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Formation of Singapore Company is Hassle Free

Formation of Singapore Company is Hassle Free
Doing business in Singapore is hassle free since the government is extremely cooperative and the country follows a free market system. Singapore has one of the most stable, progressive economies in the world and the GDP rate is also very high. Establishing a company in Singapore requires work permit, most of which are based on the merit of the person who wishes to set up the business. You can invest any industry you wish to, the most prosperous ones being communication, travel and tourism, and hospitality industry. Singapore provides flexible labor laws and foreign ownership of business has never been a problem in the country.

The favorable tax structure of Singapore
Singapore is considered to be a business friendly country since filing and paying tax is easier in this country. In fact, the corporate tax rate is lower in Singapore as in comparison to other developed economies in the world. Singapore tax system is, in fact, very much conducive to setting up new businesses. Corporate tax rate in Singapore will be 17% from 2010 onwards which is only 0.5% higher than that of Hong Kong, the biggest rival of Singapore. The tax rate earlier used to be 18% and this reduction of 1% in the corporate tax rates makes Singapore a sought after destination for business.

Tax incentives provided by the government of Singapore
Singaporean government has declared certain tax incentives which will automatically lower the effective tax rates of the companies. These incentives have been suggested by the Economic Development Board of Singapore or the EDB. The tax incentives include:


  • Pioneer Industries - Pioneer incentive would be granted to an industry which has been doing small scale business in Singapore to convert it into large scale. The eligibility of this grant will be measured in terms of the importance of this industry for Singapore economy. However, this grant will continue for 15 years commencing from the inception of the company.

  • Development and Expansion scheme - For the development and economic expansion of Singapore, this incentive will be granted to a manufacturing industry. The incentive will be granted by the Ministry for a period of up to 10 years, breaking it into periods of not more than 5 years each as deemed by the Ministry.

  • Enhanced Tax Deduction for Research and Development - Such R&D activities carried out in Singapore will be awarded tax exemption which proves to be extremely useful to the economy of the country. The company or the individual conducting the research can claim a deduction of 50% of the amount of expenses incurred while doing the research.


Hence, setting up a business is easy since the tax structure of Singapore is in favor of the entrepreneurs.
Designed for foreign entrepreneurs and firms, GuideMeSingapore offers comprehensive and up-to-date information about Singapore company formation, taxation and immigration topics.




Posted by: Heather    Source