Singapore has long been a top choice for establishing regional headquarters and other foreign business structures aimed at exploring opportunities throughout ASEAN and Asia. Its appeal as a leading investment destination in Asia is due to its highly favorable legal and tax frameworks, as well as its robust financial system that is closely integrated with global markets.
Singapore’s business-friendly environment offers foreign investors significant opportunities to capitalize on its strategic access to major free trade areas within ASEAN, including agreements with China, Hong Kong, and India. The process of company registration in Singapore for foreigner is particularly attractive due to the country’s numerous advantages, making it an ideal location for businesses aiming to expand their presence in the region.
Strategic Gateway to ASEAN
Located between Malaysia and Indonesia, Singapore’s central position in Southeast Asia offers unparalleled connectivity to transport and trade routes across the region and beyond. This strategic location serves as a prime launchpad into some of the world’s most dynamic and rapidly growing markets.
Singapore provides investors with a solid foundation to navigate ASEAN markets, thanks to its efficient business setup processes, competitive tax regime, and well-integrated supply chains. These advantages enable Singapore to outshine traditional holding destinations in the region, like Malaysia, and stand alongside established global hubs like Hong Kong. Additionally, Singapore Changi Airport ranks among Asia’s largest transport hubs, with pre-pandemic figures showing over 68 million passengers and more than two million tons of air freight movements in 2019.
Cultural and Linguistic Synergy
Beyond infrastructure, Singapore offers soft advantages that attract businesses seeking regional headquarters for expansion into ASEAN and Asia. The cultural and linguistic ties shared between Singaporeans and ASEAN nations, along with English being the primary working language, make Singapore an excellent intermediary for investments in Asia. The country’s highly skilled workforce is adept at bridging gaps between regional markets and international investors, facilitating smoother market entry and maximizing profitability. As a management hub, Singapore’s significance for ASEAN market entry continues to grow.
Extensive Tax Incentives for Businesses
Companies setting up in Singapore can benefit from various fiscal and non-fiscal incentives, provided their activities contribute to the country’s economic development. Eligible businesses must meet stringent criteria, such as committing to specific investment levels, introducing advanced skills and technologies, and supporting the growth of R&D and innovation.
With one of the world’s most business-friendly tax regimes, Singapore has become a major financial and economic center in Asia. Investors are also drawn by the streamlined and cost-effective process for company incorporation and the transparent legal environment. Singapore offers a wide range of tax incentives designed to promote economic growth and innovation, including schemes like the Progressive Wage Credit Scheme, Start-Up Tax Exemption Scheme, Double Tax Deduction for Internationalization, and the 100 Percent Investment Allowance Scheme. There are also industry-specific incentives for sectors such as biotechnology, maritime, and tourism. Understanding the eligibility and application procedures for these incentives is essential for businesses to maximize their long-term growth and competitiveness.
Favorable Corporate Tax Regime
Singapore’s corporate tax system is one of the most attractive in Asia, featuring a flat 17 percent corporate income tax rate on profits. Additionally, under Singapore’s territorial tax system, most types of foreign-sourced income, such as dividends or branch profits, are not taxed when remitted into Singapore, provided they are taxed at a rate of at least 15 percent in the source country. The absence of capital gains tax further enhances Singapore’s appeal.
Extensive DTA and FTA Networks
A significant advantage of relocating to Singapore is its extensive network of around 100 double taxation agreements (DTAs) and 24 free trade agreements (FTAs). Comprehensive DTAs cover all types of income and facilitate the exchange of tax information, while limited DTAs apply to income from shipping and air transport. This network includes treaties with all ASEAN member states, giving businesses a competitive edge in the market.
Highly Skilled English-Speaking Workforce
Singapore’s workforce, ranked first in Asia Pacific and second globally in the 2021 INSEAD Global Talent Competitiveness Index, is highly skilled and equipped to act as intermediaries for investments in Asia. The country also boasts high adoption rates of information and communications technology (ICT). Companies can benefit from government programs like the Progressive Wage Credit Scheme, which co-funds wage increases for Singaporean employees earning up to S$3,000 (US$2,211.6) per month from 2022 to 2026, and the Job Support Scheme, which helps fund local wages.
Transparent Legal System and Ease of Doing Business
Singapore’s transparent business and legal environment ensures that most of the necessary information for businesses is readily available online, simplifying the entry process for overseas investors.
Strong IP Protection Framework
Singapore boasts a robust and transparent legal framework for intellectual property (IP) protection, overseen by the Intellectual Property Office of Singapore (IPOS). The country features a specialized IP court for complex cases and houses the only WIPO Arbitration and Mediation Center outside of Geneva. Trademarks, patents, and copyrights are protected under dedicated acts, and IP registration can be conducted both locally and internationally through the Madrid Protocol, enhancing Singapore’s appeal as a secure and strategic location for businesses aiming to protect their innovations globally.
