Why You Should Choose Singapore To Setup Your Import/Export Company


Singapore has gradually become a world-class player in the field of global commerce. One of the major reasons for this is that is strategically located in the center of Southeast Asia with extensive sea and air links that make global and inter-regional trade possible. Singapore is now ranked as the 14th largest exporting country in the world, and the 15th largest importing country in the world. Therefore is you have plans to set up and establish an import/export company, Singapore is the perfect place to register such a business venture. Here’s why:

Low barrier to entry

The country has since adopted a liberal stance towards export and import and therefore allows for businesses to incorporate their companies easily. Also, there are minimal bureaucratic procedures that would serve as obstacles to setting up your trading business. Singapore is ranked second in the Ease of Doing Business in the world rankings. Additionally, registering a business for import or exports can be carried out online and is generally fuss-free. You can easily start up your business online with a minimal capital of up to $1.

Attractive Tax System

Singapore offers competitive income tax rates that stand at 17 percent for companies and 22 percent for companies. Plus when it comes to income tax rates for individuals, individuals can pay lower tax rates than the 22 percent cap. The country has in place various tax relief schedules that can also be taken advantage of by individuals and companies seeking to start up a trading business. The county has also eliminated double taxation.

Favorable Geographical Location

The country straddles a strategic sea route between the east and the west, thus ensuring that an enormous amount of trade, standing at nearly $5 trillion, flows through the country each year. If anything, almost up to 30 percent of all the trade that is carried out in Asia is conducted through this country. The country’s port has been ranked as the second busiest port globally, while its airport, Changi Airport, has proven itself to be an award-winning airport.

This means that once you have established your trading company within the country, you will stand to benefit from its high-quality infrastructure to ferry your cargo and goods for export and import.

Reliable infrastructure

Of the world’s top cities, again Singapore is ranked as having one of the highest quality infrastructures. This is information retrieved from the Mercer Quality of Living Study. This country is served by a road network of more than 1940 miles, of which, 99 percent are paved.

Stables Financial System

The country’s financial system is tightly incorporated into the various international financial markets. It boasts of up to 500 financial institutions with world-class standards. Additionally, Singapore also offers between 25 to 35 percent of trade finance for various trade commodities in Asia.

Low Corruption

As a business owner, one of the most unpleasant experiences known to business owners is that of having to deal with unscrupulous officials, where taking or giving bribes is the only way to get things done. Such a scenario is virtually non-existent within Singapore. According to Transparency International’s anti-corruption index for the year 2019, Singapore was ranked at number four globally.

This is because most of the government officials within the country are generally very well paid. Also, the country has enforced very high punishments for those found guilty of engaging in any form of corruption. Additionally, Singapore’s founder Lee Kuan Yaw led by example and thus set a very high bar when it came to moral standards.

Within this country, nepotism is virtually non-existent, and the trend is that rules are adhered to and contracts are enforced and respected. This means that as a business owner within the county, you stand to benefit from a transparent and clear regulatory framework.

Skilled Man Power

The country employs up to 14,000 skilled employees within its import and export and sales sectors. Within Singapore, a great 47% of the workforce has attained the education level of a higher degree. However, even with this standard, the labor remuneration within the country is still relatively low. Singapore has an excellent education system that serves well in producing a workforce that is good at its work and yet when it comes to wages, it is very competitive in comparison to other countries. This means that you will spend less on payouts to employees than you would if you were to set up your import/export business within another country.

The country’s citizens are known as generally being hardworking, highly educated, productive, and rule-following. Additionally, nearly every middle-aged and young person within the country speaks English.

After New York, London, and Houston, Singapore has been ranked 4th in the world as having the largest group of trading talent.

Support for Startups

The government of the country has adopted very innovation-friendly and pro-growth policies. The government provides many tax incentives, in-kind assistance, and grants to startups. Additionally, within various sectors, the government has been known to subsidize the labor costs for new businesses and startups. Plus these benefits can be taken advantage of by both foreign-owned as well as local businesses.

Within the last decade or so, the country has aggressively developed the venture funding community operating within the country up to the point where it boasts as the premier location for venture funds within Asia. This means that once you register and locate your business within the country, you place yourself in line to benefit from these sources of funding.

100% Foreign Ownership

Singapore allows foreigners to possess 100% of the stock of any company incorporated within the country. As a potential business owner within the country, this means that you will not need to have any local shareholders or partners within your company before it can be incorporated. Therefore, you should be able to start up your import or export company with the kind of capital structure that you will desire and be able to distribute its own according to your investment needs.

This article is contributed by InCorp Global Pte Ltd.


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