If you have decided to register an investment company in Singapore, you have chosen the right time to do so. The country's authorities have directed all economic efforts to attract FDI and create favorable conditions for international trade. Among the strategies, one can find courts for foreign investors, tax incentives, as well as the introduction of legislation aimed at supporting business and financial stability.
In this article, we will analyze the FDI regulation in Singapore. After reading the material, you can order legal advice for investment projects in Singapore from the experts of our company.
Attracting foregn investors
Foreign investors are entities that conduct investment activities in the country. At the present stage, making a profit, as the ultimate goal of the investment process, helps to attract foreign capital into the Singaporean economy. Investors study the national economy of the country, its legal system, resources to determine the object of investment with a higher return. Objects of foreign investment are all objects, investment in which is not prohibited by the laws of Singapore.
The conditions for attracting foreign investment is a factor that characterizes investment activities and contributes to the further development of foreign economic relations. Investment attractiveness is determined by the subjects of investment according to the general investment climate in the country, the conditions of foreign economic activity, including legal, customs etc.
Recent regulatory changes
Before you start investing in Singapore, don’t you have any doubts that the state policy in the field of economic development is based on the FDI attracting strategy. The jurisdiction has consistently ranked among the world's most prominent destinations for FDI. The investment from Singapore is mainly directed to the other Asian countries. Thus, the state can be described as a regional center for international investors looking for opportunities to place their capital in the region, as evidenced by the many bilateral investment treaties signed by Singapore.
The government offers a range of incentives to encourage international companies to set up a manufacturing facility in Singapore or establish their regional headquarters. These incentives can be in the form of tax breaksб tax incentives in the form of applying even lower tax rates to qualifying investments.
NOTE: Local authorities did not impose any additional restrictions on FDI in response to COVID-19. Steps to stimulate the national economy are equally applicable to all Singaporean companies, whether they have local or foreign shareholders.
FDI in Singapore: Prospects
Direct private investment is an investment in foreign enterprises, which, unlike portfolio ones, give the investor the right to control the activities of enterprises with foreign capital, including joint ventures.
If you are a foreign investor looking to start a company in Singapore, it is important to know that most of the investment proceeds come from the semiconductor industry, the energy and chemical sectors. Recently, the newly created government agency Enterprise Singapore has been tasked with attracting foreign investors to participate in the innovation economy. Its aim is to support and sometimes co-invest in companies that plan to expand Singapore's presence abroad.
If you are looking for a jurisdiction with a strong legal system and favorable preferential conditions, establishing a company for investment purposes in Singapore would be a promising solution. The country is still the hub for multi-billion dollar investments in Asia. Any potential FDIs for this market, regional headquarters or other production facilities should be carefully planned. When it comes to investing in the Singapore strategic infrastructure such as the technology sector, investors should consider contacting the relevant government authorities to discuss investment incentives.
Do not hesitate to contact IQ Decision UK experts for advice on how to comply with FDI obligations under Singapore law. Contacts are listed on the website.