Prefer Singapore for Company Incorporation
Singapore is ideally located to serve East and West as an entrepot. Its geographical location has played an important role in its rise as a trading economy. Its pro-business tax rates and world-class infrastructure has induced many to opt for Singapore company incorporation.
MNCs and SMEs go to Singapore to set up their headquarters and regional offices. Its home to 6 million individuals which makes Singapore a perfect test-bed for tech companies to test their new technologies before launching them to rest of the world.
Startup companies are treated well in Singapore. The authorities here understand their growing pains and do their best to assuage them. They provide the local companies with various tax exemptions, benefits and, rebates to help them minimize their operating costs.
Startup-Tax Exemption Scheme
Under tax exemption scheme specially designed for the startups, they get 75% of tax exemption on their first S$100,000 nominal taxable income. Next, S$200,000 of nominal taxable income gets 50% tax exemption. They get to benefit from this scheme for the first 3 years.
Grants and Schemes for Singapore Small Businesses
Singaporean local companies also get access to various types of grants and schemes like:
- Research Incentive Scheme for Companies
- Training Grant for Company
- IP Development Incentive
- Resource Efficiency Grant for Energy
- Pioneer Certificate Incentive
- Development and Expansion Incentive
- Finance and Treasury Center Incentive
Under Capability Development Grant, they get cash assistance for projects to initiate or improve their:
- Branding and marketing
- Business model
- Quality standards adoption
- Financial management
- Human capital management
- Intellectual property projects
- Business processes for productivity
- Customer service
- Product development
After the 3rd year, the startups can claim benefits under Partial Tax Exemption Scheme. They can claim 75% of tax exemption on their first $10,000 net income. And 50% tax exemption on their next $290,000 net income.
Singapore Personal Income Tax
Every penny saved works to the benefit of small businesses. And from point of view of business owner, opting for a company incorporation in Singapore also works. The personal income tax rates are in the range of 0%-22% which are quite low.
No Tax On Capital Gains
And most importantly, the dividend they get from their company is not taxed at all, provided the company has paid its taxes. Singapore does not tax capital gains. It also does not levy any tax on inheritance.
SBS Consulting Pte Ltd is an experienced provider of corporate services in Singapore. We advise our clients on the best business structure to fulfill their business needs. Our experts assist clients with the company incorporation process and make their experience hassle-free.
We work as per the guidelines established by the Company Registrar of Singapore.