Factors that make Singapore a great place for Business
If you wish to conduct your business within Singapore, you must be aware of the factors that make Singapore a great place for business. The prime location of Singapore makes it Asia’s largest and most important financial centers, which is also one of the crucial factors that make Singapore a great place for business.
Also, the reasonable rates of taxation, highly skilled personnel and the ease of conducting business are additional factors that make Singapore a great place for business. Before getting into that, let’s understand the importance of Singapore’s business hub.
What makes Singapore a great place for Business?
At the present, Singapore has established itself as a major business center in the world. Between the 1960s and the 1990s, Singapore saw rapid industrialization and had an impressively high rate of growth which earned it recognition as Asia’s Four Little Dragons.
It has solid infrastructure, a sturdy political system, a robust economy, & highly skilled workforce are only a few of the reasons that many multinationals & foreign entrepreneurs have decided to establish their businesses in Singapore.
Singapore is an ideal spot for multinational corporations to establish their headquarters. Many multinational companies have chosen Singapore as a place to establish their headquarters due to the proximity of 154,000 medium and small-sized companies.
Singapore is widely recognized as the ideal place for business growth and many businesses are using Singapore as a gateway to expand into other markets in Asia like China or India.
To counter these advantages, Singapore has a vast range that includes trade deals, a straightforward tax system, as well as strong Intellectual property rights. This article focuses on the major factors that make Singapore a great place for business & foreign businesses.
7 Factors that make Singapore a great place for Business
Here are a few key factors that make Singapore a great place for business, let’s see what are they.
1. Prime Location
The prime location is one of the factors that make Singapore a great place for business. Singapore is a center for many of the world’s major industries due to its proximity to an emerging market that is India as well as China.
Being the center in Southeast Asia, Singapore offers the convenience of accessing an industry that is home to more than 3 billion individuals.
Singapore’s port is one of the most crowded anywhere in the world, which makes the nation a leader in the International Maritime Center (IMC). With more than 20 million people traversing its Changi International Airport every year, Singapore is eventually a central point for the world’s dominating logistics firms.
2. Personnel with high-quality qualifications
A productive and efficient workforce is crucial for a business’s longevity in the market. Singapore’s education system is recognized as one of the tops anywhere in the world. Singapore continues to create top-quality workers each year. Hence, this is another one of the crucial factors that make Singapore a great place for business.
A more open policy on immigration will also bring foreign talent to Singapore. Business Environment Risk Intelligence (BERI) indexed Singapore as the highest efficient and beneficial population in its 2014 study.
This means that entrepreneurs and investors are likely to be more successful in starting businesses in Singapore because of its easy access to a low-cost and well-trained workforce.
3. Easier to conduct business
Another one of the factor that makes Singapore a great place for business is that its easy to conduct business in the country. The world bank’s ease of conducting business survey comprises 189 countries, however, Singapore ranked at the top of the list of ease of conducting business in Singapore over the past ten years.
Companies can be established in Singapore within less than 3 days thanks to the simple procedures and a decrease in the paperwork that is not needed, as in the majority of developed nations.
In certain instances, it could take anywhere from the period of 14 days to 2 months when the application to be sent to the authorities with the highest authority to review or approve.
Non-residents are also able to start businesses on an online platform. Despite this, Singapore is still a reliable location for companies to establish or expand and invest.
4. Asia’s largest and most important financial center
Regarding accessibility to the world at large, the strategic location of Singapore makes it an important financial center in Asia. Singapore is the 3rd most vibrant monetary center in the globe, ranking behind London as well as New York, as per the GFCI’s ranking.
A revolution in technology is also happening within the financial sector. The financial sector has benefited from an established banking sector as well as the ease of market liquidity.
5. Reasonable taxes
The tax system in Singapore is managed efficiently. Singapore’s tax structure is another one of the crucial factors that makes Singapore a great place for business.
The city-state charges enterprises and solo proprietors, according to the amount of capital that is earned in the city-state and the sum they transfer back to the nation.
There are more than 50 nations that have signed Double Taxation Agreements (DTAs) in conjunction with the United States to ensure that companies don’t pay tax twice.
Small-sized businesses pay taxes, which is just 17% of tax-deductible income. Singapore is a preferred location to start a business due to this and also the lack of taxation on capital gains as well as dividends.
6. Benefits for new businesses
Startups in Singapore are drawn by Singapore’s generous grant incentives and grant programs. To be eligible for government grants, firms should fulfill specific requirements set by the Government.
Start-up SG was introduced in March 2017 by Minister of State for Trade and Industry Koh Poh Koon. The principal objective of this scheme is to connect entrepreneurs from all over the world and to provide a platform for users to get access to local assistance programs.
This Innovation and Capability Voucher (ICV) scheme offers companies vouchers of S$5,000 that can be exchanged for professional services in consultancy including hardware, technical, and hardware solutions.
7. Fair system of Justice
In the ease of conducting firm surveys, The World Bank recognized that business rules in Singapore were among the most favorable. Singapore’s solid legal system gives entrepreneurs confidence and security is proven repeatedly that it is the ideal place to start a business.
Concerning the business sector, Singapore is one of the most trustworthy nations around the globe. Furthermore, the legal framework effectively protects intellectual property. To succeed as a business person it is essential to work in a financially and economically secure country.
So, establishing and growing an enterprise in Singapore is an advantage over other nations. Singapore’s success is due to its outstanding infrastructure, IT hub, stable political climate, lucrative foreign policy and transparent financial transactions, and no corruption.
Many entrepreneurs decide to choose Singapore as their next base to begin a new business every year due to many reasons.
If you are looking for ways to conduct your business within Singapore, so you must consider the factors that make Singapore a great place for business.
If you have any more queries related to the factors that make Singapore a great place for business or you want expert advice, Odint Consultancy is the best solution.
As a hub of global technological innovation, Singapore is home to a dynamic ecosystem that includes world-class R&D laboratories for top Fortune 500 companies, in addition to more than 150 venture capital funds incubators, accelerators, and incubators
The Global Ease of Doing Business rates Singapore as the 2nd most efficient country of the 189 across the globe which makes it an international business center. The procedure for the incorporation of business into Singapore is fast, simple and transparent.
Singapore’s transformation into a financial hub that is conducive to trade, its excellent facilities, as well as a steady modern legislative and regulatory system are only a few of the factors that make it attractive to investors from abroad.
The strength of Singapore’s trade and investment make Singapore one of the top Asian nations and the most convenient place to trade.
Azhar Ansari is a company formation specialist with 8+ years of expertise in international business. Financial planning, risk management, and other related areas.