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Singapore Corporate Formation

Singapore Corporate Formation For Optimum Business Profits

Singapore continues to push the envelope of eased tax rates to maintain its edge among global economies as a premiere destination for foreign business entities. Due to the global financial crunch and debt crisis that has hit Europe recently, many western companies are looking elsewhere to expand their business operations and recuperate from the unfortunate fiscal event.

As competition grows among Asian economies in capturing Western investors, Singapore has maintained conservative fiscal policies and an open economy, which in turn has helped it weather several economic storms. While opportunities for growth has slowed down in Singapore recently, statistics still show that the Singapore economy has continued to increase, making it all the more an attractive and well-balanced place for business.

Singapore Corporate Formation In A Wide Range Of Industries

Singapore company formation is very easy and systematic. Anyone can breeze through the application process effortlessly, because of the government’s well-maintained and high-tech database management systems. The government also makes sure that all of their processes waste no one’s time so the growth of both parties (the government and the applicant) are not stunted.

Singapore Corporate Formation And What You Need To Know Of Tax Amendments

If you are new to company formation in Singapore, then you have to know that the corporate and individual tax rates have been reduced to 17 percent and 20 percent respectively. Meanwhile, withholding taxes for non-resident workers, as well as industry-specific tax incentives has seen an increase of around five to seven percent.

To be more specific, those businesses that have been incorporated in Singapore can enjoy a partial tax exemption of 8.5 percent. This rate is applicable to income amounting to SG $300,000 annually. They will be taxed at 17 percent, however, once their profits exceed SG $300,000. It may seem a lot if you think about it, but in a global context, this headline corporate tax rate is one of the lowest among developed countries.