Singapore – Economic Freedom at its peakSeptember 2012
The small island nation of Singapore is found to have done remarkably well during the recent economic and financial crisis that hit most of the world and especially the developed nations of the world.
In the 2011 Index of Economic Freedom – a study of world nations conducted by The Heritage Foundation and The Wall Street Journal, Singapore has been given an economic freedom score of 87.2, making its economy the second freest economy and the ranking reflects positive factors in fields of fiscal, monetary and financial freedom.
Singapore scores over other nations in the following respects:
1. Singapore enjoys very high business freedom where Singapore registered companies is well protected under Singapore’s regulatory framework.
Company formation process takes shorter than most developed nations. As per the study, the world average is 34 days to set up a business whereas in Singapore it takes only an average of 3 days.
Obtaining a business license to run your business also takes shorter time as per Singapore’s regulations. Dissolution and bankruptcy procedures are straightforward.
With the help of Service providers like Servolve, these processes become easier and hazzle free.
2. Singapore’s tax rates for both corporate and individual are among the lowest when compared with many developed nations.
The top line tax rate for new companies is effectively below 8.5% of the chargeable income upto a certain limit in the first three years of incorporation.
After the grace period, the top line tax is still 17% much lower than most advanced countries including the OECD nations. Personal tax is also lower for resident individuals at a tax rate of effectively 7.5% - 10% and the top line tax rate being 20%.
Taxation compliance can be taken care by professional and qualified accountants who ensure that it is taken care of at the right time.
3. Singapore provides almost equal treatment for both foreign and domestic businesses for compliance and mostly all industrial sectors in Singapore are open to foreign investment.
Real estate is one area where foreign investment is restricted. However there are no restrictions placed on foreign owning and operation of industrial and commercial properties.
4. Singapore’s financial sector is well known among Asian nations as highly advanced and technically competent. Lately even expats from other parts of the world like the Euro zone and America are discovering the relative ease with which banking facilities are offered in Singapore.
There are a good number of both local and foreign banks that operate out of Singapore and 3 Singaporean banks – DBS, OCBC and UOB were named amongst the top 50 safest banks anywhere in the world in 2011.
All the banks mentioned herein were ranked within the first 30.
5. Property protection offered in Singapore is amongst the best in the world with court protection available in case of disputes.
Confiscation of property is unheard of and intellectual property rights are secure under the Singapore IP regime.
6. Singapore government has very strong anti-corruption laws in place and corruption is perceived as almost non-existent in the city state.
The custom of bribes is not promoted and any known case of monetary or other inducement is severely punished under the Anti-Corruption laws of the land.
7. Singapore’s labour market is wide and any numbers of experienced professionals or educated graduates are available.
Singapore’s immigration laws allow corporates to bring in talented professionals from other nations also and this amply augments the local labour pool.
With a very stable political environment and pro-business policies, the city state has been a favourite destination for business and individual needs alike.
This trend is likely to expand with ample opportunities offered by Singapore for new enterprises.
Article by www.servolve.com.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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