Doing Business - Singapore vs France

Besides choosing the right business entity, entrepreneurs have to make a decision on where to operate from. Choosing the right business location is crucial to the success of one’s business, and a careful analysis of strengths, weaknesses, opportunities and risks associated with setting up a business in a given market is vital. In this report, we give you an overview of the business environment in both Singapore and France and the pros and cons of setting up in each country.

This report is a comparative analysis of doing business in Singapore and France and provides information on the two countries across several criteria such as business environment, taxes, IP protection, openness to trade, bureaucracy and labour force.

Business Environment

  • Singapore has always been ranked by the World Bank as one of the easiest countries in the world to start a business, while France is one of the most effective and compliant countries when it comes to trading across borders. The World Bank ranked Singapore in 2nd place and France in 32nd place in its 2018 Ease of Doing Business report. Below are some of the factors regarded by the World Bank that gives each country their overall ranking when it comes to the ease of doing business.

 

Singapore

France

Starting a business

3

30

Protecting minority investors

7

38

Trading across borders

45

1

Enforcing contracts

1

12

Paying taxes

8

55

  • And based on the 2019 Index of Economic Freedom report by The Heritage Foundation, Singapore ranks 2nd out of 180 countries with score improvements seen in trade freedom and government integrity. France, on the other hand, ranks as the 72nd country, with improvements seen in business freedom and fiscal health.
     

Taxes

  • The corporate tax rate for Singapore and France are as follows:

    Singapore

    France

    17%

    33.3% (will be reduced to 28% by 2020)

IP Protection

  • Countries that have in a strong intellectual property protection system in place have been proven to flourish the most. According to the World Economic Forum’s ‘2018 Global Competitiveness Report‘, Singapore has places 3rd on IP protection regime in the world and France places at 10th.

Global Competitiveness

  • In the World Economic Forum’s ‘2018 Global Competitiveness Report’, Singapore is the second-most competitive economy among 144 economies and France ranked at #17. Below are some of the key indices that contributed to the ranking:

(Out of 140 countries)

Singapore

France

Most competitive economy

2

17

Intellectual property protection

3

10

Ease of finding skilled employees

9

28

Cost of starting a business

11

15

Burden of government regulation

1

107

Openness to Trade

  • Trading globally is relatively easy in both Singapore and France as shown in the 'Global Enabling Trade Report 2016' report by the World Economic Forum. In the report, Singapore is ranked 1st and France is ranked 13th.

Bureaucracy

  • Transparency International’s 'Corruptions Perception Index 2018' report viewed both Singapore and France relatively clean and with low levels of corruption. Singapore was ranked 3rd in the report and France was ranked 21st, out of 180 countries.

Labor Force

  • The World Economic Forum’s 2018 Global Competitiveness Report measured the following labour-related factors for both Singapore and France: 

(Ranking based on 140 countries)

Singapore

France

Digital skills among population

6

63

Ease of finding skilled employees

9

28

Cooperation in labour-employee relations

2

99

Ease of hiring foreign labour

97

61

Labour tax rate

75

140

Country Rankings: Singapore and France

Year

Category

Singapore’s Rank

France’s Rank

Source

2018

Ease of Doing Business

2

32

World Bank, 2018 Ease of Doing Business Report

2019

World’s Freest Economy

2

71

Heritage Foundation’s Index of Economic Freedom

2018

World’s Most Competitive Economy

2

17

World Economic Forum, Global Competitiveness Report

2018

Country with Least Corruption Perception

3

21

Transparency International’s Corruption Perceptions Index

2018

World’s Best Country for Business

8

21

Forbes’ Best Countries for Business Index

2016

Country Most Open to Trade

1

13

World Economic Forum, Global Enabling Trade Report

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