STARTING A BUSINESS IN SINGAPORE
Singapore is a bustling metropolis full of wonder and entertainment. But it is also quickly becoming a place that entrepreneurs from all over the world are looking to to start their businesses. Taking advantage of the thriving community and workforce is a key consideration for those seeking to take advantage of Singapore’s growing economy. A few simple things are needed to get you on your way to starting a business in Singapore.
Benefits of Doing Business in Singapore
Singapore is currently rated #1 in the world for its ease of doing business. This is an attractive proposition for anyone who wants to embark on an entrepreneurial lifestyle. Some benefits of starting a company in Singapore include:
- Workforce – Singaporeans work hard and are known worldwide for the work they put in. You will not find a better group or hardworking individuals. This makes the prospect of starting a business in Singapore all the more attractive.
- Tax Rates – Corporate tax rates are around 8.5% up to $300,000 and 17% thereafter. This is a benefit for those who intend to make money while working in Singapore, but who do not want to see most of it disappear into the system each month.
- Wealthy Nation – Singapore is currently ranked the third wealthiest nation in the world. The economy is not only growing exponentially, but is also already stable. It is the perfect environment for a new business to blossom.
- Quality of Life – Singapore has been rated the top country in Asia for its quality of life. A happier worker ensures a better quality of products and overall work. This means that your bottom line will end up better than other countries in the region.
Requirements for Businesses
There are a couple of caveats to beginning a booming business in Singapore. If you’re looking for how to start a company in Singapore, there are a few challenges to overcome. An appropriate visa will be necessary to start your new business in Singapore. The requirements for a visa are:
- Form 14 – Duty accomplished Form 14 must be signed by the interested party, the person looking to start the business, as well as a local sponsor. A local sponsor must be a registered Singapore Citizen or a Singapore Permanent Resident.
- Form V39I – A local sponsor, the same as above, will be required to sign Form V39I.
- Support Letter – A letter from the Singapore Economic Development Board (EDB) will be required.
- Travel Documents – Your documents will be required at the ICA or Immigration & Checkpoints Authority, where you will secure your business visa. Your passport must be valid for at least six more.
- Identity Card – A local sponsor’s Identity Card will be required by the ICA immediately.
- Photograph – A passport-sized color photograph will be requested. This is so the ICA has you on file and can easily identify your person.
- D/E Card – A valid Disembarkation/Embarkation card is needed. A Visit Pass will be granted upon entry into the country. The ICA will also request this. Keep these items on hand and ready.
The Productivity and Innovation Credit Scheme
The biggest benefit of beginning a business in Singapore is the tax refunds that entrepreneurs may receive. Thanks to the Productivity and Innovation Credit (PIC) Scheme, a 400% tax deduction/allowance or a 60% cash payout towards investment for business owners can be acquired. However, business owners must meet some initial requirements before they can be granted these bonuses,. A business owner must be investing in innovation and productivity improvements within the country.
Abusing the PIC scheme can be quite detrimental towards your business and standing in the country. The Singaporean government takes it very seriously when taxpayers defraud the government. Offenders can be convicted of fraud and made to pay massive fees, up to four times the amount originally paid out. Imprisonment of up to five years can also be given to the offender.
Starting a business in Singapore is an attractive prospect for any budding entrepreneur. Local government and business regulations, as well as the workforce available, are enticing factors that pull business owners towards Singapore. The Productivity and Innovation Credit scheme is just the cherry on top of the cake, giving businesses an added bonus towards the contribution they make to the country.