Known globally for its robust and bustling economy, Singapore has often been referred to as the premium business hub in Southeast Asia. Numerous foreign companies have flocked to the shores of our sunny island, citing the nation’s pro-business stance as a key reason for this shift.
While its favourable corporate tax incentives are an undeniable attractive proposition, there are various other reasons why we see plenty of overseas investors looking to start up a new business venture in Singapore. Let us share what these factors are.
1. Access to a highly-skilled local talent pool
A skilled and talented workforce serves as the backbone of any successful enterprise. Thankfully, there is no shortage of that in Singapore, with the country boasting one of the most highly-educated workforces worldwide. With solid educational policies, an abundance of training programmes, and welcoming immigration policies, entrepreneurs find it easy to hire the right talent for the job.
Additionally, Singapore’s labour force ranks well in terms of worker productivity and attitude. Due to effective company policies and conducive working environments, the Singaporean workforce is more motivated to manifest key work ethics to ensure the company progresses and performs well.
2. Straightforward incorporation process
The incorporation process varies according to the countries entrepreneurs wish to conduct their business. In Singapore, the process of incorporating a business within the island is uncomplicated, with the nation ranking first in the World Bank’s Ease of Doing Business survey for nine consecutive years.
In most cases, incorporating a new company takes less than a day. Furthermore, the annual compliance requirements are straightforward and free of any complicated or unnecessary paperwork.
However, similar to many countries, there are various business structures available in Singapore. As such, foreign investors looking to start a new business venture in the country may want to consult an incorporation service provider to assist them with their application. The importance of engaging the right service provider cannot be underestimated, as it can help entrepreneurs reduce their business risks.
At Ackenting Group, we provide hassle-free incorporation services that meet the needs of our clients. We understand entrepreneurs are busy people, so we aim to help them set up their company efficiently and with minimum fuss. Moreover, we also offer reliable accounting and bookkeeping services to help our clients stay on top of their company’s finances.
3. 100% foreign ownership without currency controls
The Singapore Companies Act allows foreign individuals or entities to own 100% of a local company’s stock. While the law mandates that an organisation must appoint at least one local resident director, there are no rules forbidding foreign shareholders from incorporating a company in Singapore. This means foreign investors can run a company according to their preferred type of capital structure and distribute ownership however they see fit.
Moreover, when it comes to the movement of foreign currency in and out of the country, foreign investors will be glad to know that this process is straightforward and unobstructed by hurdles, thanks to a lack of constrictive rules and regulations surrounding the matter, unlike other nations such as India and China.
Conclusion
Entrepreneurs need to take advantage of every perk they can obtain to ensure their company survives and prospers. Given the multiple benefits provided by the Singapore government to encourage investors to start a business in the Lion City, it is no wonder the nation constantly attracts foreign companies around the globe to its shores.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
