Why is Singapore a preferred location for start-up ventures?

Singapore has been home to more than 7,000 offshore companies over last few decades due to the perfect environment it provides for start-ups to settle and flourish in. Company formation in Singapore is easy and rewarding.

Often referred to as the “Lion city”, it has a diversified economy which gives an instant boost to the ventures established there. It is also a global commerce and financial hub winning the title of world’s 4th largest financial centre.

Let us observe why company formation in Singapore is widely preferred and seen as a destination for investment for most of the offshore companies

1. Ease of Doing Business – Singapore is the finest company to do business as the processes are simplified and easy to follow. The laws and regulations pertaining to establishing and running a company are straight forward and less cumbersome. It has been ranked as the best country to do business in the world as per World Banks’s “Ease of doing business Index”.
2. Competitive economy – Singapore is known to have the freest economy in the world. Its economy is globalized and one of the most competitive in the world giving business an extra edge.
3. Diversified culturally – Singapore is a cosmopolitan country and hosts diverse religion, culture and languages that make it easier for offshore companies to operate business. Singapore has a friendly atmosphere which is easy to adjust in. About 62% of Singapore’s residents are foreign nationals with most of them originating from India, Malaysia, China and Europe.
4. Low Corruption – Singapore has maintained its rank as one of the least corrupt country consistently as per the Corruption Perception Index. This enables businesses to run freely without any prejudice.
5. Skilled workforce – Singapore promotes high quality of education causing its residents to be an educated lot. This enables entrepreneurs from offshore countries to recruit skilled workforce from Singapore itself and not depend upon sourcing employees from home country or nearby countries. This also saves them hassles of work permits, etc. which they would have required in case employees had to be outsourced.
6. Advanced Infrastructure – Singapore offers robust infrastructure that a start-up requires. It has provision for shared workspaces, incubators and accelerators which are cheap and available in plentitude.
7. Good Governance – The government of Singapore is foresighted and creates a conducive atmosphere for business to thrive in. It fosters easy and transparent processes for start-ups, plans well and executes flawlessly.
8. Low tax rates – Taxation for offshore companies in Singapore is one of the lowest. A flat rate of 17% is applicable on offshore entities. A complete tax exemption is given to start ups for income up to $1, 00, 000 for first 3 years of operation. The next slot up to $2,00,000 attracts a low tax rate of 8.5% only. Many other tax incentives are given to start-ups to make Singapore a tax haven for them.
9. Strong IP laws – It is crucial for any venture to protect its assets from infringement. The Intellectual Property Law is strong and ensures that assets like logo, brand name, product, image, etc. are well protected.

Company formation in Singapore is very rewarding for entrepreneurs who are looking for a chance to start a business in a different country from their origin.

No wonder, Singapore is a global economic hub to so many foreign start-up companies!