Advantages of Incorporating Singapore Company

Singapore is a business hub for entrepreneurs across the globe. So, if you wish to expand your business or start your business, Singapore can be a beneficial business destination for you. Let’s learn all about the advantages of Incorporating Singapore Company.

1. Fewer Taxes and a Straightforward Taxation System

Singapore has a straightforward and simple-to-understand tax system.

There are no capital gains and no business-related dividends are taxed. So, shareholders get dividends tax free.

Furthermore, New companies enjoy substantial tax breaks for their first 3 years. During this period, the tax rate is reduced to 0% for the initial S$100,000 of income.

It is also worth noting that the corporate tax rate in Singapore is capped only at 17%.

Personal tax rates in Singapore start at 0% and gradually increase. In addition, the maximum rate is 20% for incomes exceeding S$320,000.

2. Avoid Double Taxation

Singapore maintains a robust network of Avoidance of Double Taxation Agreements (DTAs) with 50+ countries.

These agreements prevent economic transactions between Singapore and treaty countries from being subject to double taxation.

Besides, Singapore offers Unilateral Tax Credits (UTCs) when no DTA exists with a particular country. This ensures that Singapore tax resident companies are unlikely to face double taxation.

3. Foreign Ownership Flexibility

Singapore allows you to have 100% foreign ownership of incorporated companies, without the need for local partners or shareholders.

Thus, enabling customization of the capital structure to align with investment preferences.

Additionally, Singapore imposes no restrictions on the movement of foreign currency in or out of the country.

4. Swift Company Incorporation & Less Paperwork

Singapore Company Registration has simple requirements and procedures. You can get Singapore Company Incorporation in a week or less.

Along with incorporation process & the annual compliance requirements are straightforward, reducing unnecessary paperwork.

Additional Benefits for Startups in Singapore

The Singapore government embraces pro-growth and innovation-friendly policies.

It offers grants, tax incentives, and in-kind assistance schemes to startups, including labor cost subsidies in preferred sectors.

Moreover, Singapore has cultivated a thriving venture funding community over the last decade and is positioned as the premier venue in Asia for venture funds, providing startups with access to abundant funding sources.

In addition, Government support extends to local and foreign-owned businesses, creating an inclusive environment for startups.

Other Significant Features of Singapore Company Registration

Individuals or corporations can hold 100% of shares.
A minimum paid-up capital of S$1 is required.
There is no mandatory authorized capital.
Small companies and groups benefit from audit exemptions.
Visas facilitating relocation are available.