July 5th, 2018 | Updated on April 23rd, 2019
The city-state of Singapore is a living example of ‘small is beautiful.’ The southernmost city-state in the peninsula of Malaysia has an incredibly beautiful skyline consisting of soaring architecture with a rich history of colonial heritage and fine dining.
Besides the natural beauty of the landscape dotted with towering structures of modern architecture, the economy of the country too is not less beautiful.
Singapore is one of the most prosperous cities in the world that has a thriving business climate where every businessperson from any part of the world would like to set up a business establishment.
To see how a small city in Asia can become the most preferred business destination, you have to be in Singapore.
Despite the economic progress of China, Singapore is still the place that commands total attention as a prominent global financial hub in Asia.
1. Trade-Driven Economy
Singapore and business sound synonymous today because of the trade-driven economy of the country and its openness.
Prosperity is visible in every part of the city that has proved that it means business. The country is strategically located at the converging point of the eastern and western shipping lanes and has progressed immensely in becoming the top business destination in Asia.
The country has all the ingredients necessary for creating a healthy and friendly business environment. It has a stable government, a robust legal system, an educated population that believes in development and growth besides an effective regulatory system.
It has become the most natural place to set up and run a business not only for locals but also foreigners. So convenient it is to set up shop in Singapore, that you can do it in just a few hours.
2. A Promising Trade Hub
A trade hub that thrives on financial and shipping businesses, Singapore is the most prominent financial hub of the Asia Pacific region.
The government’s business-friendly outlook and economic policies have transformed this agrarian land into a city that is brimming with business potential.
As the Asian markets are opening up with countries like Vietnam and India making rapid economic progress, Singapore is fast becoming an epicenter of global business that wants to earn its share of profits by exploring the markets of Asia.
English is the prime language of the country that has over 30,000 British residents, and this provides a huge advantage of doing business across the world.
The location of Singapore is another attraction for setting up business because almost half of the world population can reach it in just 6 hours.
Added to this is the excellent transport facilities and infrastructure backed by a reliable local workforce that promises higher productivity.
3. Growth Potential
Singapore has an open economy and an indicator of global trading activities.
The growth recorded in 2014 touched 2.9%, but due to sluggish trade with China in 2015, it came down to 2%. Forecasts had indicated that the growth rate would range between 1% and 3% every year and surprisingly it recorded 3.6% in 2017.
Although the first quarter forecast of the Monetary Authority of Singapore (MAS) was 2.5%, some bullish predictors are confident that in 2018, the GDP growth is likely to reach the 4% mark.
When you have a business in Singapore, you are moving on the fast track of growth that provides immense opportunities for taking your business to new heights.
4. Setting Up Business In Singapore
Singapore encourages foreigners to invest and operate their business from the country that believes in openness and free trade.
The methods of setting up shop are pretty straightforward and having a local consultant to guide you would make things very easy. The best thing about the country is that you would never face the hurdles of red-tape.
A transparent and a corruption-free government is the real well-wisher of business. The state does not discriminate between locals and foreigners because economic progress is what matters most to the people.
5. Points To Consider
If you are running a legal business in a foreign country, you can explore the option of opening an office in Singapore for the same industry or start a new company altogether.
In both the cases, to enable you to enter Singapore to administer business activities, you must first obtain an employment pass or Entrepass from the Ministry of Manpower (MOM).
A company has to be a Private Limited Company with a paid-up capital of at least 50,000 Singaporean dollars; must be registered not more than six months ago from the date of application and the applicant has to hold at least 30% of business shares to get the employment pass in Singapore.
You are not allowed to operate businesses related to employment agencies, massage parlors, and food courts. The Entrepass is not applicable if any foreigner does not stay in Singapore.
However, it is mandatory for all businesses to have at least one resident director of the company for incorporation of the company.
6. The Help You Get
The consultancy firm that guides you in setting up business in Singapore is well conversant with the procedures and legal requirements.
The experts will navigate you safely through the process of registering and incorporating the company. You need to provide the necessary documents and pay the fees charged by the government to get the work done smoothly and speedily.
Since the process of registering a business is streamlined and fast, be ready to launch your business just within 2 hours of registration.
The consultant will also help you to find a local director for your business so that there is no delay in registering it by complying with the Singapore Company Act.
The most stable political environment in Singapore ensures a lot of security and safety to investors who can pay undivided attention to business to make it prosper.
The transparency in the dealings gives more confidence to business owners as they do not have to face any uncertainty in starting their company.