Several factors make any country suitable for business. The primary elements and most important of all are peace and stability. Lack of peace in any country will lead to an economic crisis since no one can invest in an insecure state. These harsh and unfavorable conditions force several investors to invest in other countries apart from their home country.

Starting a business in a foreign country is a big step in the career of any investor. In addition to that, you need to have a good understanding of how the nation collects its taxes. Second and very important is to find out how diverse the country is since this will affect the environment for business.

Another essential parameter is the political stability of the country. In most cases, people find themselves torn between investing in Singapore or China. This article will discuss the various factors that will help you decide which is best between the two economic giants.

Environmental Conductivity to Business

How well are the foreign investors protected from discrimination by the locals and does the country overburden its foreign investors with taxes? Upon considering those very crucial factors, Singapore emerged to be the preferable country to invest in. Gaining a working permit in Singapore is also much easier via the Singapore Visa Express.

According to a survey done by the World Bank, Singapore is ranked the second-best most conducive environment to invest. On the other hand, China was ranked 50th in the same list. Some of the factors that were considered while ranking included the ease with which one can start a business.

Taxation

Every citizen or foreigner doing business in a country is required by law to pay tax to the government. However, if the taxation is high, then that will be a hefty burden for the investor to bear.

That is why it is essential to consider how a country goes about its taxation process. As for Singapore, taxation does not fluctuate and is always constant at 16% depending on your taxable income. For China, there is a standard tax rate of 22%. However, the rates could be reduced by 10% down to 12% if your company carries out processes that are highly encouraged by the government.

Intellectual Property Protection or IP

Once you are assured that your business will be secure at all times, then you can focus on making progress. In most instances, this is done by increasing the value of your investment. The IP rights of every individual are well-stipulated in a country’s constitution.

Per the ranking done by a particular organization, Singapore was number 1 in Asia and second across the world when it comes to property protection. The same organization ranked China at number 53 across the globe. This research was based on the measures put in place to prevent counterfeit goods from being sold in the country. 

Conclusion   

Before considering investing in any country, there are some factors you need to consider. First and foremost, you need to do thorough research about the country you have chosen to invest in. In this case, you need to find out about the laws set by the country concerning business set up by foreigners.

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by Ying Zhao

Ying Zhao holds a Masters in Business Analytics from NUS Business School. He is married with two sons. When not at work, he spends his time reviewing business trends in Asia. An avid cricket fan and wildlife enthusiast.