Foreign Direct investments through government-linked investment companies, and free trade policy highlights Singapore’s approach towards foreign investors.The country is undoubtedly the perfect destination for future investment as it has a strong, emerging economy.The country is a major trading hub well known for its integrity,reliability,productivity and is home to one of the world’s busiest port.

FACTS

Country Name:

Republic of Singapore

Area:

716.1 square km

Population:

5.607 million population as of Census 2016

Language:

Malay is the official language.Commonly spoken languages are English,Mandarin,Tamil

Religions:

Buddhism,Islam,Christianity,Taoism and Hinduism.

Currency:

Singapore Dollar

Singapore is known as the gateway to Asia and is considered as a vital strategic point for international trade mainly because of its geographical location.Having a multi-cultural cosmopolitan environment,Singapore for the last 14 years has been considered as the best destination for foreign investments.Many Foreign investors are operating their business operations in Singapore and many are showing their interest of setting up a company.

As per the UNCTAD Global Investment Report 2016,Singapore was ranked seventh largest amongst leading cities in the world, & third amongst South Asian countries considering the FDI amount, country received in the year 2016 which has amounted to approximately 53.9 billion U.S.Dollars.All this has made Singapore the hotspot destination for international investment.

We as a foreign direct investment consulting firm has a unique, proven track record of working with investors.We help foreign investors in locating investment opportunities and in meeting the market needs, and assist them in maximising the investment opportunities.

For more details click
http://www.singstat.gov.sg/statistics/browse-by-theme/investment

INVESTMENT OPPORTUNITIES

• Services
• Construction
• And many more……………………………..

High Potential Sectors

• Aircraft and parts,
• Oil trading and refining,
• Medical and scientific devices,
• Telecommunication
• Computer hardware and software
• Environment.
• And many more……………………………..

Privatization Programmes

• Telecommunications
• Airlines
• And many more……………………………..

There are few significant factors which definitely makes Singapore one of the most promising and lucrative choice for foreign investors

Strategic location with high end connectivity

• Singapore is strategically located at the crossroads facilitating vital trade links between the major sea routes of India and China.Singapore promotes east west trading routes and leading shipping routes of the world.
• Most investors looking for investment opportunities are attracted to Singapore because of its geographic location which provides them the opportunities to get easy access to the market.Singapore has an award winning Airport which is named as Changi.
• One important reason which is making Singapore a popular destination amongst international investors are the Singapore ports which are quite famous because of its world class infrastructure. Consecutively for the last 24 years, the country has been awarded having the Best Seaport in Asia (Asian Freight and Supply Chain Awards) which is welcoming for international investments.
• Global investment brings lots of benefits to the investors mainly because(according to Global Information Technology Report 2012), Singapore has been ranked by the World Economic Forum, as one of the leading economies in the world, using information and communications technologies constantly to upgrade its countries economy.

Well designed Double Tax agreements and Tax System

• Singapore offers Tax incentives to foreign investors for global investment specially in specific industries like financial services, Tourism, healthcare and telecommunications and investors can apply directly to the Government with their proposals.Singapore has double tax agreements (DTA) with more than 70 leading countries.This has helped in relaxation of tax for major companies operating in Singapore.
• The investor friendly tax system provides incentives to foreign investors which greatly benefits the foreign investor as the highest tax rate on taxable income is mere 17%.Wherein, the tax on capital gains and dividend income is 0%.
• Suitable trade environment, financial stability, tax incentives are attracting foreign investor in a big way in Singapore.It’s playing a crucial role in the success of the foreign business and helping companies in initiating their business operations successfully.

Efficient Legal system

• Some of the benefits of foreign investment in Singapore includes the very strong legal system which has received global recognition for its efficiency and integrity.According to the IMD World Competitiveness Year book 2010, Singapore has been ranked as the least most bureaucratic place for doing business in Asia.
• Advantages of foreign trade investment includes commercial legal system which is quite transparent and that’s what makes it popular among business houses. Handling legal matters is easier for company formation in Singapore and is done with utmost impartiality.

Skilled and multilingual workforce

• Singapore is a popular destination amongst foreign investors and foreign investment institutions because of its presence of skilled workers from across the globe. Innovative working environment, coupled with productive and motivated workforce has helped in building country’s reputation.
• The immigration policies of Singapore have also helped many international workers to look for work in Singapore.This has helped many foreign companies to get Singapore company registration easily which has helped them to relocate to Singapore and recruit skilled professionals from diverse countries.
• Multicultural society has helped large number of foreign workers from diverse backgrounds and cultures to settle in Singapore which has made it easier for employers to look for multilingual workforce as per their requirements.

Best place in the world to do business

• Singapore’s facilitates a pro business environment, as a result of which enjoys a world-class reputation amongst leading nations, which makes it one of the biggest global hub for investment opportunities
• Singapore has topped the list being the easiest place to conduct business in the world according to World Bank records.Singapore simultaneously is the most desirable immigration destination (according to Gallup’s 2010 Potential Net Migration Index.)

Investment opportunities in Singapore

• Foreign investors looking for setting up a business in Singapore can greatly benefit in the country as they can get help through institutions like the Singapore Trade Development Board (STDB) and Economic Development Board that provides different incentives for foreign investment flows in Singapore.
• Singapore offers free trade zones which provide equal opportunities to domestic and foreign investors in Singapore.

Singapore is the ideal destination for foreign investment mainly because it’s a free trade zone and has close proximity with China.

Setting up a business in Singapore requires at least 1 local resident who will be the director, and a qualified company secretary

• For setting up a company in Singapore, foreign companies must have Minimum of 1 and a maximum of 50 shareholders.
• Foreign companies wishing to conduct business in Singapore should have Minimum paid up capital of SGD 1.00

Note: Some of the above requirements are important and depends on the type of company registered.

Singapore is undoubtedly the leader especially in areas of manufacturing such as electronics and petrochemicals and offers excellent base for complex manufacturing activities.

For Incorporating a company in Singapore leading foreign companies have to decide whether they want to register their company as a Subsidiary Company, or as a Branch Office or as a Representative Office.

All registrations are carried out by a professional firm in Singapore and ACRA (Accounting and Corporate Regulatory Authority).

Subsidiary Company

• A subsidiary company is a separate legal entity from its parent company. Singapore government allows 100% foreign ownership in companies. A foreign company doing business in Singapore can establish a local limited liability company to incorporate in Singapore, also known as a Subsidiary company in Singapore and retain 100% of the shareholding.
• Investment opportunities in Singapore requires one or more directors to be appointed as dictated by the Companies Act.It expects that at least one of the directors to be a Singapore resident (citizen, permanent resident or employment pass holder).

 Branch Office

• Branch office should be registered legal entity established within Singapore in order to secure a business registration certificate.
• However branch office will be treated as an extension of the foreign company.
• Foreign companies willing to start a branch office in Singapore will be responsible for all the actions of the branch office. The branch office is considered as a non-resident entity and does not falls under the tax exemptions and incentives which is usually available to other local companies in Singapore.
• Unlike the subsidiary office, the Foreign office along with it branch office is required to appoint 2 agents who has to be from local residents in Singapore for company formation. The branch office should have a registered office address in Singapore.

 Representative Office

• A representative office does not hold any legal status.It is a temporary setup meant for foreign companies, interested in doing business in Singapore but, wish to proceed with proper market survey.
• The representative company therefore allows the parent company and the foreign company looking for company registration to conduct market research, feasibility studies before it takes the decision to proceed with upgrading to a Subsidiary or Branch office.
• It cannot participate in revenue generating activities.Hence, there is no taxation.
• Company incorporation requires that the Chief Representative will be relocated from the main headquarters. The total number of employees in representative office should be five.

Singapore offers a perfect location to a foreign investor looking for trade and business .Its one of the best countries to invest and greatly will benefit foreign investors as it has a strong emerging economy.Following are the major steps of opening a business venture in Singapore;

 Name Approval for the business

• For company formation in Singapore, it’s mandatory for companies to apply for approval and register with their company name. Clients have to submit their application online via Bizfile or with SingPass password.
• For Singapore company registration, a company have to appoint a professional firm if they don’t have a SingPass.For getting approval on the name of the company the foreign investor will have to pay an application fees of S$15.00
• Reservation can be done for 60 days but can be extended for further 60 days before expiry. The fee for extension is S$ 10.00 per name.It usually takes one hour to get the approval for company registration.

Deciding Business Structure

After naming the business it is important to decide the nature and structure of the business for company incorporation as per Singapore government norms. Investors can decide from the following choices for starting their business operations.

• Representative Office</li
• Branch
• Subsidiary
• Incorporated Company
• Limited Liability Partnership</li
• Limited Partnership
• Sole Proprietorship

Registration and Incorporation

• Investment opportunities in Singapore for foreigners are immense and it’s essential that foreign investors to connect with a professional business registration firm. Foreign investors are not allowed to register on their own with their business, to avail the best investment opportunity in Singapore.
• To register with ACRA (Accounting & Corporate Regulatory Authority) all Foreign direct investment applications have to be submitted online via BizFile through ACRA’s electronic filing and information retrieval system.
• To get a business registration certificate, local address for the business has to be forwarded which has to be approved by the Urban Redevelopment Authority (URA).

Business Permits and Licenses

• Business investment opportunities in Singapore requires business permits and licenses to operate business. Special licenses are needed in certain situations to conduct a specific type of business.
• There are different kinds of business licenses like Occupational license, Business Activity License, Compulsory License. For Incorporating a company it’s essential to get consultation from legal firms regarding issue of valid License.

Singapore definitely remains a most sought after destination for foreign investors, as the government tax rates and tax laws are competitive and have taken a strategic approach towards building the countries economy.

Corporate Tax

All profits from international investment are subject to income tax, unless they are specifically exempted under the Income Tax Act.These include rental income, dividends from shares, unit trusts, and interest from fixed deposits. Both local and foreign companies are taxed on income earned in Singapore as well as from funds that are brought into Singapore.

Taxation on resident and non-resident companies is similar,except resident companies enjoy few additional benefits, such as:

• Singapore has drafted few regulations whereby it gives relaxation to few countries from double taxation as laid down in the agreements specially related to global investments.
• Tax exemption is given on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income.
• Tax exemption are applicable for new start-ups,who are in the process of setting up a company for up to three years

As fast as foreign direct investment is concerned, a company is considered as a tax resident in Singapore when the control and management of the company is exercised in Singapore.The residency status of a company may change from time to time. For instance, a Singapore branch of a foreign company is usually not considered a Singapore tax resident.

Withholding Tax

Investment opportunities has the provision of withholding tax when paid to non-resident companies.These payments include the following things;

• Withholding tax depends if there’s any interest, commission, fee in connection with any loan
• Investing in Singapore can make eligible for withholding tax if there’s royalty involved or if they have the right to use any movable property
• Payments of management fees
• Withholding tax is applicable if there are Rent or other payments for the use of any movable property
• Payments for the purchase of real property from a non-resident property trader
• Distribution of real estate investment trust

To know more about the tax system please connects with us. Our year of experiences and our team members successful efforts in providing FDI guidance to investors looking for incorporation services in Singapore,are helping us to grow as an company .

These include guidance regarding how to set up a company, company incorporation, management accounting,tax registration, as well as human resources.We will be happy to connect with prospective investors looking for foreign business opportunity.