One of the best countries to consider for business in Asia is Singapore. Compass, a research firm, has already ranked the country in the top ten list of the best business ecosystems. According to another report by the World Bank, the island state has consistently been listed as the best country in the world for the ease of doing business. But what has been the secret to this status? Here are some of the factors that qualify Singapore to be the best place for doing business.
The Company Setup Process Is Easy
If you are planning to start a business in Singapore, it is important to know the business incorporation process. Luckily, Singapore has one of the easiest processes in the world. However, there are minimum business requirements with which you need to comply before the registration process can be completed. Here are some of those requirements.
- At least one company director
- Minimum startup capital
- A registered resident secretary
- A corporate bank account
Reasonable Tax System
Most businesses feel burdened by high tax rates and may end up doing poorly. But Singapore has set tax policies that favor both local and international companies. The government believes in transparency and honesty in taxation. Singapore has been signing tax exemption deals with other countries in efforts to lure foreign investors. In fact, most EU countries have agreements with Singapore to avoid double taxation. Also, they have free trade agreements with other economies as well.
Ease of Raising Capital
Whether you need to start a new business or just a branch, Singapore has a variety of business funding options. Most investors who are well established use mother companies to fund their businesses. Others can use their savings to start a new business. However, business startups can rely on loans and grants from the government. Angel investors are an excellent option that is available in Singapore. These investors extend more than finances to the startups through incubation programs.
Economic and Political Stability
One of the factors that make a country business-friendly is economic stability. Singapore, which is a developed country, is already enjoying stability in its economy. This is because the government is encouraging young people to invest in businesses and seek employment in companies to push the economy forward. Foreign investment has also played a major role in building the economy. The Visa Express agents can confirm that a significant number of investors have been coming to the country with the hope that they will prosper due to economic and political stability.
Singapore is located in Southeast Asia. It is easy to access the country from any part of the world. This is why there are many Indians and Chinese nationals in the country. When it comes to business, the state has been doing well due to the attractive location. It does not matter whether a person uses water or air transport.
The location also favors the good weather of the country. With a warm and humid climate all throughout the year, people can easily move around without the limitations of extreme weather like icy winters. Being an island state, people can access Singapore from numerous points on the sea or through Singapore Changi Airport. The location is just perfect for business.
Communication is the driver of the economy and business in any country. Singapore has one of the most advanced telecommunication infrastructures in the world. Precisely, let us discuss the internet, which we all know as the driver of modern business. The country has super-speed internet. Almost all homes and offices have a connection to the internet. Another type of infrastructure that is propelling businesses forward includes good roads and well-networked rail transport. Goods can easily move from one of the warehouses near the ports to the businesses in the CBD area. No matter what business you are in, your goods will always be available.
Singapore is indeed an excellent hub for doing business. The factors highlighted above are the main reasons why it is one of the best. It is ideal to do business in this state and enjoy the growth that you are likely to enjoy soon.