SINGAPORE - Media OutReach - 15 May 2019 - The
top priority for entrepreneurs looking for the right location to launch their
startup is a business-friendly environment and supportive government policies,
according to a recent survey
conducted by CorporateServices.com -- a firm that provides Singapore company
setup and compliance services to international startups and mid-sized
The survey was conducted by
interviewing startup founders from five countries (UK, India, Ukraine, India,
Poland, and the US). It found that entrepreneurs seek a location where
government policies encourage innovation and entrepreneurship, with
straightforward regulations that are fair, and easy to follow.
Other priorities, in
descending order, included a supportive startup ecosystem, easy access to a
skilled workforce, compliance with rule of law, attractive tax policies,
protections for intellectual property, geographic location, and the overall
quality of life.
Interestingly, lower taxes were
ranked fifth in the order of importance by the survey respondents. While lower
taxes are important, they were not the primary consideration for founders of
early stage companies. This is understandable, since startups rarely make
profits during their early years; hence issues that affect the venture's growth
prospects (such as ease of setup and launch, access to a supporting startup
ecosystem, and rule of law) were given higher importance.
But an interesting pattern
emerged when the survey data was sliced by age of the respondent's startup.
Among entrepreneurs whose startups were older than 4 years, the report found a
growing disillusionment with their current jurisdiction. High tax rates were
the primary complaint in this group. That makes sense since most startups start
generating profits around the 4-year mark; hence, that's when taxes on profits
and exit payouts become a consideration. For instance, US respondents expressed
frustration with high taxes on capital gains and dividend income on the one hand
and limited tax deductibility of business losses on the other. Both of these
policies discourage entrepreneurship. A second common complaint of this group
was about the compliance and regulatory burdens startups face as they grow.
Regulations related to environmental issues, non-discriminatory hiring
practices, and employee benefits, while laudable in their intent, can put
financial pressures on startups.
The survey found that many
startup founders are open to the idea of relocating to another country -- an
intriguing finding that should warn countries not to take entrepreneurs for
granted in today's globalized economy.
To assess global sentiment
about Singapore's attractiveness as a startup location, the survey assessed
Singapore on metrics considered important by entrepreneurs. On all of these
measures, Singapore fared well. Located at the heart of some of the
faster-growing markets of the world, Singapore has adopted policies that are
very friendly to entrepreneurs. CorporateServices.com forecasts that with
its educated, English-speaking workforce, extremely favorable tax regime,
unrestricted capital flows, low level of corruption, and streamlined
regulation, Singapore will continue to grow as a global startup hub. Add to this Singapore's high standard of
living and the virtues of living in a tolerant, polyglot culture in the heart
of Asia, and Singapore may be an ideal place for those looking for a new place
to start and grow a new business venture.
While acknowledging that
Singapore may not be for everyone, Pardeep Boparai, the CEO of CorporateServices.com, added that Singapore's constant drive to improve its world-class
education system and technically skilled workforce will become important assets
in the future. "As emerging technologies based on AI and ML take over routine
tasks, there will be immense opportunities for those who can combine creative,
technical, and problem-solving skills while serious risks for those who can
not. As a result, strong human skills will be the main determinants of success
Headquartered in Singapore,
CorporateServices.com, empowers global entrepreneurs with information and tools
necessary to discover Singapore as a destination for launching or relocating
their startup venture. The company offers a complete range of company
incorporation, immigration, accounting, tax filing, and compliance services in
Singapore. It combines a cutting-edge online platform with an experienced team
of industry veterans to offer high-quality and affordable services to its
customers. For more information, please visit https://www.corporateservices.com.