Benefit of company incorporation in Singapore


Many organizations that track the business compatibility of a country can offer a lot of comfort to Singapore, which can lead to new businesses in Singapore. In 2016, the World Bank ranked Singapore as the world's leading country in "docking business".

Attractive Tax System

Singapore is the simplest and most reasonable tax system in the world. It does not impose taxes on capital gains and does not apply to profits from the business. This is particularly appealing to entrepreneurs who want to add and build new businesses.

Singapore uses a layered tax system for personal and corporate taxes. The new company receives a tax exemption for the first three years with an initial income of $ 100. The corporate tax rate has reached 17%.

Similarly, personal tax rates start at 0% and increase to S $ 320,000 (S $) up to 20%. Corporate profits are not double taxation when delivered to shareholders as dividends. In other words, dividend shareholders are divided into duty-free. Finally, Singapore charges one of the lowest rates in the world.

Avoidance of Double Taxation

Singapore has an extensive network of telecommunication agreements (DTAs) with more than 50 countries, and agreements have been concluded to ensure that economic transactions between Singapore and treaty countries do not suffer from double taxation. Singapore also offers unilateral tax credit (UTC) for countries that do not have a DTA. In this way, Singapore tax companies will not suffer from double taxation.

Currency Control and 100% Foreign Ownership

Singapore allows foreign companies to hold a 100% stake in a Singapore company. No regional partners or shareholders are required. This allows you to start with the desired capital structure to meet your investment needs. There is also no limit on the amount of capital you can bring from your home country to invest in your Singapore company.

Singapore does not make any restrictions on the return of profits. No tax will be imposed on capital gains from business sales. Similarly, profits paid to shareholders are not taxed.

Singapore does not impose any restrictions on foreign exchange activity at home or abroad. This cross-border move can give your business much flexibility. Comparing the situation with countries like China and India will be a big obstacle to the foreign exchange liberation movement.

Ease of Incorporation and Operation

Singapore has the most efficient and bureaucratic regulatory system in the world. For nine consecutive years, Singapore ranked first in the World Bank's ease of doing business survey. The conditions for corporate integration are simple and the process is simple. In most cases, it will not take a day to include the new company.


Read Also: Registration of Local Malaysian Company

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