Setting Up Your Business in Singapore: The Gateway to Asia and Beyond
Singapore offers one of the lowest corporate tax rates in the region at just 17%, along with a wide range of tax incentives and schemes. This makes it one of the most attractive places in Asia to start and grow a business. Foreign-sourced dividends, brand profits and service income brought into Singapore may qualify for tax exemptions or reduced rates, provided certain conditions are met.
With over 90 double tax treaties, Singapore also has one of the strongest global networks. It helps businesses reduce withholding taxes when repatriating profits from cross-border investments. On top of this, Singapore generally does not tax capital gains, and dividends paid by Singapore resident companies are not subject to withholding tax. This makes Singapore an ideal location for holding companies managing international investments.
Before starting Singapore company registration, it is important to know the types of business entities you can set up. The two most common options are Private Limited Companies (Pte Ltd) and Limited Liability Partnerships (LLPs). A Private Limited Company is the preferred choice for most entrepreneurs. It is treated as a separate legal entity from its owners and shareholders, which means personal assets are protected in case of business risks.
An LLP, on the other hand, combines the features of a partnership and a company. While it offers limited liability protection to its partners, it is generally more suitable for professionals, such as architects, lawyers or consultants who want to run a practice together.