International money transfer via a Singapore company: Why not?

Positioning it as one of the world's major financial centers alongside New York, London, and Hong Kong, Singapore's banking system stands out as one of the most modern and secure globally, contributing to the prominence of its Finance and Banking sector.

In this article, we'll explore the advantages that opening a company in Singapore brings, and how you can utilize a Singapore company to conduct domestic and international transactions strategically

1. Build credibility with a Singapore company brand name

The Singaporean government is dedicated to establishing a comprehensive, long-term plan to attract investments and cultivate a world-leading business environment. Since 2014, Singapore has witnessed substantial growth across all societal aspects, especially with the robust development of the Fourth Industrial Revolution. 

In 2019, Singapore moved up in the ranking of countries with the lowest corruption index in the world, to 3rd place, after Denmark and New Zealand.

The stellar reputation of the national brand affords Singaporean businesses immense confidence in the global market. Many well-known startups choose Singapore to raise funds, leveraging its robust financial regulations and banking system.

The chart shows Singapore's strong resurgence

2. Earn quick wins when incorporating a company in Singapore

Surprisingly, the process to open a company in Singapore can be completed in just 1-2 days. In 2016, Singapore topped the list of countries that provide a good business environment for startups.

The government facilitates a business-friendly environment by simplifying all paperwork related to government agencies. Singapore companies are only required to issue financial statements once a year, with the flexibility to choose a fiscal year-end that suits them.

All interactions with government agencies can be conducted online from anywhere globally. Singapore has introduced centralized administration portals - Corpass for business and SingPass for individuals., streamlining processes with most government agencies.

3. Maximize profits through attractive tax incentives

Singapore boasts one of the world's most favorable corporate income tax rates, standing at 17% of a company's profits. However, the government extends various tax incentives, resulting in significantly lower effective tax rates.

• For the first SGD 100,000 of taxable income or profits, the average corporate tax is 4.25%.
• On the next SGD 100,000, the average corporate tax is 8.5%.
• Beyond SGD 200,001, the tax rate is 17%.

Singapore also implements a policy to prevent double taxation. Following the fulfillment of corporate tax obligations to the government, dividends distributed to shareholders are exempt from personal income tax.

This policy applies to companies for the first 3 years from opening. After 3 years, there will still be tax incentives but at a lower rate. Singapore government also regularly launches business support packages and economic stimulus, so the real tax rate may be even lower. Global Link Asia Consulting has an in-house tax and accounting team to advise you on this. Contact us to learn more about our full suite of services!

Based on the above corporate income tax rates and the profit earned, Singapore companies can estimate the tax amount payable to the Government using this tax calculator.

In addition, Singapore also has a policy for avoiding double taxation. After completing corporate tax obligations for the government, dividends distributed to shareholders will not be subject to personal income tax.

4. Transact securely with partners and customers globally

5. Adopt new payment technologies with ease

In the current era of global digital transformation, consumers are increasingly dissatisfied with traditional banking solutions. Singapore has witnessed the emergence of multiple Fintech companies, attracting substantial investments from financial institutions. These entities collaboratively enable Singapore businesses to send and receive money internationally with enhanced flexibility and convenience.

Over the past five years, the ASEAN region has experienced an impressive compound annual growth rate (CAGR) of 101% in capital investment in the FinTech sector. In 2019, Singapore led the region, securing over 51% of total investment. The number of agreements in 2019 further demonstrated Singapore's dominance, accounting for 51% of all deals in ASEAN.

6. Collaborate directly with an international payment service provider based in Singapore

Singapore has consistently been the preferred choice for multinational corporations and major global companies to establish their headquarters, representative offices, or subsidiaries. This trend extends to electronic payment service providers.

PayPal, a company specializing in e-wallet services and online payment gateways within the e-commerce domain, was founded in 1998, with its headquarters in San Jose, California, USA. Opting for Singapore as its Asia headquarters, PayPal Pte. Ltd. has capitalized on the robust growth of PayPal's payment services in the Asia-Pacific region.

Stripe, an American software, and financial services company headquartered in San Francisco, California, USA, focuses on providing payment processing software and application programming interfaces for e-commerce websites and mobile applications. Similar to PayPal, Stripe selected Singapore as its inaugural Southeast Asian country for offering payment gateway services in 2016.

7. How can we help you incorporate and manage the Singapore company with ease?

Global Link Asia Consulting, as your trusted one-stop corporate service provider helping hundreds of business owners start their businesses overseas and manage their companies with success, can help you

• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

8. FAQs about Singapore company incorporation

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

• Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
• Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
• Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
• Opreation support:
• Registered adress;
• Foreign consular legalization;
• Trademark and patent protection registration in Singapore and the US;
• Employment Pass application in Singapore and Hong Kong;
• Website design, international SIM number provision;
• DUNS registration.

With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

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