How to Initiate Offshore Company Formation in Singapore?

Offshore Company Formation in Singapore

Located in Southeast Asia, Singapore is known as an independent city-state and an island country. Famous for its competent governance, it is an international economic centre which has an assorted population. 

Having structures like the Marina Bay Sands, Gardens by the Bay, etc., Singapore perfectly combines culture and modernism.

Businessmen can utilise the benefits offered to them by an offshore company. The benefits of offshore incorporation make it a top choice for plenty of entrepreneurs who want to expand their business internationally.  

Are you interested in Singapore offshore company formation? Then this is the guide for you.

Understanding the Benefits of an Offshore Company Registration in Singapore

It is important to know the benefits before we get into the Singapore company incorporation process. Read below to understand the advantages -

  1. Location

Singapore has a very powerful location. Located in the prime sea route between India and China, it allows the city to have unlimited access to the harbour, which makes it very simple for businesses to conduct trade all over the world.

  • The city also has a free trade status, which means that the town, harbour, port and dock fees are not collected. 
  • Businesses from all over the globe can trade without any restrictions and don't have to pay any customs duties. 
  • Customs duties are a must on a few selected goods such as petroleum, alcohol, tobacco, etc.
  1. Reduced Tax Liability

Singapore follows the territorial tax system. It is not a tax haven jurisdiction. However, you can get tax incentives. The incentive range starts at a low cost. The offshore company tax rate can be 0% if properly structured. The shareholders are not liable for any additional tax for the distributed dividends. The country follows a single-tier tax system.  

  1. Security and Compliance

As an offshore company formation in Singapore, you are guaranteed security for your assets. Having offshore incorporation in the city is the best option because of the less official involvement and a simple and quick offshore business registration process.

Singapore's commitment to compliance and respect for global practices improves the reliability of a company formation in Singapore.

What is the Process of Offshore Company Formation in Singapore?

Launching an offshore company setup in Singapore requires various steps; every step goes through examination and compliance with legal requirements. Read the information below to understand the process of opening an offshore company in Singapore -

  1. Pick a Business Structure

In Singapore, the International Business Corporation is the most commonly used structure. An IBC is an offshore business used to conduct international business activities. 

While deciding on your business, keep in mind factors such as the nature of your business and the expansion plans for your offshore business setup.

Check out the following business structures available in Singapore:

  • Branch Office
  • Sole Proprietorship
  • Subsidiary Company
  • Representative Office
  • Private Limited Liability Company
  1. Hire an Expert 

Bearing in mind the difficulties of offshore incorporation, taking the help of experts is a good idea. We at Business Setup Worldwide specialise in offshore company registrations. Our experts can help you open an offshore company and guide you through the entire process.

  1. Select a Name

Choose an original and suitable name for your business. The name should follow the naming rules of Singapore, and then reserve your business name with the Accounting and Corporate Regulatory Authority (ACRA).

  1. Select Directors and Shareholders

In Singapore, you have to have a minimum of 1 director who is a resident of the country. Choose suitable directors and shareholders for your company; they can be individuals or corporate structures.

  1. Register a Business Address

It is necessary for you to provide an official address for your business that is registered in Singapore and make sure that the office is working and open during regular office hours. This address will used for official communications.

  1. Establishing the Business Constitution

The business constitution states the company's guidelines and management system. This document must follow the legal rules set by Singapore. The company constitution is an important document for the registration process.

  1. Registering Documents with ACRA

File all the important documents, such as information about the directors, shareholders, the company constitution and various other documents. Submit them to ACRA to get registered.

  1. Procure Permits and Licenses

Every business activity requires different permits and licenses. Apply for the licenses and permits that are needed to conduct business in Singapore. Make sure you follow the industry rules to dodge legal troubles.

  1. Create a Corporate Bank Account

Find a bank that is reliable and open your bank account. Submit documents such as registration details for your company and information of directors and shareholders to have an offshore company setup in Singapore.

  1. Tax Registration

When you start a business anywhere, you must make sure you know the tax system of the country/location. Once you understand Singapore's tax system, register your offshore business registration for Goods and Service Tax (GST). To improve your offshore incorporation's financial standing, make a tax strategy.

When you follow these steps properly, you can easily go through the offshore company formation process in Singapore. The mixture of the following aspects makes it one of the best locations for an offshore company:

  • Tax benefits, 
  • Strong location, 
  • Friendly policies,
  • Stable economy.

Despite that, it is very important to get help from experts to stay updated about the constantly changing rules and to have a quick and easy offshore company registration process. 

Consult with BSW to guarantee long-term success. We provide high-quality services related to offshore incorporations and have successfully set up multiple offshore companies all over the world.

Contact us to open a offshore company.


What are the basic requirements for initiating offshore company formation in Singapore?

  • A registered office address.
  • A resident director is required, who must be a Singapore citizen or a permanent resident.
  • At least one director or shareholder. The director and shareholder can be the same person, and they can be of any nationality.

What are the taxation considerations for offshore companies in Singapore?

Offshore companies in Singapore enjoy a favorable tax regime. Singapore follows a territorial tax system, meaning that income earned outside Singapore is not subject to local taxes. However, income earned within the country is taxed at a competitive corporate tax rate.

Are there any ongoing compliance requirements for offshore companies in Singapore?

  • Filing an annual return with ACRA, holding an Annual General Meeting (AGM), and maintaining proper accounting records. 
  • The AGM must be held within 18 months of the company's incorporation and, subsequently, at least once every calendar year. 
  •  It's crucial to notify ACRA of any changes in the company's structure, such as directorship or shareholding, and to renew the registration annually.

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