Unlock endless opportunities in Asia's business hub
Discover why Singapore is the top choice for savvy entrepreneurs
Singapore is a bustling city-state that has become the hub of business in Asia.
With a highly developed economy and a business-friendly environment, it’s easy to see why so many companies choose Singapore as their base of operations. The city-state has many advantages, including its strategic location, excellent infrastructure, and highly skilled workforce. It’s also known for its easy business setup process, low tax rates, and government incentives for companies.
In this article, we will dive deeper into why Singapore is the smart choice for businesses looking to expand in Asia. We’ll explore the benefits of doing business in here, discuss its business landscape, and provide you with all the information you need to know about starting a business in Singapore.
Table of Contents
- Also known as the “Lion City,” it has emerged as a prominent business hub in Asia, attracting companies from all over the world.
- With its strategic location, robust economy, favorable business environment, and advanced infrastructure, Singapore has proven to be the smart choice for businesses looking to expand their operations in Asia.
2. Singapore's Strategic Location & Connectivity
Singapore’s strategic location and connectivity make it the smart choice for business expansion in Asia.
Situated at the crossroads of major shipping routes and serving as a gateway to the rest of Southeast Asia, Singapore offers unparalleled access to regional and global markets.
Located at the southern tip of the Malay Peninsula, Singapore boasts a prime location in the heart of Asia.
With its proximity to the emerging markets of China and India, as well as its strong ties to the Association of Southeast Asian Nations (ASEAN), businesses in Singapore can tap into a vast and diverse consumer base.
Its world-class port, Changi Airport, and extensive network of free trade agreements make it an ideal hub for trade and commerce. Companies based in Singapore have easy access to a market of over 600 million people within a six-hour flight radius.
In addition to its air connectivity, Singapore is also a major maritime hub, with one of the busiest ports in the world. The Port of Singapore handles a significant amount of global trade, serving as a crucial link between East and West. This strategic maritime connectivity provides businesses with seamless access to international markets and enables efficient supply chain management.
3. Easy & Efficient Business Setup Process
- Singapore is widely regarded as one of the most business-friendly countries in the world, and for good reason.
- When it comes to setting up a business in Singapore, the process is known for being easy, efficient, and streamlined.
- The first step in the business setup process is to decide on the type of business entity you want to establish.
- Whether it’s a sole proprietorship, partnership, limited liability partnership, or private limited company, Singapore offers a variety of options to suit different business needs.
- Once you have decided on the business structure, the next step is to register your company with the Accounting and Corporate Regulatory Authority (ACRA).
- The online registration process is straightforward and can be completed within a matter of hours.
- All you need is a unique company name, details of the directors and shareholders, and a registered local address.
- What sets Singapore apart is its commitment to digitalization and efficiency.
- The government has introduced various online platforms and services to simplify the registration process. For instance, the BizFile+ portal allows entrepreneurs to submit applications, make payments, and access various company services online. This not only saves time but also ensures a smooth and hassle-free experience.
4. Favourable Tax & Regulatory Environment
- Known for its business-friendly policies, Singapore offers a highly favorable tax regime.
- The corporate tax rate is competitive, currently standing at a flat rate of 17%.
- Additionally, the city-state has implemented a series of tax incentives and exemptions to attract foreign investment.
- These include the Global Trader Program, which provides tax benefits to companies engaged in international trading activities, and the Research and Development Tax Incentive, which encourages companies to invest in innovation and technology.
- Singapore’s regulatory environment is equally welcoming to businesses.
- The country has established a transparent and efficient legal system that protects intellectual property rights and enforces contracts.
- The ease of doing business is further enhanced by the government’s commitment to streamlining administrative processes and reducing bureaucracy.
- Singapore consistently ranks high in international indices such as the World Bank’s Ease of Doing Business report, which reflects its business-friendly environment.
5. Cost-Effectiveness
- One of the reasons for Singapore’s continual success is the government’s efforts to keep costs down.
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As a result, according to the annual World Competitivity Rankings index, Singapore had the highest GDP per capita, making it the most productive economy in the world.
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The cost of premises is highly competitive. For example, grade A office space can be leased for as little as $22 per square foot per month, making it one of the most affordable cities to run your business.
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Cost-effectiveness is equally evident when conducting personnel recruitment. According to the World Bank, the cost of living in Singapore is 32 per cent higher than in other Asian countries and 51 per cent higher than in other non-OECD countries.
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However, the median monthly income is around $3,538, much higher than the abovementioned cost of living estimate, meaning that residents and foreign workers are earning in proportion to what they are spending.
6. Access To Talent And Highly Skilled Multilingual Work Force
- One of the key advantages of expanding your business in Singapore is the access to a highly skilled and multilingual workforce.
Singapore has established itself as a global hub for talent, attracting professionals from various industries and countries.
The education system in Singapore is renowned for its high standards, producing a pool of talented individuals equipped with the skills and knowledge needed for the modern business landscape. The emphasis on STEM (Science, Technology, Engineering, and Mathematics) education ensures that there is a steady supply of skilled professionals in these fields.
The Singapore government has long recognized the importance of its human capital and made it a priority to develop the capabilities of its people through training and development. This has led to a large pool of well-trained locals who can speak English and have experience in international business. English is also widely spoken and fluently heard throughout the business community, ensuring locals can be easily assimilate into your team.
The availability of a highly skilled and multilingual workforce in Singapore provides businesses with a competitive edge. It enables companies to easily navigate global markets, engage with customers from different cultural backgrounds, and establish strong relationships with international partners.
The Singapore government actively supports talent development and lifelong learning through various initiatives. Businesses can take advantage of these programs to upskill and reskill their workforce, ensuring that they remain competitive and adaptable in an ever-evolving business landscape.
7. Robust Infrastructure & Advanced technology
- The city-state is at the forefront of technological advancements and has heavily invested in research and development. This has led to the establishment of thriving technology hubs and innovation centers, attracting global companies and startups alike.
- With a strong emphasis on innovation, Singapore offers businesses access to cutting-edge technology, expertise, and a supportive ecosystem to foster growth.
- Singapore’s commitment to digital transformation is evident in its Smart Nation initiative. The government has actively promoted the adoption of digital technologies across various sectors to drive efficiency and enhance competitiveness. From e-commerce platforms to cashless payment systems, Singapore embraces technology to create a seamless and convenient business environment.
- The combination of robust infrastructure and advanced technology in Singapore creates a favorable environment for businesses looking to expand in Asia.
- Singapore offers a solid foundation for growth, enabling companies to operate efficiently, access global markets, and stay ahead of the competition.
- By choosing Singapore as the destination for business expansion, entrepreneurs and companies can leverage the city-state’s infrastructure and technology prowess to take their business to new heights in the dynamic Asian market.
8. Strong Intellectual Property Protection & Legal Framework
Singapore has consistently ranked highly in global IP indices, reflecting its commitment to creating a robust and secure environment for businesses to operate in.
The country’s legal system is renowned for its efficiency, transparency, and impartiality, providing companies with a peace of mind when it comes to enforcing their IP rights.
The Intellectual Property Office of Singapore (IPOS) plays a pivotal role in promoting and protecting IP rights. IPOS offers a range of services, including registration of patents, trademarks, and designs, as well as providing resources and expertise to help businesses navigate the complexities of IP protection.
Singapore is a signatory to various international IP agreements and conventions, such as the Paris Convention for the Protection of Industrial Property and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which ensures that businesses expanding into the country can rely on a comprehensive and globally recognized legal framework for IP protection.
By choosing Singapore as a destination for business expansion, companies can have confidence that their intellectual property will be safeguarded, enabling them to fully capitalize on their innovations and creations. This strong IP protection and legal framework contribute to Singapore’s reputation as a trusted and secure business hub in Asia, attracting both local and international companies seeking a conducive environment for growth and success.
9. Government Support & Incentives
- The Singapore government has long been committed to fostering a business-friendly environment, making it an ideal destination for entrepreneurs and companies looking to expand their operations.
- In addition to the ease of doing business, the Singapore government offers a range of incentives to encourage business expansion. These incentives include tax benefits, grants, and funding schemes that provide financial assistance to companies in various sectors. For example, the Productivity and Innovation Credit (PIC) scheme offers tax deductions or cash payouts for investments in research and development, automation, and employee training.
- Furthermore, the government has established industry-specific initiatives aimed at fostering growth and innovation in key sectors such as technology, finance, and logistics. These initiatives provide targeted support, including grants, mentorship programs, and access to specialized infrastructure and resources.
- Singapore’s pro-business policies and government support have attracted many multinational corporations and startups to establish their regional headquarters or offices in the country. The presence of these companies creates a vibrant ecosystem, providing opportunities for collaboration, networking, and knowledge sharing.
- Overall, the government support and incentives offered by Singapore make it an attractive choice for businesses looking to expand in Asia. Coupled with its strategic location, excellent infrastructure, and talented workforce, Singapore provides a conducive environment for businesses to thrive and succeed in the region.
10. Success Stories
- Singapore has long been recognized as a hub for business growth and expansion in Asia.
- Countless success stories have emerged from companies that have chosen to expand their operations to this vibrant city-state.
- Let’s take a look at a few of these inspiring examples.
- One of the most notable success stories is that of Grab, Southeast Asia’s leading ride-hailing and on-demand delivery platform. Originally founded in Malaysia, Grab expanded its operations to Singapore in 2012. The company saw immense growth and success in the city-state, thanks to Singapore’s supportive business environment, robust infrastructure, and access to a highly skilled workforce. Today, Grab operates in multiple countries across Southeast Asia, serving millions of customers.
- Another remarkable example is that of Lazada, an e-commerce platform that started in Singapore in 2012. With a vision to revolutionize the online shopping experience in Southeast Asia, Lazada quickly gained traction and attracted significant investments. In 2016, it was acquired by Alibaba Group, further fueling its expansion and solidifying its position as one of the region’s leading e-commerce players. Lazada’s success can be attributed to Singapore’s strategic location, strong logistics network, and its status as a regional financial and trading hub.
- Singapore’s support for innovation and technology-driven businesses is evident in the success of companies like Razer. Founded in 2005, Razer is a global lifestyle brand for gamers, offering a wide range of gaming hardware, software, and services. The company established its headquarters in Singapore and has since become a prominent player in the gaming industry. Razer’s growth can be attributed to Singapore’s investment in research and development, as well as its ecosystem that nurtures innovation and entrepreneurship.
- These success stories are just a glimpse of the countless companies that have thrived after expanding to Singapore.
- The city-state’s favorable business climate, strong legal framework, and government incentives make it an ideal choice for companies looking to tap into the Asian market.
- Whether it’s in the technology, e-commerce, or transportation sector, Singapore provides a platform for businesses to grow, innovate, and succeed in the dynamic Asian market.
Singapore truly stands out as the smart choice for businesses looking to expand in Asia.
With its strategic location, strong infrastructure, and business-friendly environment, Singapore offers a multitude of advantages for companies of all sizes.
From its robust economy to its talented workforce and excellent connectivity, Singapore provides a solid foundation for success.
Whether you are a startup or an established multinational corporation, considering Singapore as your business expansion destination is a decision that can yield tremendous growth opportunities.
Seize the opportunity and take your business to new heights in the vibrant and dynamic city-state of Singapore.
Editor’s Note: This article was originally published in August 2022 and has been completely revamped and updated for accuracy and comprehensiveness.
We have helped many entrepreneurs and international businesses make the right choices when setting up in Singapore. Contact us via Lawyer Anywhere for advice on moving or setting up your business in Singapore.