Singapore is not only one of the unusual and the most beautiful countries South-East Asia, but also one of the most stable economies in the world and an almost ideal place to do business. Good location, stable legal system, developed financial infrastructure creates favorable environment to attract foreign capital. Attracting business investment also helps tax regime, which has a number of benefits that are attractive to foreign businessmen.
Guarantees of investment safety, duty-free withdrawal of profits, absence of double taxation and some other tax benefits help attract foreign business to the country.
Singapore has enormous opportunities and economic potential for opening and successfully running almost any type of business. The most profitable and popular business areas in this moment are:
- tourism and entertainment industry;
- hotel business, hospitality industry and other areas of the service sector;
- information technology and telecommunications;
- biotechnology;
- education;
- investment business.
Tourism
Singapore receives most of its income from the tourism industry. Tourists are attracted by the natural beauty, ecological purity and warm climate of the island, as well as carefully preserved historical attractions. Besides, Singapore is famous for its annual festivals, carnivals, as well as grand sales that attract many people.
A developing area of tourism business is business tourism, most often aimed at getting to know the conditions for doing business and searching for objects for investment. The country's tourism business continues to actively develop and therefore, despite the competition, it makes sense to open your own travel agency for organizing holidays for numerous tourists. New discovery for tourists interesting place or any other extraordinary idea can bring good income.
Services sector
A promising area for opening and running a business in Singapore is the service sector. The constant influx of tourists into the country makes the hotel and restaurant business very popular. Moreover, not only large hotel complexes are in demand, but also small and cozy mini-hotels and even churches.
Maintaining hotel business in Singapore is subject to a number of fairly strict standards for the arrangement of hotels and services for tourists, but it is thanks to their compliance that the country's hotels are considered one of the cleanest in the world. The restaurant business, the entertainment industry, and the beauty business are one of promising directions business in Singapore.
In addition to services related to serving tourists, cargo transportation business is popular among businessmen because located at the intersection of important sea and air routes, Singapore is one of the most important transport hubs Asia. Both international sea and container transportation and the movement of goods by cargo aircraft, as well as domestic transportation, are popular.
Information technology and communications
Another successful and popular type of business is the IT sector. Of course, large companies have long since settled in Singapore international corporations engaged in information technology, but are also in demand small companies involved in the development of various software products, websites or providing services to large companies. The advantage of running an IT business in Singapore is clearly defined legislation regarding activities on the Internet.
Telecommunication systems for the most part are the property of the state or large corporations, but in addition to investing in this area, you can choose network maintenance as one of the areas of your business.
Education
The niche in the field of education offers enormous prospects for business development. At increased demand In education, courses and trainings on studying various courses, for example, on running a tourism or modeling business, as well as courses designed for the education of children, are very popular. It will be promising in this area opening of children's language courses, children's music schools.
Investments
Well, probably one of the most popular ways of doing business in Singapore is investing. The choice of investment objects is large, including construction and real estate, industrial production and IT sphere, beauty and health.
Looking at the impressive landscapes and the stable infrastructure of Singapore, it is difficult to imagine that just fifty years ago it was a quiet port town.
The city-state government is focusing on carrying out economic reforms, strengthening the education system and infrastructure as a whole. That is why Singapore has become one of the world's busiest and fastest growing economic centers, and doing business in Singapore is an attractive prospect for many entrepreneurs.
An environment conducive to doing business in Singapore
Undeniably territorial restrictions and shortages natural resources mean that Singapore's native industries have long been associated with agriculture, farming and fishing, but these industries could not enrich the city-state. Realizing this, the government has taken various initiatives to encourage doing business in Singapore in general and receiving foreign investment in particular. This direction remains relevant to this day. Accordingly, doing business in Singapore will certainly be beneficial for local and foreign entrepreneurs, investors and international collaborations. This will be ensured by multiple government programs.
As is clear from the table above, depending on the type of company and the industry in which it is engaged, doing business in Singapore can be supported by either one or several government programs. Particularly in the city-state special meaning emphasis on new and emerging industries, as well as efforts aimed at developing new innovative methods. In this way, the government ensures that Singapore remains an advanced and progressive nation capable of competing with the world's leading financial centers.
Also, the Singapore government, in collaboration with commercial banks, has developed a startup financing program. Under the so-called micro-loan program (“MLP”) commercial banks offer local SMBs loans of up to $100,000 at rates as low as 5.5%. Unlike traditional loans, the criteria for obtaining an MLP are not as strict, as the program is aimed at young companies that are just starting to do business in Singapore.
High living standards
And while Singapore is considered one of the most expensive cities in Asia, it is also one of the top 10 destinations for expats (according to Mercer's annual Quality of Living Survey). This sets it apart from other Asian cities, where crime and corruption are rampant and the political situation is extremely unstable.
Doing business in Singapore is also profitable because the quality wireless communication on the island incredibly high, as modest natural relief does not hinder rapid urbanization and the development of wireless networks.
The key aspects that make doing business in Singapore so attractive for foreigners are the high level of security and a top-notch education system. Singapore has repeatedly proven that the quality of education is not inferior to the leading world powers and ranks third in the world in this indicator.
Many expats believe that moving to Singapore will benefit not only themselves, but also their families and children.
Singapore's attractive tax regime
Besides high level life as for local population For foreigners, doing business in Singapore also means an incredibly attractive tax regime. , who are tax residents of the city-state, the rates are relatively low (from 3.5 to 22%), and people who are not tax residents pay taxes based on the 15% rate or the resident rate, if applicable. will be higher.
The table is compiled based on materials from the website www.iras.gov.sg.
Singapore's corporate tax system is relatively easy to understand. The city-state has a territorial tax system, the taxable income of the company is calculated based on the net income earned in the course of operating professional activity within one financial year. Even if you do not take into account all sorts of tax benefits, the rate on income legal entity in Singapore is 17% - this is one of the most low indicators in the world.
Business in Singapore
Singapore: two new years and a thousand fines
It just so happens that the beginning of the calendar and financial year in Singapore coincides. Therefore, at the end of December, Singaporean accountants not only have to prepare gifts and decorate the Christmas tree, but also add the finishing touches to the “portrait” of the annual report, the deadline for which is December 31.
About business only in English
total area Singapore is only 646 square kilometers(about one and a half times less than Moscow). Independence Island state received only 40 years ago. And before that, Singapore in different time belonged to neighboring Malaysia, Japan and England. But this does not at all prevent Singaporeans from considering themselves citizens of a free republic and being proud of their country.
The main population of Singapore - 75 percent - comes from China, with a few Indians and Malaysians and almost no Europeans. But nevertheless the main language business communication is English. All contracts are drawn up on it, written business letters and fill out accounting documents. And even if accountants speak Chinese or Malaysian at home, at work they speak only English.
Image is everything
The working day of Singaporean accountants usually begins between half past eight and ten in the morning, depending on the company. And the earlier it is, the more pleasant the journey to the office is. Firstly, early in the morning there are still relatively few people and cars on the streets of densely populated cities. And secondly, at this time it is relatively “cool” - about 27 degrees. During the day the air warms up to 34–38 degrees. Moreover, the temperature in Singapore does not depend on the time of year - the country is located only 120 kilometers from the equator. Despite the heat, accountants only wear formal suits in the office. No light skirts, T-shirts or sundresses. You can afford to take off your jacket, but only on the condition that underneath there is a perfectly ironed blouse.
Singaporeans pay a lot of attention great attention your appearance. Your own irresistibility is one of the components of wealth, along with cars, home furnishings and the presence of a housekeeper. And it is customary to flaunt wealth here. So Singaporeans suffer in thirty-degree heat in business suits, and go for an evening walk in long, tight dresses. In pursuit of fashion, stylish business women regularly whiten their faces tanned under the tropical sun and carefully enlarge their eyes with makeup.
Missing taxes
The day-to-day responsibilities of accountants in Singapore are much the same as in many other countries. Invoicing, payroll calculation, filling out invoices, accounting books, reporting - everything is traditional, even specialized computer programs similar. But the difference in taxes and rates is noticeable. The rates of certain taxes differ several times from ours, and some payments simply do not exist there.
Just a few years ago, the Singaporean authorities introduced a value added tax in the country. In our understanding, this VAT rate is simply ridiculous - 3 percent. But Singaporean companies are still offended by the government for such “rip-off”. And the accountants are not happy either - the need for extra calculations did not make anyone happy.
Local accountants can be called, in a sense, “pampered creatures.” They very rarely have to calculate capital gains tax; they only know about sales and excess profit taxes from textbooks on accounting in foreign countries, and the problems with the pension fund are unknown to them. Interest is not deducted from Singapore workers' salaries to pay Pension Fund. However, pensions are not paid either. Everyone provides for their own old age as best they can.
Young people love everything
The basis of the Singapore tax system is income tax. It is paid by both companies and individuals at progressive rates. Typically, 15 to 25 percent of the amounts earned go to the treasury.
To support “young” companies just starting their activities, there are significant tax incentives in Singapore. For some types of activities, income tax holidays can last up to 10 or even 15 years.
So, for example, if a company is going to introduce new products to the market or use advanced technologies to produce already known goods, it is given the status of a “pioneer” company. All “pioneers” are completely exempt from income tax for the first five or even ten years of work, depending on the industry. And after this period, they have the right to pay income tax for another five years at a rate half the required rate.
The state also treats guests from abroad very kindly. Additional benefits have even been adopted to attract large foreign companies to the country. All multinational companies that establish their headquarters in Singapore can pay income tax at a rate of 10 percent for the first ten years of operation. And for some particularly respected corporations, the government kindly extends this period.
Export is encouraged
Due to the small area and narrowness domestic market Most Singaporean companies export their products overseas. In terms of volumes of exported goods and services provided abroad, this is small state is one of the twenty leading world exporters. The value of exports usually exceeds even the size of the gross domestic product.
Officials from the Trade Development Authority understand perfectly well that exports are the basis of the country's economy, and they try in every possible way to help exporting firms. Several special export production zones have been created for these companies, an entire system of tax incentives has been developed, and export duties have been completely abolished.
Licenses are required to conduct export activities in Singapore. If there are no restrictions on the export of this type of goods, then licenses can be obtained from the head of a commercial or trading bank. To export some types of goods, you must first obtain permission from the relevant ministry or department.
Import duties are quite moderate and do not apply to many products. But all companies wishing to import any products into Singapore must also obtain a license. Permission is not required only for the import of transit goods, personal belongings and cargo for government organizations.
Features of creating an LLC
It only takes 24 hours to register a new company in Singapore. If you submit the entire package of documents early in the morning, then the organization can begin its activities the very next day.
Singaporean companies, just like Russian ones, can be open or closed. There are also companies and partnerships with limited and unlimited liability.
To create a limited liability company you need authorized capital 100 thousand Singapore dollars (1.69 million rubles), at least two shareholders, two directors, one of whom must be a resident of Singapore. It is this “local” director who will be responsible for compliance with the law. Another feature is that any Singapore company must have a secretary who is a resident of the country.
January is the time to pay
All Singapore companies are required to pass an annual financial statements. And since fiscal year Since in this country it starts on January 1 and ends on December 31, then December turns out to be the “hottest” month for accountants.
In addition, all companies must obtain audit confirmation of the accuracy of their reports. Only limited liability companies are exempt from mandatory audit, among whose founders only individuals, and the total number of employees does not exceed 20 people.
Once your taxes are calculated and your return is filed, the amount due must be paid within the next 30 days. For late payments, tax authorities levy a fine of 10 percent of the unpaid amount. The next 60 days of delay increase the fine by another 5 percent.
They will fine you, they will fine you!
Singapore is often called the country of fines. For any violation, even a very minor one by our standards, huge sums are charged. The lowest fee here is 500 Singapore dollars (8.5 thousand rubles). Penalty for smoking in public places ranges from 700 to 1000 Singapore dollars (12–17 thousand rubles). Only very rich Singaporeans can part with such sums painlessly. Accountants' salaries are not fabulous - on average from 1,700 to 3,000 Singapore dollars (25-50 thousand rubles) per month, depending on experience, company and duties performed. Chief accountants can receive up to five thousand Singapore dollars (85 thousand rubles), but no one wants to give a tenth of their earnings for an unsuccessfully thrown piece of paper. Therefore, everyone tries to follow the established procedures. There is no littering on the streets, no smoking in crowds, no feeding of pigeons. There is probably not a single wall in the country covered in graffiti.
Law enforcement officers and the townspeople themselves are especially vigilant in ensuring that public transport and no one appeared in crowded places with the local fruit - durian. The fruits of this plant are so “fragrant” that very few people can stand their smell, although their taste is quite decent. If someone decides to pamper their family with this delicacy, they have to walk from the market to their home or carry the fruit in their own car, risking for a long time “flavoring” the interior, to put it mildly, not the most pleasant of smells.
Singing and food - best vacation
Perhaps, in no other country in the world, except Singapore, are there so many people who are fond of singing karaoke. Singaporeans' mic addiction is like an epidemic. Often in the evenings or on weekends, they and their whole family go to a karaoke bar, where they demonstrate their skills to vocal connoisseurs like them from the stage. If the bar is too crowded, they sing on open stages, at home, in cars or even in city taxis. However, our accountants also love to sing - especially on holidays and especially those songs that are dedicated to themselves. Nothing else can explain the sudden sharp increase in the number of calls and letters to our editors asking us to send a disc with songs that “Reckoning” released last year.
Another favorite holiday destination for Singaporeans is Sentosa Island, which is entirely dedicated to entertainment by the government. There are many beaches, gazebos, attractions and strange animals.
But what you won’t find in Singapore are gambling establishments. Such business is strictly prohibited here. From gambling– only football betting and lotteries. But there is no tax on gambling in local legislation.
Anna BIRYUKOVA
The editors are grateful to our compatriot Vsevolod Vlaskin for the information provided
IN Lately We receive a lot of requests from clients who want to, and many of them ask for advice on the type of activity that could be undertaken in Singapore. In our opinion, such a question is a sign that the client is not yet ready for business immigration. In this article we will try to substantiate our opinion.
Let's turn to the most popular business immigration scheme to Singapore - through. In one of our previous articles, we described in detail the process of obtaining it, but now we will briefly remind readers that in this case, as a rule, an entrepreneur creates a Singapore company, on whose behalf a job offer is then issued for him. In essence, this project is a “one-man show,” and only from the entrepreneur himself, his business qualities depends on whether this project will be successful.
Essentially, success has three constant components:
- You need to know what to do in Singapore (that is, decide what field you are going to work in: will it be consulting, sales or anything else);
- You must know how to do this (clearly imagine the model for implementing your business idea: for example, have at least a small but already established client base);
- You must be able to work to realize your ideas, sticking to the plan and using your skills.
A successful project is impossible without any of the three components. To work in any field, you must have a good understanding of it (know the market, business processes, mechanism for attracting clients). If you throw yourself into the pool headlong (i.e. new area without any knowledge), there is a high risk of not swimming.
To successfully implement a business idea, for example, to sell your services/products, you need to clearly understand the action plan (in our example, know target audience and develop methods for attracting it). If you haven't paid enough attention to this, the possibility of failure increases many times over.
Let's assume that the first two components are present: you have experience in the area in which you intend to open a business, you have customer base and a clear understanding of how your business should operate. But if, in the presence of all this, you cannot, for example, establish business processes, and the quality of your services suffers from this (the simplest example is interruptions in the supply of goods), customers will leave, and gradually everything that was created with difficulty will crumble like a house of cards.
Of course, with experience, the horizons of every entrepreneur broaden: new, more ambitious ideas come, and failures force them to reconsider tactics and apply new methods, but in any case, every successful project has all three designated features: a clear understanding of what exactly to do and how, and practical skills to implement your ideas.
Therefore, when our potential clients ask the question in the title of this article, we believe that their endeavor will most likely fail because a key component of success is missing.
However, for those who have not yet decided on their own business projects, we can also offer a solution. It will be the purchase of a ready-made business. A business is sold for many reasons: lack of investment, desire to retire, change life priorities– the list can be continued endlessly.
But the fact remains: at every moment in time in any country with a market economy there are those who want to sell their business. This could be a successful company or enterprise that has been operating for many years and brings stable income, and just an idea that remains to be developed.
The purchase of a ready-made Singapore business can be used for immigration and... Of course, this method may require a lot of financial investments compared to a situation where our potential client knows exactly what he wants to do: sometimes the purchase price successful business is many times greater than the initial investment in developing your business from scratch. However, this may be a solution for those who have not yet decided and are ready to risk a certain amount of money (it is worth remembering that the acquired business will have to be managed or competently selected people who are ready to take on this function).
For immigration purposes, it doesn’t matter at all what kind of business you acquire - a trading company or a travel agency, a restaurant or a banal dry cleaner (yes, dry cleaners are also put up for sale from time to time). This decision answers the question “what to do” and the possibility of business immigration to Singapore and is, in fact, the beginning of an exciting journey.
If you are eager to immigrate to Singapore, but you do not yet have all three components of a successful business, contact our specialists to find out which ready business offered now for sale, as well as prices and terms of purchase.
Many people around the world perceive Singapore as an excellent tourist destination. Indeed, here you will find a multicultural environment where, in an atmosphere of absolute safety and almost sterile (in our opinion) cleanliness, you will enjoy the hospitality and cordiality of the Singaporeans. No one will be indifferent to the numerous attractions, stunning multinational asian cuisine and noisy, vibrant entertainment venues.
But did you know that Singapore also provides an extremely favorable business environment for foreign investors? Indeed, Singapore was recently ranked as the world's second most competitive country with the best value for money for foreign businesses.
What makes this country such an attractive destination for creating and running a new business?
These are, first of all, factors such as:
- strong foreign exchange market;
- free market economy;
- financial stability;
- reliable regulatory framework;
- perfect and efficient infrastructure;
- corruption-free system;
- strategic advantages geographical location states;
- available skilled labor.
The best international companies, such as Apple, Google, Credit Suisse, DBS Bank, Procter and Gamble, Microsoft and others have already recognized and appreciated Singapore's economic potential by opening successful businesses there.
The country currently has enormous opportunities for the entertainment business, which Singapore considers a critical component for promoting foreign investment.
If you are looking for a healthy environment(literally and figuratively), then Singapore is your final stop.
In fact, the country has numerous opportunities for various types successful business. I will focus on the most popular, successful and profitable options.
Travel and tourism
The travel and tourism industry provides major income to the Singapore economy. Natural beauty The islands, rare unusual protected flora and fauna, carefully preserved heritage structure - all this attracts millions of tourists from all over the world.
In addition, Singapore is famous for its safety and affordable prices. Numerous shopping enthusiasts flock here for annual sales.
According to staggering statistics from the Singapore Tourism Board, tourism receipts amounted to S$23 billion in 2012. These numbers speak for themselves. And today the tourism sector continues to expand.
This means that there is the possibility of creating your own travel agency for numerous local and foreign tourists. It is up to you to satisfy all their requests and make their trip to Singapore unforgettable!
Hospitality industry
The broad concept of “hospitality industry” appeared recently, but has already firmly taken its place in the tourism business.
It is not limited to hotel activities, but also includes restaurant activities, the service sector, and the structure of recreation and entertainment. , conducting excursions and much more.
In any popular tourist destination, small, seasonal bars and cafes are in high demand.
In a major tourist destination like Singapore, boutique hotels and branded luxury hotels provide great opportunities not only for own business, but also in terms of an employee.
Investments in this sector are the most popular among foreigners.
Information Technology
Thanks to the growing potential in this area and the availability of qualified workers, many world-famous IT companies have already established their own businesses in Singapore.
This means that any type of activity in support of this direction will be in demand in the coming years.
This is the provision of a variety of IT services: wireless network, web development, social media, developing websites or other resources depending on your interests.
Cyber laws here are well written, regulate the Internet well, and are updated on an ongoing basis.
Biotechnology
Biotechnology is a rapidly growing industry in Singapore and has recently become increasingly attractive close attention foreign investors.
The Singapore government is taking unprecedented steps to promote the sector and make the city-state a global leader in 21st century biotechnology.
Back in 2005, within the framework of a long-term large-scale project, it began to function modern center , where enormous material, technical, financial and intellectual potential is concentrated, and where scientists from Europe, America and Asia work.
At the same time, five hundred Singaporean students went to study at leading universities in the world. These young specialists cost the state more than maintaining an army infantry battalion - $300 million. The same amount was spent on the Biopolis center, but the opening prospects will more than pay for the costs.
Major international players such as Pfizer, Novartis And GlaxoSmithKline, are already present in this market. You too can invest in this sector and make a profit.
Telecommunications
Singapore is also known as one of the major telecommunications centers in Southeast Asia. Either mobile connection or providing Internet services, there is an entire market that is not fully exploited by existing telecom players.
Although the existence of private players is very visible, facilities such as radio and television stations are government property. Print media is run by Singapore Press Holdings And MediaCorp.
Today is the time to think about investing in this sector and about developing a market that still needs servicing.
Fashion retail
Singaporeans love fashion and always follow the latest fashion trends. World famous fashion houses - H&M, Aldo, Levis, Zara and those like them are already getting their share of the profit.
Tourists coming from all over the world to stock up on these brands appreciate the variety of products at reasonable prices.
The fashion industry will undoubtedly continue to evolve, so everyone more people start their own business in this area by opening outlet centers or franchise centers of branded clothing.
Education
The field of education is an up-and-coming industry sector in Singapore. Since there are very few institutions in Southeast Asia that provide quality education, this area provides huge business opportunities.
Not only do Singapore institutes provide quality education, but their courses are also in great demand. Singapore universities are preferred by students from Southeast Asian countries who want to receive higher education near the house.
There are also many opportunities in this sector to create your own business. For example, the creation of accredited courses on the study of tourism, modeling, design business and so on.
