A recent analysis of company incorporation requirements uncovers the easier entry requirements and key economic benefits that foreign entrepreneurs can gain by choosing to set up a company in Singapore as compared to Malaysia.
The findings of the report published by GuideMeSingapore.com (http://www.guidemesingapore.com/) highlight the following differences between the two jurisdictions:
- Singapore ranks #1 in the world for ease of doing business whereas Malaysia ranks #23 in this category
- There is no authorized capital requirements for incorporating a Singapore company, while in Malaysia you are required to list authorized capital
- A Singapore company can be registered with a fee of SGD 315 which is lower when compared to the registration fee for a Malaysian company which can range from SGD 400 to SGD 28,000 depending on your company's authorized capital.
- Company registration in Singapore can be completed within 1 working day, while it normally takes few days to few weeks to incorporate a company in Malaysia
- Itâ€˜s easier for foreign investors to satisfy the eligibility criteria for Singapore work passes as compared to the requirements for a Malaysian work visa
- Foreign investors are required to apply for foreign investment committee approval when taking more than 30% shareholding in a Malaysian company whereas in Singapore the company can be owned 100% by foreigners without requiring any kind of approvals whatsoever
- A Singapore company can be registered with a single shareholder and a single director while incorporation of a Malaysian company requires a minimum of two directors and two shareholders
- Corporate taxes in Singapore are significantly lower than in Malaysia especially for small-to-midsize companies
"Most entrepreneurs interested in establishing start-ups in foreign jurisdictions take into account a number of different factors such as ease and speed of setting up a business, annual compliance requirements, income tax rates, immigration policies, etc before taking a final decision. Singapore ranks very high on all these factors and thatâ€˜s why increasing number of foreign business professionals are choosing Singapore as their preferred choice for incorporating their business,Ã¢â‚¬ said Andrew Chen, Head of Public Relations at GuideMeSingapore.com the firm that released the analysis report.
The report firmly asserts Singapore's position as a preferred place to start a business when compared with Malaysia. With affordable company set-up and maintenance costs, low tax regime, friendly immigration policies, and high standards of living, Singapore clearly offers better prospects for foreign entrepreneurs to relocate to the country to start and manage their business.
To learn more setting up a company in Singapore, refer to Singapore Company Registration: http://www.guidemesingapore.com/company-setup/c312-singapore-company-registration-details.htm guide.
For information on taxes in Singapore, see Singapore Tax: http://www.guidemesingapore.com/business/c647-singapore-tax-system-overview.htm guide.