What are the benefits of setting up a business in Singapore?
Singapore is ranked the number one city with the best investment potential in the world. Singapore has attracted many investors and entrepreneurs to invest and register businesses in the country as there are many benefits of setting up a business in Singapore.
The benefits of setting up a business in Singapore are as follows:
Political Stability
Singapore is a politically stable country without any foreign debt and relatively high government revenue. This has attracted potential entrepreneurs and international business to set up their business here in Singapore. As it is foreseen that Singapore will be stable for a long term basis, this implies that businesses will facing lower business risks and costs.
Also, businesses are able to draft out future business plans easily as they will not face difficulty in forecasting the industry and business trends in Singapore.
Pro-Enterprise Government
To be pro enterprise, the Singapore government has provided different types of business incentives to encourage locals and foreign investors to set up their businesses in the country.
For example, Singapore provides Productivity and Innovation Credit Claims for businesses to enjoy tax deduction or cash payout. This can help to reduce the heavy taxes and high expenses borne by a local company.
Low taxes
Also, Singapore has a low effective personal and corporate tax. Compared to Japan’s corporate tax rate of 38.01%, Singapore charges much lower tax rates of 17%. With a lower corporate tax contribution, business will benefit as they are able to earn a higher net profit in Singapore compared to other countries.
Skilled Workforce
Besides political stability, businesses can benefit by setting up companies in Singapore in terms of the high quality workforce available. As Singapore is a knowledge-based country, its labour force is well-educated and professionally qualified.
Companies will not have difficulty in employing highly skilled labour needed in the different sectors; especially so in the financial and economic sectors. They will also not face problems in searching for a qualified business partners when they are starting up a new company in Singapore.
Advanced technology and infrastructure
The technology and infrastructure of Singapore also makes it favorable for businesses. According to the 2012 Mercer Quality of Living Study, Singapore is ranked first in the world based on our infrastructure. Singapore now has a well-established infrastructure, as they have air, sea, land and telecommunication means available around the country to support any mode of transport for companies to overcome delivery and production difficulties.
The Singapore government not only seeks to develop the physical infrastructure, but to adopt up-to-date technology as well. Companies can benefit from the advanced technology as more businesses use information technology to retrieve information from customers, staff and also shareholders.
Protection of Intellectual Property
Protection of corporate intellectual property is a priority. The Singapore government has strict laws to prevent piracy in the country. This encourages business to produce and sell goods that entail valuable assets as they do not have to worry about company’s trademarks and patents. Therefore, by setting up a business in Singapore, businesses can be better protected with the intellectual property laws implemented.
Singapore has been progressing well in terms of economic growth and political stability. By providing the best investment environment, the country has become an attractive market for various businesses, due to the various benefits of setting up a business in Singapore.
