What makes Singapore so attractive?

A major financial hub in the Asia Pacific region, Singapore has long earned a reputation as one of the world’s most advanced economies.

In 2017, Singapore was ranked as the world’s second most open economy by the Heritage Foundation’s Index of Economic Freedom, as well as the world’s second most pro-business regime by the World Bank’s Doing Business report.

Singapore is known for its well-developed financial and trade sectors, for its low tax regime and openness towards foreign investment. The city-state’s success is based on a well-developed infrastructure and favorable regulatory and taxation frameworks but also on a skilled workforce

The Singapore economy is mainly driven by exports in electronics manufacturing and machinery, financial services, tourism, and the world’s busiest cargo seaport

Why Singapore ?

• New Regulatory Regime

  A clutch of new investors focused on the Indian and Southeast Asian startup ecosystem are making Singapore their base, looking to take advantage of the city state’s regulatory regime and its positioning as a gateway to both regions.

  VCC (Variable Capital Company) is a new legal entity form or structure for all types of investment funds in Singapore. It can be formed as a single standalone fund, or as an umbrella fund with two or more subfunds, each holding different assets.

  Features

  • It can be used for traditional and alternative fund strategies
  • It can be set up as a stand alone or as an umberella entity with multiple fund
  • Foreign fund can be re-domiciled, i.e., Foreign corporate entities set up as funds could be inward re-domiciled as VCCs

  How VCC made Investment in Singapore Attractive?

  • Attractive features of the VCC include the ability to redeem shares at the fund’s net asset value (“NAV”) and to pay dividends from capital – unlike a fund constituted as a company.
  • It can also be set-up as an umbrella structure with multiple sub-funds, which can be cost effective.
  • Sections 13R and 13X tax exemption schemes are extended to VCCs.
  • The Inland Revenue Authority of Singapore treats a VCC as a company and single entity for tax purposes – eliminating the need to file multiple tax returns for sub-funds.
  • Unlike companies, VCCs’ shareholder registers are not required to be made public – thus offering privacy to investors.
  • Singapore fund managers with offshore fund domiciles will now have an option to co-locate fund domiciliation and management activities in Singapore.

• Singapore Global Investor Programme: The PR scheme for investors

  You can apply for Singapore PR (permanent residence) if you are willing to invest in the country and support your funds with proven entrepreneurial skills. This particular scheme, officially known as Global Investor Programme (GIP Scheme), is often referred to as the Investor Scheme.

  At present, under the Investor Scheme, there are the following investment options :

  • Invest at least S$2.5 million in a new business startup or expansion of an existing business operation.
  • Invest at least S$2.5 million in a GIP-approved fund that invests in Singapore-based companies.

• Apart from the above, the top three reasons to invest in Singapore include :

  • Its proximity to China, its free trade philosophy and a diversified economy.
  • What’s more, Singapore has a low taxation regime and a number of incentives and advantages are available for companies. There are special tax exemptions and tax incentives available for selected business fields and the Government also uses a Productivity and Innovation Credit Scheme that encourages business to invest in innovation and productivity.

    Particulars	India	Singapore
    GST Rate	Has multiple rate upto 28%	One tax rate 7%
    Personal Income Tax	Progressive personal income tax rates go up to 30% + Surcharge if applicable	The progressive tax rate for personal income ends at 22%/td>
    Dividend Distribution Tax	15% on Gross Dividend+ Surcharge + Cess	No DDT
    Corporate Tax	25% + Surcharge + Cess	Headline corporate tax rate of 17% on their chargeable income
    Withholding Tax or TDS	1% to 40%	10% to 17%

  • The city-state has a low level of corruption, advanced infrastructure and a highly skilled workforce, comprised of both nationals and expats.

Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."