Singapore company setup
Healy Consultants Group PLC
16 April, 2014
Singapore is a low-tax jurisdiction where it is possible to engage in offshore company incorporation which can be legally 100% tax-exempt. With government incentives to benefit foreign entrepreneurs, starting a company in Singapore is quick and easy with minimal corruption, minimal business restrictions, and low bureaucracy.
There are many reasons why many foreign entrepreneurs choose Singapore to start their business. First, a Singapore limited liability company can be incorporated within one week with merely one shareholder and one director of any nationality. The minimum paid up share capital is US$1 and you will not have to travel to complete the setup procedure. Second, Singapore is one of the perfect tax-efficient in Asia because if properly structured, a Singapore resident company will not suffer tax on international income, all forms of dividends and capital gains. For resident companies, the first three years net profits under US$125,000 are tax exempt. Profits over this amount suffer corporate income tax of 17% which is the second lowest rate in APAC. In addition, regional withholding tax rates are minimized through the 69 double taxation treaties signed by Singapore. Thus extracting funds from regional subsidiary companies in the form of dividends, management fees and royalties.
Apart from the tax benefits, a Singapore company setup offers the best business gateway to Asia because of its strategic location. Located in the Centre of South East Asia, a three hour flight will connect you to major markets such as Hong Kong, China, Vietnam and Taiwan, with Malaysia and Indonesia less than an hour away. Singapore's stable political system adds another advantage which makes Singapore the perfect option for signing regional contracts with customers and suppliers for registering intellectual property. This is also why Singapore boasts the first place ranking on the 2013 world doing business survey, measuring ease of starting a business, paying taxes and getting credit, among other factors.
Being known as the premier financial hub of Asia, Singapore's financial Centre houses hundreds of financial companies, insurance companies, banks and asset management companies, earning low tax profits within a liberal economy free of exchange controls. Moreover, with a strategic location for wealthy Asian entrepreneurs, the city is synonymous with luxury and is home to some of the biggest brands in the world, catering to its world-leading population of millionaires. Singapore is ranked as the most innovative city in Asia for entrepreneurs, according to the Corporate Advisory Firm, Solidiance. Singapore's high rating was thanks to its talented labor force, relaxed regulatory framework and excellent technological infrastructure.
Last but not least, Singapore is one of the most livable city in Asia comprising a cosmopolitan and multinational population, high quality office and residential accommodation, reliable power and utilities, and first-class hotels, hospitals and schools. Entrepreneurs who choose Singapore to set up their business will benefit not only from the favorable business environment but also the living convenience.
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