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7 Reasons for Starting a Business in Singapore

Business in Singapore

Various rating agencies have rated Singapore as one of the best and business-friendly countries for setting up a business among other suitable countries for business. The World Bank Group rated Singapore as one of the best countries for ease of doing business in the year 2016 due to several advantages.

The set-up of business in Singapore is a hassle-free process as compared to other countries. It is because of several benefits like tax benefits, well-structured infrastructure, availability of human capital and its location in India. Singapore is also known for having advanced technological and financial services. It has now become a hub for several entrepreneurs and investors to start a business in Singapore.  

Several benefits to start a business in Singapore are described below:

  1. Ease of Doing Business
    The ease of doing business index is a system established by the World Bank for giving ranks to countries as per the feasibility of establishing and running a business in that specific country. Several features depicting ease of doing business in Singapore are less time period required for incorporation of a company as compared to other developed countries. With the use of technology, the non-residents of Singapore have been provided with an online platform to start a business in Singapore.
  2. Attractive Tax Rates
    The well-established taxation system is one of the major reasons that attract the majority of businessmen. The income tax is chargeable to all the incomes earned by the people in Singapore and the foreign sourced income which is being remitted to the country.
    The government of Singapore has signed Double Taxation Agreements with several other countries to refrain businessman from paying taxes twice. At present, businesses are under an obligation to pay taxes on their incomes at a very low rate of 17%. No income tax is chargeable on dividends received to shareholders and income from capital gains. All such benefits encourage people to invest in Singapore.
  3. Skilled Workforce
    To make a successful business, it is very important to have an effective and effective workforce. The education system of Singapore is one of the best amongst education systems prevailing in other nations. It produces efficient human capital by providing better education to the students.
    The human capital is highly skilled and experts in the field of technology. Its immigration policies also attract a lot of people who are skilled and come to Singapore for jobs. There is a very low language barrier as most of the population speaks frequent English.
  4. Strategic Geographical Location
    Singapore has one of the best infrastructural facilities. The country has well-developed buildings, subways, highways, etc. These facilities promote ease of doing business in Singapore.
    The country has been located and surrounded by various nations which help the businessmen to have a smooth flow of trade with other nations. The businessmen have trade benefits and agreements with China, India, Australia, etc.
    Due to its location, it is becoming a hub for several industries across the globe. It has a well-established airport and port which makes trade through water and air very smooth.
  5. Benefits for Start-Ups
    The government aims at declaring various schemes and policies to attract people to establish their businesses in Singapore. These are very much beneficial to local and international startups. They are provided grants, subsidies, and funding to ensure the availability of funds to encourage them if they fulfill certain criteria. One of such initiative was made in the year 2017 by launching a scheme named Start-up SG which aimed at providing several benefits to entrepreneurs.
    Entrepreneurs desire to remove the difficulties which are being faced by the people in the world. With the help of such start-friendly schemes, they fulfill their goals. Such schemes help them to grow their business and showcase their talent to the world.
  6. Financial Hub in Asia
    Singapore has become a hub for financial services. The financial institutions are using the latest technology such as blockchain[1] which replaces the existing technology. The banking system is also very efficient. It helps businessmen to arrange funds at very cost-effective rates.
  7. Sound Legal System and lack of corruption
    Singapore has proved to be an ideal place for the businessmen to start their businesses. The country has been highly rated by The World Bank in its Ease of doing business index. The legal system consists of laws which go in favour of the businesses.  The corruption level is also low which depicts transparency into business and motivation to people. The laws also contain statutes for the protection of intellectual properties such as patent, copyright, etc.
    Many businessmen hesitate to establish their business in some foreign countries due to red tapism and corruption prevailing in the country. But, Singapore is one of the exceptions. The government pays its employees a healthy salary and the legislature has very strict rules and levy of penaltiees on the people who indulge in corrupt practices like taking bribes.
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Conclusion

A businessman is attracted to a place to establish the business where the facilities are easily available and factors of production are economical. Singapore has one of the best-skilled workforce and financial services. Many businesses have a competitive advantage in running their business in Singapore as compared to other businesses established in other countries. Services like advanced information technology, taxation system, no corruption, well-established infrastructure and legal system encourage people to set up their businesses.

It provides a friendly business working environment to the entrepreneurs which motivate them to establish their startups in the country.  The government of Singapore has been continuously analyzing the need of businesses and declaring policies to fulfill such needs. Such policies are making the businesses more effective. It helps in the overall growth of the economy of the country.

Its premier location and strategic advantage play a major role in attracting people to run their business in Singapore. To ease the process of business dealings, the workforce is efficient in speaking the English language which removes language barriers being faced by the organizations established in other countries and engaged in international business deals.

These are a few advantages that attract thousands of people living in Singapore and other foreign businessmen and entrepreneurs to incorporate their businesses in the country and consider Singapore as a hub for several international businesses.

Also Read:
How to set up a company in Singapore?
Company registration in Singapore: Requirements and Procedure

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