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Many Factors Play a Role for Businesses to Take Off in Singapore or China
If you had the opportunity to visit Singapore and China, you might notice that both are modern, open to the global market, has a booming economy as well as a stable political foundation. Although these two countries may even have similar looking citizens, their way of doing business is very distinguished. Here, we will discuss on doing business in Singapore, or China is best suited to your style of business matters.
Ask any person down the street about Singapore, and they’ll say it is a small, island nation that is economically strong. Ask about China, and you will get remarks such as a substantial Asian country that rules with an iron fist. Financially, China is symbolic as the factory of the world, where almost anything can be made in China. Singapore, on the other hand, has no natural resources, yet its economy is among the top in the world. Why is this so?
Singapore: Singapore offers a complete pro-business environment. From company registration, paying tax to transparent governance, this tiny island nation has it all. The government of Singapore sets out the framework and policies of trade but intervenes the least in business dealings. Singapore also adopts the Western approach of doing business as it has become a global financial hub.
China: China offers low costs of labour and large-scale economies. It is the second-largest consumer market in the world. With that kind of consumer market, there is little doubt as to why some business owners flock to China. The country’s business environment has had its worst days, but recently the Chinese government is implementing reforms to improve its position in the world for ease of doing business. Yet, the Chinese government still gets the final say on foreign business matters.
Singapore: The corporate tax in Singapore is the lowest in the region. At 17%, Singapore’s corporate tax has been attracting numerous entrepreneurs to start a business on the island. Both local and foreign business owners get the same tax rate, making them compete at a level playing field. It also boasts efficient tax filing procedures and payment. It takes companies in Singapore slightly more than 60 hours per year to file five taxes.
China: China’s corporate tax is capped at 25%. There is also additional tax that you would come across, only when doing business in China. Despite significant economic reforms taking place, Chinese companies spend more than 100 hours per year at tax filing and payment for seven taxes.
Singapore: It takes a maximum of two days to get your company registered from A to Z in Singapore. All of which can be done online as mostly every procedure on the internet when in Singapore. As long as you comply with the requirements and regulations, you are fit to kick-off your business.
China: In China, your company registration could take about a month or more to complete from A to Z. Each step of the listing is subject to various fees. It is highly advisable to hire a local agent or lawyer if you are going to register a company in China.