Know Singapore's Business Environment
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Know Singapore's Business Environment

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Primer on Singapore's laws about company formation, corporate taxes & benefits of incorporation. With statistics. Updated in early 2011.

Primer on Singapore's laws about company formation, corporate taxes & benefits of incorporation. With statistics. Updated in early 2011.

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    Know Singapore's Business Environment Know Singapore's Business Environment Document Transcript

    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com 1. Know Singapore. a. Doing Business in Singapore. Classed as the world’s easiest place to do business (Doing Business 2009 report), Singapore welcomes investors with a smooth channel for their ventures. By having your international HQs in Singapore, companies benefit from Singapore’s network of over 50 comprehensive Double Taxation Avoidance Agreements. They also gain from Singapore’s many free trade agreements and the 35 Investment Guarantee Agreements. Companies can always rely on protection of their ideas and innovations through Singapore’s strong intellectual property laws. There are over 4,500 companies offering professional services, including audit, accounting and management consulting; market research, advertising and public relations; human capital services; and legal services to assist you to establish successfully in Singapore.Setting up a business in Singapore is easy and the procedures can be completed in 1 to 2 working days! All businesses must be registered with the Accounting and Corporate Regulatory Authority (ACRA) Representative Offices (ROs) need to be registered with International Enterprise (IE) Singapore, while ROs in banking and insurance have to register with the Monetary Authority of Singapore (MAS). We at Servolve will assist you in Setting up your Business in the most cost effective and efficient way. Our committed employee’s only mission is to serve you the best possible way and our measure of success is your appreciation for getting the best service. Everyone in Servolve believe in “Serve Love and Evolve” together. (Setup My Business in Singapore) – add the hyper link to steps to business setup along with contact us page and order now with a cart. b. Strategic Location. Singapore is strategically located at the heart of ASEAN (Association of South East Asian Nations). Its extensive air and sea linkages enables your business to access 2.8 billion people within a seven hour flight radius. This makes it a critical hub for professional exchange as well as inter-regional and intra-regional trade. Singapores port is one of the busiest in the world and the country is classified as a premier International Maritime Centre. Changi Airport of Singapore has 80 airlines that connect you to over 180 cities in 50 countries si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com and serves over 15 million passengers annually. Its liberal air policy to open up to the rest of the world, emphasis on competitiveness, efficiency and service has made it the Best Airport in the World for 20 consecutive years (1998-2007). Thus Singapore provides your business with easy geographic access to all major Asian markets including China, India, Australia, Taiwan, Malaysia, etc. c. Infrastructure. Singapore is one of the very few countries in Asia to offer world class physical and research infrastructure. With parallel growth in various industrial sectors, Singapore has been relentlessly upgrading its infrastructure to not only accommodate, but also stay ahead of business demands. Singapores physical and research infrastructure will assist you to set up your business operations along with ensuring long term growth with ease. Singapore has hosted some of the worlds most prestigious business events like: The World Economic Forum 2005, the 117th International Olympic Committee Session held in 2005 and the 2006 Board of Governors Annual Meeting of the IMF and World Bank. Depending on the size and nature of your Singapore business, you can choose from setting up operations in an industrial/business park, build your own establishment on industrial land or move into readily available commercial office space or ready built standard factories. Singapore even offer virtual office services based up on your business for assisting you do your business operations and enabling easy entry in to Singapore. Singapore is a technology savvy country which tries to use technology to build efficiency. It is interesting to note that 99% of the population has access to broadband network and there is no wonder in often being described as a plug and play nation. d. Business Pro environment.Singapore Government is very particular about creating a Business pro environment and thus si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.comencourages people to start and establish business. It also has very transparent laws and policies sothat people across the world can come and use the world class environment for them establish.More over Singapore immigration laws for foreign talent highly-regarded for being business-centric. Singapores Ranking Category Ranking Source Description Singapore was topped in this category for the Worlds easiest place to do Doing Business 2010 years 2009 and business 1 Report, World Bank 2010 City with the best investment potential - (Profit Opportunity For 16 consecutive recommendation) 2 BERI Report 2010 years world leader in foreign trade The Globalization and investment 1 Index 2009 Having the most open economy for international trade and The Global Enabling investment 1 Trade Report - 2010 IMD World Most competitive country in the Competiveness year world 1 Book - 2010 Economist Intelligence Unit, Country EIU Business Best business environment in Forecasts, December Environment Asia Pacific and worldwide 1 2009 Ranking - 2009 Global Information technology report - Singapore is Asias 2009- 2010, World most "network Most "network ready" country 2 Economic Forum ready" country si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com Global Best protection of intellectual Competitiveness property 1 Report , 2009 - 2010 IMD World Least bureaucratic place for Competiveness year doing business in Asia 1 Book - 2010 Singapore is ranked 4th in the world and 1st in Asia for IMD World having the least Least corruption in its economy Competiveness year corruption in its in Asia 1 Book - 2009 economy IMD World Most transparent country in the Competiveness year world and Asia 1 Book - 2009 Singapore has topped BERIs Labour Force BERIs Labour Force Evaluation Measure BERIs Labour Force Evaluation Evaluation Measure (LFEM Report) for Measure 1 Report - 2010 last 31 Years. Singapore is ranked 7th in the world and 2nd in Asia for IMD World having the most Most motivated workforce in Competiveness year motivated Asia 2 Book - 2010 workforce si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com Singapore is among IMD World the top 5 in Asia for Competiveness year the best skilled Best skilled labour in Asia 5 Book - 2010 labour Singapores labour IMD World regulations are the Most business conducive labour Competiveness year most business regulations in the World 2 Book - 2010 conducive in Asia The Global Competitiveness Report 2009-2010, World Economic Labour/employer relations 1 Forum Foreign talent rank IMD World Singapore as Asias Competiveness year best country to Best country to work in 2 Book - 2010 work in ECA Location Ratings Survey, ECA Singapore is the International, 24 first choice for First choice for Asian expatriates 1 March 2010 Asian expatriates e. Trade Agreements. Free Trade Agreements are the secrets behind connecting Singapore to major economies and new markets worldwide. The benefits that your business gets to enjoy are: tariff concessions, preferential access to certain sectors, faster entry into markets and Intellectual Property (IP) protection. Singapore currently has FTAs in force with worlds leading trading partners to help reduce the tax burden on your Singapore business. Agreements have been signed with key si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com economies such as USA, Japan, Australia, New Zealand, China, India, South Korea, Panama, Chile, Jordan, Switzerland, Iceland, Norway, and many more. Singapore has also signed 35 Investment Guarantee Agreements (IGA), which help to protect business investments made by Singapore-based companies in other countries against non- commercial risks. Singapore is also part of Schemes of Preferences designed to help reduce trade barriers. f. Immigration and Visas. Singapores open Immigration policy enables the relocation of foreigners who wish to establish their business in Singapore. If you are a business entrepreneur who needs to relocate to Singapore to run your business or if you need to hire foreign professionals - the government has anticipated your needs and appropriate Singapore work visa provisions have been made to cater to such needs. Singapore aims at transforming itself into the "talent capital of the global economy. As an aid to achieving this goal, it has liberalized its immigration policy, making it easier for foreign professionals to gain Singapore Permanent Residence (PR) status. •High skilled manpower are allowed to bring their family members and they are also exempt from quota system. •Foreign professionals are encouraged to become PRs. The government has ensured that PRs also enjoy many benefits that of like citizens.Singapore immigration laws for foreign talent highly-regarded for being business-centric.According to IMD World Competiveness year Book – 2010 Singapore Scores 6.83 rated out of 10,which states that the immigration laws prevent considerably less for employing foreign nationals. g. Quality Life. According to the Mercer Quality of Living global city rankings 2009, Singapore topped the si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com list for quality of life in Asia as well as for city infrastructure in the world. An annual survey by human resources consultancy ECA International comparing 254 international locations found that Asian expatriates ranked Singapore as their preferred city to live in, citing the high standards of infrastructure and healthcare, as well as low crime rates. The city’s modern facilities for education, dining, shopping and recreation also add to its appeal. The Global Country Brand Index ranked Singapore 2nd in the world for its shopping, nightlife and dining. Singapore is Cosmopolitan country where one can see the harmonious Co existence of different cultures, lifestyles and religions which unique in its nature. Singapore has a warm and pleasant weather round the year and this adds tremendously to the comfort level of people here. More over Singapore is considered as one of the cleanest and greenest city in the world. One among the three persons here are foreigners who is either working or doing business in Singapore. This adds to the variety of culture Singapore has and shows the welcoming nature of the country. There are numerous schools catering to the education needs of expatriate children while its local schooling system has achieved academic distinction. h. Skilled Workforce: Almost one in four skilled workers in Singapore are from overseas. To work in Singapore means to to be part of an international workforce that is highly skilled and proficient in English and often one other regional language. The government and corporations also encourage in training, offering continuous opportunities to enhance the qualifications, productivity and skills of the work force. All these factors make Singapore-bred talent highly valued in the light of a global economy. (Setup My Business in Singapore) – add the hyper link to steps to business setup along with contact us page and order now with a cart. i. Governance si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.comTaxes & BenefitsThere are many reasons why one has to choose Singapore to initiate their business setup andestablish their operations in Singapore.The Primary one is the ease of setting up and operating business.Very attractive corporate and personal tax regime, tax relief measures, absence of capital gains tax,one-tier tax system, and extensive double tax treaties. a. Corporate TaxOne of the lowest effective corporate tax rates in the world, attractive tax incentives and generousdeductions make Singapore an inviting place to do business in.Corporate Tax Rate is capped at 17%. Singapore follows a single-tier corporate tax system, wheretax paid by a company on its profits is not imputed to the shareholders (i.e. dividends are tax free).A Tax Resident Singapore Company (The control and management of the business is exercised inSingapore. Since Singapore encourages entrepreneurship, there are lots of flexibilities that one canenjoy, especially for a new start up company) can enjoy the below benefits. 1. Tax exemption scheme available for new start-up companies. 2. Tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income. 3. Benefits from Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries. 4. Tax is considered for the income remitted in Singapore.Tax Rate for the First three years of a Resident Singapore Company si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.comTax Rate from fourth year onwards for a Resident Singapore Company My si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.comCompany can enjoy these benefits? a. Is your company a resident Singapore Company for the year of assessment? (Contact Us for assistance) – a link to our service – Company incorporation. b. Is the number of share holders of your company is not more than 20? c. At least one your company share holder has not less than 10 % of holdings?If the answer is yes for the above questions, you are eligible for availing all the benefits ofSingapore Flexi Tax Regime.NB: For our expert advice and suggestions, please contact our specialist. ( A Link to contact usfollowed by our services, company incorporation)More Benefits…..???Category Tax Rate Tax rate on capital gains accrued by the company 0% Tax rate on dividends distribution to shareholder 0% Tax rate on foreign-sourced income not brought into 0% Singapore Tax rate on foreign-sourced income brought into 0 - 17% subject to certain Singapore conditions Finance & Treasury Centre Co. 10% Fund Manager 10 / exempt% Headquarters Co. 10% International Commodity Trader 10% Offshore Leasing 10% Oil Trader 10% Securities Company 10%/exempt Trustee Company 10% si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 support@servolve.com ; http://www.servolve.com Arts & Antique Dealers 10% Asian Currency Unit 10%/exempt Insurance & Re-insurance Co. 10%/exempt b. Personal TaxAll individuals who generate an income of S$20,000 or more from Singapore are liable for payingtax and hence to file their returns. Singapore follows a progressive tax rate starting at 0% andending at 20% above S$320,000. There is no capital gain or inheritance tax. Individuals are taxedonly on the income earned in Singapore. The income earned by individuals while working overseasis not subject to taxation barring few exceptions. Personal Tax Rates Income Tax Rate Tax rate on first 20,000 0% Tax rate on next 10,000 3.50% Tax rate on next 10,000 5.50% Tax rate on next 40,000 8.50% Tax rate on next 80,000 14% Tax rate on next 160,000 17% Tax rate on above 320,000 20% Tax rate on capital gains 0% Tax rate on income earned overseas 0% Tax rate on dividends received Singapore 0% company si n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © r of yl n o d e d n et ni n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht.l a i r et a m d e g e li vi r p
    • .l a i r et a m d e g e li vi r p n i at n o c y a m d n a d e s s e r d d a si ti h ci h w o t ytit n e r o n o s r e p e ht r of yl n o d e d n et nisi n oi t a m r of ni si h T . d e v r e s e r st h gi r ll A . dt L . et P e vl o v r e S 0 1 0 2 t h g i r y p o C © support@servolve.com ; http://www.servolve.com Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 U.E.N. : 201016972C Republic Of Singapore–069120 #03-05 Red Dot Traffic Building, 28 Maxwell Road, Servolve Pte. Ltd.