How It Should Be

[Lancashirelad]

24 hours.

That's how long it takes to incorporate a company in Singapore. Even if you're a foreigner. And the whole process costs roughly $500.

100% foreign ownership is allowed. You only need $1 in paid-up capital. And your entire operation only needs one employee to act as shareholder and director.

In other words, you could walk off a plane in Singapore, put up $1 in venture capital, and have your company up and running before you got over your jetlag.

America has always prided itself on its business savvy and entrepreneurial spirit. But Singapore has the U.S. beaten when it comes to creating a business friendly environment. Singapore wants to attract 240,000 (roughly 5% of its current population) highly skilled professionals to the region in the next five years. And it's offering some pretty sweet deals to attract entrepreneurs.

For starters, the first S$100,000 in revenue for any new company is tax-free for its first three years of operation. The government won't touch a dime, provided you have less than 20 shareholders. And, starting in 2008, the first S$300,000 in revenue will be taxed at only 9% for every corporation in Singapore.

Even more incredibly, the government is setting a tax ceiling of 18% for income above S$300,000. It's likely to go even lower seeing as the Singaporean government has lowered corporate taxes by 2% each year the last two years. After all, Singapore is competing with other corporate-friendly zones like Hong Kong (17.5% tax) and Ireland (12.5% tax).

As is the case with personal income tax, you would pay taxes on each chunk of income coming from its respective tax bracket, but the overall effect is substantially lower corporate taxes than most developed countries in the world.

And if your company is international, you won't pay Singaporean taxes on foreign segments. Simply put, Singapore's government is opposed to double taxation of any kind – whether it's corporate or personal. Consequently, the Royal Bank of Scotland has moved its global operations center to Singapore. Other companies will soon follow suit.

The World Bank ranked Singapore as the easiest place to do business in the world in its 2007 report, "Doing Business 2007: How to Reform." Singapore has the least amount of bureaucracy and red tape in all of Asia. It's also the least corrupt.

It's heaven for small- and medium sized business owners. You get the quality of life of a developed, wealthy nation – 18 th in the world – at a fraction of the cost you'd pay for that quality virtually anywhere else in the world. And with China, Indonesia, Malaysia, and India within a four-hour flight, you've got access to more than 2.6 billion people to do business worth.

Because of this, small businesses have begun setting up shop here in droves. Currently these groups account for more than 50% of Singapore's employment. And lest you think there's a language barrier, English is the most-widely spoken language in the country.

You get access to Asian markets, everyone speaks English, there's little or no corruption or crime, and the country is cheap by developed standards. The tax breaks are really just the icing on the cake. And it only takes a day to set up shop.

No wonder it's called the easiest place in the world to do business.

[samran]

You get access to Asian markets, everyone speaks English, there's little or no corruption or crime, and the country is cheap by developed standards. The tax breaks are really just the icing on the cake. And it only takes a day to set up shop.

Ewey one speak English in Sinapore la?

You no hia about Harry Lee and his family la?

Propartie cheap in singapore la? 555555

How is thread Thailand related la?

[lannarebirth]

One thing about Singapore though. They know you're not going to be paying low wages, and they know you'll not be contributing to the depletion of the countries natural resources, as they don't have any. Basically, you can only spend money there. If that suits your needs than it's an ideal ,symbiotic, place to do business.

[Shah Jahan]

What about Hong Kong? From what I understand if you set up a Corporation in HK, but don't physically do business in Hong Kong (meaning your operations are in Thailand, virtual etc...)

then you pay exactly %0 Corporate tax.

Has anybody actually done this?

[meom]

24 hours.

That's how long it takes to incorporate a company in Singapore. Even if you're a foreigner. And the whole process costs roughly $500.

100% foreign ownership is allowed. You only need $1 in paid-up capital. And your entire operation only needs one employee to act as shareholder and director.

In other words, you could walk off a plane in Singapore, put up $1 in venture capital, and have your company up and running before you got over your jetlag.

How about work permit, some sort of residence visa; is this included in the $500?

[wasabi]

I have become uninterested in Singapore, if you check you'll see several threads about moving there from me on TV. I'm just hoping I can get an EPEC visa and am considered "Foreign talent" I've long dreamed of living in Thailand but haven't made the move due to the economic realities of working there. Singapore is close enough that I could spend substantial time in Thailand while not sacrificing my income. I'm planning on moving there around New Year's if I can get the right visas in place.

I think threads about Singapore are reasonably germane. It is part of SEA and many interested in Thailand may be choosing the Singapore route in the future. It's also interesting to compare and contrast Sing and Thailand given the recent changes in foreign investment in Thailand. I hope this and threads aren't closed.

Edited August 16, 2007 by wasabi

[wasabi]

Post above should say interested in SG, typo...

[Sateev]

Post above should say interested in SG, typo...

I, too, have become interested in living in Singapore, since doing a visa run, and putting some actual physical scenery to all that I have been reading.

A few days there was certainly not enough to know everything necessary to make the decision, but a few things stood out:

On the positive side:

Unlike Thailand, stuff is available, and accessible, without wandering through chaos, like Worachak, or Sampeng. Electronics suppliers are fairly concentrated, as are various other industries, and most of the shops I visited had knowledgeable and seemingly well-educated staff. I'm talking about hard parts here, not stereo equipment.

The place is clean, and apparently quite safe, and I encountered as many friendly people as I would expect to find here in Thailand. The difference is that in Singapore, people actually went out of their way to help, and if they didn't know, made unsolicited attempts at finding the right info. Compare that to Thailand, where info about location or availability is often wrong, and designed to get you out of the Thai person's face...'mai mee' is the knee-jerk answer that replaces the less face-saving 'mai roo'.

Price gouging seemed less prevalent, although my experiences were limited to a few purchases. However, one guy actually reduced the price of something he had to order, because his cost was lower than expected! Ever see THAT in Thailand?

On the negative side:

Housing, and accommodation in general, was horrifically expensive, and I have been keeping an eye on it since. Singapore is one of the top 10 most expensive cities in the world, from a cost-of-living viewpoint.

And there is no doubt: big brother is everywhere, from surveillance cameras, to not-so-subtle hints on good citizenship. I guess it's necessary to keep the 'Beverly Hills with Brown People' image, but give me Thailand's relaxed attitude toward individualism any day. Yeah, the odd knucklehead makes it annoying, but if you behave yourself, there's not much to worry about, especially outside of BKK. In Singapore, it appears that a little transgression might be met with draconian remedy.

All in all, I like Singapore, but I would need to be a lot richer than I am to make it home.

Sateev

[Naam]

What about Hong Kong? From what I understand if you set up a Corporation in HK, but don't physically do business in Hong Kong (meaning your operations are in Thailand, virtual etc...)

then you pay exactly %0 Corporate tax.

Has anybody actually done this?

there are dozens of countries enabling you to establish a corporation which is free of all taxes if business is done offshore.

[Naam]

24 hours.

That's how long it takes to incorporate a company in Singapore. Even if you're a foreigner. And the whole process costs roughly $500.

100% foreign ownership is allowed. You only need $1 in paid-up capital.

No wonder it's called the easiest place in the world to do business.

As a foreigner who is interested to start up a business or invest in Singapore, you may apply for Permanent Residence (PR) status for yourself and your immediate family (spouse and unmarried children 21 years of age and below).

Investment Options:

Under the scheme, you can choose either of the following investment options:

Invest at least S$1 million in a new business startup or expansion of an existing business operation or

Invest at least S$1.5 million in a new business startup, expansion of an existing operation, approved Singapore-incorporated venture capital fund or Singapore-incorporated foundation or trust that focuses on economic development or

Invest at least S$2 million in a new business startup, expansion of an existing operation, approved Singapore-incorporated venture capital fund or Singapore-incorporated foundation or trust that focuses on economic development. Residential property can be purchased with not more than 50% of the investment amount.

Key criteria for the investor:

Have a substantial business track record

Have an entrepreneurial background

Have a business proposal or investment plan

Application forms required:

Form A: Personal profile

Form B: Proposed investment plan

Form 4: Entry permit to enter Singapore

Undertaking of terms and conditions of the scheme

Other supporting documents (listed on Form A)

Further information and the application forms can be obtained from EDB's Singapore office or any of its overseas offices, or from Immigration & Checkpoints Authority (ICA). Please summit the completed application forms to EDB's headquarters.

For further details on eligibility criteria, application procedures, or enquiries on business opportunities in Singapore, please contact EDB's headquarters or any of our international offices.

Singapore Economic Development Board

250 North Bridge Road

#28-00 Raffles City Tower

Singapore 179101

Tel: (65) 6832 6832

Fax: (65) 6832 6565

Website: http://www.sedb.com

[chinthee]

I've owned and operated companies in both HK and SG for years. Both are easy places to set them up etc.. Singapore is very attractive because PR is quite easy to get, even for wage earners who've lived there awhile. Banking is easier and more efficient in HK. Both places are relatively expensive places to live, with HK more expensive.

Not sure what the point of this is. Thailand has never been and never will be similar to these places in the ease of setting up and doing business if that's the point.

[rainman]

To apply for a Singapore PR, do you need to first invest one of the above amounts into the company? Or do you file the application first, then you get an "under consideration" and then you invest the funds? How easy is it to open personal bank accounts or even accounts under the recently registered company?

[Naam]

To apply for a Singapore PR, do you need to first invest one of the above amounts into the company? Or do you file the application first, then you get an "under consideration" and then you invest the funds? How easy is it to open personal bank accounts or even accounts under the recently registered company?

i have a Singapore Trust which holds a Singapore Corporation (which is held by a Brunei Corporation which is held by a B.V.I. Corporation). the whole (rather complicated) set-up took approximately 3 weeks and the bank accounts another 2 weeks. most of the time was used because of sending documents to be signed by courier back and forth.

[Prakanong]

To apply for a Singapore PR, do you need to first invest one of the above amounts into the company? Or do you file the application first, then you get an "under consideration" and then you invest the funds? How easy is it to open personal bank accounts or even accounts under the recently registered company?

I dunno about the biz owner bit but as an employee if you are in the right sector you can have PR in 3 months.

I can imagine they make it very easy for biz peole - they want them and do the right things to attract them.

As for accom costs - OK they have risen a lot recently but for my condo which I got last October I am paying similar (60K THB equiv) to what I would pay in Bangkok for the same kind of unit - in fact I had a shifty last week and could not see anything as good for the price regarding loacation, size of pool etc

Edited August 17, 2007 by Prakanong

[chickencurry]

You get access to Asian markets, everyone speaks English, there's little or no corruption or crime, and the country is cheap by developed standards. The tax breaks are really just the icing on the cake. And it only takes a day to set up shop.

Ewey one speak English in Sinapore la?

You no hia about Harry Lee and his family la?

Propartie cheap in singapore la? 555555

How is thread Thailand related la?

I currently live in Singapore and that is so funny lah - samran, keep up the good postings.

AND 24 hours to open a business - No, no, no - well, 24 hours after you've spent several months filling out forms and getting them processed and misdeliveries and misunderstandings, etc etc etc.....

[Naam]

AND 24 hours to open a business - No, no, no - well, 24 hours after you've spent several months filling out forms and getting them processed and misdeliveries and misunderstandings, etc etc etc.....

but lads from Lancashire are not deterred by these facts. they keep on telling stories to entertain us.

[chinthee]

Actually, I'll set all of you straight. Singapore companies law and compliance can be quite a pain the arse. It's why you need to hire good accounting and admin, which is in itself another cost of doing biz there.

Hong Kong also suffers from some legacy admin compliance on companies. Overall less onerous than those in Singapore.

However, on balance, these are the two easiest places to incorporate, license and carry on a business in Asia. Notice I didn't say they were the easiest place to make a buck. That still requires talent.

[highdiver]

AND 24 hours to open a business - No, no, no - well, 24 hours after you've spent several months filling out forms and getting them processed and misdeliveries and misunderstandings, etc etc etc.....

but lads from Lancashire are not deterred by these facts. they keep on telling stories to entertain us.

and lets not forget the SG govement is a "pure" democracy that eductes for freedom of speach and is most accepting to critising residents.

[soundman]

Notice I didn't say they were the easiest place to make a buck. That still requires talent.

And there we have it in a nutshell. To everyone who has aspirations about doing Business in SE Asia take heed......

Good advice!

Soundman.

[highdiver]

forigner in Thailand seeting up a busines a legitimate one according to thai laws.

if through the BOI. registration, visa, workpermit etc... done in 1 week.

if through a good reputable expensive lawyer in Bangkok done in 4 weeks.

if done trough a lwayer who is a friend of a friend of your thai friend sister in law. then its probebly not legit, not set up properly and after spending time efforts and money it will be done in 5-6 months.

[chinthee]

yeah, but it's still much harder to make a buck in Thailand than SG or HK, and that's not easy either.

Thailand is one of the toughest places in SE Asia to make money on the ground.

Soundman, I salute you. Not many can tough it out here.

[samran]

yeah, but it's still much harder to make a buck in Thailand than SG or HK, and that's not easy either.

Thailand is one of the toughest places in SE Asia to make money on the ground.

Soundman, I salute you. Not many can tough it out here.

the people I know who make piles of dosh here, apart from being smart and hardworking, are the ones who are working in a niche so to speak that didn't exist before they came. Offering value add services to Thai clients that while standard in the west, aren't so common here.

Having said all that, timing is crucial. Lots of people have bought there wares here to sell (both physical and intellectual) and the Thai market isn't always ready for it.

[Graphics]

Singapore doesn't industrialize any of the products it sells. I will guess they really have to depend on other economies to survive. For ex, many Smart Singaporean business Men sell Thai made products in Europe and other countries.

[soundman]

Having said all that, timing is crucial. Lots of people have bought there wares here to sell (both physical and intellectual) and the Thai market isn't always ready for it.

Yes & on the reverse side, totally ready to open their arms, invite you in, very subtly suck your ideas out of you, modify them to Thai style & spit you out when you can no longer compete with the sub-contractors of the players in any given niche market who can make or do that product or service for next to no profit margin whatsover just because that sub-contractor is in Rachburi or Surin & can take advantage of 75B per day labour from Myanmar or Kampuchea.

Good at what you do in your niche market? Do not let your secrets out cheap.......

Soundman.

[samran]

Having said all that, timing is crucial. Lots of people have bought there wares here to sell (both physical and intellectual) and the Thai market isn't always ready for it.

Yes & on the reverse side, totally ready to open their arms, invite you in, very subtly suck your ideas out of you, modify them to Thai style & spit you out when you can no longer compete with the sub-contractors of the players in any given niche market who can make or do that product or service for next to no profit margin whatsover just because that sub-contractor is in Rachburi or Surin & can take advantage of 75B per day labour from Myanmar or Kampuchea.

Good at what you do in your niche market? Do not let your secrets out cheap.......

Soundman.

They tell me China is a bit the same....

but I hear you. Charge like a wounded bull, and keep value adding till the other poor leeches can't keep up. Client can't do with out you, and respects your advice. Some guys I work with use this model quite successfully, but with us it is more an ideas game than a physical products one...so it works.

[ya5702]

Singapore...clean, safe, efficient. Absolutely!

Democratic? Apparently.

Easy to immigrate to? Only if you are the "foreign talent" they want. They need to have a racial balance to keep the peace. The majority of the emigrants are Chinese-Singaporeans. The low birth rate among the Chinese-Singaporeans is disconcerting. So, the immigrants who replace the emigrants are basically "yellow-skinned". Planned demographics!

If your nett tangible worth is S$1 million (approxinately US$650,000)...welcome, but on a case-by-case basis.

[jasreeve17]

yeah, but it's still much harder to make a buck in Thailand than SG or HK, and that's not easy either.

Thailand is one of the toughest places in SE Asia to make money on the ground.

Soundman, I salute you. Not many can tough it out here.

the people I know who make piles of dosh here, apart from being smart and hardworking, are the ones who are working in a niche so to speak that didn't exist before they came. Offering value add services to Thai clients that while standard in the west, aren't so common here.

Having said all that, timing is crucial. Lots of people have bought there wares here to sell (both physical and intellectual) and the Thai market isn't always ready for it.

Very true, Sir.

I worked in intercative digitalTV and came here four years ago - the market wasn't ready. Now - the market isn't ready.

(Could be if UBC true weren't such muppets, the hub of monopolies put a plan in action to have a competing network, the landline infrastructure was decent and the management teams of the various participants had an IQ in double figures between them...)

[endure]

Keep it civil, boys & girls.

[chickencurry]

Singapore...clean, safe, efficient. Absolutely!

Democratic? Apparently.

Easy to immigrate to? Only if you are the "foreign talent" they want. They need to have a racial balance to keep the peace. The majority of the emigrants are Chinese-Singaporeans. The low birth rate among the Chinese-Singaporeans is disconcerting. So, the immigrants who replace the emigrants are basically "yellow-skinned". Planned demographics!

If your nett tangible worth is S$1 million (approxinately US$650,000)...welcome, but on a case-by-case basis.

The S$1 million is old and not now true I'm afraid. I think the investment board wants something like 10 million these days. As to the planned demographics, I couldn't possibly comment as I still live in Singapore at the moment (sigh - looks over shoulder).

[Prakanong]

Singapore...clean, safe, efficient. Absolutely!

Democratic? Apparently.

Easy to immigrate to? Only if you are the "foreign talent" they want. They need to have a racial balance to keep the peace. The majority of the emigrants are Chinese-Singaporeans. The low birth rate among the Chinese-Singaporeans is disconcerting. So, the immigrants who replace the emigrants are basically "yellow-skinned". Planned demographics!

If your nett tangible worth is S$1 million (approxinately US$650,000)...welcome, but on a case-by-case basis.

The S$1 million is old and not now true I'm afraid. I think the investment board wants something like 10 million these days. As to the planned demographics, I couldn't possibly comment as I still live in Singapore at the moment (sigh - looks over shoulder).

From personal observation I only see Chinese pregnant ladies out and about in Singapore - maybe they hide the others