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SINGAPORE: YOUR GATEWAY TO ASIA. SINGAPORE 2 SINGAPORE AT A GLANCE.

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Presentation on theme: "SINGAPORE: YOUR GATEWAY TO ASIA. SINGAPORE 2 SINGAPORE AT A GLANCE."— Presentation transcript:

1 SINGAPORE: YOUR GATEWAY TO ASIA

2 SINGAPORE 2

3 SINGAPORE AT A GLANCE

4 SECTORAL GROWTH

5 SINGAPORE’S COMPANIES Global and large companies 1400 SME’s Micro Enterprises > 7,000 MNCs: 60% with regional/global HQ functions SMEs contribute > ½ of GDP & employ 70% of workforce

6 Investors can benefit from Singapore's extensive bilateral agreements. The country has double taxation agreements with 71 countries, 18 regional and bilateral free trade agreements with 24 trading partners and 40 investment guarantee agreements–all of which contribute to greater investment flows and protection. BILATERAL AGREEMENTS

7 GOVERNMENT INCENTIVES The Economic Development Board (‘EDB’) is keen to stimulate business investment in Singapore. Together with other major government agencies such as International Enterprise Singapore (‘IE Singapore’), Monetary Authority of Singapore (‘MAS’) and Maritime and Port Authority of Singapore (‘MPA’), they operate a number of incentives and development schemes. The schemes are available in the following categories: Financial Incentives, mainly to provide funding on certain business undertakings and Tax Incentives which provides exemptions or reduced tax rates on specific transactions/activities.

8 INCENTIVES FOR BUSINESSES 1.Development and Expansion Incentive (DEI): The Development and Expansion Incentive provides a reduced corporate tax rate on incremental income from qualifying activities 2.International / Regional Headquarters Award (IHQ / RHQ): The Regional Headquarters Award and International Headquarters Award provide a reduced corporate tax rate on incremental income from qualifying activities. Download leaflets 3.Pioneer Incentive: The Pioneer Incentive provides a corporate tax exemption on income from qualifying activities. 4.Land Intensification Allowance (LIA): The Land Intensification Allowance provides an initial tax allowance of 25% and annual tax allowance of 5% on qualifying capital expenditure incurred for the construction or renovation/extension of a qualifying building or structure. Download main brochure. 5.Integrated Investment Allowance (IIA): The Integrated Investment Allowance provides an allowance based on a percentage of approved fixed capital expenditure to be incurred on productive equipment that is placed outside Singapore for an approved project. This allowance is granted on top of the normal capital allowance. 6.Mergers & Acquisitions (M&A) Scheme: The Mergers and Acquisitions Scheme provides an allowance of 5 percent of the value of acquisition, subject to a maximum of $5 million for each year of assessment. It also provides deductibility of transaction costs and stamp duty relief. EDB's approval is required for the waiver of the condition that the ultimate holding company for the group must be incorporated and tax resident in Singapore. Download M&A Scheme 7.Finance & Treasury Centre (FTC) Tax Incentive: The Finance and Treasury Centre Tax Incentive provides a reduced corporate tax rate on fees, interest, dividends and gains from qualifying services and activities. It also provides a withholding tax exemption on interest payments on loans from banks and approved network companies for FTC activities. Download brochure 8.Aircraft Leasing Scheme (ALS): The Aircraft Leasing Scheme provides a reduced corporate tax rate on income accruing in or derived from Singapore from leasing of aircraft or aircraft engine and prescribed activities. It also provides automatic withholding tax exemption on qualifying payments on qualifying foreign loans for the purchase of aircraft or aircraft engines. Download Aircraft Leasing Scheme 2012 Circular 9.Research Incentive Scheme for Companies (RISC): The Research Incentive Scheme for Companies (RISC) awards government grants to develop research and development capabilities in strategic areas of technology. 10.Initiatives in New Technology (INTECH): The Initiatives in New Technology (INTECH) Scheme awards government training grants to encourage capability development in applying new technologies, industrial R&D and professional know-how. 11.Land Productivity Grant (LPG): The Land Productivity Grant seeks to support companies which are interested to optimise land use through domestic or overseas relocation.

9 SINGAPORE’S LINKS TO THE UK Strong historical and cultural links between UK and Singapore Singapore was, as of 2010, the UK’s 5th largest services export market outside the EU, worth £3.7 billion. The UK is Singapore’s 5th largest foreign direct investor 32,000 British residents living in Singapore 440,000 UK tourists visited Singapore in UK companies based in Singapore.

10 CONNECTION TO SOUTH EAST ASIA

11 SINGAPORE IS A GATEWAY TO ASIA 8 hours flying time of 2.8 billion of the worlds population

12 OUR REGIONAL CONNECTIONS – BISEA  Aims to facilitate the interests of the members of the British Chambers and Business Groups in the region.  Allows all registered members of any of the Chambers and Business Groups in BiSEA to access membership benefits especially with regard to events that are held in the different regions.  Provides a strong business network in the region giving members (who are already established or intend to establish themselves in the South-East Asian region) a validated third party contact which provides representation, services, information and guidance.

13 LEGAL CONSIDERATIONS: ESTABLISHING, OPERATING AND FINANCING

14 SINGAPORE CORPORATE ENTITIES Singapore incorporated company, A branch registered under the Singapore Companies Act, Sole proprietorship, Partnership or a limited liability partnership. A Representative Office. See hand-out for more information

15 REGULATION OF FOREIGN INVESTMENT There are no controls on currency exchange. Foreign investment in local banks and newspaper publishing companies is controlled. Foreign investment in commercial, industrial or retail properties is unrestricted certain restrictions are placed on foreigners acquiring landed and certain non-landed low- rise residential properties.

16 APPROVAL, PERMITS AND LICENSES Generally, there is no restriction placed on the types of business that may be undertaken some require special licenses from the government, e.g. –employment agencies, –banks, –finance companies, – insurance, –stock-broking companies, –fund management companies, – private schools –travel agents.

17 INCORPORATION Incorporating a private company in Singapore is a very simple and quick process. It generally takes no longer than a few days. An application must be made to the Accounting & Corporate Regulatory Authority (ACRA) for the approval of the proposed company’s name and a limited company must have “Limited” at the end of its name. A private company must have the word “Private” as part of its name, inserted immediately before the word “Limited” or in the case of an unlimited company, at the end of its name. A proposed company name will not be approved if it is identical to or resembles the name of another entity. Undesirable names will also not be approved. The minimum required paid-up capital when registering a Singapore company is S$1. The concept of authorised capital no longer exists. The company should have a minimum of 1 director and 1 shareholder and at least one director must be a local resident director (Singapore citizen, permanent resident, or Employment Pass/ Dependant Pass holder) who is a natural person and above 18 years of age. In addition to this, nominee directors are allowed while corporate directors are not allowed. Every company must appoint a secretary, who must be a natural person and whose principal place of residence is Singapore, within six months from the date of incorporation. A private company may appoint a non-qualified secretary as long as the directors make sure the appointed secretary has a reasonable knowledge of regulations. The secretary of a public company must be qualified (i.e. accountant, lawyer or chartered secretary). Every company must appoint auditors within three months from the date of incorporation unless it is exempted from audit requirements under Section 205B or 205C of the Companies Act. Every company must have a registered office in Singapore, which must be open and accessible to the public during normal office hours.

18 CORPORATE TAXATION A corporations are generally liable for Singapore income tax on all income accruing in, or derived from Singapore, as well as foreign sourced income remitted or deemed remitted into the country. Business income is deemed to be derived from Singapore if the income-generating activity takes place in Singapore. Branches of foreign corporations are usually viewed to be carrying on business in Singapore. A company is tax resident in Singapore if the control and management of its business is exercised in Singapore.

19 TAX RATE The corporate tax rate is 17%. It is applicable as follows: –The first $300,000 of a company’s chargeable income is partially exempt from tax: –75% of the first $10,000 of chargeable income; and –50% of the next $290,000 of the chargeable income. –The balance of chargeable income is subject to tax at the rate of 17%. Assuming that the chargeable income of the company ‘My Co’ registered in Singapore was SGD 560,000, the corporate income tax would be : Chargeable income ExemptionTax RateIncome Tax 10,00075%17% ,00050%17%24, ,0000%17%44,200 S$560,000S$69,275

20 ABOUT THE CHAMBER

21 WHAT WE OFFER OUR MEMBERS Networking and connecting at over 80 events a year Engaging with industry peers in 11 Business Groups and 6 Committees Sharing knowledge in the bi-monthly ORIENT magazine Speaking at Breakfast Clubs Access to preferential purchase schemesMembership directory both handbook and online Connecting with UKTI, HC, Singapore Business Federation (SBF), EuroCham and other international Chambers and Associations Access to resource library on the website Access to office facilities  A fully equipped boardroom accommodating 20 people  A small meeting room seating 4  A hot desk  Access to wi-fi, printer, copier, local phone line

22 BUSINESS GROUPS: ENGAGING WITH INDUSTRY PEERS Our groups aim to provide a cutting edge approach to bring about dialogue, change, improvement & influence with key people at industry and government level IT &Comms Technology Henry Farahar Logicalis Shipping, Transport & Logistics Neil Johnson Mangrove Holdings Professional Services Martin Riddett Faithful + Gould Financial Services & Banking Patrick Donaldson VP Bank Creative Industries Frazer Macdonald Hay Glasgow School of Art Singapore Energy & Utilities Damian Adams Simmons & Simmons Property & Construction Richard Warburton EC Harris Young Professionals Miles Gooseman The Fry Group Leadership in Asia Peter Hatt Standard Chartered Bank Entrepreneur & Small Business Peter Seligman Meyado Industry Groups Functional Groups Scottish Business Group Jason Grant Scottish Development International Women in Business Gwynne Master Barclays

23 BUSINESS SERVICES Overseas Chamber Initiative Agreement signed with Lord Green on 6 June of 21 markets selected in 1st wave 1 st Chamber to be fully accredited by the BCC Aim to assist UK SMEs to trade and do business in Singapore Market research, partner identification, client identification, product launch, event, tradeshow For more information contact Business Services Manager Jennifer Hainsworth or

24 REFERENCES Your Singapore MPA: Straits Times: ws/singapore ws/singapore Singapore Government: web/content/govsg/classic/ho me web/content/govsg/classic/ho me IDA:

25 WE LOOK FORWARD TO WELCOME YOU TO SINGAPORE


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