Benefits of registering a company in Singapore
Posted by Jay Bhagat on December 9th, 2020
Singapore is officially known as the Republic of Singapore is one of the most prosperous countries in the world. Over the years, Singapore’s economy has developed highly to become a successful free market economy. There are a number of reasons as to why businessmen and investors wish to register a company in Singapore:
It is located between Malaysia and Indonesia off the southern edge of the Malay Peninsula. Its location ensures excellent connectivity and it is well connected through air making it easy to reach other destinations in no time.
It is one of the most competitive global economies and home to one of the world’s biggest financial centres and in terms of the tonnage handled, it has one of the world’s busiest ports.
Singapore is politically stable and the government is business friendly. It is one of the least corrupt countries in the world. In the coming years, the government aims to establish a new path to help focus on value creation and innovation and has introduced various schemes, incentives and allowances for taxpayers in those specified industries/activities that have been identified as beneficial for the development of their economy.
Singapore law does not allow foreign individuals or entities to self-register a company. You must engage a professional firm to register a Singapore company and have a director who resides in Singapore. But the process is very streamlined and all Singapore incorporation formalities can be handled without you having to visit Singapore with the exception being opening of a bank account (depending on the bank you choose).
The current tax rate is 17%. However, companies enjoy a partial tax exemption. 75% of the first SGD 10,000 of their chargeable income and 50% of the next SGD 190,000 is exempt from tax.
In case of new start-up companies (subject to certain qualifying conditions), 75% of the first SGD 100,000 of their chargeable income and 50% of the next SGD 100,000 is exempt from tax. This exemption applies only for the first three consecutive years of assessment. However, this scheme does not apply to new start-ups undertaking property development (for sale or for investment or for both) or investment holding.
Further, for the year of assessment 2020, companies are also entitled to a rebate of 25% which is capped at SGD 15,000.
Singapore’s education system is consistently ranked as one of best in the world and has produced a highly productive and diversified workforce competent to meet the challenges posed by growing businesses.
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About the AuthorJay Bhagat
Joined: February 7th, 2020
Articles Posted: 3
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