Singapore is celebrated as one of the most sought-after destinations in the world in terms of business expansion. In recent years, both small and medium-sized enterprises (SMEs) have embraced global expansion in this part of the globe. To put this into perspective, an impressive 78% of SMEs who began their journey in Singapore now boast an international presence.
This is mainly down to the country’s advantageous bilateral agreements, robust trade infrastructure, and proximity. This makes integration into the global marketplace a breeze. The result? You gain a competitive advantage.
If you’re exploring how to grow your business in Singapore and beyond, you’ve come to the right place. In this handy guide, we give insight into how Singapore company formation can benefit your existing business. Read on to discover more.
Why Singapore?
The process surrounding Singapore Company Formation is celebrated for being quicker and easier than in other countries. Provided you have all the correct documents, the process takes just a day to complete. The best part? The application can be completed online, meaning you don’t have to be in the country to start the ball rolling.
1. Attractive Taxes Reasons
Singapore boasts numerous attractive tax incentives to entice foreign investors, particularly for businesses. These comprise a tax exemption scheme, double tax deduction, and corporate income tax.
2. International Ranking
In 2019, the country took the title of #1 best business environment in the Asia Pacific and the world. This title was awarded by (The Economist Intelligence Unit. In addition, according to The Global Competitiveness Report, 2019, it has overtaken the USA and now sits at the top of the Global Competitiveness Index 4.0.
3. Trade Agreements
In terms of the global economy, Singapore strongly supports free trade. The country has continuously developed Trade Agreement networks with over 20 regional and bilateral FTAs and an impressive 41 Investment Guarantee Agreements.
4. Business-Friendly Government Policies
Singapore is renowned for its business-friendly government policies. These relaxed policies are an asset to investors and company owners. To support businesses, the Singapore government is constantly reviewing and improving these policies.
An example of this? When COVID struck in 2020, to prevent the effects of the pandemic on the economy, the Singapore government introduced a support and stabilization package valued at $4 billion Singapore dollars. This was put in place to assist local and global businesses and employees and comprised:
Corporate Income Tax Rebates: They capped the rate of 25% of tax payable at $15,000 Singapore dollars for each business. The total for this amounted to $400 million.
Jobs Support Scheme: The Singapore government helped enterprises by lessening employee expenses. For every local worker, they promise to offset 8% of the wages for three months. This has a monthly wage cap of $3,600.
5. Expanding Your Business Outside of Singapore
For many reasons, many small and medium-sized enterprises are expanding outside Singapore. The biggest one is that the nation actively embraces open trade. In addition, almost all imports are duty-free. The government backs several initiatives by Singapore-based businesses to embrace domestic and foreign investment. It comes as no surprise that this entices foreign investors to the market. This has made Singapore one of the most competitive economies across the globe.
Singapore-based businesses benefit from growing their offerings internationally, as this allows them to gain a competitive edge over the competition.
In addition, this part of the world is said to be one of Asia’s top economies, mainly because it boasts a strategic location to expand businesses of all sizes. On top of this, another benefit surrounds Singapore being part of the Association of Southeast Asian Nations (ASEAN), which makes access to other member states a breeze.
6. Remote Work
Although a distant memory, the pandemic has meant many companies are now embracing remote work. The digitalization of businesses across the globe has made it easier than ever to partner with companies abroad. To support this, Singapore’s government has programs in place to support companies to expand internationally through remote workforces. This initiative goes by the name of the Go Digital program and helps businesses grow their technological infrastructure.
Why Expansion is an Asset for Companies Based in Singapore
Singapore, despite its tech-savvy appearance, is a small country with limited resources. This is one of the reasons the government backs international businesses and embraces global partnerships.
Due to this, even in a highly competitive market, Singapore-based businesses can easily benefit from international growth.
Advantages include:
- Heightened stability and flexibility through diversification
- The opportunity to grow your brand awareness
- Access to new and exciting markets
- Reduced labor costs
- Workforce development opportunities
The Bottom Line
If expanding your business is your main goal, embracing everything Singapore has to offer in terms of company growth initiatives is crucial. From reduced labor costs to remote work deployment, heightened flexibility, and the opportunity to access new markets, there are many benefits to Singapore Company Formation.
Plus, it’s one of the quickest places in the world to form a business, and the entire application process can be completed online. Add this to the many government programs available, it’s little wonder this is a popular choice for companies wishing to expand their offerings.