Singapore has always been well known for being one of the best places to start a business. Much of this reputation has been deserved given the city state’s appearance near the top of global rankings that look at the ease of doing business – including EIU’s Business Environment Ranking.
In an increasingly uncertain world, countries are constantly looking to implement more business-friendly reforms that lure both capital and human talent to its shores.
Likewise, Singapore has been doing this for years and continues to enact reforms that can make it even better for businesses to operate and grow. So, here are 7 things that make Singapore one of the easiest places to do business in the world.
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#1 Fast And Simple Incorporation Process
Much of the red tape for companies in any country comes at the first hurdle – actually incorporating a business entity. While it may take weeks or even months to set up a company in some countries, incorporating a company in Singapore can typically be done within one day.
The simple and fully online registration process through the Accounting and Corporate Regulatory Authority (ACRA) can take less than an hour given all the documents required are provided.
With foreign directors also able to own up to 100% of the holding company, the flexibility of this feature is an attractive prospect for many individuals starting up a business.
#2 Highly Skilled Workforce
Singapore has a world-class education system and, naturally, that also extends to its workforce. Over 60% of Singapore’s workforce has received a tertiary education and as a regional hub, it attracts a wide array of international talent too.
Indeed, in the annual Global Talent Competitive Index – that’s published by French business school INSEAD – Singapore came second globally behind only Switzerland. Singapore made it into the top three rankings in four of the six criteria for the index.
The Singapore Government is also investing heavily into the reskilling and upskilling of Singaporeans with targeted schemes for low-income groups, such as the Workfare Support Scheme (WSS) and mid-career switchers, through the SkillsFuture Level-Up Programme (SFLP).
#3 Best-In-Class Infrastructure
For anyone running a business, the physical and digital infrastructure of a country is extremely important. That’s because it can determine everything from electricity costs and commuting times to internet connectivity and available workspace.
Fortunately, Singapore’s infrastructure is nothing short of world class with a state-of-the-art airport (Changi Airport) and a new port (Tuas mega port) that will be the world’s largest fully automated port when completed in 2040. The country’s rail infrastructure also efficiently connects homes to workplaces.
Singapore has also prioritised high-speed Internet connectivity and has established fintech services also mean doing business is simple from an infrastructure perspective.
The Singapore Government is also looking far into the future, when in February 2025, Prime Minister Lawrence Wong discussed energy resilience and studying nuclear technology.
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#4 Intellectual Property (IP) Protection
In the modern world, protecting your IP has never been more important to businesses. That’s another reason why Singapore’s status as a business hub is so well-respected. Transparent rules and regulations in place mean entrepreneurs and businesses are protected.
The Government of Singapore does not tolerate IP theft and the city-state’s IP regime regularly tops rankings for those countries that implement the best IP protection.
Read Also: Protecting Your Intellectual Property (IP): Difference Between Patent, Trademark and Copyright
#5 Efficient Tax System
In many places, one of the biggest obstacles for companies at the end of a financial year is sifting through tax returns.
Fortunately for businesses in Singapore, that process is made as painless as possible due to a very straightforward and simple corporate tax system. There are no taxes on capital gains or dividends while the corporate income tax rate is a flat 17%.
There are also tax breaks for new businesses – for the first two financial years – that are setting up in Singapore. On the personal income tax rate side, tax rates are globally competitive and marginal tax rates are imposed on residents with the top bracket being 24%, on anything earned in excess of S$1 million.
#6 Political Stability
A stable political and working environment with low levels of corruption and business disruptions contribute towards the country’s appeal as a business hub. It is also advantageous for businesses to have certainty that regulatory frameworks and business schemes in place will honoured and adhered to in the long-term, especially when they are investing heavily into the country.
This provides businesses with the predictability and reliability that one needs for an operating environment.
Alongside political stability, Singapore is also a clean and safe country. This matters for international businesses and global talent, who may be more willing to move here, especially since it is also a family-friendly environment.
#7 Government Support
While the Government of Singapore tends to let businesses run themselves, it does provide support for innovative and groundbreaking sectors.
That’s because it wants to foster a more competitive landscape for businesses while also encouraging homegrown businesses in sectors that are on the cutting edge. There are many tax incentives as well as cash grants and financing schemes that help support both existing and new businesses in Singapore.
These can come from many government departments or offshoots, with one example being Enterprise Singapore – which sits under the Ministry of Trade and Industry (MTI) – and which helps provide assistance and funds to Singapore entities in the areas of financing, tech and innovation, and access to markets.
Again, during the recent Budget 2025 announcement, PM Wong announced schemes that not only help local enterprises expand beyond Singapore’s shores and for M&A, but also to woo foreign enterprises to look at Singapore as an attractive base.
To this end, EDB will launch a tailored Global Founder Programme – for experienced founders to who are excited about building their next venture in Singapore. Furthermore, the government also committed to investing $1 billion in cutting-edge R&D public biosciences and medtech research infrastructure, as well as a new national semiconductor R&D fabrication facility.
Read Also: Why Singapore Is The One Of The Most Powerful Economies In The World
This infographic summarises the reasons why Singapore is an excellent place to do business:
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