Singapore has attracted various organizations – ranging from the Fortune 500 companies, small and medium enterprises, educational institutions to news bureaus – to form their place in Singapore’s business landscape.
Singapore is well known around the world as a multicultural, multi religious and multi-racial harmonious island food paradise.
Starting as a quiet, laid back fishing village, Singapore has grown exponentially to become one of the most densely populated countries in the world with a population of 4.8 million, living closely together in a land area of 224.5 square miles.
Singapore has also become the richest country in South East Asia and one of the most developed countries in the world.
It is no surprise then that Singapore has attracted various organizations as mentioned above to settle here.
1 - A favorable Business Climate
According to the Ministry of Trade & Industry (MTI), there is an estimated 6,000 Multi-National Corporations (MNCs) in Singapore. Many of these MNCs have chosen Singapore as the prime location of their Asia Pacific headquarters due to its positive business climate.
For example, the World Bank’s Doing Business Report ranked Singapore as the world’s easiest place to do business – ahead of New Zealand, United States and Singapore’s closest competitor, Hong Kong.
The EIU Country Forecast also rated Singapore as having the best business environment in Asia Pacific and third in the world. These rankings by independent bodies are reflections of the Singapore Government’s efforts in providing efficient public sector services that support the private sector growth.
2 - World Class Transportation System
Singapore’s Changi International Airport (IATA: SIN) has three heavily used terminals serving over 100 international airlines flying to more than 210 cities in 60 countries.
SIN handles more than 6,100 arrivals and departures weekly, 42.1 million passengers and nearly 2.0 million tons of air freight in 2010, which made it the 18th busiest airport in the world.
With the high cost of owning private transportation, public transportation is efficient, frequent and spans every far reaching corner of the island. Singaporeans flock to the 89 railway stations of the Singapore’s Mass Rapid Transit (MRT) system which has a daily ridership of 2.3 million.
The two public bus companies (SBS and SMRT) with a fleet of 3,445 single and double decker air-conditioned buses transport nearly 3.4 million daily passenger trips safely to over 300 routes island wide.
3 - Highly Educated Workforce
Singapore boasts one of the most educated workforces in the world. Literacy rate stands at a formidable 96%. 89.6% of resident non students aged 25-39 have secondary or higher qualifications. A further significant testament to the huge importance placed on education, the Singapore Government invested 7.3 billion S$ in education in 2008. This comes up to 25.5% of total government operating expenditure, making education the second highest expenditure after security and defense. In addition, Singapore’s two long established universities, the National University of Singapore (NUS) and Nanyang Technological University (NTU) also rank favorably on various university ranking surveys.
For example, based on the respectable The Times Higher Education World University Rankings of 2008, NUS achieved the 30th spot while NTU is ranked 77. Therein, businesses have a population of strongly qualified human resources they can count on to advance their companies to greater heights of excellence.
4 - Extensive Support for Budding and Established Entrepreneurs
Singapore is a nation birthed from the blood, sweat and tears of pioneer entrepreneurs. Entrepreneurship is promoted in Singapore by the government rather passionately. The Singapore government has provided various support systems for entrepreneurs such as lower tax rates, tax exemptions and numerous schemes to encourage individual business formation.
There are also many nonprofit organizations such as the Spirit of Enterprise that is committed to honor entrepreneurs, providing a network of support and organizing events where likeminded individuals can meet and share ideas.
5 - Clean and Efficient Public Sector
The public sector in Singapore has a reputation for being very supportive of private sector initiatives and growth. Numerous policies in various government agencies are created to ensure the private sector is not stifled by bureaucratic practices.
In fact, Singapore was ranked as the least bureaucratic place for doing business in Asia by the respectable Political and Economic Risk Consultancy (PERC) agency. The IMD World Competitiveness Report 2008 also ranked Singapore 3rd in the world and 1st in Asia for having the least corruption in its economy.
Corrupt practices by public officers are investigated by the Corrupt Practices Investigation Bureau (CPIB).
Any malpractice identified is heavily subjected with disciplinary action, public attention in the media, fines and/or jail sentence.
Incorporating a company in Singapore provides several advantages, especially when it comes to taxation and the limit on business-related liabilities and debts. However, it is important to note that this business entity has also some disadvantages which must be considered.
Here’s a rundown of the Advantages & Disadvantages of Singapore company incorporation:
1 - Advantages of Company Incorporation in Singapore
2 - Disadvantages of Company Incorporation in Singapore
Singapore has been voted as the ideal location for global entrepreneurs – with world-class infrastructure, well developed capital markets, highly educated work force, stable political institutions, very low crime, safe living environment and an attractive tax regime.
No wonder it is the most sought location for business and migration.
We from MCI help entrepreneurs as our clients to setup their Singapore Company by assisting the incorporation of the Singapore Company and successfully securing their work pass, be it Employment Pass (EP), EntrePass or Personalized Employment pass (PEP).
Choosing the right business structure is essential to business success when it comes to incorporating a company. Your choice can affect your business’s image and reputation among clients and banks, administrative procedures, taxes, personal liabilities as well as the ability to expand your company operations.
To help you select the right business entity for your business success, we’ve provided you with an overview of the different type of business structures available to start your Singapore company incorporation process. Each entity is subject to different regulatory and tax rates that reflect their organization and ownership.
More details can be requested by you, following the information at the end of this article.
We are also available for consultation if you have questions about a suitable business entity for your company incorporation.
Few types of business activities require a business license in Singapore. Essentially, a business license is a permit issued by a Singapore government agency that allows you to conduct a specific type of business. In order to apply for a business license in Singapore, the company must be first registered with the registrar of companies.
In Singapore, establishing a business is a relatively simple and straightforward procedure. The business licensing procedure has been simplified to a great extent. If all necessary documentation is submitted and satisfies / complies with all other requirements, there is no reason for a license to be rejected. But it is advisable to engage a professional services firm to utilize specific knowledge, save time and resources.
In general, it may take between 1 – 8 weeks to obtain a business license or permit, depending on the type of license.
3 General Types of Business Licenses in Singapore
Our available Whitepaper Singapore explains further the following most common business licenses in Singapore:
Singapore is a flourishing financial center of international repute – servicing not only its domestic economy per se, but also the entire Asia Pacific region.
The banking industry is a key player in the country’s financial market segment, soon emerging as one of the strongest in the world. Factors such as a sound economic and political environment, conducive legal and tax policies, reputation for integrity, and strict enforcement against crime and money laundering, have contributed to Singapore’s status as an International Finance Centre – the third largest in Asia, after Japan and Hong Kong.
Today there are as many as 108 foreign banks and 6 local banks that dominate the banking scene.
Factors that have contributed to the success of the banking industry in Singapore include:
Types of Banks in Singapore
Most banks in Singapore cater to different types of clients – individuals, corporations or government agencies. These banks provide commercial banking (catering to businesses and corporations), retail banking (catering to individual members of the public) and private banking (catering to HNWIs) services.
Banks can be classified into 2 main categories:
Local Banks
Foreign Banks – further sub-divided into
Major Banks in Singapore
MCI Counselors Law & Tax is working in Singapore with the following Bank Institutes: DBS, HSBC, OCBC, UOB.
In particular cases, the opening of bank accounts remote (via Dubai, Zurich and Hong Kong) is possible.
MCI Counselors Law & Tax is constantly present in Singapore with its own subsidiary, ITI Innovative Technologies Invest Pvt. Ltd. (contact details see our imprint). We published a Whitepaper Singapore which can be requested by you via our Order Form in the Download Section.
Please don’t hesitate to contact us in case of any open questions. Kindly understand that within offered Standard Packages no kind of tax relevant advice can be given. There are various options and further models available on demand. Kindly ask in that case for your individual quotation, based on a phone / Skype Consultation free of charge.
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Document Release: 25.02.2012, variable
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