In this article, we will talk about the reasons why Singapore is such an attractive place for foreign entrepreneurs to start up or expand their business operations here.
Singapore is one of the most politically stable countries in the world. As business owners, we are always looking to set up operations in a country which we know that we are able to conduct our business operations with a peace of mind without the risk of riots and protests by the local population.
Attractive Tax Scheme
Singapore has one of the most attractive tax scheme for both personal and corporate taxes. Personal income tax is based on a progressive income tax system which starts from 0% and increases to a cap of 22% for incomes above S$320,000. Corporate income tax is capped at 17% and newly start up companies get tax exemption of S$125,000 for the first 3 years.
Easy to set up and maintain
The ease of setting up and maintain a company in Singapore is attractive to foreign entrepreneurs. Company incorporation could be done at the comfort of your home without the need to book a flight ticket. It only takes a couple of days to set up your company and get your business started. Annual compliance and regulatory work to maintain the company is straightforward and fuss free too.
Funding and grant schemes
The Singapore government is also very supportive by providing grants, subsidies and funding to both local and foreign owned business. Companies also have various financing options from both banks and financial institutions.
100% foreign ownership
Foreigners can set up a company in Singapore and own 100% of the company while giving them full control of the company. This provides them with the flexibility to decide on the capital structure of the company.
Do drop us an email if you need more information or are interested to incorporate your company in Singapore!
Neobanks vs traditional banks: Neobanks on the blocks
In the 21st century, technological advancement is found disrupting traditional industries and changing the way of living everywhere and it finally reaches the financial and banking sector. One of the most popular financial digital disruption to the industry is neobanks.
Being one of the world’s top financial hub, Singapore embraces the digital disruption and is innovating at the forefront of the industry. Neobanks are the new boys on the blocks but what exactly is a neobank?
What is Neobank?
Neobank, AKA online bank, internet-only bank, virtual or digital bank, is a type of bank that offers direct-to-consumer services exclusively online and has no physical bank branches. Unlike traditional banks which can offer a suite of banking products and services, neobanks usually operate only through online platform or smartphone application.
A common characteristics of Neobank is the ability to open an account through online platform or application anywhere in the world. While most commercial banks have internet banking available, there’s only handful that supports non face to face account opening.
The differences between Neobank vs Traditional Banks
Traditional bank has been around since the birth of the banking industry, they are known for being reliable and have a regulated financial system. And because of that consumers know that they can bank with peace of mind.
However, like a double-edged sword, it is challenging for the traditional banks to cope with the evolving consumer needs and satisfaction as the regulation in place does not have much innovative space.
And here comes the new kid on the block, neobanks. Neobanks’ business model is to focus on offering online banking services more effectively hence allowing consumer to execute most banking services themselves. With that model in mind, they are able to cut cost, reduce fees and return the benefits back to the consumers. These services can range from personal to corporate banking such as opening multicurrency account, transferring funds overseas and tracking business finances. Without a doubt, neobank is here to stay.
Neobanks in SG
While neobanks are making their way into the banking landscape, traditional banks in Singapore are still the preferred choice of many consumers. As Singapore is a country where financial regulations are as strict as a ruler. However due to recent lock-downs and other restrictions, many of the consumers are now considering to switch to neobank especially foreign consumers and business owners for faster bank account opening.
Do drop us an email if you are interested to incorporate your company or open a bank account in Singapore!
Singapore is an attractive place for foreign entrepreneurs to start a business as it has one of the lowest tax rates in the world.
In this article, we will focus on the corporate tax system in Singapore.
Singapore adopts a single-tier corporate income tax system which means that company’s profit is taxed one single time while all dividends paid to its shareholders are exempted from taxation. Corporate income tax in Singapore stands at a flat rate of 17%.
There are a few corporate tax exemption schemes available for both local and foreign entrepreneurs starting a business in Singapore.
Tax exemption is used to reduce the chargeable income of a company.
Start-up Tax Exemption (SUTE):
For the 1st 3 years of assessment (YA), companies fall under this tax exemption scheme.
Starting from YA 2020 onwards
Tax exemption on first S$200,000 of chargeable income:
1st S$100,000 (75% exempted from tax) = S$75,000
Next S$100,000 (50% exempted from tax) = S$50,000
Partial Tax Exemption (PTE):
For the 4th year of assessment onwards, companies fall under this tax exemption scheme.
Starting from YA 2020 onwards
1st S$10,000 (75% exempted from tax) = S$7,500
Next S$190,000 (50% exempted from tax) = S$95,000
Corporate Income Tax Rebate
Tax rebate rate is the percentage of which your tax is reduced.
Starting from YA 2020 onwards, all companies are given an additional tax rebate of 25% capped at S$15,000.
Do drop us an email if you are interested to incorporate your company in Singapore!