Many countries, including the US, would argue that they are the best place to do business. Whether it’s domestic or international, countries want to know that they have a fertile environment for business. Without that, economies stagger, and businesses leave to operate elsewhere.
For a few years, a small unlikely southeastern nation has held the title of the world’s best place to do business.
Singapore has reigned supreme for a decade. Although the city-state has been nudged out by New Zealand in the past year, the World Bank’s Index projects Singapore to hover around first place for 2017 and 2018, if not regaining its place at the top.
According to multiple economists and the Index, Singapore is the perfect place for domestic and international businesses to operate.
To help small businesses decide where to expand internationally, we want to sell you Singapore. Here are just three reasons why your business should work with Singapore.
3. Familiar Mix of East and West
Singapore’s unique colonial history and diverse population place it interestingly between Asian, European, and American cultures.
As a former British colony, Singapore’s legal, administrative, and taxation frameworks resemble US and UK models. Since it gained independence in 1959, Singapore has continually adopted Western lifestyles, business practices, and even languages to make itself more internationally marketable.
But, that isn’t to say that Singaporeans are trying to become more Western. They remain a proud Asian culture, and many have criticized the government on policies that seem to negatively affect the island’s cultural heritage.
However, many argue, including the World Bank, that Singapore has expertly struck a balance between East and West that accepts all, and alienates none. Especially in an area of the world that can seem so foreign, Singapore offers a comfortable, yet unique, business and social environment.
For US small businesses, these small similarities can make all the difference when working internationally.
2. Business-Friendly Economy
The Singaporean economy makes it easy for domestic and international businesses to make their mark.
The island is small and lacks natural resources. Therefore, Singaporean businesses look beyond their waterways to international operations. However, Singapore also boasts a large manufacturing industry. When not trading with ASEAN (the Association and Southeast Asian Nations) partners, the US is a major center for these exports.
The island is home to the world’s second-most competitive economy as a result of its friendly framework. The government has also implemented economic policies to promote international trade.
Singapore entices foreign businesses with friendly legal frameworks and public legislation as well. International businesses setting up shop don’t have to give up their managerial rights to locals, and foreign businesses are subject to the same basic economic laws as local ones.
In the micro and macroeconomics of Singapore, businesses are practically begging to work there.
1. Attractive Tax Laws
Here’s where small businesses benefit directly. The first two topics on this list have the potential to make your business money. But there’s no doubt that Singapore’s tax laws affect your bottom line, with extensive savings and exemptions.
Singapore is known to have great personal tax laws, but these really only apply to Singaporean residents. So, your supplier is probably getting a great rate.
For international businesses, Singapore offers corporate tax rates that blow other countries out of the water.
For the first three years of taxable income, non-resident corporations are exempted from taxes. The Singaporean government also introduced “Double Taxation Avoidance Agreements,” which protects Singaporean suppliers from accumulating taxes on profits made overseas. This is good for US businesses as well, as lower taxes on goods means lower prices for you.
For the first three years of taxable income, non-resident corporations are exempted from taxes. The Singaporean government also introduced “Double Taxation Avoidance Agreements,” which protects Singaporean suppliers from accumulating taxes on profits made overseas.
Maybe the most interesting thing about the Singaporean tax system is its repatriation system.
In order to entice currency back into the economy, Singapore allows businesses to repatriate funds back into the country tax-free. As long as the money is being sent from a registered business partner and is not a remittance payment, taxes don’t apply.
This is good for the sender and receiver of payments. The Singaporean receiver pays no tax on this income, so your prices for supply will be lower.
While sending a payment may be cheaper on the receiving end, small businesses are often hammered with hidden fees on the sending side. With Veem, your business can save money on both sides of the payments process.
Veem is a global payments platform. We use innovative technologies to find the fastest, most secure, and cost-effective path for your money to travel. No banks required. Your money is sent directly from you to your intended receiver.
Still skeptical? Veem allows you to track your payments on our easy-to-use dashboard. You can see exactly where your payment is and when it arrives. We’ll even verify your receiver to avoid any issues.
What’s not to love?
Start the application process today, and start sending payments with just a click.