to companies. You can access your bank account from anywhere in the world with a stable internet connection via a mobile app or the bank’s website. All you require in most cases is the security token that has been issued to the company. You can make and receive payments as well as transfer monies easily online. Many Singapore banks also provide financing to businesses for expansion.

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3) Recognised around the world

Singapore is globally known for its efficiency as well as its good legal framework. Due to its hard stance on money laundering and terrorism, Singapore companies are often considered safe to work with by the international business community. Compliance standards in Singapore are high for Singapore companies but this gives Singapore and Singapore companies a high degree of credibility in the international business arena.

 

4) Low taxes

The Singapore government encourages entrepreneurship and one of the ways it does so is by offering low corporate taxes. In fact, for Year of Assesment 2018, the first SGD$100,000 worth of profits received full exemption from corporate taxes. This exemption is for most companies and is eligible for companies that have 100 per cent foreign shareholding. The Singapore government varies the corporate tax rates according to the economic situation but generally, Singapore has one of the lowest corporate tax rates in the world.

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Common Tax Reliefs that will help to reduce the tax bill for Companies

 

5) You can apply for a work visa in Singapore

If you would like to work as an active director of the company in Singapore you can apply for a work pass or an EntrePass for entrepreneurs. The application process is not tedious and information can be found online on the Ministry of Manpower’s homepage.

 

6) There are accommodating structures to suit all business arrangements

You may not be based in Singapore as your business is international and thus you may require a local resident director in Singapore. You can appoint a nominee director and you should have a nominee director agreement drafted to explain the relationship and the limited role that this individual has on your company. You may also want someone to hold the shares in trust for you and you can appoint a nominee to do so as well. These are legal in Singapore and can be prepared by a corporate secretary or a lawyer. You can also subscribe to a serviced office address without having to set up a physical office. This will help to reduce expenses in the early part of the company set up process. Most corporate service providers provide registered address services.

 

7) Singapore is extremely transparent in all its dealings

Singapore is corrupt-free and this is a huge plus as businesses can accurately plan their expenses without having to prepare for “special” expenses. All government fees collected from you are above board and can mostly be found online. Fees to your corporate secretary and lawyers are also transparent and will be provided for you in a quotation or better still, listed on their website. If you feel that you have been incorrectly charged, you can file a complaint with the relevant authorities. There is legal recourse for all matters in Singapore.

 

8) Singapore is stable

In comparison to the rest of the world, Singapore is extremely stable politically. In times of Brexit, China getting more involved in the governing of Hong Kong and with a seemingly unstable Trump administration in the US, Singapore sticks out rather favourably for being extremely stable politically. The ruling party has been in power since Singapore obtained its independence in 1965 and holds a significant majority of parliamentary seats. This political situation is not expected to change as Singaporeans, in general, prefer a stable government and have seen decades of economic growth and prosperity with the current government. This trickles down to the stability of the Singapore dollar which has seen steady appreciation against major currencies across the world. Thus many companies prefer to deal with and hold their assets in Singapore dollars. This stability is rather rare in an increasingly fractious world and is one of the major considerations for investors and business owners around the world.

9) Affordable corporate secretarial services

Singapore may not have zero tax rates like popular tax havens in the British Virgin Islands and The Cayman Islands. However, it has extremely low tax rates that many consider are close to zero. The main difference is that setting up and maintaining a Singapore company is usually cheaper than many other jurisdictions. Companies are regulated by the Accounting and Corporate Regulatory Authority of Singapore (ACRA) and you will need to find an ACRA Filing Agent to incorporate your company. The fees are very affordable and when compared as a whole, the cost to set up and maintain a Singapore company is very low.

Here are some articles which you can refer to for this matter:

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10) Affordable bookkeeping services

One of the main costs of running a company anywhere in the world is the cost of maintaining the accounts of the company. In Singapore, you are free to hire a freelance bookkeeper or use your own accounting software so long as the accounts are kept in a proper manner in accordance with the accounting standards. Most startups maintain their own accounts using free software which can be integrated with their Singapore company bank account.

If you are a foreigner and would like to incorporate a Singapore company, you can email us at [email protected] or WhatsApp us at +6582222886. We have assisted many overseas clients to set up their Singapore companies in an affordable and efficient manner.

When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.

 

Yours Sincerely,
The editorial team at Singapore Secretary Services

 

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