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Doing Business in Singapore

Can a foreigner start a business in Singapore? How much does it cost to start a business in Singapore? Why is it easy to do business in Singapore? Can I do business in Singapore?


Financial system


Singapore, well-regarded as a triple-A rated economy, is a thriving premier financial hub of international repute. Its financial system is highly developed, and well-regulated and supervised. It offers a broad range of financial services including banking, insurance, investment banking and treasury services.


A key aspect of Singapore’s financial centre is its deep and liquid capital markets. They are a key source of funding for the region’s growth and development.


As there are no restrictions on exchange controls in Singapore, your funds can easily be remitted in and out of the country. Singapore places no restrictions on reinvestment or repatriation of earnings or capital.


Workforce


Singapore has a skilled workforce to meet industry demand. With a literacy rate of 96.4%, employers have a vast pool of resources to tap into. Furthermore, Singapore is the most competitive Asian country that possesses the most cooperate and cordial working labour-employer relations. Singapore’s business environment, especially its business legislation as well as government and labour relations has won numerous accolades over the years.


Scope of corporate income tax


In Singapore, income is generally subject to tax on a territorial and remittance basis. Taxes are imposed on income earned or accrued in Singapore, as well as foreign-sourced income remitted into Singapore, although certain qualifying foreign-sourced income is exempt from income tax.


Singapore does not tax capital gains. Only gains that are characterised to be revenue or income in nature are taxable. Whether a transaction is capital or revenue in nature depends on the facts and circumstances of each case.


Gains derived from the disposal of ordinary shares in a company is not taxable, if immediately prior to the date of share disposal, the divesting company had held minimum 20% of the ordinary shares in the investee company for a continuous period of minimum 24 months.


If you would like to know more, please contact Bestar.



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