When people hear the word “Singapore,” the first thing that comes into their mind are tall skyscrapers and a weird lion statue. But this rising financial center is more than that. It has recently become a haven for entrepreneurial upstarts as well as experienced corporate executives due to its reputation for being welcoming to businesses. Here are some reasons why you should start investing in a business in Singapore:
Ease of Doing Business
Singapore ranks high in a number of lists of countries where doing business is the easiest. In the 2016 rankings of the organization Doing Business, the city-state placed first in protecting minority investors, second in enforcing contracts, sixth in easy process of starting a business, as well as eighth in tax collection efficiency. You will see just how great Singapore is for business as early as registration. Famously, it takes only 1-2 days to incorporate a company in Singapore. To start a business, you only need to go online in the Accounting and Corporate Regulatory Authority (ACRA) to file for the approval of your company name and tax number.
Stable Politics, Economy and Government
In order for a business to succeed, it needs to operate in a country with a stable government and economy. Thankfully, Singapore is consistently touted as Asia’s most stable politically so you do not have to worry about revolts and armed conflict in the territory. It also helps that it has one of the most transparent, honest and open governments in the world, with a lot of reasonable, pro-business regulations. It is also ranked as the third most globalized economy in the world in the 2011 Globalization Index by Ernst and Young.
Excellent Tax System
Singaporeans enjoy one of the most outstanding tax systems in the world. Income tax is charged according to tiers which go up to 20 percent for those who earn above $320,000. Singapore is also known all over the globe for having one of the lowest Goods and Services Tax at seven percent, almost ten percent lower than the global average. The corporate tax in the country is also reasonable, capped at 17 percent for profit above $300,000. It also helps that you are assured that your taxes actually go into social services and infrastructure.
Quality Labor Force and Facilities
With the high quality of education and health care, starting a business in Singapore will give you access to one of the top labor forces in the world. Being the location of a few of the region’s top educational institutions also helps as it means that the employees and workers are qualified. Singapore’s reputation also attracts educated graduates from neighboring countries like the Philippines, Indonesia, Malaysia, China, and India.
Strategic Location for Global Businesses
Singapore’s strategic location at the tip of the Malayan Peninsula is a great factor for business as it means easier access to one of the fastest growing regions in the world. Get into a plane in Changi Airport and you can get into Hong Kong, Tokyo, Dubai, Seoul as well as Beijing in less than eight hours. For businesses that need raw materials, on the other hand, you can also save much more due to Singapore’s proximity to supply-heavy countries such as Indonesia, the Philippines as well as Malaysia.
Singapore is heavily praised in the financial world because of its attractive climate for foreign investment as well as entrepreneurship. Its government is also known for being unabashedly pro-business because of the sector’s huge contribution to Singapore’s gross domestic product. The island nation also takes its copyright, trademark as well as intellectual property laws seriously.
High Per Capita Income
With a population of barely above 5 million, Singapore has one of the highest GDP per capita in the world, with about $51,855. The median monthly household income in the state is also at $8,292 in the year 2014, which opens an opportunity for businesses to do well as employees and students will be spending that money. Singaporeans have never been known to hold back on spending due to the various arrays of recreational, cultural as well as educational outlets in the city.
More than anything, the biggest reason for people to establish their own business is profit. Singapore is as good as any place in the world to start as it has a proven stature for its pro-business environment.