The many attractions of establishing business in Singapore

Singapore is a startup-friendly country, trading across numerous borders and enforcing regulations that protect both its investors and employees, so it would be wise to finance your startup in Singapore. The country is known as a key player in regional trade and the fact that it is also a reputable financial center ranks Singapore as one of the most profitable countries for business investors.

At the time of writing, there are already over 100,000 small and medium-sized enterprises (SMEs) in Singapore, all of which benefit from the country’s business-friendly policies, such as a flat corporate income tax rate from 17% (which is further discounted to 9% for companies with annual earnings below S$300,000). It is estimated that these SMEs contribute to a whopping 35% of the country’s economy and it is an industry that employs more than 50% of Singapore’s workforce.

Currently, Singapore is home to more than seventy international airlines and has signed Free Trade Agreements (FTAs) with key world leading economies such as China, the United States of America, the European Union, Australia and New Zealand. These agreements help foster greater business opportunities for Singaporean companies and help boost business operations in Singapore to other countries around the world.

Singapore citizens and permanent residents are all eligible to form their own start-up companies in Singapore, regardless of whether one intends to create a limited liability company, sole proprietorship or limited liability company. Even foreigners and non-residents can easily incorporate a company by appointing a nominee director who is a resident and “leasing” a local address.

A private limited company (also commonly known as a Limited Liability Company) is easily identified by the words ‘Pte Ltd’ at the end of the company name and business operations are conducted with the understanding that all directors and shareholders of the company are only liable to a certain extent in the event that the company incurs losses or debts. For this reason, most Singaporean companies are limited liability companies, as this form of business is considered to offer the least financial risk.

Like the limited liability company, the limited liability company also operates with the understanding that the business operates under a separate legal identity. This form of association is suitable for professional services such as architecture or law firms and consultants.

Finally, the sole proprietorship entity is intended for businesses that are run with a single person in charge of all business operations. This also means that all liabilities and assets are owned by this individual.

With an impressive 95.9% literacy rate and a strong workforce that is fluent in English and Mandarin, Singapore is destined to be a strategic link between Western and Asian business operations.