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Asian areas we Operate In
Singapore
Although we do not recommend setting up manufacturing in Singapore dependent on the scale of one’s business and financial needs, Singapore may be an elegant HQ solution for businesses to use in combination with a Thailand factory and Malaysian supply chain. We would only recommend this for innovation type of businesses where extreme scaling is expected and a company wants to remain private for extended periods while attracting funding by issues mutlipule series of share issuances. Issuing more shares in a Thailand private company is very cumbersome. Using a Singapore HQ in combination with a BOI application can have some great advantages. Additionally a company based on manufacturing with innovated IP may own all that IP within the HQ company and release it to the Thailand company for use. Obtaining patents in Singapore is done with more ease than Thailand for instance.
The good things to consider about Singapore are:
A Leading Financial Hub
When it comes to the leading financial hub in the global marketplace, England generally tops the many international lists. However, London’s supremacy is coming to an end in this realm as Singapore is gradually climbing the ranking systems.
According to a 2016 PricewaterhouseCoopers LLP study, the Asian island nation is ranked just behind London as the leading financial hub. By using the Cities of Opportunity Index, Singapore is ahead of New York City, Toronto, Paris, San Francisco and Hong Kong.
The researchers alluded to efficient transportation, powerful infrastructure systems, high-end technology and low taxes as some of the reasons why Singapore is surging the list of leading financial hubs. Today, the financial and insurance industries account for 13 percent of the nation’s economy – banking in Singapore has never been this easy or big.
The Political Climate is Stable
If you look to Europe and the United States right now, you will witness an unstable political climate, a fierce upheaval by the electorate and regular domestic strife. It’s bad in the West.
Singapore, however, maintains a stable political environment. It is true that there has been one dominant political party – the People’s Action Party (PAP) – since 1959, but the government still takes the form of a parliamentary representative democratic republic with three separate branches of government: executive, legislative and judiciary. The head of state is primarily ceremonial, though he does have veto power and power regarding civil service appointments and national security. For the most part, the federal government is run by the legislature.
As numerous studies have shown, the Singapore government has a clean image and reputation that is corruption-free. The two biggest complaints that both foreign and domestic critics may have is the restriction of free speech and capital punishment.
Singapore is a Wealthy Nation
Singapore may account for less than one percent of the global economy, but it does have a gross domestic product of $300 billion. In other words, Singapore is a lucrative country.
Here are several statistics to highlight the island nation’s wealth:
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GDP per capita is $55 million.
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A homeownership rate of an astounding 90 percent.
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Gold reserves of close to 130 tones.
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Labor force participation rate is 70 percent.
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Gross national income is $455 billion.
With a growing economy, limited government liabilities and expenditures and soaring foreign investment, Singapore is an affluent state that can withstand global recessions.
Tax Rates are Attractive
If you read stories about Singapore in any business newspaper, you will often find a passage that refers to Singapore’s attractive tax rates for companies, and this plays a big part in its growth.
There are no taxes on inheritance, capital gains or dividends, and the corporate tax rate is just 17 percent. These are tax policies that lure in foreign capital, investors and corporations or startups.
For the individual, however, it may be a bit higher. The personal income tax rate is 22 percent, the sales tax rate is seven percent and the Social Security tax rate for employees is 20 percent.
A Commonwealth-based Legal System
Since Singapore is a Commonwealth nation, the country’s legal system maintains its roots in English law and practice. Singapore was founded in 1819 by Sir Stamford Raffles as an important shipping route, which also meant that Singapore adopted English law and customs.
In other words, Singapore has inherited the British legal foundation that can be found in contract, restitution and tort. Due to the fact that it remains intact today, you will find certainty, tolerance, stability and even acceptance in the Singapore legal system.
Although it has evolved over the years, you will still find justice in its legal system.
Maintains the World’s Best Banks
Unlike other nations that had financial institutions needing a bailout from the taxpayers, Singapore has the world’s best banking system, according to various studies, groups and outlets. Whether it’s the protection of the banks, such as capital, reserves or security apparatuses, or the ingenuity of a financial institution, banking in Singapore is secure, efficient and affordable.
In 2016, DBS Bank won the world’s best digital bank and was ranked, alongside OCBC Bank, as one of the world’s safest banks.
Simply put: it is unlikely that a financial institution in Singapore will require a bailout.
A Strategic Geographical Location
An island with the size of 646 sq. km, one way Singapore’s economy has been able to grow the way it has is its strategic geographical location. The island is located on a major sea route between China and India. Due to its sublime harbor and free trade harbor status, Singapore attracts investment from all over the world, including the United States and Japan.
Suffice to say, Singapore has taken advantage of its strategic location between the east and west, and has accessed every corner of the global marketplace. As a country, Singapore is able to provide companies with a global platform to expand their international business.
Various Double Taxation Avoidance Agreements
A double taxation avoidance agreement, otherwise known as a tax treaty, is an economic agreement between two nations that looks to eliminate or limit double taxation of the same income in the two nations.
Since the 1960s, Singapore has established numerous double taxation avoidance agreements, or DTAAs, with a wide array of other countries. Over the years, Singapore has entered into these arrangements with the likes of India, Cyprus, Mauritius, Canada and the U.S.
This is one of the major factors in Singapore being able to attract foreign investment.
Easiest Jurisdiction to do Business
Whether it is Singapore company formation, doing business in Singapore or banking in Singapore, the ease of achieving these elements remains significant. If you want to enforce contracts or obtain construction permits then Singapore is the best place to do these functions.
English is the Official Language
Singapore maintains a diverse culture and experiences a multicultural society with more than five million people. It welcomes various Asian cultures, such as Malaysian, Chinese and Tamil. Despite these trends, English has been adopted by the government as the country’s official language because of business and working relationships across the island nation.
Singapore prides itself as being an English-based bilingual nation. When you attend the education system, you will be taught in English as well as Mandarin or Tamil. Moreover, if you travel through the cities you will discover signage in multiple languages, but primarily English.
If you are considering relocating to Singapore, you don’t have to worry if your Mandarin is a bit rusty. A lot of people within Singapore speak English.