Why a Singapore company is an appealing jewel

The short answer is that Singapore is one of the easiest jurisdictions in the world to do business. The business registration process is quite streamlined, a Singapore company is governed by company laws that work to minimise red tape and startup incentives allow new companies to flourish.

The company laws in Singapore that provide entrepreneurs tax exemptions are also a positive for tax authorities trying to combat tax evasion. While Singapore is a low-tax jurisdiction, it generally isn’t labeled a tax haven thanks to a multitude of double taxation treaties and legal guidelines that ensure full disclosure with international tax authorities.

Companies are required to submit annual financial statements and in some cases, an annual audit is required. This is all bad news for tax evaders but great news for entrepreneurs, as it provides a legal path to effective tax planning, as the majority of Singapore’s double taxation treaties help to reduce the tax burden on offshore companies.

These entrepreneurs will have nothing to hide from tax authorities and can enjoy the improved reputation of Singapore in the international business world that the transparency provides.

A low corporate tax rate stimulates both migration to and business in Singapore. The high level of regulation in Singapore helps the jurisdiction attract entrepreneurs and senior management of multi-national organisations looking for an efficient and reputable location for their business.

Being well regulated contributes to the good image that Singapore has and with so much attention on fighting illegal tax evasion practices it is important for a businesses success that there is no negative label associated with the jurisdiction where the country is set up.

Singapore also boosts a highly developed and secure banking sector, which is beneficial to support new business startups. There are a number of reasons for the success of Singapore as an offshore banking jurisdiction.

One of the reasons is simply down to the country's financial and economic stability, its high level of security, and its overall business friendly practices. Singapore’s offshore banking industry is also appealing due to the efficient taxation system within the country, some of the lowest rates in Asia.

In addition, Singapore is also rated as a grade A offshore centre. Singapore is a regional hub for many of the world's most powerful financial institutions, all major banks have a presence here. There is no doubt that offshore banking in Singapore is a seamless way for international investors and companies to enter the Asian markets and efficiently manage international financial transactions.

The Singapore government plays an active role in developing a conducive environment for enterprise growth, nurturing innovative startups, developing key industry clusters, and growing dynamic and innovative companies. There are numerous schemes implemented in line with developing and upgrading infrastructure and creating new market opportunities.

The SME Management Action for Results (SMART) initiative is one example that provides registered companies in Singapore with consultancy advice an d monetary support to develop enhanced management systems and processes.

The Technology Enterprise Commercialisation Scheme (TECS), which is managed by SPRING Singapore, recently helped 15 tech startups with significant funding to assist the development of their projects.

The government provides assistance schemes for foreign Entrepreneurs who are ready to incorporate a company in Singapore. Entrepreneurship Training for professionals, managers, executives and technicians and assistance with obtaining the required visas are two popular areas.

The Maritime and Port Authority (MPA) has also introduced new initiatives to further strengthen the maritime industry in Singapore. The Singapore University of Technology Design (SUTD) will run a Maritime Technology Professorship program supported by the MPA and the Singapore government.

So without even touching on the lifestyle aspects that attract people to Singapore, there are a number of reasons for the appeal of a Singapore company. The city state is a competitive global business hub that provides the incentives for entrepreneurial startups and the world class infrastructure and financial facilities that appeal to multi-national organisations.