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Company Formation Singapore



Why Is Singapore Attractive for Foreign Investors?

Updated on Monday 18th December 2017

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Singapore has put all its economic efforts into attracting foreign direct investments (FDIs) and creating a suitable trade environment. All its strategies have turned Singapore in one of the easiest cities in the world to do business in. Among these strategies one can find the advantageous loans for foreign investors, the tax incentives and exemptions, the pro-business legislation and the city’s financial stability. In 2013 Singapore was nominated as the eighth largest city in the world as recipient of FDI by the UNCTAD Global Investment Report and the third among Asian countries.  The countries investing the most in Singapore are the United States, the Netherlands and Japan.

Our company formation specialists in Singapore can offer information on the laws related to foreign investments.

Singapore is one of the most important gateways to Asia

Most foreign investors and companies are attracted to Singapore due to its geographic location which allows them easy access to the greatest market in the world: China. The favorable tax system with one of the lowest corporate taxes in the region, the extensive number of double taxation agreements convinced enterprisers that is it easier and more prolific to open a company in Singapore, rather than to just pass through Singapore while on the way to the rest of Asian countries.

The immigration policies which has attracted a great number of foreign citizens working in the top industries in Singapore, has also created an impressive pool of talent, Singapore being the country with “the most internationalized” workforces in the world. This has determined many companies to relocate here and take advantage of the labor force which is also one of the cheapest in the region.

Company formation in Singapore compared to other countries

In order to see exactly why Singapore is a preferred business location compared to other Asian countries, is suffices to say that compared to China, India and Japan three of the strongest economies in the region, the city-state offers incentives targeted to specific industries and foreign investors can apply directly with the Government for them. When compared to similar countries like Malaysia and Hong Kong, Singapore has the great advantage of offering better support to foreign investors, an excellent road system and communications infrastructure. Singapore is also one of the most innovative countries in the world, being the first to create and test its own digital currency.

Why should enterprisers invest in Singapore?

Being nominated the easiest city to do business in several times is one of the strongest arguments why foreign investors should open a business in Singapore. The city’s infrastructure, banking system and communication facilities are also very important as they are less time and money consuming factors when deciding to set up a company. Singapore provides many incentives for foreign investors putting money in certain industries such as financial services, tourism, healthcare and telecommunications. Foreign enterprisers can also rely on Singapore’s double tax treaties with over 70 countries that allow them to reduce the tax burden.

Investment aids and opportunities in Singapore

Foreign investors opening their first company in Singapore can be assisted by institutions like the Singapore Trade Development Board (STDB) that promotes FDIs and exports and the Economic Development Board (EDB) that provides different incentives for foreign businessmen setting up companies in the city. Apart from the industries mentioned above, the government strongly supports the manufacturing and services sectors which are part of its policy to replace the low-valued labor activities that were moved to China. Singapore has three free trade zones (FTZs) that provide the same opportunities for local and foreign companies. Enterprises can use the free trade zones for storage, repacking and export activities.

Our representatives in company formation in Singapore can provide all the details about investment opportunities to foreign businessmen wanting to incorporate a company. You can also contact us for company registration in Singapore.



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