Why Set Up an Investment Holding Company in Singapore?

Investment holding company

Singapore is not only known for its strict laws and strong economy but also as a haven for business. For over a decade, this island city-state has consistently ranked among the top countries in the World Bank’s Ease of Doing Business Rankings. This wealthy nation may be small but it is the ideal destination to set up business for local or a foreigner, as it offers numerous opportunities.


What is an Investment Holding Company?

Most businesses earn their revenue either by manufacturing or providing products and services to their clients. Investment holding companies, on the other hand, have no product or services but acquire income by owning investments or shares of other businesses. Such companies can invest in bonds, stocks, real estate, loans, and securities, among others. As such, their revenues may come in the form of investment income such as rental income, interest, stocks or bonds, or dividends.


Why Choose Singapore?


If you are planning to start an investment holding company and is still searching for the ideal location, Singapore should be on the top of your list of prospective locations. Apart from having a superb infrastructure and economic stability, here are other reasons why doing business in Lion City is a wise decision:

Tax Advantages

Singapore has always been keen on attracting investors from all over the world. Toward this end, the country has introduced a business-friendly tax framework that will help investment holding companies, as well as other businesses, grow and be dominant in Asia.  Below are some of the tax benefits businesses can enjoy in Singapore:

  1. No Capital Gain Tax – In Singapore the sales of intangible assets, stocks, and shares, among others are not taxable.
  2. Low Corporate Tax Rate – Singapore taxes corporate incomes at a very low rate of 17%. This can even be further reduced if the business makes use of government corporate tax schemes and other subsidies.
  3. Dividend Income Tax Exemption – Under Singapore’s one-tier corporate tax system, shareholders of companies in Singapore will be exempted from paying taxes on profits from dividends.
  4. Many Double Taxation Agreements established – Singapore has double taxation agreements (DTA) with over seventy countries. Local companies can enjoy the benefits established under DTA.
  5. Foreign Tax Credit (FTC) Pooling System – Through this system, the tax liability of businesses on foreign income received in Singapore is reduced. This allows businesses more leeway in utilizing their foreign tax credit.
  6. Tax Incentives – Singapore offers tax incentives that can be enjoyed by businesses in the country depending on the industry and type of investment.
  7. No Inheritance Tax – In Singapore, those who inherited any money or property do not have to pay an inheritance tax.

Stable Political System

Singapore has become one of the richest countries in the world despite not having any natural resources of their own because of its efficient and orderly government. The Lion City is the least corrupted in Asia according to Transparency International’s corruption perception index.

This has created a business-friendly environment that can help businesses to thrive. The country has first-class infrastructure as well as effective air and seaports, and excellent communication facilities. Moreover, Singapore laws and regulations are also known for being fair to businesses.

Excellent Labour Force

Singapore has some of the most educated, talented, and skilled workforce in the world. Any business can readily find reliable and competent personnel. And if highly-specialized skills are needed by the company, a business can source talent anywhere in the world as Singapore welcomes foreign talent by providing appropriate work visas.

Good Quality of Life

Singapore is known for top-quality healthcare, efficient public transportation system, and for being one of the safest countries in the world. This environment makes it attractive for foreign investors to live with their family.


Hiring a Company Incorporation Service Provider When Setting Up a Holding Company in Singapore

If you are a foreigner exploring the possibility of setting up a holding company in Singapore, it is best to rely on the assistance provided by the business experts at Corporate Services Singapore. Our team of professionals will guide you every step of the way until your business is running. Get in touch with us today to learn more.

Posted in Company Incorporation.