Singapore Company Formation

Many nations, including the U.S., claim to be the ideal destination for business. Whether for local enterprises or global corporations, countries strive to create an attractive business environment—without which, economies weaken, and companies relocate to more favorable markets.

For several years, an unexpected contender from Southeast Asia has consistently ranked among the best places to do business.

Singapore has dominated global business rankings for a decade. Although it was briefly overtaken by New Zealand, the World Bank’s Index predicts that Singapore will remain near the top in 2017 and 2018, with a strong chance of reclaiming first place.

According to various economists and international business indices, Singapore provides an optimal environment for both local and multinational companies to thrive.

Why Singapore?

Singapore’s rich colonial past and multicultural society position it uniquely at the intersection of Asian, European, and American influences.

As a former British colony, its legal, administrative, and tax systems closely resemble those of the UK and the US. Since gaining independence in 1959, Singapore has embraced Western business practices, languages, and lifestyles to enhance its appeal on the global stage.

That said, Singaporeans remain deeply rooted in their Asian heritage. While the government’s policies have sometimes faced criticism for potentially impacting cultural traditions, the nation has successfully maintained a balance. Many, including the World Bank, believe Singapore has crafted an inclusive environment that welcomes all while preserving its identity.

For U.S. small businesses, these familiar structures can make international expansion smoother, offering a unique yet accessible market in an otherwise unfamiliar region.

Singapore provides a highly supportive environment for both local and international businesses to thrive.

Despite its small size and lack of natural resources, Singaporean companies have expanded beyond domestic waters, focusing heavily on global trade. The country also has a strong manufacturing sector, with the U.S. being a key export destination outside its ASEAN partnerships.

Ranked as the world’s second-most competitive economy, Singapore owes much of its success to pro-business policies. The government actively promotes international trade through strategic economic measures and a welcoming regulatory framework. 

Foreign businesses find Singapore particularly attractive due to its fair legal and economic policies. Unlike in many other nations, international companies retain full managerial control and operate under the same economic regulations as local enterprises.

From both a micro and macroeconomic perspective, Singapore is an irresistible destination for businesses looking to expand globally.

While Singapore’s business-friendly environment provides many opportunities, its tax policies offer direct financial advantages. The country’s tax laws are designed to encourage business growth, with generous exemptions and savings.

Although Singapore is known for its favorable personal tax rates, these primarily benefit local residents—meaning your suppliers likely enjoy lower tax burdens. However, the real advantage for international businesses lies in Singapore’s corporate tax structure.

Non-resident corporations receive a full tax exemption on taxable income for the first three years, significantly reducing initial costs. Additionally, Singapore’s Double Taxation Avoidance Agreements (DTAs) prevent businesses from being taxed twice on overseas earnings. This benefits U.S. businesses as well, as lower supplier taxes often translate to more competitive pricing.