3 Reasons Singapore is Becoming a Haven for New Businesses
One of the most important parts of doing business in any industry is being able to recognize an opportunity for positive change or growth. In recent years, entrepreneurs who understood this concept the most have begun looking for ways to do business internationally with fewer burdens in regard to taxes and regulatory obligations. As a result, many resourceful company founders are turning to the small nation of Singapore, where lenient taxes and a stable economy provide the promise of conducting business in a safer, more lucrative environment. In the following paragraphs, we’ll examine three of the top reasons why Singapore is quickly becoming a haven for new companies of all kinds.
1. Entrepreneurs Want to Live in Singapore
Singapore is ranked as the third wealthiest nation in the world according to Forbes’ list of The World’s Richest Nations. The country has also received accolades for being one of the countries with the highest quality of life and strongest economies. Ernst and Young ranked Singapore as the third-most globalized economy. Thus, living and doing business in Singapore has become somewhat of an exclusive, prestigious club that many entrepreneurs and investors aim for. With so many wealthy, business-oriented individuals in a small country that’s only about three times the size of Washington D.C., it’s no wonder Singapore is quickly becoming one of the world’s busiest business havens and financial centres.
2. Tax Laws and Rates Are Great
While Singapore is not considered a “tax haven”” in the conventional sense of the phrase, it does have highly competitive corporate tax rates and laws, with no capital gains or dividend taxes, no estate or inheritance taxes, and no taxes on profits earned outside of the republic. The Singapore corporate tax rate is at approx. 8.5% on annual profits up to $300k and a flat 17% on profits above that amount. Such favourable tax rates and lenient regulations have attracted investors from the around the world, and have been credited for being a primary contributor to the nation’s recent economic boom.
3. It’s the Easiest Place to Do Business, Literally
This isn’t just a vague bragging point, the World Bank has literally ranked Singapore as the “Easiest Place to do Business” for the past 9 years consecutively. Why is it so “easy” to do business there? Regulatory obligations associated with opening a company are very lenient, and the country has efficient incorporation systems in place to make it a breeze for anyone trying to open a new company. Many companies that are set up in Singapore are run by owners who reside overseas and operate the business via a virtual office address in Singapore. In fact, the ease of setting up and doing business in Singapore is probably one of the reasons why the nation has such a well-globalized economy.
Finally, in addition to the benefits listed above, another reason why so many investors and executives are migrating to Singapore is the lure of becoming part of an exclusive club of prominent businessmen and billionaires who have moved their homes and operations to the country in recent years, which include big names like Eduardo Saverin (Facebook co-founder) and Jim Rogers (prolific American investor).