9 big reasons why foreign firms are flocking to Singapore

Still the top business hub.

According to GuideMeSingapore's recent report, Singapore has established itself as a preferred jurisdiction for businesses of all sizes to headquarter their Asian operations. 

Extensive double tax treaties: Singapore has an extensive network of double tax agreements (DTA) with more than 70 countries across the globe. The key benefits of a DTA are a) the avoidance of double taxes, b) lower withholding taxes, and c) preferential tax regime, all of which play an important role in minimizing the tax burden for a holding company structure.

Attractive tax regime: Singapore’s tax system is viewed as “simple and investor friendly”. The highest corporate tax rate on taxable income is 17%.

The tax on capital gains and dividend income is 0%. No withholding tax is levied on post-tax dividends paid from Singapore.

Equally important, all foreign-sourced income is tax exempt as long as the income has been subjected to tax in a country with a headline tax rate of at least 15%.

Singapore’s regulatory framework offers a level-playing field for foreign investors, with no foreign ownership restrictions and no foreign exchange controls.

Strategic location with superb connectivity: Singapore has a unique advantage in its geography. The country is strategically located at the crossroads of the main trade and shipping routes of the world, including the major sea route between India and China.

Travel to most Southeast Asian countries consists of a short air flight.

Singapore is renowned as a transportation hub, being home to the award-winning Changi Airport and a sophisticated port infrastructure, which has also been consistently awarded the ‘Best Seaport in Asia’ (Asian Freight and Supply Chain Awards) for 24 years to date.

Availability of skilled and multilingual workforce: Singapore’s business environment has proven to be highly attractive to skilled and ambitious workers from across the globe.

The fast-paced innovative working environment, together with a large local pool of Singapore talent, has only served to reinforce the country’s reputation as having one of the most productive and motivated workforces in the region.

This has been proven by rankings in the IMD World Competitiveness Yearbook.

The country is also renowned for being a multiracial society that is as diverse as it is cohesive.

Its citizens originate from diverse racial backgrounds, giving it the capacity to offer workforce solutions requiring multilingual and multicultural sensitivities.

The people are one of Singapore’s richest resource.

Smart immigration policies: Singapore provides a variety of immigration schemes for qualified entrepreneurs and working professionals.

The government is always looking to attract foreign investments and augment its local workforce with high-level talent from across the globe, which is in line with the liberal immigration policies of Singapore.

Great place for relocation of senior management and their families: Singapore is one of the most prosperous and stable countries in Asia.

The country’s stable political environment, public services convenience, diverse range of facilities, and cosmopolitan ambience makes Singapore an increasingly attractive destination for expatriates with families.

The country offers a rich variety of dining and entertainment, tropical gardens, world-class hotels, highly-developed infrastructure, and – very important for ambitious families – a host of internationally recognised schools and universities. Singapore’s high quality of life has been consistently validated in various surveys such as the Mercer’s Quality of Living Survey. 

Excellent IP protection regime: Singapore provides a robust intellectual property (IP) rights regime, backed by a trusted legal system and strong IP infrastructure.

The government’s IP policy is attuned with the aim of encouraging innovation, creativity and growth of industry and commerce in Singapore.  

Efficient legal system: Singapore’s legal system, which was inherited from the British, has now evolved into a distinctive jurisdiction.

The system continues to grow in order to maintain its relevance in the current cultural, economic and commercial climate, by absorbing the common law as well as best practices from other mature legal systems.

The Singapore legal system has received global recognition for its efficiency and integrity, and the country is deemed to be the least bureaucratic one in Asia according to the IMD World Competitiveness Yearbook 2011.

Businesses in Singapore are not burdened by red tape or the slowing down of operations due to bribery or slow legal process. 

Best place in the world to do business: Top institutions monitoring economic and business activity worldwide agree on Singapore’s attractiveness as a business destination.

The country has been ranked #1 by the World Bank as the World’s Easiest Place to Do Business, for seven consecutive years to date. It is ranked second by the World Economic Forum in its 2011-2012 Global Competitiveness Index, and was Asia’s leading city in the PwC 2012 Cities of Opportunity Study.

According to Gallup’s 2010 Potential Net Migration Index, Singapore was the global leader as the Most Desirable Immigration Destination.