Top 10 Benefits of Incorporating a Company in Singapore

Incorporating a company in Singapore can be extremely appealing and helpful, and the best part is that it also comes with a vast array of upsides. In fact, Singapore has a very stable economy and that allows businesses here to thrive. The relaxed taxation along with a growing economy make Singapore the ideal place to incorporate a company here. It does make you wonder, what are the benefits of Singapore company incorporation? What makes Singapore better when compared to other options.

What is required in order to incorporate a business in Singapore?

Before we talk about the advantages of Singapore business incorporation, we have to cover the requirements for setting up a business here. First, you need to appoint a nominee director. The registrant also needs to be over 18 years old, and you need to have a work visa or entrepreneur pass. The nominee director also has to be a resident of the country. Thankfully, once you learn why incorporate in Singapore, you can use an incorporation service to speed up the process.

Getting low corporate tax rates and tax exemptions

One of the benefits of Singapore company incorporation is the fact that you will be getting all kinds of deductions, exemptions and incentives. The tax rate on profit is 17%, and you will have no tax on dividends or capital gains. These approaches are great because they make it easier to grow a startup in Singapore, while also being more lenient when it comes to the potential challenges that arise.

Moreover, there’s a 100% tax exemption until you reach the first 100000 chargeable income, and 50% tax exemption on the next 200000. Also, unlike other countries, you won’t encounter double taxation, which is known to be an issue in certain countries, so keep that in mind. That’s a very different approach to taxation, and it’s certainly one of the top options to keep in mind if you want to know why incorporate in Singapore.

A seamless incorporation process

Yes, one of the major advantages of Singapore business incorporation is the fact that this process is streamlined. It’s not very difficult to do, if anything they made it very simple and convenient. That says a lot, because you can incorporate a business with little to no money as capital. On top of that, you don’t have to wait a lot of time with the incorporation process, which can be the case in some countries.

Singapore makes this incorporation process a lot easier than ever, and it’s very simple to do business as well. So even after the incorporation is complete, you don’t need to worry about any issues when it comes to doing business. They streamlined the process to keep it as simple as it can be. And that’s for the better, since you’ll be getting a lot of value in the long term.

Singapore has strong IP protection laws

Here’s another one of the advantages of Singapore business incorporation. Singapore has very strong IP property protection las. That means you can research and create an IP for your work, and it will be fully protected. There’s a reason why many companies that involve in research choose Singapore as the country to reside in.

With that in mind, any IP gets very good protection, not just research. As a company, you always want to push the boundaries and ensure that people have access to the best possible solutions. And the fact that you get to protect your IP in the long term is a major advantage that’s rarely something you will encounter in other countries, so try to keep that in mind.

Stable politics

That’s the thing, if a country’s political aspect is unstable, that can be very problematic for a business. Thankfully, Singapore is rather stable as a country from a political standpoint. That adds a lot of benefits, mainly because there’s more control over the process, and it will help deliver an exceptional result for businesses.

There’s more stability when compared to other countries, and that’s for the best. It eliminates a lot of the potential challenges and downsides, while maintaining a safer and more cohesive system from a political standpoint. That’s what makes it an excellent solution in the long run, especially if you care about the political aspect in particular.

Even so, there haven’t been any anti-business laws or issues like that. It’s quite the opposite, because Singapore is indeed a pro-business country, and it has laws and all kinds of benefits to help companies grow as much as possible. That type of environment is great for entrepreneurs because they know the game will be supported for a long time. It’s that type of commitment that encourages company creators to push the boundaries.

100% of the shareholding can be done by the foreigners

It’s great because Singapore is one of the few countries that allow foreign entities to own 100% shares of the company. Granted, you need to register the company in Singapore and also operate it from within the country as well. With that in mind, there needs to be a nominal director that’s a resident of Singapore. But other than that, there aren’t any specific requirements.

And thankfully, finding a nominal director that’s a resident is not very hard to do. At the end of the day, you just need to have someone locally, and that’s a solid thing to focus on. It just helps add to the experience and it leads to a more cohesive result. But even if there are requirements like having someone locally, it’s something easy to fulfill.

Remember that unlike other countries, Singapore is not as strict when it comes to the foreigners having a company here or operating within the country. That alone is helpful, because you get to control the business in any way you see fit. Even if there are a few restrictions here and there, that’s definitely one of the better approaches to have, and you will appreciate the way everything works. 

Relocation visas are easier to acquire

One of the important aspects that we must consider here is the fact that relocating to Singapore is actually a lot easier than you might expect. You can apply for a work visa with ease and even moving to the country entirely is simpler than before. With that in mind, having a business here and going through various business challenges can sometimes be seen as a struggle. Yet in this case, it’s quite ok, and it will make the process infinitely easier.

Yes, it does take a bit to relocate to Singapore. But having the option to get a work visa or an entrepreneur visa to work here is quite impressive. It gives an immense opportunity and very good value, and top of that the return is much better than you would expect. Yes, you might need personalized assistance, thankfully there are services for that.

Audit exemptions

Small groups and companies can also benefit from an audit exemption. If your annual revenue doesn’t exceed 10 million, you will have an audit exemption. That means there’s no need to hire an auditor to perform internal audits every year. Aside from that requirement, you also need to have under 50 employees.

Yearly audits can be a huge hassle for most businesses these days. The ability to have an audit exemption is remarkable, and it just goes to show the value you can obtain from something like this. It does help quite a bit to have yearly audits, and the ROI is extremely good in the long term.

There’s no need for an authorized capital

That’s a good benefit, mainly because you don’t have to specify the authorized capital value during the incorporation process. It was a thing before 2005, but nowadays you don’t have to worry about such a problem. It ended up setting a cap at that time, and it just brought more difficulty into the mix rather than proper solutions. But in this case, when you incorporate a company in Singapore, things are more lenient.

It’s also important to note that the minimum paid capital is just a dollar. All of a sudden, things are simpler for people that want to incorporate a business in Singapore. There are no caps or things that can become an issue. Instead, the ROI is much better, and you will appreciate the approach more than you might expect.

The government policies are supportive

Many times, governments will make it harder for businesses to operate within a country. But in this case, as you can see, incorporating a company in Singapore is supported by the government. They have dedicated boards specifically to help companies establish and integrate within the community. Then there are other things like cash grants, business loans, funding programs and so on.

All these things add up and they will convey a much better experience and comprehensive solutions. It’s exactly what you want to pursue, not to mention you will have detailed assistance and help from the government. You rarely have this option anywhere in the world.

Ease of funding

Getting funds for a new business is generally very difficult. That’s extremely hard to do most of the time, and it leads to certain struggles for companies, especially newer ones. With that in mind, there are plenty of funding-oriented programs in Singapore that you can check out. There are bootstrapping programs, crowdfunding, incubator programs, accelerators, even contacting VCs and investors directly will help.

Unlike other countries, Singapore has a clear focus on helping businesses succeed. And as you can see, there are plenty of ways for you to achieve such a goal, while also pushing the boundaries and taking things to the next level. That’s exactly the thing to keep in mind, you have way more value and a better focus on growth here, unlike other regions. Which is still fine, but it will be a bit of a struggle in other countries to get the same results as you would get here.

The incorporation process is not a pain

And that’s a fact! Incorporating a business anywhere in the world is always going to take some legwork and time. Singapore offers online solutions to incorporate a business. That removes a lot of the bureaucracy, along with tedious situations and struggles. Not only that, but you can also work closely with agencies that can help incorporate your company. It’s a solid approach and it will allow you to focus on creating and growing your company finally. They provide a sustainable environment for companies, and that alone is a game changing situation.

Other benefits provided by incorporating a company in Singapore

• The laws here are always focused on boosting the economy, and usually companies will benefit from them.
• Unlike other regions, you will be able to avoid restrictions or repatriation problems.
• The infrastructure in Singapore has been improved immensely over the years. Needless to say, that does have a significant benefit for a company that wants to grow here.
• You can find a lot of talented people here. There’s plenty of value to be had in pretty much any niche. In fact, many great people with amazing skills choose to migrate to Singapore in order to enjoy a fruitful and growing career here, which is something to keep in mind.
• The geographical location makes it easier to grow a company and connect strategically with people from other regions as well.

As you can see from the benefits of Singapore company incorporation, the country is an ideal place for any foreigner to incorporate a business. Aside from having a stable climate, you get a very good ROI, and the process of acquiring funding is a lot better. There’s also a consistent set of regulations and rules, something that helps companies grow and not worry about the future. That, combined with the great infrastructure, tax system and many others recommend it as great place to start a business from and operate it with great success!