We have recently had queries from clients asking us to assist them with incorporating their companies in Singapore.
For those who are thinking – why Singapore?
We have outlined below some of the many reasons why it is advantageous to set up your company in Singapore:
1. Robust economy and financial ecosystem
Singapore is efficient and the business environment and economy is robust. It also provides a business-friendly environment for entrepreneurs which involves:
- Excellent quality of life
- Remarkable infrastructure
- Productive and highly educated workforce
- Well-developed financial system and capital markets
- No restrictions on return of profits or import of capital
2. Favourable tax system with low tax rates
Singapore has a simple and rational tax system and it levies no tax on capital gains or on dividends from a business. Withholding tax on foreign-sourced income is also reduced significantly and the country has one of the lowest VAT rates in the world. It also has an extensive network of Avoidance of Double Taxation Agreements (DTAs) with over 50 countries (including Australia) to ensure that transactions between countries do not pay double taxation.
3. 100% foreign ownership
Foreign citizens are allowed to own 100% of the stock of a Singapore incorporated company without engaging with any local partners or shareholders.
4. Swift and efficient incorporation process
Singapore has one of the most efficient and red-tape free regulatory frameworks in the world. The requirements for incorporating a company are straightforward and the process is simple. The entire process to set up a new company takes less than a day in most cases.
There are also many additional tax incentives, grants and assistance schemes for start-up companies which are available to both local and foreign-owned companies.
These are just some of the highlights outlining why incorporating your company in Singapore might make sense for you.
For more detailed advice or insights into this topic please contact Deepesh Daya on +61 (3) 9098 0437 or email email@example.com
This publication is © Nexus Law Group and is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.