Apart from having one of the lowest corporate tax rates, Singapore is considered a gateway to ASEAN by many.
Why business is moving to Singapore?
The friendly business policies make it easier for companies to site and run their business in this SE Asian nation. A few advantages that the business sees while they decide to relocate here are-
- Extensive double tax treaties
- Attractive tax regime
- Superb connectivity and a strategic location
- Availability of skilled and multilingual workforce
- Smart policies for immigration
- High developed infrastructure and a conducive environment
- Excellent legal system and IP protection regime
The entry options for foreign companies to Singapore
How to Move your Company from Hong Kong to Singapore? Here are the options that can be considered by foreign businesses to move their company to Singapore:
- Subsidiary company
It is the preferred option for registration for businesses with small to midsize breadth. Singapore permits complete ownership of companies that are incorporated locally. This structure gives protection against liabilities and is very tax effective.
- Branch office
It is a registered legal entity and is treated as an extension of a foreign company. Hence, the liabilities extend to foreign companies and their income is not considered as eligible for incentives and tax exemption.
- Representative office
The representative office is a temporary body with no legal persona and hence it cannot engage in any business or trading activities. The expenses for RO registrations are lower, proving it as an ideal venue for outsider companies.
Like many others, we are also confused about what’s the difference between an Employment Pass and an EntePass, well while Comparing Employment Pass (EP) and EntrePass, we get to know that an employment pass is generally for an executive role and an EntrePass is the kind of permit that is needed for foreigners to set up their company to Singapore.
Whenever a nation faces any drastic change in policies that are no more favorable to its residents, then the time comes to start thinking about relocating. For instance, Hong Kong has lost the title of being ‘World’s freest economy’. The interesting fact is that already there has been a shift of billions of assets to the safe harbor of Singapore. But the question arises, why from Hong Kong to Singapore only? Of course, Singapore is an alternative Asian hub, who just took the title of being the world’s freest economy from Hong Kong. Both Hong Kong and Singapore have shared numerous inherent advantages in investment intersections- low regulations, minimal red tape, simple tax systems, etc.
So, relative equality and the erosion of Hong Kong’s viability are making Singapore a secure hub as well as a safer option for businesses.
The process of shifting your assessment and investments from Hong Kong to Singapore may look daunting but in actuality, it is completely straightforward. Please note that the presence of a reputable Singapore incorporation company is a must in this whole process. But for that also, you don’t need much to worry about. Hey, Sara is there to accommodate all your incorporation needs, that too with great expertise. You will be helped out to keep in compliance with ACRA. The whole process of your incorporation will be turned into quicker and simpler.