Rationale for Singapore company formation: top 5 arguments in favor of this location

Over the past several years Singapore acquired a strong reputation which led to an increase in investments brought into the country and high demand for company setup in this country. In this article, we are going to discover the key arguments that serve in favor of Singapore and why it is worth to set up a local company there.

Singapore shows quite a stable and robust local economy secured by an effective legislative framework. It offers a comprehensive developed legal basis for business operations as well as setups favorable conditions for doing business from this country. Singapore is ranked as one of the top locations for the ease-of-doing-business.

Singapore’s government puts an enormous effort to facilitate the development of local legislation to foster the country’s economy and its growth. Here are some examples of it: corporate and personal capital gains tax are not subject to tax, the country’s VAT (or Goods and services tax) is set to 8% only, while the main corporate income tax is set to 17% which is considered one of the lowest tax rates. Further to it, there are numerous tax incentives providing an exemption of up to 75% of the taxable income, while under certain conditions income can be claimed as totally tax-free and be not subject to CIT at all.On another note, Singapore serves as a great hub for local businesses to operate both in internal and international markets. Its strategic location gives an opportunity to enter the Asian market which is considered to be the most fast-developing over the last years for trade and services, production of goods, and digital products.

Further to it, this country may also offer legit access to the business operations associated with Virtual Assets (cryptocurrencies). Singapore is a top-notch location for ICOs, STOs, virtual assets exchanges, or other associated activities. This country was one of the first ones that admitted virtual assets in the local legislation making it possible to deal with them with legal clarity.

Businesses can enjoy enhanced IP rights protection as Singapore has enacted the strictest legislation aimed to secure owners’ intellectual property. This serves as another argument that Singapore’s government is aimed to promote economic growth, innovation, and research and ensure economic rights of IP holders are well-protected. IP holders shall have access to the robust framework for the protection and enforcement of the rights over their creative or innovative expressions.

To summarize the above, it is worth to point out that Singapore is a politically, legally, and economically stable environment having great mechanisms of tax incentives and a business-friendly environment. The country is aimed to ensure sustainable investment flows and capital gains within its jurisdiction, therefore Singapore’s government is doing its best to ensure the above is well-introduced and enforced.