Why Should You Consider Incorporating A Company In Singapore?
Singapore has always maintained its envied position in global trade, with many MNCs setting up a base in the Asia/Pacific by incorporating a company in Singapore. In the 19th century, following Sir Stamford Raffles’ founding of Singapore and the subsequent transfer of control to the East India Company, Singapore was made a hub for entrepot trade. Its strategic location and deep, natural harbour allowed trade to flourish between the east and the west. Today, in the age of technological advancements that have made the world a smaller place, Singapore’s relevance to the world of business remains as strong as ever.
While Singapore is still an important transhipment point in global sea lanes, aided in no small ways by its world-class container terminals and the upcoming Tuas Megaport, Singapore also now boasts many achievements that make it a favoured location among global businesses. Singapore’s highly-developed transport infrastructure makes it easy for the movement of freight. Not only does this benefit goods importers, it has spinoff effects among other players downstream, resulting in benefits for companies in processing, reprocessing, distribution, resale, retail, as well as service providers that supply to these companies. An efficient transport infrastructure creates a healthy value chain that allows all companies to grow as a whole.
The Singapore government’s emphasis on education is well-known around the world. Realising very early that the country possessed no natural resources, the nation’s leaders made a deliberate decision to make education a priority, while developing the manufacturing industry. Today, the factories producing low-value goods have given way to high-tech industries and a knowledge-based economy has replaced labour-intensive trades. Nevertheless, the highly-educated workforce continues to add massive value to the economy. Professionals have made Singapore a centre of world-class biotechnological and pharmaceutical research, evident in the many R&D facilities set up in the country. Centres of excellence across various domains have been set up, a testament to the importance that the government places on growing the high-value industries. Others have contributed their expertise towards making Singapore a global financial centre, not far behind London and New York. Singapore’s lead in the financial industry is upheld by the strong monetary and fiscal policies of the government.
It is no coincidence that many global firms choose to make Singapore their Asia/Pacific headquarters. While Singapore has a small population, its pro-business environment and its proximity to the ASEAN hinterland make it an attractive base from which to springboard into the region. Incorporating a company in Singapore does not usually take more a few days and smaller companies can take advantage of the many grants offered by the government to give themselves a head start. A low corporate tax rate, coupled with tax incentives, sweetens the deal, making Singapore even more welcoming to foreign companies. The Economic Development Board (EDB) has been particularly helpful in helping foreign companies to settle in Singapore and grow.
The vast developing economies of Indochina and other countries in the region provide a wealth of potential for companies that are looking for low-cost labour and material, as well as an untapped market for their products and services. Singapore’s strategic location in the crossroads of Asia makes it an ideal base from which companies can direct their regional operations. The good connectivity with regional capitals, the stable Singapore dollar, as well as Singapore’s friendly relations with neighbouring countries, work together to boost companies’ confidence in doing business in the country. The transparent banking system appeals to business owners, who feel assured that their hard-earned money is in safe hands.
Naturally, a stable political system makes for a stable economy, which in turn attracts companies. The last thing that companies one is ever-changing government policies that may adversely affect both foreign direct investment, which may turn foreign companies away, as well as local companies, which may find it hard to grow and work with the foreign companies. A strong government also provides its citizens and companies located within its borders with physical security. This is more important now than ever, in view of the increasingly adverse security situation in other parts of the world. A safe place to conduct business in is definitely a boon to companies looking to bring their business overseas.
Singapore has made great efforts to make it an attractive place to do business in. A pro-business environment creates a healthy and efficient ecosystem that adds massive value to businesses, allowing them to grow and prosper.
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