Singapore is titled as the “best place for doing business “in Asia. Among the factors that this modern city use to attract foreign investment are “friendly” tax policies, easy business registration procedures and excellent infrastructure. Singapore is quick and flexible in adopting business-friendly policies that help the city-state attract large amounts of foreign investment and thereby strengthen the presence of foreign companies in Asia.
Small and medium-sized businesses often choose Singapore because of its more attractive tax incentives and government support programs.
And, when it comes to IT sector, Singapore is a blooming place. Below are some valid reasons to choose this city-state for your start-up idea:
- Low taxes
Singapore has such taxes that it is often called offshore. The corporate tax rate is 17%, but in reality companies pay much less for the first three years and longer.
Thanks to the benefits for young companies (Start-up Tax Exemptions), the following payments are received:
- 4.25% of the first S $ 100,000 (RUB 4.7 million) of taxable income.
- 8.5% on the next S $ 100k.
When held for three years, the company can get a partial tax deduction (Partial Tax Exemption) and pay this much:
- 4.25% on the first S $ 100,000 of taxable income.
- 8.5% of the next S $ 190,000 (RUB 8 million).
Dividend tax – 0%. Therefore, Singapore is popular with investors and is suitable as a jurisdiction for holding companies.
Singapore is a parliamentary republic dominated by the same People’s Action Party since 1959. In the last elections, she received 83 out of 87 parliamentary seats.
For business, such consistency is beneficial because of a consistent economic policy, and also because investors are not worried about political risks.
In international relations, Singapore also behaves predictably. He has no sharp conflicts with any country in the world. The authorities are seeking to strengthen their positions through participation in global economic integration.
- Investing and helping start-ups
The government helps entrepreneurs who open their first business in Singapore through the Economic Development Board (EDB), and a dozen other organizations.
Individuals and foundations are also willing to invest in Singapore business. There are many reasons for this. First, in Singapore, both investors and recipients of investments feel protected – the local legal system is recognized by the World Economic Forum as the most effective in the world.
Secondly, Singapore is the third country in the world in terms of intellectual property protection. Investors can be sure that the developments will not be stolen, so they boldly invest in Software Development Business in Singapore.
- Immigration opportunities
Many people want to move to Singapore, so the immigration policy in the country is harsh: only the best are invited. Fortunately, if you run Software Development Business in Singapore, then you are one of them. Therefore, you can get a Singapore work pass.
Employment pass will require financial investments – you will have to pay yourself 6,000-8,000 Singapore dollars a month and deposit your annual salary into the company’s account before applying. Also, for the first time, you will be asked to talk about your business model, show a financial plan and other papers that will confirm that your business is real and viable.
If everything is done correctly, then the owner of the company will receive a visa that will allow him to live and work in Singapore, for a period of one to five years. There is a Dependant Pass (DP) for family members so they can relocate too.
Over time, EP and DP holders can obtain residence permits, and then citizenship.