Going beyond your own business frontiers can be a huge growth move for you! Many Malaysian businessmen have found it beneficial to establish their firms in Singapore, while annually countless Malaysians make such decisions. We shall discuss why it is becoming increasingly popular to set up companies in Singapore and their advantages as well as the process of doing it.
Content Outline
Why Do Malaysians Choose to Open a Company in Singapore?
Lower Corporate Tax Rate
Singapore has relatively lower tax rates for corporations and the highest is 17%. However, this amount is considerably lower compared to the standard Malaysian corporate tax range of between 17 and 24 percent. Some more tax incentive schemes in Singapore may bring it down a couple percentages more and make it more viable.
Business-Oriented Regulations
The business regulations of Singapore were made to attract and provide a convenient atmosphere for foreign investments. This is exemplified in such areas as 100 percent foreign ownership of a firm being allowed by the country as opposed to Malaysia where a board of investors would normally be involved with foreign acquisitions.
Transparency and Low Corruption
Transparency and corruption are always high is singapore and therefore it constantly ranks highly. As noted by the 2021 Corruption Perceptions Index, Singapore got an 85 and a 48 for Malaysia. Many Malaysians are attracted to this business environment because of its integrity and transparency.
Access to External Investment
Venture capital firms are attracted by Singapore’s political and economic stability; hence a bigger amount of funds is accessible for businesses as opposed to in Malaysia.
No Capital Gains Tax
Singapore’s absence of capital gains tax has stimulated entrepreneurship, attracted foreign investment, and enhanced market liquidity, contributing to its economic growth and position as a global financial hub.
Double Taxation Avoidance Agreement
DTA for Malaysia-Singapore provides immunity of Malaysian residents in Singapore from double taxation. It simplifies business processing and enhances returns.
Government Incentives Programs
Among others, Singapore offers grants as high as S$6 million and tax concessions equalling S$10 million. Businesses can also access non-financial incentives like training and development programs meant to stimulate growth.
What’s the Status of Singapore-Malaysia Business Relations?
The close proximity makes it possible for Singapore and Malaysia to have a considerable economic bond. Singapore has emerged as Malaysia’s second-largest trading partner, demonstrating its growing economic importance in the region.
Bilateral trade between the two countries hit S$128.7 billion, demonstrating their involvement in regional and global production supply networks. The movement of people between the two countries is huge because many Malaysians go to Singapore for work and education reasons.
Such a strong relationship shows that they can survive some of the short-term policies, and one day we might expect even more intense economic ties between countries.
What to Know About Registering Company in Singapore from Malaysia
If you’re considering expanding your business to Singapore, here are some key points to keep in mind:
Requirements to Open a Company in Singapore from Malaysia
Besides having these basic requirements, it is also essential that as a foreigner you should put in place a local director who ensures that all legal provisions are adhered to. It’s easy to go through the process, but it is important to have a grasp of what it entails.
Cost to Open a Company in Singapore from Malaysia
By law a firm should have a minimum of S$1 as a paid -up capital and this may be increased in future after incorporation. One needs to use a local corporate services provider in order to be compliant with law. This will depend on what kinds of services a person might need.
Local Director Requirement
At a minimum, you’ll have to provide for one local director residing locally in Singapore for . In case you don’t have your candidate, using nominee director services provides an option for meeting this requirement to register a company in singapore.
Taxes
Corporate tax in Singapore stands at a competitive 17%, whether it is paid by a local or international entrepreneur. It is highly tax efficient since no dividend taxes or capital gains.
Support for Malaysian Businesses
Singapore Malay Chamber of Commerce & Industry is a group that advocates for the needs of the Malay business community in Singapore. It presents avenues for exchange programs, trade delegations, as well as links between firms.
For more information, read Company Formation in Singapore: A Comprehensive Guide
How Can We Help?
Our team is able to help you through all stages of setting-up the company in Singapore. If it is your intention of establishing an existing company which happens to be in Singapore or even open a holding company from Malaysia our team can always walk with you through.
Exploring options for business expansion in Singapore leads to new opportunities and Malaysians’ ventures may take advantage of Singapore’s favorable business climate, ideal position that it occupies in the world map and economic stability.
Are you prepared to discover the potentialities of starting a business in Singapore for you in Malaysia? If you need anything else, don’t hesitate to contact us.