Could Singapore be the Asian equivalent of the Silicon Valley? According to business experts, this is quite likely. Singapore is quickly becoming the go-to place for startups in Asia, as well as increasing their share of the biomedical science sector as well. Singaporean business leaders do not equate themselves with the Silicon Valley equivalent, but instead point to their overall focus on global outreach as the prime reason for their startup hub status. So, what is it about Singapore that has new entrepreneurs flocking there? Well, there are a few reasons for this sudden interest.
Prime Location: Singapore is strategically situated at the midpoint between India, Indonesia, and China, making it a great location that provides quick access to millions of people. When you add in the increased size of the manufacturing sector, a booming trade economy, and one of the busiest ports in the world, it becomes easy to see why so many are rushing to take up residence in this sovereign city-state.
Ease of Business Startup: Regardless of whether you are a foreigner or citizen in Singapore, starting up a business is quick and easy. In most cases, actual processing time is usually only 2 days, and for foreigners who are required to utilize incorporation services, the cost ranges from $560 to $800. Another importance aspect of starting a business in Singapore is that entrepreneurs do not have to establish residency, or secure specific visas in order to incorporate their business. While Singapore does require that businesses are run by local directors, this problem is easily remedied by using incorporation services, which also allow you to start your business without ever visiting Singapore. If you are set on overseeing your own business as a foreigner in Singapore, there are also Entrepreneur and Employment Passes that are quite easy to secure depending on your needs. There is one main consideration for opening a startup in this area. Singapore requires all businesses who go through Singapore incorporation process to have a Singapore-based banking account. There are banks available that allow you to set up an account without being there in person, but they have significantly higher minimum deposit requirements and fees when compared to local banks.
Better Tax Rates: Singapore is one of the most business-friendly economies in the world due to their extremely low tax rates. For the first three years that a business is open, there are no taxes until the business generates an income of $80,000. The next threshold is $300,000, which only requires 8.5% tax payment. After three years, if a business generates more than $300,000, the tax rate is set at 17%.
Increased Investor Availability: Singapore has a high rate of billionaires in the population, and this provides an excellent source of investors. The various tax rates and incentives available provide benefits for both investors and business owners alike, ensuring that there are plenty of people willing to invest in new startups that have the potential to generate income.