Singapore is the best destination for your new company. The World Bank report 2020 places it at the 2nd spot for the “Ease of Doing Business Indicator.” It is a renowned financial and business hub in Asia. It is a transparent jurisdiction you can trust for your offshore company registration.
- Why establishing an offshore company in singapore
Whether in Singapore or not, an offshore company is one of the most practical strategies business owners use to expand their reach to foreign shores. In most cases, an offshore company is formed because of the following reasons:
- Tax optimization: No tax on dividends and capital gains.
- Asset protection (i.e. intellectual property protection)
- Singapore has an open policy on procedures and taxes (basic tax is 17% for profits arising from Singapore, but will be exempted in the first years depending on each specific case. Startups enjoy additional benefits). tax benefits. For the first three consecutive years of business, startups can qualify for a tax exemption of S$125,000 on the first S$200,000 in revenue. To qualify for the exemption In this case, a company must have no more than 20 shareholders and at least one of the shareholders must hold a minimum of 10% of the shares.
- What Kind of Business Activities Can Offshore Companies Engage In?
Offshore companies aren’t restricted to any business activity. But offshore companies will still need to comply with various requirements and regulations for certain business activities such as acquiring business licenses and permits.
Foreign companies may also consider setting up a branch office, representative office, or subsidiary office in Singapore if they want to expand their operations in the country.
- Business activity: Minimum 1 dominant business activity required, Maximum of 2 business activities.
- Director: minimum 1 Director, minimum 1 Singapore Director is required.
- Secretary: At least one secretary must be a Singaporean or permanently resident in Singapore
- Company Registered Address: Required Singapore Office Address.
- Process and expected time
Step 1: Customers provide information and records. Paying fee.
Step 2: Draft documents: within 02 working days.
Step 3: Send documents to the inspection agent: 2-3 working days.
Step 4: Agent confirms and sends documents for signature.
Step 5: Customers sign the company establishment documents.
Step 6: Receive results: takes about 3-5 working days from the date of submission.
Step 7: Complete the process.
How to Set Up an Offshore Company in Singapore
Setting up an offshore company in Singapore isn’t that different from incorporating other businesses. More or less, an offshore company will follow the same process below:
- Getting approval of the company name from ACRA
- Filing for company incorporation with ACRA
- Opening a corporate bank account
- Optional: Registering for GST (Goods and Services Tax) depending on revenue earned by the company
- Applying for various licenses and permits, if necessary
- Ongoing compliance and filing requirements. You may get in touch with corporate service providers such as Piloto Asia to help you with this
- Work Visas in case of relocation to Singapore are necessary (e.g. Employment Pass, Permanent Residence, etc.)
This website is intended solely for informational purposes and does not constitute legal advice. You should not rely on the information presented here and should consult a lawyer for professional advice tailored to your specific situation. No solicitor-client relationship with TIMELAW is established until a formal written agreement is in place.