The Singapore Government has created a favorable climate for foreign investors during the last years, which is reflected in the World Bank’s “Doing Business 2014”report and the World Economic Forum’s “Global Competitiveness Report 2013-2014", ranking the city-state the easiest country to do business in, respectively the second most competitive economy in the world. Singapore is continuously trying to attract foreign investment by turning the city-state into a world-class financial center and by providing tax incentives for businessmen wanting to set-up operation in the Middle East.
The Singapore Commercial Code and public policies were designed in order to favor foreign investors. First of all, companies in Singapore may be fully owned by foreign investors. Compared to other Middle Eastern countries, Singapore companies are not required to give the management control to local investors. The only screening foreign businessmen or companies are subject to is the determination of the incentive scheme it may qualify for. For detailed information about tax incentives for foreign investors you may ask our lawyers in Singapore.
The only limitations to foreign investment in Singapore can be found in the telecommunication, media, financial services, legal and property ownership sectors.
Foreign enterprises opening a company in Singapore have the possibility to request assistance from specialized organizations and are allowed to negotiate the incentives they may benefit from before starting the registration procedure. The Singapore Trade Development Board is the institution in charge with promoting foreign investments in the city-state. The Economic Development Board is in charge with helping foreign investors to set up their companies in Singapore by providing them different types of incentives.
The manufacturing and services sectors benefit from many incentives in Singapore because the Government is currently trying to replace labor-intensive activities providing low value added activities. Singapore also has five free trade zones providing equal facilities to both local and foreign companies.
For complete information about the legislation of foreign investments please contact our Singapore law firm.
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