- Singapore has been ranked as the best country to do business for the 10th consecutive year, according to the annual survey by the World Bank.
- Source based taxation system.
- Rated as having the best labor force in the world.
- The most important business hub in Southeast Asia.
Located in the heart of Southeast Asia, Singapore has proven to be the ideal location to set-up a business due to its many advantages. It boasts a thriving business environment that caters to the diverse needs of both local and foreign entrepreneurs. In terms of competitiveness, it sits comfortably as the second most competitive city in the world.
Singapore has built on its advantageous geographical location one of the world’s tops transportation hubs for sea and air cargo. Home to the busiest port in the world, Singapore is a developed country in one of the fastest growing economies in the world. Changi International Airport is linked to some 280 cities in 60 countries, with about 6,900 weekly flights, providing convenience and effective global connectivity for passengers and cargo.
Singapore’s business appeal also lies on its low corporate tax rates and attractive tax benefits. It has a territorial tax regime, which means that a corporation can only be taxed on business that takes place in Singapore.
Singapore’s extensive trade agreements provide companies with greater market connectivity through the reduction of tariff and non-tariff barriers. It currently boasts the most extensive network of free trade agreements (FTAs) in Asia. Agreements have been signed with key economies such as US, Japan, Australia, New Zealand, members of the European Free Trade Association, China, India, Panama etc. Offering a well developed financial system and stable political environment, Singapore provides an excellent environment to start or expand your business in Asia and worldwide. The main benefits that makes Singapore such an attractive business destination are clear and transparent corporate tax rates, availability of funding, talented workforce, flexible immigration policies for expatriates, advanced infrastructure and one of the lowest crime rates in the world.
TAXATION & LAW:
Singapore has more than 70 Double Tax Treaties (DTAs) in place and 21 Free Trade Agreements (FTAs), basically eliminating the risk of being double taxed in more then one jurisdiction. Its legal system is based on the British Common Law, with the main advantage that its corporate tax system works on a territorial basis. Any profits that are derived from business activities outside Singapore, can be tax exempt if all the requirements are met.
- 8.5 % corporate tax rate for profits up to 300.000 SGD (equivalent of around 220.000 USD.
- 17 % corporate tax rate for profits exceeding 300.000 SG.
- 0 % tax rate for foreign-sourced income not brought into Singapore.
- No tax on capital gains accrued by the company.
- No withholding tax.
- No capital gains tax.
- No tax on dividend distribution to shareholders.
- Goods and Services Tax (GST) rate of 7%.
There are a number of main business entity types that can be formed in Singapore:
- Limited Liability Company (LLC) – company limited by shares, either Private or Public.
- Foreign Company Registration: Subsidiary Company, Branch Office or Representative Office.
- Partnership: General Partnership, Limited Partnership & Limited Liability Partnership.
The Singapore law requires a minimum of one resident director (a resident is defined as a Singapore Citizen, a Singaporean Permanent Resident, or a person who has been issued an Entrepass, Employment Pass, or Dependent Pass). Every company must appoint a qualified company secretary within 6 months of its incorporation. It has to be noted that in case of a sole director/shareholder, the same person cannot act as the company secretary.
It is required to file an Annual Return with the Accounting and Corporate Regulatory Authority (ACRA) and the Annual Tax Return with the Inland Revenue Authority of Singapore (IRAS).
Each Singapore company must hold an Annual General Meeting (AGM) once every calendar year.
Our company offers a full range of corporate services, from local, free zone and off-shore company formation, to accounting services, auditing support, bank account opening, resident visa services, business advisory and compliance services.