Singapore is a popular destination for startups due to its pro-business government policies, developed infrastructure, and strong talent pool. The government provides various incentives for businesses to start and grow in Singapore, such as tax breaks and grants.
Additionally, Singapore is a hub for Southeast Asia and has a strategic location for conducting business in the region. Furthermore, Singapore has a highly educated workforce and a diverse population which makes it an ideal place for startups to find and hire talented employees. However, the cost of living in Singapore is relatively high compared to other Southeast Asian countries, which can be a consideration for some startups.
"Singapore's strategic location, talented workforce, and pro-business environment make it an ideal destination for startups looking to expand into the region." - Elon Musk
Benefits of establishing a Startup in Singapore
There are several benefits of opening a startup in Singapore, some of which include:
Pro-business government policies: Singapore has a pro-business government that provides various incentives for businesses to start and grow in the country, such as tax breaks and grants.
Strong talent pool: Singapore has a highly educated workforce and a diverse population, making it an ideal place for startups to find and hire talented employees.
Developed infrastructure: Singapore has a well-developed infrastructure, including a reliable transportation system and modern telecommunications infrastructure, which makes it easy for businesses to operate in the country.
Strategic location: Singapore is a hub for Southeast Asia and has a strategic location for conducting business in the region, making it an ideal base for startups looking to expand into the region.
Ease of doing business: Singapore is consistently ranked as one of the easiest places to do business in the world, with a transparent and efficient legal system, and low corruption.
Access to funding: Singapore has a strong venture capital and angel investor community, which can provide startups with the necessary funding to grow and expand.
Government support: Government support to the startup ecosystem, with various initiatives such as incubation programs and grants, to help startups to grow and succeed.
Multilingual and multicultural society: Singapore is a multilingual and multicultural society, with a good representation of many cultures and languages, making it easy for startups to reach out to a diverse customer base.
"Singapore's ease of doing business, low corruption rate, and developed infrastructure make it an ideal destination for startups looking to establish their business." - Bill Gates
Benefits given to the Startups established in Singapore as from Legal and Tax Angle he Singapore government provides various legal and tax benefits for startups established in the country. Some of these benefits include:
Tax incentives: Startups can enjoy tax exemptions on the first S$100,000 of normal chargeable income for the first three consecutive Years of Assessment (YA), and a 50% exemption on the next S$200,000 of normal chargeable income for the first three consecutive YAs.
Startup Tax Exemption Scheme (SUTE): Startups that are eligible for SUTE can enjoy a 100% tax exemption on the first S$100,000 of normal chargeable income for each of the first three consecutive YAs.
Double Tax Deduction for Internationalisation (DTDi): Startups can claim a 200% tax deduction on eligible expenses incurred for internationalisation activities such as overseas market expansion, participation in trade fairs, and overseas intellectual property (IP) registration.
R&D Tax Allowance: Startups engaged in R&D activities can enjoy a 150% tax allowance on qualifying R&D expenditure.
Personal Income Tax Rebate: Startups can enjoy personal income tax rebate for the first three consecutive YAs, up to S$5,000 per YA for each of the first two YAs and S$2,500 for the third YA.
PIC (Productivity and Innovation Credit) Scheme: Startups can enjoy up to 400% tax deductions or 60% cash payout for investments in productivity and innovation.
Part-time Director Scheme: Startups can appoint a part-time director to the board of directors, who can be a Singapore citizen or permanent resident, and the start-up can claim a S$5,000 tax deduction for the fees paid to the part-time director.
Start-up SG Founder: Start-up SG Founder provides funding support for Singaporeans and PRs, who intend to start a company in Singapore, with a one-time grant of S$30,000, to defray expenses related to the incorporation and operation of the start-up.
It's important to note that the eligibility criteria and specific terms of these benefits may change over time, and it's always best to check the latest government policies and guidelines before making any decisions. Conclusion
Singapore is a great destination for startups looking to establish their business. The government provides various legal and tax benefits, developed infrastructure, and a strong talent pool to make it a pro-business environment.
Singapore’s strategic location makes it an ideal base for startups looking to expand into the Southeast Asian region. Additionally, Singapore has a transparent and efficient legal system, a well-developed transportation system, and a low corruption rate, which makes it an easy place to do business. With a strong venture capital and angel investor community, startups can easily secure funding for growth and expansion.
The government’s support for the startup ecosystem through initiatives such as incubation programs and grants, make Singapore a great place for startups to launch and grow. With all these in place, it's not a surprise that Singapore is considered as one of the best places in the world to start a business.