Singapore Business Formation

The 2010 Global Occupancy Cost Report by DTZ, states that running a business in Singapore is relatively cheaper than other Asian business centres. This is due to occupancy and office rental costs having declined due to excess new supply of office space on the market.

Singapore business formation projects an excellent image to clients, suppliers, banks and venture capitalists. In the 2009 Corruption Perceptions Index, Singapore scores highly as the world's third-least corrupt country, boasting a tough anti-corruption stance, an effective judiciary and a strong financial system.

According to the World Bank, Singapore is the world's easiest country in which to do business. The survey measures factors including Singapore business formation procedures, time, cost and minimum capital required for Singapore business formation.

In the 2010 Index of Economic Freedom, the US-based Heritage Foundation ranked Singapore as the second-freest economy in the world. The survey says Singapore is a world leader in all 10 areas of economic freedom' (business freedom, trade freedom, fiscal freedom, freedom from government, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom). Entrepreneurs starting a business in Singapore can take advantage of the speed and transparency of the republic's commercial business environment which encourages Singapore business formation.

A properly-structured Singapore company enjoys legal tax exemption on profits earned outside Singapore, as outlined by the Inland Revenue Authority of Singapore. Furthermore, the first S$200,000 (US$132,500) of corporate profits earned in Singapore is legally tax-exempt for the first three years of business trading.

Singapore maintains confidentiality, while agreeing to the standards set by the Organisation for Economic Cooperation and Development (OECD) member states.

Following Singapore business incorporation, an annual statutory financial audit is not required if corporate turnover/sales is less than S$5 million (US$3.5 million). However, an annual tax return is submitted to the IRAS.

Healy Consultants assists clients to open a corporate bank account, usually with a major international bank such as HSBC, Standard Chartered or Citibank to support the Singapore company.

The Singapore government provides a wide range of incentives to support and encourage Singapore business formation, including grants and tax breaks. For more information, visit the Singapore Economic Development Board (EDB) website. Furthermore, as a global financial centre investors in Singapore access a wide range of financial products and services, including corporate finance and private banking.

Tax implications are an important consideration when undertaking Singapore business incorporation. ASC recently announced a strategic direction to work towards full convergence with IFRS for Singapore listed companies. More information can be found at the Accounting and Corporate Regulatory Athority (ACRA) website.

For more information on Singapore business formation, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.

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