With a robust MNC ecosystem, the business epicenter of Asian region Singapore continues to attract MNCs to set up their headquarters in its shore. Singapore company incorporation specialist firm SBS Consulting explains the key reasons behind this uptrend.
Singapore -- (SBWIRE) -- 12/02/2013 -- For eight consecutive years, Singapore has topped the list of world’s easiest place to do business, according to the World Bank. This is quite a remarkable achievement. Competitive tax regimes, strategic geographical locations, strict legal system, free market economies and smart immigration law are just some of the attributes which made it possible for the country.
Singapore is a perfect gateway to Asia for MNCs seeking to gain access to emerging Asian market. According to a reliable source, more than 7000 MNCs have established their business operations in Asia Pacific by establishing their business set up in Singapore. Out of 7000, many of them have set up their headquarters in the city-state. Recently, General Motors, a renowned MNC have announced that they would move their headquarters of its international operations to Singapore from Shanghai.
While commenting on the rising trend of MNCs setting up HQ in Singapore, Ms. Meena, business head of SBS says, “Singapore offers several benefits, including "greater proximity" to key international markets likes Southeast Asia and India, the Middle East and Africa. Its liberal regulatory framework and low corporate income tax and personal tax rates make the nation more appealing for multinational corporations.”
Singapore company registration specialist SBS Consulting has released a report on key factors that fascinate the MNCs to set up their business headquarters in this financial hub of Asian territory.
Below listed are the salient features that Singapore has to offer:
- Headquarter Incentives: To encourage companies to use Singapore as a base for conducting headquarters management activities to overseas and manage their regional and global operation, the Economic Development Board offers regional headquarters (RHQ) and international headquarters (IHQ) incentives. RHQ incentives offer a concessionary Singapore tax rate of 15% for 3+2 years on incremental qualifying income from abroad. If Applicant Company satisfies all the minimum requirements by Year 3 of the incentive period, it will enjoy the 15% concessionary tax rate for an additional 2 years on qualifying income. IHQ incentive is open for all entities incorporated in Singapore.
- Progressive Tax Regime: Singapore tax services are widely known for its progressive nature and pro-business approach. The rate of corporate income tax Singapore is low and capped at 17%. Similarly, Singapore personal Income tax rates start at 0% and end at 20% above S$320,000 annual income. GST Singapore is considered to be one of the lowest in the world which is 7%. Zero capital gain tax and one-tier tax system are some of the other attributes that the country possesses.
- Extensive Network of Double Tax treaties: Singapore’s widely extensive tax treaty network has played a key role in attracting MNCs to set up headquarters here. The country has approximately 69 bilateral double taxation agreements (DTAs). Additionally, the country has 20 Foreign Trade Agreements (FTAs) with 20 economies. On top of that, the taxation Singapore offers an array of tax incentive that may help minimize business costs.
With a wide range of incentives, Singapore holds the crown of best business hub that offers a thriving base for establishing the headquarters of multinational corporations. We are optimistic that Singapore will continue to be one of the sought after destinations in Asia to set up regional holding companies. SBS Consulting would be glad to serve the companies to achieve their goal.
About SBS Consulting
SBS Consulting is a leading corporate firm in Singapore that confers business consultation and assistance services to the worldwide entrepreneurs and investors seeking business opportunities in Singapore to gain parallel access to emerging Asian market. The firm has expertise in various areas such as Singapore company registration, taxation, Singapore accounting services, auditing, payroll and corporate secretarial services. Most importantly, the firm also offers specialized Singapore work visa services to the foreign professionals and entrepreneurs who wish to work and live in the island nation.
SBS Consulting Pte Ltd
35-B Hongkong Street,
Singapore - 059674
Tel: +65 67289142
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