The island state of Singapore has become one of the brightest spots on the world map as in ideal location for business. First, Singapore established itself as a dynamic city with immense business potential and then it opened the gates for foreign companies of all sizes to set up bases in the country. The country began its journey as a small port city like many others in the Asia Pacific region and just within a little more than fifty years it has transformed into the most sought-after business destination in the world. The vision of the government and the determination to become a significant economic center has made it possible. Opportunities for business exist everywhere, but few would like to venture beyond the shores of their native country – this used to be the feeling till not very long ago.
However, with the emergence of Singapore as the chosen destination for business, the outlook of entrepreneurs and businesspeople has changed drastically. Business owners who are eager to spread their business with the least effort across the globe are keen to set up base in Singapore. The country has undertaken significant economic reforms to make the environment most conducive for operating business. It has created a reliable infrastructure to support the business community and backed by a healthy education system, Singapore has become one of the most famous financial hubs in the world. No other Asian countries can match the lure of Singapore that has become a dream destination for all sizes of businesses.
Overcoming the limitations to create a pro-business climate
Geographically, Singapore has several limitations that were deterrent for growing native industries and business. With limited land resources and equally limited natural resources, Singapore had to rely on agriculture-based businesses like farming and fishing. These businesses added minimum value to the economy, and the lack of large industries prevented economic growth. The government was determined to overcome the limitations and to kick-start the economy they framed policies and laws to attract foreign investment that became a game changer and created the modern Singapore that has become a benchmark in prosperity. The government has worked tirelessly and supported by the people has been able to develop such business-friendly environment that every kind and size of business across the world wants to do business in Singapore.
Besides the business-friendly climate of the place that makes starting up a business look like a cakewalk, the government offers a variety of incentives for setting up business. Whether you want to establish a new business or want to expand the existing market by having an office in Singapore, you are entitled to some incentive. Beginning with startup exemption from taxes to partial exemption and productivity and innovation credit scheme to availing government grants for initiatives in new technology, the list of incentives is quite long. Depending on the nature of the business and the industry to which it belongs, any company can qualify for many incentives. The government particularly encourages setting up new industries and developing new innovative methods so that the competitive advantage helps to maintain the momentum of progress.
Business financing is easy
Finance is no problem for starting up a business in Singapore as the government has worked closely with commercial banks to help startups with business funding. Locally incorporated companies belonging to the SME segment (small and medium enterprises) can avail business loans up to 100,000 Singapore dollars at a fixed interest rate as low as 5.5% under the Micro Loan Program (MLP). Such loans are unsecured loans that do not require any collateral to encourage entrepreneurs. Moreover, the processing of loans requires minimum documents, which is also a significant encouragement.
Singapore is strategically located and acts as the gateway to the emerging markets of Asia like India and China. The Changi International Airport in Singapore plays host to 80 international airlines as well as top logistics firms of the world like FedEx, UPS and connects to 330 cities around the world. No matter where you belong to, reaching Singapore is now easy for all. The country has an enviable record in logistical performance which indicates how well it can support the business activities of the country. The infrastructure of the Singapore seaport is the best in Asia for more than two decades. More than 200 shipping lines touch Singapore and serve 123 nations by linking across 600 ports.
The consultancy firm is your friend in need
Although it is easy for foreigners to set up business in Singapore, to comply with requirements of Accounting and Corporate Regulatory Authority (ACRA) the supreme body for registering a business, you must appoint a local consultant to facilitate the process. It always makes sense to avail the Singapore Company Incorporation Services that can make the journey of setting up business more comfortable. Besides making the process look easy and speeding it up, the consultancy firm would ensure all legal compliances that give complete peace of mind. Since the laws keep changing, the expertise of the consultancy firm would ensure that there is no deviation whatsoever.
The consultancy firms that offer services in business incorporation and business registration can become your friend, philosopher and guide for all business matters. They can provide comprehensive guidance in running the business so that you can avail of the incentives offered by the government. Since the experts of these firms have a solid accounting background, they can advise you on proper documentation and accounting methods that could help to qualify for the incentives and increase profits.
Take advantage of trade agreements and tax frameworks
Besides concentrating on sales that contribute to the profitability of companies, when setting up business in Singapore, you must try to increase profitability by availing the benefits of the tax frameworks and the various trade agreements that the government has with several countries. Once again, the consultancy firm can guide you in this matter.
The quality of live and living standards is very high in Singapore. Therefore, besides the business benefits, the overall gains are much more.