Being among the best places to do business is no easy feat, as every country wants to believe it is among the best to set up and do business—whether local or international. Big nations like the US are most often contestants for the coveted title of the best place to do business. The reason for this is because without a good environment to conduct business, the economy may be brought to its knees, and businesses will go to operate in other countries.
For several years in a row, Singapore has held the title of being the best place to do business globally, until recent years, in which New Zealand displaced it from the top position. Still, the World Bank ranking forecasted Singapore inching closer to the top in 2017 and 2018, if not regaining its first-place position.
So, why is Singapore such a great place to do business, and why is it ideal for small businesses to expand globally? The following are 3 reasons why Singapore is a great business environment:
Blend of the East and the West
The exceptional colonial history of the small Southeast Asian nation and its varied population give it a blend of Asian, European, and American cultures. Thanks to the city-state being a former British colony, its legal, administrative, and taxation frameworks are a replica of the US and UK systems. Upon gaining its independence in 1959, the city-state has embraced the Western way of life, including its business practices and language, in a bid to make it more attractive as an international destination. However, Singapore has never lost its Asian cultural identity and is still proud of it, as many have criticized any move deemed to affect the island nation’s cultural heritage.
Many observers, including the World Bank, are of the view that Singapore has achieved and maintained a balance between the East and the West that embraces all and isolates none. The island state offers a welcoming and comfortable location, as well as a great social and business environment in such a foreign region. An amazing environment is a great place, especially for small US enterprises operating internationally.
Entrepreneurs from all over the world who wish to expand or open new businesses abroad should consider Singapore. As they start the process of investing there, they should liaise with One Visa to acquire their visa to enter Singapore.
Friendly tax system
Entrepreneurs reap benefits directly from the friendly tax laws, which positively impact their bottom-line thanks to the excellent exemptions and savings. Foreign businesses benefit a great deal from the low corporate tax rates that most other countries are not even close to matching. Non-residential businesses are exempted from taxes for the first three years of chargeable income. In addition, the introduction of the Double Taxation Avoidance Agreements shields Singaporean firms from paying hefty taxes on profits from overseas operations. The US businesses benefit from this, too, due to the lower prices that result from lower taxes on goods. Also, Singapore allows repatriation of funds by businesses without any tax being charged, so long as it is from a registered business partner.
Supportive business economy
International and local businesses are able to operate efficiently, thanks to the enabling environment offered by the Singaporean economy. Without natural resources, the island explores beyond its waterways for international exchange. As a big manufacturing center, Singapore trades with ASEAN (the Association of Southeast Asian Nations) partners as well as with the US, where it exports a huge portion of its manufactured goods.
Its friendly system has also made the island state the second most competitive economy. Additionally, the government has played a role in promoting international trade by implementing favorable economic policies. The nation has also managed to lure foreign investors with its friendly legal system and public legislation, as foreign entrepreneurs are subjected to the same economic laws as citizens.