What Makes Singapore Score Better Than Denmark as an Investment Destination? Benefits of Hiring Professionals for Incorporation of Company in

Singapore

Benefits of Hiring Professionals for Incorporation of Company in Singapore

Steps to be Followed While Incorporation of Company in Singapore

Comparing Denmark and Singapore, the fact that Company

incorporation in Singapore is far more easier than Denmark

makes it a better destinations. Other than this various other

parameters have been discussed in the article..

he last few years have seen

a major transition in how

entrepreneurs perceive the

location which is best suitable for

their businesses. Earlier they used to

think on terms of migrating to a city

within the same country that would

offer the best potential for their kind

of business. But now hassle free

company incorporation in

Singapore has made doing business

easy and fruitful.

However with globalization of

economies and the geographical

barrier been narrowed down over the

years, entrepreneurs have now begun

to consider incorporating their

company in the most suitable

jurisdiction across the world. Many

agencies which prepare statistical

data on various parameters that

define different aspects of economy

now play a vital role in helping

entrepreneurs decide whether the

economic condition of a particular

jurisdictions meet the requirements

to cater to their business needs

specifically or not.

The surveys use parameters like

bureaucracy levels, taxation, social

and political stability, availability of

infrastructure, legal barriers,

openness to trade, etc. to calculate

which countries fare better and is a

good investment destination.

In this article we shall compare the

economies of Singapore and

Denmark based on such parameters

and observe which of them serves

as an easier place to do business in

is. People looking for company

incorporation in Singapore or

Denmark should read this piece

carefully.

Key Indicators:

Singapore has been ranked #1 for

‘Ease of Doing Business’ as per

World Bank, Doing Business

Report. Denmark follows four

positions behind at #5 rank. This in

T

itself is an important indicator which

goes a long way in establishing that

Singapore is second to none and is

easiest place to conduct business

from. This point can be ascertained

by the fact that company

incorporation in Singapore is as easy

as a cake walk.

On the economic front, Singapore is

the 2nd most competitive economy

in the world as per World Economic

Forum, Global Competitiveness

Index and also the 2nd freest

economy worldwide as per Heritage

Foundation, Index of Economic

Freedom. Denmark is ranked at #8

and #11 positions respectively.

Singapore also stands at first

position in terms of being a

‘Country Most Open to Trade’

and having ‘World’s Best labor

Force’ as surveyed by World

Economic Forum, Global Enabling

Trade Report and BERI, Labor

Force Evaluation Measure

respectively. Denmark is ranked at

#3 and #12 positions respectively as

per these surveys.

Singapore is also ‘World’s Best

Place for Asian Expats’ as per ECA

International, Quality of Living

Rankings while Denmark is 4

notches behind at #5 position.

Similarly, Singapore has got world’s

second best IP Protection while

Denmark has the 6th best IP

protection as per World Economic

Forum, Global Competitiveness

Index.

Tax Rates:

Singapore is known for its awesome

tax regime. It possibly offers one of

the lowest corporate tax rate in the

world. While established companies

are taxed at 17% for incomes above

$3,00,000 and 8.5% for incomes up

to $3,00,000, the new start-ups are

exempted from Corporate tax on

income up to $1,00,00 for first three

years of operation; a special

incentive to encourage increase of

offshore investments and provide the

much needed cushion to new

ventures.

Besides, it also levies low rates of

personal tax and no tax on dividends

and capital gains. What more?

Income generated by a company

worldwide but not repatriated to

Singapore is totally exempted from

corporate tax.

On the contrary, Denmark imposes

one of the highest taxes in the world.

Income tax rates are progressive in

nature and peak at 51.5% while the

Danish corporate tax rates are levied

at 25% and so is the VAT. Similarly

dividend income and capital gains

are also highly taxed and varies from

28-42% depending upon income

levels.

Due to its low tax rates and ease of

paying taxes, most of the population

in Singapore diligently pay taxes and

do not avoid it. Singapore is ranked

#4 for ease of paying taxes as per

PWC, IFC, World Bank’s ‘2011

Paying Taxes Report’ and #11 as per

Forbes’ ‘Tax Misery and Reform

Index’. Denmark is positioned at

#15 and #40 as per both indices

respectively.

Competitiveness on Global

Front:

Many factors such as high quality of

education, availability of skilled

taskforce, efficient governance, lack

of corruption and strong

infrastructure make Singapore the

second most competitive economy in

the world and therefore an excellent

choice for entrepreneurs.

However factors such as high level

of corruption, burdensome taxation

and government regulations,

restrictive labor laws, etc. make

Denmark less competitive on the

World chart and a not so favorable

place to do business in.

Global Trade Opportunity

Excellent border administration, low

taxation, friendly custom policies,

low tariffs and high quality transport

infrastructure are few factors that

make Singapore more open to global

trading lending it a superior edge.

Tariff structure, heavy taxation and

lack of foreign market access shut

many doors in Denmark for global

trading opportunities.

As per World Bank’s ‘2012 Doing

Business Report’, Singapore is the

world’s best country in terms of

trading across border while Denmark

scored 7th rank. Businessmen who

undergo company incorporation

in Singapore accentuate the fact that

Singapore is better than many other

destinations like Denmark.

Task Force:

Singapore ranks much above

Denmark in terms of safety for

employees, and labor market

efficiency. BERI’s ‘2011 Labor

Force Evaluation Measure has

ranked Singapore as #1 in the world

while Denmark was ranked #12.

Quality of Life:

The quality of life for residents and

expats in Singapore is par

excellence. It is the World’s most

favorite immigration destination

as per Gallup’s 2010 Potential Net

Migration Index; it is also #1 place

for Asian expats as per ECA

International’s ‘2010 Location

Ratings System while Danish city of

Copenhagen trailed behind to secure

5th position as per the Index.

The above factors are clear

indicators of Singapore being a

better and easier place to do business

in as compared to Denmark. Thus

companies or entrepreneurs looking

forward to company incorporation in

Singapore should not consider

Denmark as a choice.

About Us

Quick Company Formation is an eminent name in the field of Company

Incorporation in Singapore and various other countries spread across the world.

It offers end to end solution for a new start up that enables a company to

establish, take off and manage day to day operation.

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