Why is it worth opening a financial startup in Singapore
It is profitable to open a financial startup in Singapore because this jurisdiction encourages work in this direction. The country is keen to increase investment in financial technology. For more details on how to launch a financial startup in Singapore in 2021, contact our experts at IT-OFFSHORE.
Reasons for registering a startup
A common reason to start a startup in Singapore in 2021 is the opportunity to enter a global or regional market. The territory's policy is business-friendly - there is access to a highly-skilled workforce. The country has an attractive tax regime and a high level of security.
Singapore is considered one of the best countries for ease of doing business. It's easy and fast to register a startup, the corporate rules are simple. Tax benefits are available to foreign-owned startups.
A high level of intellectual property protection is one of the main advantages of registering a startup. In this regard, the jurisdiction is considered one of the safest for working with financial projects. There is an opportunity to expand in the global market.
All new businesses can receive tax benefits in the first three years after opening. From 2020, the tax burden is reduced to 25% for the first $100,000 of income. Deductions are available.
A one-tiered corporate tax system is in effect. Corporate dividends are tax-exempt in the hands of shareholders. There is no capital gains levy. With the use of various exemptions, the tax liability rate can fall as low as 10%. The legal system is fair and efficient.
Nuances of opening a company and registering an account
The most common way to register a company is Private Limited Liability Company. Residency is not mandatory, but it can provide additional preferences. The director may be a nominee.
Initially, it is required to create and reserve the name, which must be unique. Constituent documents must be drawn up, and information about the actual location of the office must be provided.
The procedure for opening an account is quite simple. You can open an account in any jurisdiction. Account opening takes up to 7 days for companies registered in Singapore. List of documents varies from bank to bank. To prepare all necessary documents please contact us.