Reason to establish a business in Singapore?
Singapore has long been recognized as one of the most business-friendly destinations in the world. Whether you're a startup founder, an entrepreneur, or a company looking to scale, establishing a business in Singapore offers numerous benefits. Here’s why Singapore continues to be the top choice for business registration in 2025.
Favorable Business Environment
Singapore consistently ranks as one of the easiest places to do business globally. With a business-friendly legal system, streamlined administrative procedures, and strong government support, setting up a company here is quick and hassle-free. The Accounting and Corporate Regulatory Authority (ACRA) has optimized the registration process, allowing businesses to operate within just a few days.
100% Foreign Ownership & Minimal Restrictions
Unlike many other countries, Singapore allows 100% foreign ownership of businesses. This means international entrepreneurs can fully own and control their companies without needing a local partner. Additionally, Singapore has no foreign exchange controls, ensuring seamless international financial transactions.
Attractive Tax Policies Low Corporate Tax (Only 17%)
- Singapore's corporate tax rate is only 17%, significantly lower than major economies like the US (21%), Japan (30.62%), or France (25%).
- This enables businesses to retain more profits for reinvestment, expansion, or product/service development.
- Singapore also has over 80 Double Taxation Avoidance Agreements (DTAs), reducing tax burdens for multinational companies operating across borders.
Tax Exemptions for Startups
To encourage entrepreneurship, Singapore offers the Startup Tax Exemption Scheme (SUTE), significantly reducing tax burdens for new businesses in their initial years.
Specifically:
- 75% tax exemption on the first SGD 125,000 of taxable income.
- 50% tax exemption on the next SGD 100,000.
- In total, startups can receive tax exemptions of up to SGD 200,000 in the first three years.
This program provides startups with additional capital to grow, innovate, and scale without heavy tax pressure.
No Capital Gains Tax
Singapore does not impose Capital Gains Tax, meaning businesses and investors do not have to pay taxes when selling assets, shares, or real estate at a profit.This is particularly beneficial for startups and venture capitalists (VCs) looking to exit investments without losing a portion of their gains to taxes.This policy also attracts foreign investment, increasing liquidity and enhancing the appeal of Singapore’s financial market.
No Withholding Tax on Dividends
Unlike many countries that tax dividends before they reach shareholders, Singapore operates on a Single-Tier Corporate Tax System, where business income is taxed only once.When a company distributes dividends, they are not subject to additional taxes, ensuring that shareholders—especially foreign investors—receive their full earnings.This makes Singapore an attractive destination for investment funds and multinational corporations.
Robust Legal System & Political Stability
Singapore is renowned for its transparent legal system, strong intellectual property protection, and strict anti-corruption policies. Its stable political environment ensures businesses can operate without concerns over sudden legal or policy changes.
Strategic Location & Global Market Access
Located at the heart of Southeast Asia, Singapore serves as a gateway to major markets such as China, India, and ASEAN. With one of the world’s busiest ports and a world-class airport, Singapore is a key logistics hub for global trade.
World-Class Banking & Financial System
Singapore’s advanced financial infrastructure supports businesses with access to international banking, multi-currency accounts, and high-end financial services. Major banks like HSBC, DBS, and UOB operate in Singapore, helping businesses manage their finances efficiently.
Highly Skilled Workforce
Singapore boasts a highly educated workforce, proficient in multiple languages, and equipped with strong professional skills. The government also attracts global talent through work visa programs such as the Employment Pass and EntrePass.
Government Support & Business Incentives
The Singapore government actively supports businesses through financial aid, grants, and startup programs, including:
- Startup SG – Funding support for new businesses
- Productivity Solutions Grant (PSG) – Financial assistance for SMEs adopting digital solutions
- Enterprise Development Grant (EDG) – Support for business expansion and innovation
Conclusion: Why Establish a Business in Singapore?
Singapore remains a top-tier destination for business formation, thanks to its pro-business policies, optimal tax system, strategic location, and stable legal environment. Whether you're launching a startup or expanding your company, registering a business in Singapore in 2025 offers unparalleled advantages for long-term success.
📩 Build your business in Singapore with a solid foundation, thrive in a competitive market, and seize global opportunities. ECI is ready to support you every step of the way. Contact us today to get started!
