Company formation in Singapore has many benefits. The strategically located country has been the hub for many business houses in Asia. Singapore is a prime location for trade and business and has a strong emerging economy, because of which many Investors prefer Singapore for setting up their holding company. In this article, we will list down the reasons why you must set up a holding company in Singapore.
Reasons to Set Up a Holding Company in Singapore
- Economic Growth
The government policies in Singapore have always been in favour of businesses. Government has taken many initiatives to establish and promote start-ups. This has helped Singapore economy to grow at a rapid pace along with achieving economic stability.
- Tax Rates
Singapore offers the most attractive and competent tax rates to businesses. The marginal tax rates in Singapore is as low as 17%. Furthermore, the effective tax rate can be lowered even more. Therefore, the tax benefits make Singapore the best place to establish your holding company.
- No Double Taxation
The biggest benefit of setting up business in Singapore is the avoidance of double taxation. Singapore has signed double tax agreements with more than 40 countries across the world. This gives your business in Singapore an edge over global businesses because your business will not have the burden of double taxation.
- Access to Skilled Workforce
Singapore has a large population of skilled and talented workforce. If your business requires any skills that are not available locally in Singapore then you can easily procure a visa for the talented manpower.
- Relationship with Other Countries
Relationship with other countries plays a vital role while establishing a business in a country. Singapore has signed investment guarantee agreements with over 30 countries. Such agreements promote inflow of investment in the country and help the businesses in the country to prosper.
- Ease of Doing Business
As per the rankings by the World Bank, Singapore is ranked among the top 3 economies of the world when it comes to ease of doing business. Singapore has been maintaining this record since the last 12 consecutive years. Moreover, the process of company registration in Singapore is relatively easier. If you are looking for company registration in Singapore, consider a professional firm like IMC Group who can not only assist you with company registration process but also extend support for accounting services in Singapore and taxation services in Singapore.
- No Tax on Capital Gains
Investors having holding company in Singapore get the benefit of no tax on capital gains. Zero tax on capital gains and lower income tax rates makes Singapore an attractive place for the businesses to establish their holding companies in the country.
- No Tax on Dividends
Any dividend paid in Singapore on or after January 1, 2008, shall be exempt from tax under the taxation system of the country. To simplify, the shareholders of the company shall not be taxed on the dividend income. Such exemptions are given to the shareholders to attract more investors in the country.
- Incentives to the Holding Companies
In order to encourage multi-national companies to set up their headquarters in Singapore, the government of Singapore provides headquarter incentives to the holding companies. Other incentives that are available to the holding companies in Singapore include Pioneer Status or Development and Expansion Incentives.
- Better Quality of Life
Every individual wants to live a good quality of life. Singapore provides excellent facilities and quality of life to the public. This gives a good reason to set up or relocate your businesses to Singapore.
Above mentioned are a few benefits of setting up a holding company in Singapore. For more details, get in touch with IMC Group.