Most Mind-Blowing Facts About Singapore
There are a number of factors that contribute to the efficiency of Singapore’s government and business sector.
With a highly developed market economy, exceptional ongoing business performance, and robust business environment, Singapore has earned a reputation as one of the best and easiest places to do business in the world.
With its strategic location, easy access to the Asia Pacific region, and welcoming cultural environment, it’s no wonder why multinational companies have chosen Singapore as the location for their Asian headquarters.
In addition, Singapore also boasts a stable political environment and strong legal system that provides companies with a great deal of protection. With its low taxes, highly open economy, and skilled workforce, business managers cannot look past Singapore as an excellent place to set up their business.
Key Highlights
- Singapore is rated #1 as the country most open to trade
- Corporate tax rates are capped at a flat 17% on chargeable income
- There are no dividend or capital gains taxes in Singapore
- There is no estate/death/inheritance tax in Singapore
- Personal tax rates start at 0% and max out at 22% above S$320K
Interesting Facts on Opening a Business in Singapore
1. The Ease of Doing Business
Singapore is no stranger to ranking highly on the World Bank’s Ease of Making Business list. In fact, they have come in 2nd place out of 190 countries evaluated in the past.
The Ease of Making Business list evaluates countries based on a number of business-related factors, which help to paint a picture of how friendly or difficult the regulatory environment is to business operations as well as how well-protected enterprises are in terms of their rights.
By coming in at the top end of the list, it is clear that Singapore offers businesses a relatively easy time compared to other countries when it comes to setting up shop and getting things done!
When it comes to business-friendly environments, few countries top Singapore. This southeast Asian nation consistently ranks highly in worldwide surveys due in large part to its ease of doing business.
Aspects such as business registration services in Singapore, getting electricity, paying taxes, and cross-border trading are taken into account when making these evaluations, and Singapore has been at or near the top for many years.
This ranking is a strong indication of the country’s global outlook and why it is such an attractive destination for businesses, both large and small.
2. Protection & Tax Laws
Singapore provides comprehensive intellectual property (IP) protection to companies that have chosen it as their location of choice. The vigorous IP regime has inspired confidence in leading global companies, convincing them to set up their Asia headquarters on the island.
Singapore is a great place to invest for many reasons – one of them being the country’s favorable tax laws and incentives for foreign businesses. For example, resident taxpayers in Singapore only have to pay income tax on a progressive scale, with the highest rate being capped at 22%.
Additionally, Singapore has a relatively low corporate tax rate (a flat rate of 17%) and offers a number of tax breaks. Plus, capital gains are not taxed. With all of these benefits in place, it’s no wonder that Singapore continues to attract businesses from all over the world.
3. Leading Tech Hub
As a global city with ultra-modern infrastructure and a commitment to becoming eco-friendly, Singapore has been identified as one of the world’s leading innovation hubs outside of Silicon Valley.
In a KPMG survey of more than 800 global tech industry leaders, Singapore claimed the number 1 spot on the global rankings in 2020.
The respondents of the survey determined infrastructure as the most important factor in developing a technological innovation center. With its world-class infrastructure and commitment to sustainability, Singapore is poised to continue its role as a leading innovation hub in the years to come.
Singapore was given the top rating due to its modern infrastructure, ability to attract young professionals, and availability of investment funding.
4. Talent in Singapore
The World Economic Forum has released its 2019 Global Competitiveness index, and Singapore has come out on top, overtaking the United States. The Forum quantifies its statistics by analyzing factors that drive productivity, growth, and human development.
Singapore has a deep, highly skilled talent pool, which ranked first in the labor market section of the World Economic Forum’s index.
This, combined with the country’s strong infrastructure and efficient business environment, has resulted in Singapore being the most competitive country in the world.
Singapore is one of the most diverse and western-friendly countries in Asia, with advanced infrastructure and high standards of living. The country has no problem cultivating local talent or attracting foreign talent.
5. Free Trade Agreements
Singapore has a whopping 24 Free Trade Agreements (FTA), which is more than the United States (14) and China (11) combined.
The purpose of these agreements is to reduce trade barriers and make it easier for businesses to compete in the global marketplace. This aligns with Singapore’s goals of being more open and connected to the rest of the world.
Other Interesting Facts on Singapore From a Non-business Perspective
1. A City With 63 Islands
Did you know that Singapore consists of more than just the main island? In fact, there are a total of 62 islands that make up the country! This includes Sentosa, St. John’s, Sister’s Island, and many more! Having so many islands definitely makes for a merrier place to be!
2. One of the Three Surviving City-States in the World
Did you know that Singapore is one of three places in the world without a capital city? The other two are Monaco and Vatican City. It’s strange to think about, but these places don’t have a capital!
3. Singapore Has Changed Its Time Zone 6 Times!
For many years, Singapore was ahead of Greenwich Mean Time (GMT) by 7.5 hours. In 1982, the Singapore Standard Time was redefined to be 8 hours ahead of GMT.
The reason for this change is that East Malaysia was on GMT +8.00, but West Malaysia was on GMT +7.50. Malaysia decided to standardize its timing, but it would have been awkward for Singapore to be the only one that was 7.5 hours ahead of GMT. So, they changed it.
Wrapping Up
If your enterprise is considering expanding into Singapore, partnering with someone who knows the local regulations and processes will make the expansion smoother and save the company time and money.
Looking to expand your business in Singapore? Intracorp is recognized as one of the best company incorporation service providers in the country, assisting hundreds of businesses across a number of different industries.
We can help you successfully navigate the process of setting up your business in Singapore, so you can focus on its growth. Contact us today to learn more.
