Expanding your business into new territory is always beneficial for growth financially and in terms of developing your skills as an entrepreneur, and Singapore is a great place to do just those two things. Whether you are an amateur or a complete beginner in business and trade and have only the faintest of clues as to what live indices actually do, the location where you build your business makes a world of difference.
One of the main goals of most entrepreneurs is to always look out for the domain in which their business would benefit the most. Even if your business consists of making trades online, your initial focus will constantly shift to the question of 'where should it be based'? Here are some of the business benefits that we think Singapore can provide for you.
Supportive of Startups
The government of Singapore has, over the years, introduced and adopted policies that are very startup-friendly, so whether you’re starting as a complete beginner or you’re simply entering new territory, there are plenty of benefits available to you.
Not only are there a variety of schemes, grants, and even certain tax exemptions for startups which is extremely beneficial, but if all your documents are in order, incorporation and registration can take as little as an hour. This means you can spend as little time on the admin side of things as possible and more time on the actual business side.
There is also no requirement for local shareholders to be a part of a company, so if you are someone branching out from another part of the world, then even as an international company, you can have full foreign ownership.
Global Trader Program (GTP)
The GTP is an example of tax concessions available for startup companies if they are able to meet some of the criteria set in place. This allows for the corporate tax rate to be reduced to 10% or even 5% on trade income that qualifies for over a period of three or five years.
Regional Headquarters Award
The RHA is another example of an incentive to operate your business in Singapore while still having ownership as a foreign entrepreneur. Here too, a concessionary tax rate of 15% has been put into place for a total of five years on qualifying income that comes in from outside of Singapore, replacing the otherwise 17% tax in Singapore.
A Place of Thriving Industries
Another reason Singapore is such a great location to take your entrepreneurship is that it is full of thriving industries that you can utilize and make your business a part of! Going to a place where there is no market or demand for supply would be pointless for the sake of growth, but where there is a consistent demand, that means there is always room for more businesses to enter the sphere.
In Singapore, for instance, 20-25% of its economy is owed to the manufacturing industry, and this includes everything from transport engineering, electronics, and even chemical engineering. Other industries that do especially well include wholesale trade, construction, food services, and hospitality, just to name a few.
Global Economic Ties
Another reason that makes Singapore so desirable as a business hub is thanks to the strong economic ties it has across the world with other countries and nations. Singapore is a part of the CPTPP - the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, as well as part of the ASEAN trade agreement - which stands for the Association of Southeast Asian Nations.
Being part of such associations and involved in partnerships such as the ones mentioned above means that Singapore has access to a plethora of countries to trade with, such as Thailand, Malaysia, and Brunei, just to name a handful of places. This brings additional economic benefits that you may not find if you venture out yourself or if you attempt to trade from countries that weren't in such partnerships. Whether you take advantage of this in the long run or from the get-go, it is worth knowing that you have access to such diversified markets, which can lead to further growth and opportunities.