While Europe has Switzerland, Latin America has Panama, Middle East has Dubai, Asia has Singapore. The breathtaking development of Singapore in the last 60 years since its independence does not have parallels in the world.
From the very beginning, Lee Kwan Yew, the first Prime Minister of Singapore, pursued rigorous anti-corruption politics and managed to transform a pretty poor island between Malaysia and Indonesia into one of the most prosperous places on Earth.
Today, Singapore is an undisputable number one location for businesses in ASEAN, has one of the most stable economies, a strong banking sector, a world-class healthcare and education, and serves as a regional headquarter for the most international corporations having one of the most business-favorable corporation laws in Asia.
The standard tax rate in Singapore is at 17%. Though Singapore has also different tax exemption schemes. For example, the newly incorporated startups enjoy a discount of 75% for the first 100.000 SGD, 50% from 100.000 till 200.000 SGD of revenues. This scheme is valid for the first 3 years of tax assessment.
The Singaporean government offers different tax rebates to all companies depending on the status of the current state budget. For example, for the assessment year 2025, the Singapore budget introduced a rebate of 50% on corporate income tax capped at 40.000 SGD.
Incorporating in Singapore, you enjoy the benefits and the reputation of this world-renowned location. Like in the most countries following the Commonwealth law, the incorporation in Singapore is fast, affordable and requires a minimum paid-up capital of 1 SGD only.
Along with the requirements, like registered office and a local corporate secretary common in most of Commonwealth countries, in Singapore you cannot avoid a local nominee director, as this is a legal requirement in Singapore. Still, you do not need to worry about it. With Singabiz, you are definitely in good hands as we can provide you with all the requirements for smooth operations.
From Singapore you have a better access to the entire ASEAN community – an association of 10 countries with the population bigger than that of the European Union and one of the fastest growing regions in the world – as well as to other Asian countries.
Some customers ask for a non-resident company in Singapore. The obligations and the costs for both kinds of companies are pretty the same. The only difference is that the non-resident company does not do any business directly in Singapore and does not bring any earned income into Singapore. It means that a non-resident company should not have a local bank account in Singapore neither in order to qualify for the status as non-resident. Such companies may not pay taxes in Singapore, but they do not benefit from the local bank system and may not apply any double taxation agreements between Singapore and other countries, as they are non-residents in Singapore.
Whether it really makes sense to have a non-resident company or better to stick to a resident company in Singapore is a decision each our customer has to take on his own at the end. But in general, it is rather advisable to use a standard resident set-up and to benefit from the well-established local bank system and the existing double taxation agreements. At the same time, you can also profit from generous tax schemes in Singapore.
If you plan to expand your business to Asia or to incorporate a new business in the region, Singapore is definitely a country to consider at first place. Just contact us and one of Singabiz‘ representatives will be glad to assist you further. You can also book one of our consultation packages.
