A recent report released by the World Bank Group shows that Singapore is ranked among the best countries in the ease of doing business. It’s known for the exemplary education system, first-class infrastructure, low taxes, and enviable transport system. Besides that, the state offers an open economy for international trade. Singapore is often referred to as the `economic tiger’ of Asia and has a thriving multi-cultural free market. All these conditions make Singapore ideal for doing business.

This brings us to the question, should you incorporate your company in Singapore? While you could be doing just fine in your business, Singapore company incorporation offers many advantages. With proper guidance, this can open a new door for success. Here are ten reasons why you should incorporate your company in Singapore.

1. Tax Advantages

Singapore is one of the few countries in Asia that offers low taxes. The corporate tax rate stands at 17%, lower than other countries like Switzerland, India, and Australia. Also, the personal income tax has a tier system (0-22%). And to make the economy more competitive, Singapore offers GST rates at 7%, lower than the Asia-Pacific average (10.5%).

Incorporating your business prevents double taxation. If a company runs a single unit, it’s taxed on the front end and again when the dividends are paid out. When you attain the value of a corporate body, you’ll pay taxes once. A newly established business won’t be considered for tax-exempt until it’s incorporated. Sometimes, it can be difficult to receive grants without such a status.

2. Corporations Appeal to Better Employees

In 2015, the World Economic Forum released a report that stated 54% of the workforce in Singapore is skilled. This is more than what you find in Australia and New Zealand. When you attain the corporate status, more professionals will be willing to work with your company. If you don’t have a corporate status, you may not have a world-class company.

3. Attract Larger Investors

Most investors will look at the corporate status of your business before they bring their money on the table. When you incorporate your business in Singapore, you communicate to others that the entity has a significant net worth. What does this mean for an investor? With such a status, the business won’t collapse if the principal contributor leaves. The ability of a business to continue even if one person leaves is important for investors.

4. To Protect Your Assets

Incorporating your business protects your assets. This means that your life savings are not at risk if you cannot meet the loan obligations. After incorporation, your business is seen as a separate entity. When any issues arise, you can draw the line between yourself and the business. That way, you won’t put your assets at risk. Also, when you incorporate your business, other people won’t hold you personally liable or pass judgments.

Think about it- owners of a partnership risk losing their business or personal assets because they are responsible for their debts – cars, savings, homes, and personal assets.

5. Perpetual Existence

Unlike a sole proprietorship or partnership, an incorporated company will continue to exist even if the previous owner leaves. Even better, a corporation establishes a legacy (the shareholders will appreciate this). This means that a corporation is more stable, and the investors will see the value for their money. Since the business will still be there in the future, the shareholders are assured of the long-term gain.

Finally, perpetual existence gives customers a chance to respond to customer feedback and innovate new products. It’s worth mentioning that the directors and shareholders can sell their shares, but when a business is incorporated, it continues to exist.

If you don’t incorporate your company in Singapore, it can be acquired by another entity or cease to exist in the future.

6. Availability of Internet Services

In today’s digital world, the availability of fast internet is important. Because the telecommunication infrastructure is available in Singapore, the business owners are incorporated in almost every area of the state. In 2010, the ISP providers rolled next-generation NBN service that offers a high-speed fiber network. When you compare to ADSL or cable connection, the prices of NBN is competitively priced.

In 2015, Singapore launched 2Gbits services, so businesses can get the work done with speed. Today, there are more than 200 internet service providers and thousands of access points. Since businesses can connect almost everywhere, incorporating a company can be a wise choice for entrepreneurs. Keep in mind that Singapore has open migration policies, so foreign nationals can set their businesses there.

7. Enhance Business Credibility

Once you incorporate your company, it will convey permanence and credibility. Not to mention, it shows the ongoing commitment of your business venture. Besides, the suppliers will feel comfortable working with an incorporated company.

Having the corporate status also shows your creditworthiness, and that you’re ready to play in the major league. The kind of image you project about your business is important because the most important word is `credibility’.

If you’re just starting a business in Singapore, the prospective vendors may not have heard of you. But when Inc. or LLC follows your business name, that’s a sign you’re serious. It also shows you understand the fundamentals of doing business, and you’re ready to create a long-standing company.

8. Support For Startups

The government of Singapore offers support to startup businesses. And within some preferred sectors, a company can benefit from subsidies. When you incorporate your business, you can gain access to funding sources. All these benefits are available to foreign-owned businesses.

9. Foreign Ownership and Currency Controls

The Singapore government allows foreigners to own 100% of stocks of an incorporated company. And because there is no restriction on the kind of business you do, investors can distribute ownership to suit their needs. That’s not all. Singapore doesn’t impose restrictions on the movement of currencies in and out of the country. This is a big plus if you compare to countries like India and China.

10. Create Shares

Another advantage of incorporating a business in Singapore is the creation of shares. The process will define how the ownership is divided. When you understand the ownership in the company, you can decide when to leave. Needless to say, you can offer equity as a form of compensation to third parties.

Final Thoughts

While incorporating a business in Singapore requires more paperwork, the advantages outweigh the costs. It’s time you begin the process to ensure you’re legally protected and to enjoy other benefits that come with incorporation.

A business model serves as your roadmap towards success, helping you make realistic evaluations on whether your business idea would be successful or not. It contains the steps on how a company will operate, including the processes involved in creating and selling a service or product. This article will discuss business models, their importance, and some excellent examples to take inspiration from before you incorporate your Singapore company.

What is a Business Model?

Generally, this model refers to a company’s plan to generate revenue. It is essential for both new and established businesses, helping them catch up with the current challenges and trends. These models also act as a concise tool for thinking matters through and keeping relevant keypoints visible to you and your team.

Creating a model for your business involves the planning of fundamentals, such as:

• Your business concept
• The problems you are trying to solve
• How you will create value for your customers
• How you plan to deliver your product or service
• Methods to stay competitive
• All costs and revenue you can foresee

The Importance of Having One for Your Business

Almost all the successful businesses today create models that allow them to attend to their client needs, while still maintaining their prices competitive and their costs sustainable. Over time, businesses are usually required to revise their models to reflect changing market demands and business environments.

Creating models for your business allows you to produce value out of your ideas. Having a great idea alone for a new service or product won’t mean anything if you don’t know the next steps to take.

Likewise, the desire to create customer value is not a strong basis for creating a platform to deliver services, especially in the social enterprise and development sectors. Working with colleagues helps you realize your business ideas, drawing out important assumptions and risks involved with them.

Great Examples of Business Models

If you consider creating a model for your business but unsure where to start, you can take inspiration from these examples.

1. Platform-Based Model

Some great examples of businesses that implement this model type include Facebook, Uber, GitHub, and Airbnb. These platforms provide a network (either physical or online) for users to interact with one another.

This model type delivers user value by enabling direct exchanges and connections between people. When it comes to measuring the success of platform-based models, it depends on how valuable your network is to your users. Moreover, businesses can benefit from this by providing valuable user community insight.

2. Subscription Model

Instead of selling services and products in single transactions, some companies operate on a continuous service model. Subscription models will give you a better understanding of your customers and their needs as you utilize them.

Netflix implements this model type, explaining its close relationship to customers. The company benefits from a subscription-type model because it gives them insights on what the viewers currently enjoy watching.

3. Employee-Centric Model

The majority of companies still need great people to stay successful these days. However, the gig economy has changed the way to attract great employees. It provided businesses numerous options to create an outstanding team.

Due to this, it has become common for companies to have employees come and go. By offering employees an attractive place to work, flexibility, and means to boost their career, you will surely catch the attention of many remarkable individuals.

4. Data-Driven Model

Smart organizations are aware that data is one of the most useful business assets. They encourage data culture, recognizing data at every business level. Doing this ensures that their decisions are based on data and not assumptions.

Data-driven businesses understand the current events greatly, using the data they hold to make better decisions, create new revenue streams, and refine operations. Typically, companies that highly value data are very likely to innovate and experiment at a quicker pace.

Conclusion

In the current fast-paced digital era, innovation remains a key element for all business models. There are many things to consider in running a business and you don’t want to get caught off guard. To avoid this, you need to make sure that your model is thorough and covers all the objectives. Although planning takes effort and time, you’ll see the return of your investment once your idea becomes successful, as you envisioned.