Singapore Company Formations and Advantages of Using Singapore Companies
If you are thinking of forming a company in Singapore, then that is the best decision you could ever make. This is because the city state offers outstanding benefits to both Singapore bank account holders and businessmen.
Advantages of Company formations and investing in Singapore
- According to research done by World Bank, Singapore is the easiest country among all other countries in the world to set up a business.
- Singapore is also considered the third richest country in the world, according to Forbes
- The survey done by Ernst &Young also describes Singapore as the most globalized country out of the sixty developed countries in the world
- Politically, Singapore is more stable in Asia
- Singapore harbors the best qualified employees
- Singapore has the highest quality standard of living in Asia
- Exemption of taxation of profits earned in another country
- The corporate tax rate is only 8.5% up to SGD 300,000,17% on profits above it
- In Singapore, capital gains and dividends are exempt from taxation
- Property, death and inheritances are not taxed in Singapore
- Personal income tax ranges from 0% to 20%.
Singapore is located in the Far East, which makes it a perfect position as a business centre. With only a few hours of flying, 2.8 billion consumers are within its reach. Considering that it is an island country, it explains why it commands a substantial amount of maritime trade.
Singapore’s economy is transparent and free of bureaucracy. It is not surprising that it is an excellent choice for company formation as well as tax planning. In fact, company formation can only take a maximum of 2 days, if all the necessary requirements are met.
Singapore company formations
Singapore company formation requires one to have at least one director from the local with Singaporean nationality and a permanent residence permit or EntrePass. Additionally, after the company formation, the accounting of the companies formed in Singapore are required to be presented to the Singaporean Accounting and Corporate Regulatory Authority for the first time not later than 18 months then after every 1 year.
With the low personal income tax rates, and tax exemption of profits earned in other country, more and more entrepreneurs are choosing Singapore as their ideal business centre. What makes the simplified taxation in Singapore appealing is the fact that profits can be paid out tax free to shareholders as dividends since dividend are exempt from taxation.
Globally, Singapore has a brilliant reputation and it is not an offshore dock. It also has a very competitive value-added tax rate at 7%.
The tax exemptions in Singapore are mainly for supporting the activities of the newly formed companies within the city-state. As such, the first profit of SGD 100,000 earned is exempt from taxation for the first three years of company formations. In addition to that, companies in Singapore can legally account of their profits. Therefore, issues of tax evasion or tax fraud are unheard of. Furthermore, benefits provided for the company employees in Singapore such as pension fund and car rental can be deducted from tax base as business costs.
Please Contact us to order your Singapore company formation and start enjoying benefits of using one of the most efficient corporate vehicles.