The businesses you compete with (and we don’t mean just the Dyson’s of this world) have considered the next best place in the world to do business – organisations from Dyson to Google are choosing Singapore as their new HQ location, understanding why could be critical to success for mid-sized companies looking to grow.
Here we look at the top benefits the big corporations are already taking advantage of:
- Strategic location: at the heart of Southeast Asia: at the crossroads of major aviation, trade and shipping routes connecting the East and the West. Singapore is the gateway for businesses to access the Asia Pacific region, including high growth markets such as China and India.
- Political stability: ranked as the least corrupt country in Asia and the 6th least corrupt nation in the world (IMD World Competitiveness Report), attributed to the stringent and transparent implementation of laws and legislation by the government, provides a sense of security for investors and businesses.
- Pro-business: Singapore represents a competitive, growing economy. Incorporating a company in Singapore takes 1- 2 days, is low-cost and completed online.
- Business and Investor-friendly Tax System: with a flat corporate tax rate of 17% making it one of the lowest corporate tax rates in the world. Taxes aren’t imposed on capital gains, dividends, estates and inheritance.
No foreign ownership restrictions and foreign exchange controls in Singapore present a level-playing field for local and foreign investors. The Economic and Development Board (EDB) provides reduced tax rates at 0 and 15 percent for companies that intend to set up their regional or international headquarters in Singapore. Regional headquarters may also claim a writing-down allowance for the cost of acquiring an intellectual property (IP) if Singapore is used as an international holding location for the IP.
- International agreements: Companies moving headquarters to Singapore can also leverage on the country’s existing double tax agreements (DTAs) with more than 70 countries worldwide and its extensive network of free trade agreements (FTAs).
- Talented Workforce: means access to highly qualified, productive and educated employees. Singapore also attracts highly skilled professionals from all over the world due to its friendly immigration policies and high quality of life.
- Intellectual Property (IP) Protection: as a signatory to major IP conventions and treaties such as the Patent Cooperation Treaty and World Intellectual Property Organisation, Singapore is the top IP destination in Asia for businesses to manage their IP assets. It also makes Singapore an attractive destination for companies to set up their research and development (R&D) divisions.
- World-class Infrastructure: Singapore’s well-developed industrial, transportation and communication infrastructure makes it a favourable destination for businesses to establish or relocate their headquarters into the country.
- Start-up Investment: strong government support, provides start-ups with access to local and international venture capital firms, start-up accelerators and incubators to support development and growth.
- Investments and Capital Access: good economic and political conditions attracted a wave of local and international venture capital (VC) firms to Singapore, providing a wider selection of funding options for businesses.
After providing advice to global corporations for years, Mark Goh, Founder of VanillaLaw LLC helps medium sized organisations capitalise on their success, take a big world view, supporting Founders and the C-Suite Team to secure sound investments, de-risk their company infrastructure, make operations easy and achieve their ambitions for growth and wealth.
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