Why entrepreneurs choose Singapore
Singapore remains one of the most attractive destinations for entrepreneurs looking to establish themselves in Asia. Known for its efficient bureaucracy, startup-friendly tax policies and strong financial sector, the city-state offers an unparalleled business environment that continues to draw global investors.
A key advantage of Singapore is its ease of doing business. Incorporation is straightforward, and tax guidelines are transparent. The country has no capital gains tax and thoughtful tax exemptions for startups. Personal income tax is reasonable compared to global standards, and foreign-source income remains untaxed. In contrast, Dubai, another popular business destination, offers an appealing 0% personal income tax. However, businesses must navigate a 5% value-added tax (VAT), which adds costs over time.
Beyond its business-friendly environment, Singapore attracts a unique class of entrepreneurs and investors. Unlike Dubai, where luxury is often on full display, Singapore’s wealth is more understated. Billionaires can walk the streets in flip-flops, drive modest cars and conduct meetings in unassuming offices. Entrepreneurs who operate businesses in both Singapore and Dubai highlight the presence of more truly wealthy and powerful individuals in Singapore, suggesting that the city draws people who have already made it rather than those trying to make it. While business meetings in Dubai often take place in extravagant office spaces, in Singapore, they tend to have a more personal touch. It is not uncommon to find a CEO’s private room filled with an impressive cigar collection or premium liquor – discreet symbols of wealth that aren’t immediately noticeable.
Banking is another area where Singapore stands out. Entrepreneurs frequently cite the efficiency and clarity of the city’s banking system, which has fewer bureaucratic delays than Dubai’s. While both cities offer strong financial services, Singapore’s regulations provide businesses with a sense of stability and predictability.
Despite its advantages, Singapore is an expensive place to live and work. Real estate and car ownership come at a premium, with Singapore ranking among the most expensive cities globally. However, for those seeking long-term growth, access to Southeast Asia’s booming markets and Singapore’s strong legal protections for businesses often justify the cost.
Climate is another factor to consider. While Dubai’s summer heat can be unbearable, Singapore remains hot and humid year-round. Both cities rely heavily on air-conditioned spaces, but Singapore’s infrastructure ensures efficient movement across the city, making daily business operations smoother.
Both countries present unique challenges for entrepreneurs. In Dubai, securing a visa typically requires either setting up a company or acquiring a freelance license. While these options are available, the process can be more complicated than it first seems, making it beneficial to seek guidance from reliable local partners. In contrast, while starting a business in Singapore is relatively simple, obtaining the necessary Employment Pass involves a series of extra steps.
Entrepreneurs should carefully consider where their clients are based before choosing a location. Both cities offer advantages for digital nomads and business owners. While Dubai provides tax benefits and better connectivity to Europe and the U.S., Singapore’s structured financial system, business-friendly policies and well-established investor networks make it a prime destination for startups and SMEs looking to establish a presence in Asia.
Thinking of starting a business in Singapore? Check our articles here
