In 2010, you may have the best possible business environment for a Singapore company formation. Aside from the tax benefits, Singapore has one of the least corrupt business environments in the world. According to Transparencies International Global Report, Singapore is tied with Denmark and New Zealand for the least corrupt country on the planet. What does this mean for business in Singapore? It means that forming a company in Singapore will have many advantages, with such little corruption.

Fairness in Competition

If you form a new company in Singapore, you can fairly compete with other businesses. This gives you an equal chance to grow and compete with established businesses.

In many environments, some businesses literally take over certain markets. They use unfair practices to force smaller companies out of business. These things are illegal in Singapore.

It is illegal for companies to get together and engage in what is known as "price fixing". When this happens, two or more businesses, agree to lower their prices on a product or service.

They do this so smaller companies cannot compete. Often times, larger companies can afford to offer very low prices for a temporary amount of time. During that temporary time period, smaller companies cannot offer such low prices.

As a result, they will not be able to compete and will go out of business. As soon as the smaller companies are no longer around, the larger businesses raise their prices back up.

When things like this happen, everyone loses. Small business becomes very hard to start up. Also, consumers have to deal with higher prices and fewer product selections. These things do not happen in Singapore.

Taking Over Your Business

Another business practice to eliminate competition is to simply buy out competitors. In many countries, corporations are allowed to purchase all of their competing companies.

Smaller businesses may not wish to sell to the larger ones, but they have no choice. The larger corporations may engage in price fixing or take a number of illegal actions to force smaller companies to sell to them. This type of corruption is not tolerated in Singapore.

Government Officials

Often times, some business owners can circumvent rules and regulations by "favors" or "bribes" to the right officials or inspectors. There are very strict laws against this type of activity and it is strictly enforced in Singapore.

In many countries, public officials are grossly underpaid and this can encourage corruption. This is one issue that has been addressed in Singapore. Public officials have routine salary evaluations and their wages are equal to people in the private sector.

When corruption issues are addressed, it eliminates a great deal of "red tape" in government. This makes things easier for the people and it is simpler and less complicated to do business.

Summary

Low corruption is yet another very good reason to consider a Singapore company incorporation. New and smaller business can fairly compete on the open market. This makes for a better environment for business and consumers. It is illegal for large companies to unfairly force smaller companies out of business. These types of practices are illegal and the laws are strictly enforced.