The World Bank has rated Singapore as the easiest country to start a new business in the past 10 years. Though its area is relatively small, to begin with, Singapore is one of the most popular business centers around the world due to its growing economy.
Small in size but the government is definitely well-planned to encounter all of its limitations. Thus why Singapore offers many opportunities for those looking to invest in its country or planning to build a business. There are many reasons why companies or entrepreneurs should choose Singapore to grow their businesses.
The country boasts around 3,600 startups across sectors ranging from e-commerce which runs in digital media to gaming. This is why Singapore is poised to follow Silicon Valley in the future.
Here are the ultimate explanations why Singapore is fast becoming the top choice for businesses and investors worldwide.
Strategic Location and Connectivity with Overseas Markets
Singapore has slowly become a home to thousands of multinational companies that want to have Asia Pacific headquarters (HQ). Some of the most notable names are Google, Uber, and Facebook. Many companies opt to build their HQ in Singapore due to its strategic location and connectivity with other countries in the Asia Pacific region.
Its proximity to China also further solidifies Singapore’s position as a leading player in the economy in the Asian region. Singapore’s proximity to China has created strong trade relations between the two countries. China is one of the spearheads of the world economy, and strong business and trade connections between Singapore and China will certainly boost Singapore’s economic growth. On top of that, proximity to China provides investors in Singapore with a cost-effective alternative to entering the Chinese market.
Local Government Support
Small businesses tend to get thorough support from the government of Singapore. The local government even launched a $1 billion Technopreneurship Fund for local startups, since 1999. This is one of the ultimate reasons why many successful entrepreneurs come out of Singapore.
Their policymaker support is definitely top-tier. The startup ecosystem receives equal attention from local governments, and this in return attracts the third largest venture capital investment in the APAC region, after China and Japan.
The government also shows support in the form of easy business setup processes. Thus, establishing a new business is relatively easy and quick in the Lion country. This is definitely also due to the fact that Singapore is a small country and is lacking in natural resources, thus they have to find a way to promote its economic growth.
Business-Friendly Country
Singapore is well-known for its business-friendly environment which has attracted many foreign investors and businessmen. In Singapore, people can turn their ideas into reality and start running a business with ease and get significant results. For example, to do company incorporation in Singapore will only take a couple of days. Singapore definitely has friendly regulations and a favorable business environment for all!
In addition, investing in Singapore is also very profitable. Singapore is rich in an educated workforce with high literacy levels. Low crime rates and low levels of corruption also contribute to Singapore’s strong economy. Simply put, Singapore’s economic strength and political stability is one of the best reasons that attract investors to the country!
Cordial Tax Regulation
Taxes have always been one of the most important things to consider by any businessman who wants to start a business anywhere in the world. One of the advantages of doing business in Singapore is the relatively low tax rates, both individual and corporate taxes. There is no capital gains tax in Singapore and income that has been subject to corporate tax rates, can be distributed among shareholders tax-free. The potential for tax exemptions is definitely a paradise for every entrepreneur!
Singapore is a top choice for entrepreneurs, investors, and international corporations looking to establish Asian branches of their operations. Although it has a smaller territory than its neighboring country, Singapore is still able to play a significant part in Asia’s economic center!