The Singapore government attracts foreign investment through the Singapore Economic Development Board (EDB). The sectors most favoured by the EDB include high-tech sectors such as biomedical research and information communications technologies. The EDB offers grants to improve management and operations provides loans to fund overseas expansion projects.

Investing in Singapore is an attractive option for many investors. Singapore has a low corporate tax rate of 18%, which will be reduced to 17% from 2010 onwards. In addition to this, up to S$200,000 (US$133,000) of nett profits is fully tax-exempt for new Singapore companies for the first three years of trading.

Entrepreneurs investing in Singapore gain access a network of free trade agreements (FTAs) and investment guarantee agreements which give Singapore-based businesses preferential access to international markets. Entrepreneurs investing in Singapore can access to 60 comprehensive double taxation agreements Singapore has signed with other countries, including Japan, China, Germany, France, the UK and Australia.

Singapore refuses to exchange confidential bank customer information with Organisation for Economic Cooperation and Development (OECD) members. This makes investing in Singapore a confidential and secure option.

Entrepreneurs investing in Singapore can benefit from Singapore reputation as a secure, stable and reputable jurisdiction.

Foreign companies planning on investing in Singapore should note that some 7,000 multinational companies have set up regional or global headquarters in the country to date.

Growing numbers of entrepreneurs are investing in Singapore. Infact, inward foreign investment into Singapore in 2006 was US$24 billion (US$15 billion in 2005). This makes Singapore Asia’s third-largest recipient of foreign direct investment after China and Hong Kong.

The number of assets under management in Singapore continues to increase. Entrepreneurs continue to choose investing in Singapore. At the end of 2007, total assets under Singapore-based asset managers grew by 32% compared to 2006 to reach S$1.173 trillion (approximately US$814 billion). 86% of total assets under management were sourced outside Singapore (84% in 2006).

Healy Consultants' Asia Business Setup guide contains detailed information for investors who plan to incorporate a company in Singapore. Alternatively, email info@healyconsultants.com or call us in Singapore at (+65) 6735 0120.