know singapore's business environment

Servolve Pte. Ltd. Servolve Pte. Ltd. Servolve Pte. Ltd. Servolve Pte. Ltd. #03-05 Red Dot Traffic Building, 28 Maxwell Road, Republic Of Singapore–069120 U.E.N. : 201016972C Cell: +65 9736-9040 ; Phone: +65 6591-8721 ; Fax: +65 6327-4841 [email protected] ; http://www.servolve.com

© Copyright 2010 Servolve Pte. Ltd. All rights reserved. This information is intended only for the person or entity to which it is addressed and may contain privileged material.

1. Know Singapore.

a. Doing Business in Singapore.

Classed as the world’s easiest place to do business (Doing Business 2009 report), Singapore welcomes

investors with a smooth channel for their ventures. By having your international HQs in Singapore,

companies benefit from Singapore’s network of over 50 comprehensive Double Taxation Avoidance

Agreements. They also gain from Singapore’s many free trade agreements and the 35 Investment

Guarantee Agreements. Companies can always rely on protection of their ideas and innovations

through Singapore’s strong intellectual property laws. There are over 4,500 companies offering

professional services, including audit, accounting and management consulting; market research,

advertising and public relations; human capital services; and legal services to assist you to establish

successfully in Singapore.

Setting up a business in Singapore is easy and the procedures can be completed in 1 to 2 working days! All

businesses must be registered with the Accounting and Corporate Regulatory Authority (ACRA)

Representative Offices (ROs) need to be registered with International Enterprise (IE) Singapore,

while ROs in banking and insurance have to register with the Monetary Authority of Singapore

(MAS). We at Servolve will assist you in Setting up your Business in the most cost effective and

efficient way. Our committed employee’s only mission is to serve you the best possible way and

our measure of success is your appreciation for getting the best service. Everyone in Servolve

believe in “Serve Love and Evolve” together. (Setup My Business in Singapore) – add the hyper

link to steps to business setup along with contact us page and order now with a cart.

b. Strategic Location.

Singapore is strategically located at the heart of ASEAN (Association of South East Asian

Nations). It's extensive air and sea linkages enables your business to access 2.8 billion people

within a seven hour flight radius. This makes it a critical hub for professional exchange as well

as inter-regional and intra-regional trade. Singapore's port is one of the busiest in the world

and the country is classified as a premier International Maritime Centre.

Changi Airport of Singapore has 80 airlines that connect you to over 180 cities in 50 countries



and serves over 15 million passengers annually. Its liberal air policy to open up to the rest of

the world, emphasis on competitiveness, efficiency and service has made it the 'Best Airport in

the World' for 20 consecutive years (1998-2007). Thus Singapore provides your business with

easy geographic access to all major Asian markets including China, India, Australia, Taiwan,

Malaysia, etc.

c. Infrastructure.

Singapore is one of the very few countries in Asia to offer world class physical and research

infrastructure. With parallel growth in various industrial sectors, Singapore has been

relentlessly upgrading its infrastructure to not only accommodate, but also stay ahead of

business demands. Singapore's physical and research infrastructure will assist you to set up

your business operations along with ensuring long term growth with ease.

Singapore has hosted some of the world's most prestigious business events like: The World

Economic Forum 2005, the 117th International Olympic Committee Session held in 2005 and

the 2006 Board of Governors Annual Meeting of the IMF and World Bank.

Depending on the size and nature of your Singapore business, you can choose from setting up

operations in an industrial/business park, build your own establishment on industrial land or

move into readily available commercial office space or ready built standard factories. Singapore

even offer virtual office services based up on your business for assisting you do your business

operations and enabling easy entry in to Singapore.

Singapore is a technology savvy country which tries to use technology to build efficiency. It is

interesting to note that 99% of the population has access to broadband network and there is

no wonder in often being described as a 'plug and play' nation.

d. Business Pro environment.

Singapore Government is very particular about creating a Business pro environment and thus



encourages people to start and establish business. It also has very transparent laws and policies so

that people across the world can come and use the world class environment for them establish.

More over Singapore immigration laws for foreign talent highly-regarded for being business-

centric.

Ranking Category

Singapore's

Ranking Source Description

World's easiest place to do

business 1

Doing Business 2010

Report, World Bank

Singapore was

topped in this

category for the

years 2009 and

2010

City with the best investment

potential - (Profit Opportunity

recommendation) 2 BERI Report 2010

For 16 consecutive

years

world leader in foreign trade

and investment 1

The Globalization

Index 2009

Having the most open economy

for international trade and

investment 1

The Global Enabling

Trade Report - 2010

Most competitive country in the

world 1

IMD World

Competiveness year

Book - 2010

Best business environment in

Asia Pacific and worldwide 1

Economist Intelligence

Unit, Country

Forecasts, December

2009

EIU Business

Environment

Ranking - 2009

Most "network ready" country 2

Global Information

technology report -

2009- 2010, World

Economic Forum

Singapore is Asia's

most "network

ready" country



Best protection of intellectual

property 1

Global

Competitiveness

Report , 2009 - 2010

Least bureaucratic place for

doing business in Asia 1

IMD World

Competiveness year

Book - 2010

Least corruption in its economy

in Asia 1

IMD World

Competiveness year

Book - 2009

Singapore is ranked

4th in the world

and 1st in Asia for

having the least

corruption in its

economy

Most transparent country in the

world and Asia 1

IMD World

Competiveness year

Book - 2009

BERI's Labour Force Evaluation

Measure 1

BERI's Labour Force

Evaluation Measure

Report - 2010

Singapore has

topped BERI's

Labour Force

Evaluation Measure

(LFEM Report) for

last 31 Years.

Most motivated workforce in

Asia 2

IMD World

Competiveness year

Book - 2010

Singapore is ranked

7th in the world

and 2nd in Asia for

having the most

motivated

workforce



Best skilled labour in Asia 5

IMD World

Competiveness year

Book - 2010

Singapore is among

the top 5 in Asia for

the best skilled

labour

Most business conducive labour

regulations in the World 2

IMD World

Competiveness year

Book - 2010

Singapore's labour

regulations are the

most business

conducive in Asia

Labour/employer relations 1

The Global

Competitiveness

Report 2009-2010,

World Economic

Forum

Best country to work in 2

IMD World

Competiveness year

Book - 2010

Foreign talent rank

Singapore as Asia's

best country to

work in

First choice for Asian expatriates 1

ECA Location Ratings

Survey, ECA

International, 24

March 2010

Singapore is the

first choice for

Asian expatriates

e. Trade Agreements.

Free Trade Agreements are the secrets behind connecting Singapore to major economies and

new markets worldwide. The benefits that your business gets to enjoy are: tariff concessions,

preferential access to certain sectors, faster entry into markets and Intellectual Property (IP)

protection. Singapore currently has FTA's in force with world's leading trading partners to help

reduce the tax burden on your Singapore business. Agreements have been signed with key



economies such as USA, Japan, Australia, New Zealand, China, India, South Korea, Panama,

Chile, Jordan, Switzerland, Iceland, Norway, and many more.

Singapore has also signed 35 Investment Guarantee Agreements (IGA), which help to protect

business investments made by Singapore-based companies in other countries against non-

commercial risks. Singapore is also part of Schemes of Preferences designed to help reduce

trade barriers.

f. Immigration and Visas.

Singapore's open Immigration policy enables the relocation of foreigners who wish to

establish their business in Singapore. If you are a business entrepreneur who needs to

relocate to Singapore to run your business or if you need to hire foreign professionals - the

government has anticipated your needs and appropriate Singapore work visa provisions

have been made to cater to such needs.

Singapore aims at transforming itself into the "talent capital' of the global economy. As an

aid to achieving this goal, it has liberalized its immigration policy, making it easier for

foreign professionals to gain Singapore Permanent Residence (PR) status.

•High skilled manpower are allowed to bring their family members and they are also

exempt from quota system.

•Foreign professionals are encouraged to become PRs. The government has ensured that

PRs also enjoy many benefits that of like citizens.

Singapore immigration laws for foreign talent highly-regarded for being business-centric.

According to IMD World Competiveness year Book – 2010 Singapore Scores 6.83 rated out of 10,

which states that the immigration laws prevent considerably less for employing foreign nationals.

g. Quality Life.

According to the Mercer Quality of Living global city rankings 2009, Singapore topped the



list for quality of life in Asia as well as for city infrastructure in the world. An annual survey

by human resources consultancy ECA International comparing 254 international locations

found that Asian expatriates ranked Singapore as their preferred city to live in, citing the

high standards of infrastructure and healthcare, as well as low crime rates.

The city’s modern facilities for education, dining, shopping and recreation also add to its

appeal. The Global Country Brand Index ranked Singapore 2nd in the world for its shopping,

nightlife and dining.

Singapore is Cosmopolitan country where one can see the harmonious Co existence of

different cultures, lifestyles and religions which unique in its nature. Singapore has a warm

and pleasant weather round the year and this adds tremendously to the comfort level of

people here. More over Singapore is considered as one of the cleanest and greenest city in

the world. One among the three persons here are foreigners who is either working or doing

business in Singapore. This adds to the variety of culture Singapore has and shows the

welcoming nature of the country. There are numerous schools catering to the education

needs of expatriate children while its local schooling system has achieved academic

distinction.

h. Skilled Workforce:

Almost one in four skilled workers in Singapore are from overseas. To work in Singapore means

to to be part of an international workforce that is highly skilled and proficient in English and

often one other regional language. The government and corporations also encourage in

training, offering continuous opportunities to enhance the qualifications, productivity and skills

of the work force. All these factors make Singapore-bred talent highly valued in the light of a

global economy. (Setup My Business in Singapore) – add the hyper link to steps to business

setup along with contact us page and order now with a cart.

i. Governance



Taxes & Benefits

There are many reasons why one has to choose Singapore to initiate their business setup and

establish their operations in Singapore.

The Primary one is the ease of setting up and operating business.

Very attractive corporate and personal tax regime, tax relief measures, absence of capital gains tax,

one-tier tax system, and extensive double tax treaties.

a. Corporate Tax

One of the lowest effective corporate tax rates in the world, attractive tax incentives and generous

deductions make Singapore an inviting place to do business in.

Corporate Tax Rate is capped at 17%. Singapore follows a single-tier corporate tax system, where

tax paid by a company on its profits is not imputed to the shareholders (i.e. dividends are tax free).

A Tax Resident Singapore Company (The control and management of the business is exercised in

Singapore. Since Singapore encourages entrepreneurship, there are lots of flexibilities that one can

enjoy, especially for a new start up company) can enjoy the below benefits.

1. Tax exemption scheme available for new start-up companies.

2. Tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced

service income.

3. Benefits from Double Taxation Agreements (DTA) that Singapore has concluded with treaty

countries.

4. Tax is considered for the income remitted in Singapore.

Tax Rate for the First three years of a Resident Singapore Company



Tax Rate from fourth year onwards for a Resident Singapore Company

My



Company can enjoy these benefits?

a. Is your company a resident Singapore Company for the year of assessment?

(Contact Us for assistance) – a link to our service – Company incorporation.

b. Is the number of share holders of your company is not more than 20?

c. At least one your company share holder has not less than 10 % of holdings?

If the answer is yes for the above questions, you are eligible for availing all the benefits of

Singapore Flexi Tax Regime.

NB: For our expert advice and suggestions, please contact our specialist. ( A Link to contact us

followed by our services, company incorporation)

More Benefits…..???

Category Tax Rate

Tax rate on capital gains accrued by the company 0%

Tax rate on dividends distribution to shareholder 0%

Tax rate on foreign-sourced income not brought into

Singapore 0%

Tax rate on foreign-sourced income brought into

Singapore

0 - 17% subject to certain

conditions

Finance & Treasury Centre Co. 10%

Fund Manager 10 / exempt%

Headquarters Co. 10%

International Commodity Trader 10%

Offshore Leasing 10%

Oil Trader 10%

Securities Company 10%/exempt

Trustee Company 10%



Arts & Antique Dealers 10%

Asian Currency Unit 10%/exempt

Insurance & Re-insurance Co. 10%/exempt

b. Personal Tax

All individuals who generate an income of S$20,000 or more from Singapore are liable for paying

tax and hence to file their returns. Singapore follows a progressive tax rate starting at 0% and

ending at 20% above S$320,000. There is no capital gain or inheritance tax. Individuals are taxed

only on the income earned in Singapore. The income earned by individuals while working overseas

is not subject to taxation barring few exceptions.

Personal Tax Rates

Income Tax

Rate

Tax rate on first 20,000 0%

Tax rate on next 10,000 3.50%



Tax rate on next 80,000 14%

Tax rate on next 160,000 17%

Tax rate on above 320,000 20%

Tax rate on capital gains 0%

Tax rate on income earned overseas 0%

Tax rate on dividends received Singapore

company

0%