Operating a trading company in Asia’s Lion City is a good move, many businessmen are choosing the city state as a place well suited for their business. Why is this so? Why are businessmen of different ethnicity and race flocking to this small state at the heart of the Southeast Asian region?
We’ll discuss the reasons why a foreigner like you can get a lot of advantage in choosing Singapore as a place to start-up your trading company.
Meeting the Lion City
Singapore is a rare gem, in the midst of gigantuan nations around it, it managed to rise and become a country with an economy stable enough to be considered as World Financial Centre. A nation which boasts of the following characteristics that make it such an advantageous location for doing trade.
- Clean & Stable Government – the country has a low corruption rate, this means that businessmen like you need not worry about shady business deals and under the table fees just to do business in the country. And you can be rest assured that the laws being imposed have no hidden agenda behind them and are solely for the benefit and welfare of the populace. The stability of its government also means that problems like insurgency or terrorism is something you won’t have worry about when doing trade here.
- Highly efficient Infrastructure system – the city state boast of a well planned city that mixes the awe of industrial engineering with a nature conscious mindset providing an incredible sight of a concrete jungle dotted with greenery. The city with its high-tech facilities makes it easier to integrate your business into the digital age. And it couples this technological infusion into its transport and security systems.
- Strategic Location – the city state is located at the heart of Southeast Asia which not only makes it the perfect base for foreign business to infiltrate the Asian market but it can also be the springboard for opening other trading routes in other countries. The location makes it ideal for starting a regional headquarters and its trade relations with other countries will open up doors for you to set up branches around Asia.
- Intelligent Workforce – getting a capable workforce in Singapore will not be hard since Singaporeans are well trained, literate and fluent English speakers. This competent workforce is one of the country’s strengths especially in the trading business sector. A foreign company like yours can start up your business without the worry of hiring unskilled and unqualified workers.
Business Friendly Singapore
Singapore is known as a business-friendly nation. Its government supports businesses and encourages industry growth with low tax rates and corporate tax incentives for both local and foreign businessmen. Here are the four steps the country has taken to ensure that it creates a pro-business environment.
- Easy Registration – registering a trading business or trading company in Singapore is easy, with steps clearly stated in the country’s government agency (Accounting and Corporate Regulatory Authority) website www.acra.gov.sg. You won’t have to worry about complicated registration processes and bureaucratic treatment. As long as you meet the simple requirement of ACRA then you are good to go.
- Low Tax Rate & Tax Exemptions– Singapore has a territorial-based tax system which means income earned outside of Singapore by a company (example a branch) will not be taxed. Any monetary gain earned by a company that is not within the borders of the country will not be taxed by the government unlike in other countries. The corporate tax rate in the country is relatively low when compared to other developed nations, at just 17%. And for foreigners like you thinking of doing foreign trading in the country, Singapore offers a tax exemption for start-up companies starting at 75% for the first $100,000 and 50% to the next $200,000 which totals to $300,000 in total exemption.
- International Trade Agreements – the country is home to Double Taxation Agreements with 84 countries and also hosts a Free Trade Agreements with countries like United States, Australia, New Zealand, India, Japan and many others. With these platforms and treaties in place any businessman would feel secure in doing trade in the country without having to worry about being taxed way beyond their capital.
- Business Centric Laws – the government has been implementing laws that safeguard businessmen from unfair trading practices. You can be assured that you won’t have to deal with laws that hinder your company from growing in the country’s diverse economy.
Singapore is a fruitful garden where any businessman can plant a seed and watch it thrive and grow in a well regulated and safe environment. Establishing a trading company in Singapore is a golden opportunity you cannot possibly pass-up, with a platform whose advantages outweigh its cons. So what are you waiting for? Set-up your trading company now!
Want to set-up a company but don’t know how? Give a call or send us a message, we’ll be glad to guide you through the whole process and help you start your business in no time.