In case you hadn’t heard already; Singapore is pretty big news at the moment. The country’s astounding wealth growth has caught the eye of many in recent years for a whole host of different reasons. From your perspective, though, it’s worth noting that Singapore seems like the place to be for starting a company right now. In fact, finding a business gap there right now could see you landing on your feet for years to come. Even if starting overseas wasn’t what you had in mind, then, this could be the right step for you. It’s an avenue which is especially worth exploring if you’ve struggled to find a place in your saturated home market.
Going back just 20 years, Singapore would not have been a place you’d even consider here. In those dark days, this was a country even more impoverished than Mexico. Yet, it’s now ranked ninth in the world for wealth per adult, as well as boasting an astounding amount of millionaires and ‘crazy rich’. It’s no surprise, then, that so many business owners are sitting up and taking note of what this hidden gem has to offer. With an economy which soon looks set to rival Switzerland, you would be mad to let this opportunity pass you by.
What’s more, the relative newness of the Singapore market means that near enough any business venture would be welcomed with open arms. The seven most successful enterprises here include everything from travel and tourism to biotechnology. The market is wide open and varied at the moment. Making use of that could get your foot well and truly through the door.
Of course, moving overseas to start something like this is a huge life decision. As such, you may need a little more than the above to convince you it’s worth your while. Luckily, we’ve got just the thing for that. All you need to do is keep reading to find out some of the many other reasons a move like this could be worth your while.
The ‘gateway’ effect
First, let us point out that many are toting Singapore as the gateway to Asia. Even Canadian companies are making a play here for that reason. There’s just no denying that Singapore’s location is beneficial in a whole host of ways. Its position in the heart of South-east Asia means it’s a mere plane ride away from areas like Bangkok and Hong Kong. It’s also within reaching distance of both the Indian and Chinese markets. In all, Singapore airport offers connections to a whopping 330 countries. Many of these provide viable business markets. As if that weren’t enough, Singapore also boasts of seaports which have ranked best in Asia for the past two years. Here, you’ll have access to 600 ports in 123 countries. If you’re thinking of areas with good gateway possibilities, then, it would be hard to find one better than this. One day Singapore; the next day the world.
Take that tax
Perhaps the most tempting argument of all is that of the tax benefits found in Singapore. While things are set to change in 2020, startups at the moment qualify for all manner of tax benefits here. All startups can currently enjoy tax benefits for their first three years of trading. Some even qualify for complete exemption on their first $100,000 of chargeable income. Even without these benefits, Singapore is a worthwhile market to consider. It boasts one of the most attractive corporate tax structures in the world. Here, the highest corporate tax rate on taxable income is capped at 17%. That alone is the third lowest rate in the world, but including the various other benefits mentioned takes this even lower in the rankings. It’s also worth noting that there are incentives in place to encourage companies to keep their headquarters here. As such, it’s well worth looking into these if you’re planning to make a complete shift here. Before you know, the corporate tax won’t even need to be a blip on your radar.
Startup stability
Singapore also offers levels of security for startups which you won’t find elsewhere. For one, this is a country with the most stable political environment in South-east Asia. That alone provides a level of stability which can be hard to come by. The Global Competitiveness Report 2015 – 2016 also recognized Singapore as having a sound political infrastructure and policy-making procedures. That makes it the most transparent country in Asia that enjoys a stable business environment. That’s an accolade worth paying attention to. This is especially appealing with markets elsewhere becoming less stable all the time.
On a more fundamental note, Singapore also offers all manner of financial incentives and loans which could help you find stability. There is so much financial aid available that 2017 saw them grouped into one easy government scheme: Startup SG. This offers startups financial assistance for near enough anything you could imagine. That could ensure you build stable foundations for your new business.
Getting ahead
It’s also worth noting that Singapore is somewhat of a boom. Wealth here has grown exponentially during 2018 alone. That increase only looks set to keep rising. More countries and big businesses are now starting to realize that this may be the place to be. As such, setting up shop here now ensures you’re established before the area reaches its full heights. It doesn’t take a genius to work out why that would be beneficial. If you’re an established powerhouse here by the time the rest of the business world makes the shift, you could be up there with the most prominent companies imaginable. All because you were in the right place at the right time. Bear in mind, though, that the window for this will close fast. The economy here is changing at such a rapid rate that the next few years look set to explode in Singapore. If you want to enjoy the chance to get ahead, then, you’ll need to act quickly to secure your space.
Let’s get personal
Thus far, we’ve only considered the business based benefits of a move like this. Now, consider that the personal benefits are well worth your attention, too. For one, note that it isn’t only corporations which enjoy tax breaks here. Singapore’s personal tax structure is also progressive. Marginal rates here range between 0-22%. There is also all manner of relief options to make use of here, thus meaning you could pay less tax on the whole. It’s also worth noting the overall cost of housing. Singapore’s property market has gained a bad rep for being unaffordable. A look at the facts reveals that isn’t the case. Consider that the median resale price for a five bedroom flat here lands at around $526,900. That’s no small sum, but it soon looks more attractive when you compare it with other countries. In the U.K., for instance, particularly in London, you would face a price of at least $920,000. If you wanted to buy property in Hong Kong, you would face a price tag of around $2,100,000. That’s an incredible four times more than in Singapore. What’s more, studies into house prices here rarely take into account the HDB in Singapore, which offers affordable housing for residents. These would take the average house price even lower. In all, that makes Singapore a pretty cheap place to live in the grand scheme of things.
So, how does this work?
If you’ve come this far, the chances are that you’re convinced Singapore could provide the backdrop your company needs. Good for you. Now, you want to know how to make it happen, right? It should come as no surprise that starting a business overseas isn’t always as straightforward as we would like. Still, getting your head around a few basic things should help you through this process.
For one, you’d need to apply for an employment pass from the Ministry of Manpower. That’s before you could even administer your business operations. To qualify for that, you need to have registered as a private limited company, as well as having at least SGD$50,000 of paid-up capital. You would also need to submit your process of company incorporation online for filing purposes. It’s also essential that you work within the rules set in place by Singapore’s inland revenue at all times. As such, research is always a good idea before taking the leap.
A final word
So, there you have it. Both why and how to set up in Singapore. If you have a business dream that you can’t see through to reality, this could be your golden ticket. On top of which, relocation here could see your enterprise reaching heights it never could back home. No one’s saying a relocation like this would be an easy move. If you hadn’t considered it before, this would leave you with a lot to think about. But, if you can’t get your business out of your mind, Singapore could be well worth thinking about.
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