Economies are slowly recuperating due to the worldwide pandemic of COVID-19. Singapore was one of the few countries that implemented quarantine and tracking measures early to curb the spread of the virus. Due to the fast reaction from the government and the cooperation of the population, Singapore has seen a huge drop of cases, ranking in the top 10 safest countries for COVID-19 in a recent study by The Deep Knowledge Group.

As economies recover, businesses are progressively looking to function as per normal. Singapore is also ranked 16th globally and 3rd in the Asia Pacific for countries with the best startup environment – reinforcing why you should start a business in Singapore.

Despite a myriad of reasons to start a business in Singapore, let’s take a look at the top 3 reasons that make Singapore attractive to businesses:

1) Business Friendly Tax Framework

Known for its low corporate tax, many foreign businesses are enticed in setting up base in Singapore. Businesses are taxed a flat rate of 17% on their income which has been consistent for the past 11 years. On top of the consistent flat tax rate, companies can benefit from partial tax exemption of 75% on their first SGD$10,000 and 50% exemption on the next SGD$190,000 – totalling up to SGD$102,500. Qualifying start-ups can benefit from 75% tax exemption on their first SGD$100,000 and 50% off on the next SGD$100,000 which totals up to SGD$125,000.

Adopting a flat single-tier income tax system means that the tax charged on the company’s income is the final amount. There is no additional tax on dividends paid out nor tax on capital gains as well. Singapore has had a constant trend of lowering corporate tax so far, starting from 26% in 1997. This makes it even more attractive for businesses as there’s lower risks of corporate tax increasing and the trend for decreasing corporate taxes definitely boosts the confidence of business decision makers.

2) Free Trade Agreements

Singapore has favorable partnerships with many countries, establishing a total of 25 comprehensive bilateral and regional free trade agreements. What this means is that businesses can import or export services and goods with little to no barriers in the form of tariffs, quotas or subsidies to hinder their trade.
This can then contribute to lowering costs, increasing profits and facilitating business processes with ease.

These benefits can help businesses grow faster and more efficiently – reinforcing the appeal and reasons that make Singapore attractive to businesses.

3) Highly Skilled Local Talent Pool

From the start, Singapore has identified that its main resources are its people. The government has invested billions in Singapore’s education system – providing equal opportunities to everyone and assessing potential based on a meritocracy. On top of that, the government has established funds for working adults to further upgrade themselves through a nationwide programme called Skillsfuture.

Every citizen is given a Skillsfuture account where the government provides funds to partake in certified courses to learn technical, management, hard and soft skills. To name a few, the courses available include language classes, courses on investments, learning communication skills and even a course on operating a forklift. Businesses can also send employees on courses that are approved by WSG which qualifies them for subsidies of up to 90% of the course fees.

The overall population is also keen to adopt new technologies which makes digitalisation of businesses more effective and efficient.

Having elucidated the benefits of starting a business in Singapore, how does one go about establishing a business here? From the application, hiring, compensation, policies and laws – the task ahead may seem daunting to achieve single-handedly. Which is why at Talentspot, we’ll manage the business set up and hiring so that you can focus your attention solely on growing your business in Singapore.

With over 500 employees operating across eight countries in the Asia Pacific region, we are the ideal choice for businesses looking to cater to the majority of the Asia Pacific. With the knowledge and experience across multiple industries, we have achieved a consistent success rate with our clients.

Interested in starting a business in Singapore this 2021? Well look no further! Contact us now at +65 9777 7059 or drop us an email at marketing@talentspot.com.sg to start your business today.