There are many factors that make Singapore an attractive entry point to the booming markets of Asia. Aside from English as the first language, an active British business network and an English-based legal system, there are also financial incentives. Corporation tax is 17%, the equivalent of VAT is just 7% and privately-owned start-ups have tax-free profits of up to S$100,000 (£50,000) for each of the first three years of trading. Companies can also claim against future profits for start-up expenses incurred in the year before earning their first pound.