Set up your business in Singapore

Singapore is a developed country in Southeast Asia. Remarkably, Singapore has a very business-friendly climate and political stability. The Government has published many favorable policies with a view to attract foreign investment in Singapore.

These factors have contributed to the nation’s classification as the most open economy in the globe. In 2021, Singapore ranked 1st in the Index of Economic Freedom, with an index score of 89.7/100.

Consequently, this island nation has been a famous destination for massive foreign investments from investors all around the world. According to One IBC, the following industries are some of the best investments in Singapore:

• Manufacturing
• Finance service
• E-commerce
• Wholesale and retail trade
• Transportation

Singapore is often referred to as an offshore financial centre (OFC). That means Singapore provides corporate and financial services to foreign investors on a scale that is out of proportion with the size of its domestic economy. The country is in the category of offshore financial centre because it offers attractive tax incentives. Along with low tax rates, there are also tax exemptions offered for businesses in certain industries, especially in offshore and global trading.

• Banking secrecy is also another reason that put Singapore in the list of offshore financial centres. The country is in the top 5 of the 2020 Financial Secrecy Index. Its secrecy score is 65 and contributes over 5% share of the global market for offshore financial services.
• Banking in Singapore is under the contractual duty of confidentiality imposed by section 47 of the Banking Act, which states that customer details shall not, by any means, be disclosed by a bank or its officers in Singapore, to any other entity except as mentioned in the Act.

By that definition, Singapore can also be classified as a tax haven. It has low "effective" tax rates and offers financial secrecy. It is also in the tax haven lists conducted by reputable international organizations.

Being listed as a tax haven does not mean Singapore is a bad choice for investment. In fact, despite the tax haven status, Singapore has proven itself as an international business center and a global commerce hub, continuing to be the ideal destination for business owners and investors around the world.

Singapore was supposed to be a business hub, internationally renowned, attracting several corporations and entrepreneurs on its shores. Some of the key areas for which Singapore receives accolades in business include the following:

• Strategic Location: Singapore is positioned at the crossroads of key trade routes, making access to Southeast Asia and beyond easy. Strategically located, it is an ideal base for companies that want to venture into the blossoming Asian markets.
• Business climate: The economy of Singapore is always ranked highly in reports ranking countries by ease of doing business. The political environment in this country is stable, with transparent regulations, hence making it the perfect state to stimulate entrepreneurship and innovation thanks to a strong legal framework. In addition, its low corporate tax rates and plentiful tax incentives add more to the attractiveness.
• Strong Financial Sector: The financial service in the country is at a better state with many banking, insurance, and investment firms. The country is one of the great financial centers in Asia, thus providing better conditions in order to obtain capital and financial services for business.
• Diversified Economy: Starting from manufacturing and logistics to technology, finance, and healthcare, the economy is hugely diversified. Therefore, each company can be very successful in every mentioned industry because it helps to reduce dependence on one sector.
• Innovation and Technology: Innovation and technology advancement are encouraged by heavy investment in research and development. Thus, the government promotes it via various schemes and grants that are promoting startups and technology firms. In the process, to the tech entrepreneurs, it would be very fertile ground.
• Skilled labor: It has a well-trained and educated labor force; further, it gives tremendous importance to vocational training and tertiary education that is considered essential to pursue enterprise competitiveness.