Singapore professes to possess one of the best startup ecosystems across the globe. As per a report submitted by the World Bank, it is extremely easy and convenient to do business in Singapore. This is the reason entrepreneurs from all over are opting to launch their business operations in this southeast Asian Nation.
Mentioned Below are prime reasons why Singapore is evolving as startup Mecca:
Easy to follow rules and regulations
Even though Singapore has strict rules and regulations pertaining to business yet these rules are uncomplicated thus making setting up of business easy as well as convenient. In a matter of a few hours, you can set up new firms. Intellectual property is given due respect, and rule of law is clear-cut. As per a survey conducted by the World Bank survey, it barely takes three permits and a total of three days if you intend to set up any business in Singapore. On the other hand, in India, it takes twelve approvals and almost twenty-seven days to begin any business.
Simple taxation system
The comfortable tax regime makes Singapore a hugely favored spot for startups. Singapore caps the corporate tax at just 17%, whereas in India it is more than 30%. So the tax burden is relatively less. Also, if you hire Singaporeans the Government provides you extra incentives. The government basically subsidizes roughly half the salary of new hires in case they are the local residents, but this is not applicable in the sales department. Hiring app developers for your business can be an additional benefit to you.
Availability of educated workforce
Educated workforce like to shift their base to Singapore due to greener pastures. Trained entrepreneurs get work permits without any problems. As there is no dearth of the educated workforce in Singapore setting a startup becomes relatively easier as you have the right combination of skill and experience.
Effective connectivity with the rest of the world
Singapore’s Changi Airport makes connectivity with the rest of the world an easy task. It is one of the busiest airports and operates flights to and from all the leading destinations. So, ex-pats who come to Singapore to do business do not face any issues entering and leaving the country as connectivity is good.
Extensive Government Support
In 2008, as per National Framework for Innovation and Enterprise (NFIE), the investment fund program known as the Early Stage Venture Investment Fund program was set up by the Singaporean government. This initiative is referred to as the Binational Industrial Research and Development Foundation. This program facilitates 5 venture capital firms to get matching assets from the government. This program led to a rise in the number of investors coming to Singapore as the Government was providing 85% of the start-up capital. The investors had to provide just 15%.
Due to the geostrategic location of Singapore, it becomes easy to access markets such as Indonesia, China, and Malaysia. This offers a very good opportunity for people who want to venture into something innovative. Singapore basically lies at the crossroads between the East and West. It offers the ideal atmosphere for people with different minds to come together in order to develop something new. All this is vital to the success of small technology businesses founders who have come to Singapore to earn big bucks.
Stable economic environment
For any business to flourish, a stable economic climate is needed. Singapore offers this to entrepreneurs. Due to strong Government support and no corruption, people do not feel scared to set up their business in Singapore. Also, the climate of Singapore is comfortable all year around. This also attracts people to come and stay in Singapore.
Ideal base for people eyeing the Southeast Asian region
Any startup which aims to target Southeast Asian region setting up base in Singapore seems to be a viable proposition. This is because Singapore Branding works any day better than any other place. Customers feel that they will receive credible services from Singapore based entrepreneurs.
— OctalInfoSolutionSG (@octalsg) September 4, 2017
Due to all the above-mentioned reasons, Singapore is fast emerging as a hub for startups. The city-state is on No 4 spot as far as setting up a business is concerned while India is at the 173rd spot. There is a fast-growing angel investor and venture capital network in Singapore. For instance, Mobikon recently raised a whopping sum of $2 million in a joint investment from Jungle Ventures and SPRING Singapore. SPRING is a Govt-run fund, which puts money in startups together with local venture capital firms. Another point which draws companies in Singapore is the easiest listing norms of the market. Startups also get attracted as their dream of the US listing seems closer when they set up base in Singapore.