If you are looking for a country that is the perfect place to fund your start-up, look no further than Singapore. Perfect for start-ups, Singapore offers the opportunity for trade across several international borders, as well as the protection of strict regulations for investors and employees. The country is well-known to be reputable as a center of finance and as a major player in trade within the region. No wonder business investors view Singapore as one of the top profitable countries in which to do business.
Singapore’s 100,000 plus small and medium sized enterprises (SMEs) benefit from the government’s policies that are designed to encourage trade and business. With a corporate tax rate set at a flat rate of 17%, and at only 9% for companies with profits of less than $300,000 annually, it’s easy to see how SME’s manage to keep half of the country’s workforce in employment as well as making up 35% of Singapore’s economy.
Companies in Singapore enjoy other benefits too, such as improved business opportunities thanks to the country’s free trade agreements with a host of other countries, including those that are key players in the world economy like China, New Zealand and Australia. As hosts to more than 70 international airlines, it’s no wonder that Singapore business operations have fewer difficulties in spreading worldwide.
To form a startup in Singapore, you don’t even need to be a resident. Although any Singaporean resident or citizen can form a private limited company, sole proprietorship or limited liability partnership without restrictions, entrepreneurs from abroad can simply appoint a resident nominee director and incorporate a company by renting an address within the country.
The majority of companies in Singapore are private limited companies, recognized by “Pte Ltd” after the name. These are widely regarded to be the least risky business option as this type of company limits the directors’ and shareholders’ liabilities in the event of losses or debts in the business.
A limited liability partnership is similar to the private limited company as the business is understood to operate on its own legal identity. Professional services like firms of architects or lawyers are most suited to this type of company.
If a single individual is in charge of all business operations within the firm, the company can be a sole proprietorship, meaning that the director retains all liabilities and assets.
Singapore provides the ideal link between eastern and western business relations because of their primarily bilingual workforce, who can communicate effectively in both English and Mandarin languages. The country also boasts a high literacy rate of 95.9% resulting in an extremely competent and intelligent workforce.