Global elites rank Singapore as a key business hub in the world. Its current status and popularity are the result of decades of exponential growth and other factors. Singapore is a financial powerhouse with an open banking and financial services sector.
Singapore’s financial services industry has grown steadily due to its pro-business environment and robust economy. The country is home to over 200 banks with full licenses, offshore banking licenses, and restricted licenses. Moreover, its strong transportation system and excellent telecommunications infrastructure make it a reliable place for businesses to operate.
According to the Global Financial Index 2022, Singapore was ranked as Asia’s best financial center. Its unique ability to serve both Asian and Western customers made it an invaluable bridge for businesses looking to penetrate new markets. For companies who are aiming to move or expand their business to Singapore, there are countless benefits, which we will discuss in the following section.
Advantages of Doing Business in Singapore for Foreign Entrepreneurs
Singapore is the ideal destination for entrepreneurs who are considering expanding their business in foreign markets. The primary advantage of doing business here is that running a business in Singapore is hassle-free and easy compared to several other countries.
This is due to a strong and open economy, outstanding tax laws, excellent infrastructure, a strategic location in Asia, and a highly skilled local workforce. Therefore, corporations, entrepreneurs, and ventures of all sizes consider it the best place to incorporate their startup or relocate a business.
Here are the top reasons that make Singapore attractive to foreign entrepreneurs and organizations.
Strategic Location in Asia
The convenient location of Singapore is a major benefit. The country is nestled in the heart of Southeast Asia, surrounded by economic superpowers like Japan, China, and India, as well as emerging markets such as Indonesia. Doing business in Singapore allows foreign entrepreneurs to establish beneficial trade connections throughout the region. Singapore is regarded as a premier International Maritime Center and has one of the busiest ports in the world. In addition, Singapore’s Changi Airport is a hub in the Asia Pacific region that provides businesses access to major Asian markets.
Singapore has a thriving free-market economy fuelled by finance, manufacturing, and trade. 80% of the workforce is employed in the services industry, which generates 75% of the country’s GDP. Due to this, the country maintains a low inflation and low unemployment rate. Today, Singapore’s economy is ranked as the most open in the world by the World Economic Forum.
Outstanding Tax System and Favorable Tax Laws
One of the significant benefits of doing business in Singapore is that it has an outstanding tax system in Asia that offers several tax benefits, which are usually not available in other countries. It imposes no tax on capital gains or on dividends from businesses. There’s no tax on overseas income and on assets from gifts or inheritance.
Additionally, there is a single-tiered approach to personal and corporate taxes in a country. Moreover, new businesses receive significant tax benefits for the first three years, which reduce their liabilities to 0% for the first SGD 100k income.
The city-state boasts astonishing infrastructure. It has a world-famous international airport, commercial buildings, highways, subways, and technological infrastructure. All these play a crucial role in doing business smoothly in Singapore.
Highly Skilled Workforce
Singapore is renowned for its excellent education system, which produces the most highly skilled workforce in the world. Singaporeans are well-known for their hardworking and disciplined nature, along with their technical and educational expertise. This makes it easier for businesses to recruit the world’s best talent for their company.
Honest and Stable Government
Businesses require a supportive political environment to grow and thrive. Singapore’s government is stable, orderly, and honest that enacts laws, determines priorities, employs strict penalties for corruption, and establishes rules using a pro-business approach. Also, the government provides various funding, grants, and subsidies for local and foreign startups.
How to Register a Company in Singapore as a Foreigner
It is relatively easy for foreigners to register a company in Singapore. A foreign entrepreneur can set up a company in Singapore in one of three ways:
- Move to Singapore and get an Employment Pass (EP)
- Move to Singapore and obtain an EntrePass
- Remain overseas and get help from local resident nominee director
Here are the basic requirements to register a business in Singapore.
- 1 Singapore-based director: can be either a Singapore citizen or a permanent resident, a holder of employment pass (EP)or dependant pass
- One shareholder: can be an individual or an entity
- One local company secretary
- A physically registered business address in Singapore
- At least SGD1 initial paid-up capital or in any currency
Check out this complete Foreigner’s Guide to Registering a Company in Singapore!
Opening a Business Account in Singapore
Upon successful incorporation of your business in Singapore, one of the first things you must do is open a business account. Opening a business account is essential to simplify the financial operations of your business. Your business account will manage the company’s financial activities, accounts payable, profits, investments, employee payroll, and more.
No matter how small your company is, having a business account separate from your personal account is always a good idea. When opening a business account, compare the business account features of banks, neobanks, and financial institutions to choose the best option that meets the particular needs and goals of your company.
Here’s a complete guide on How to Open a Business Account in Singapore!
Fazz Business: Leading Fintech Company in Singapore
Fazz Business is one of the leading fintech companies in Singapore that provides simplicity in business accounts for fast-growing startups and web3 companies in Southeast Asia. Our business account is inexpensive and hassle-free to maintain. Fazz Business sets itself apart from traditional banks by implementing a fair and cost-effective banking approach for both Singapore businesses and foreign entities.
Unlike traditional banks, Fazz Business account comes with no minimum balance requirements, no bank fees, and no subscription fees for Singapore companies. For foreign entities, there is only a one-time initial deposit and compliance fee that is considerably lower. This makes us the best choice for small and mid-sized foreign businesses that are seeking to open a business account in Singapore and ease their financial burden.
In addition to paying a range of hidden fees, opening a business account with a traditional bank can take a lot of your time. Banks take longer to verify the account opening application, especially for foreign businesses. Unlike banks, the Fazz Business account opening process is faster and simpler. You can open a business account online in a few steps without waiting for weeks.
Open Your Fazz Business Account online and manage your business finances smoothly!