Singapore is one of the world’s most attractive destinations for start-ups looking to spread their wings. In fact, Singapore now has overtaken Silicon Valley to become the number one place across the globe for start-up talent. In the year 2016, the World Bank Group ranked
Singapore as the best place for “Doing Business” in the world. This article will help you in learning some of the key factors that make Singapore an attractive place for start-ups and expansion of business.
Business Friendly Policies
The business-friendly policies are the top factor for start-ups to grow in the country. The Singapore government ensures maximum support for the companies. The attractive tax-friendly rates, efficient transport system, well-functioning court system, public safety and minimal bureaucratic red-tape make it easy for the start-ups to access the assistance provided by the government. The easy to follow rules and kind of environment created by government makes it simple for start-ups to survive, grow and innovate.
Access to Resources
To become a successful start-up, assistance from various stakeholders is required. The market participants like investors, service providers, government organizations, research institutes, accelerators and co-working spaces give the start-ups an ecosystem to grow. Singapore government is very supportive towards start-ups. It provides them with necessary resources required for setting up the business. The type of help depends on the type of start-up you are incorporating in Singapore.
Access to Skilled Workforce
A company needs skilled workforce in order to expand its business or grow a start-up. Without skilled, knowledgeable and efficient workforce, the start-ups cannot survive. Therefore, entrepreneurs are always looking for countries where they can get skilled workforce at affordable rates. Singapore perfectly fulfils the need for skilled workforce for businesses. Therefore, for companies looking to expand their business, Singapore is an ideal destination.
Laws of the Land
A start-up while setting up its business would want an assurance that their intellectual capital and contracts with different countries would not be taken away arbitrarily. Singapore gives them this assurance with well-defined and robust laws. The corruption-free governance, accountability, stability and equal justice to all give the start-ups in Singapore the confidence to flourish their business.
Taxes
The taxation policy is one of the main criteria for start-ups before establishing their business in a country. Singapore is one of the best places for start-ups when it comes to taxation policies. The start-ups in the country attract tax exemptions for the first three years of the operations subject to conditions for start-up tax exemptions. Besides, the corporate tax rate is capped at 17%. Moreover, the businesses can carry forward their losses in order to reduce their future tax liability. Also, the corporate dividend is exempt from tax in the hands of the shareholders. What further makes Singapore more appealing for start-ups is that it has signed Avoidance of Double Taxation Agreements (DTAs) with more than 50 countries.
Protection of Intellectual Property
Intellectual property is a critical asset for any start-up. Investors invest in companies with a strong intellectual property portfolio as they have good future potential. The government of Singapore supports and encourages the protection of intellectual property. The government’s Intellectual Property Hub Master Plan protects the intellectual property rights of the companies in Singapore with modern legal framework. It covers trademark laws, copyright, patent, industrial design protection and trade secrets protections.
Ease of Global Expansion
Start-ups and other companies look to establish themselves in countries where they can easily expand their business globally. Singapore is located in the heart of Southeast Asia. Its location has many geographical advantages. Some of the largest economies of the world are a short flight away from Singapore. This gives businesses an opportunity to easily trade with big countries across the globe. Singapore also provides assistance programmes to help start-ups expand their business world-wide. The assistance is in the form of grants that can be used for hiring marketing staff, conduct market research or carrying out contractual negotiations.
Singapore, despite being a small country has achieved huge economic growth by focusing on its core proficiencies. The excellent infrastructure, highly advanced industrial sector, pro-growth reforms and pro-business policies have made it an excellent place for start-ups and expansion.
If you are keen to know how to start a business in Singapore, you can get in touch with IMC Group. We assist the start-ups in the process of company formation in Singapore. You can avoid the pile of paperwork and take our assistance at affordable rates. Our streamlined process will help you in starting a company quickly. If you require any more information or have a query, you contact us by dropping an email.
