How to Start an Offshore Company in Singapore?

An offshore company is one incorporated in a jurisdiction other than the jurisdiction that constitutes its principal place of operations or where the company’s principal investors reside. In other words, offshore simple means a jurisdiction other than your own. The choice of a specific jurisdiction for offshore business incorporation is an important decision as to can have a significant impact on the organisation. Looking at Singapore offshore business, it represents a tax-efficient business entity that is simple and relaxed to operate in a politically and economically steady atmosphere.

In fact, Singapore has been ranked as the world’s most comfortable place to do business consistently. The business incorporation procedure is fully computerised and involves only two distinct steps which are company name approval and incorporation documents submission.

Benefits of Offshore Company in Singapore

  • An offshore business in Singapore can also be stated to as a non-resident company or a paper company
  • A non-resident company in Singapore is legally tax-exempt if certain conditions are met including –
    • No business is conducted in the country
    • No banking within the country
    • The business’s legal control is outside the country
  • A non-resident company is also exempt from –
    • Capital gains tax
    • Withholding tax
    • Value-added tax
    • Sales tax
    • Accumulated earnings tax
  • The Political and Economic Risk Consultancy has evaluated Singapore as the most governmentally stable country in Asia and Asia’s lease bureaucratic country
  • Singapore offshore businesses are offered a wide-ranging choice of reputable local and foreign banks for opening an account

Main Uses of a Singapore Offshore Company

  • International trading
  • Intellectual property
  • Holding companies
  • Shipping companies
  • Owning real estate
  • International consulting services

Characteristics of an Offshore Company in Singapore

  • Minimum of one resident director who can be a Singapore citizen, Singapore permanent resident, or a Singapore work pass-holder
  • Director must be natural persons and above 18 years of age
  • A minimum of one foreign or local shareholder is mandatory
  • There can be a maximum of 50 shareholders
  • A resident and qualified company secretary is needed
  • Minimum paid-up capital required is S$1
  • The company must have one locally registered address

Procedure to Start an Offshore Company in Singapore

Incorporating an offshore Singapore company allows 100% foreign shareholding in all sectors with no prior approval from Singapore authorities required. While starting a Singapore company, one of the things to be concerned is taxes. Singapore’s tax system is characterised by low corporate and personal income tax rates, tax relief measures, and tax incentives. There are clear-cut rules and regulations about commerce, intellectual property protection, workforce and other business-related areas. Hence, starting up an offshore business in Singapore is with very minimal danger. Furthermore, the sophisticated banking facilities that are available in Singapore offers offshore companies in Singapore with the great convenience of running a business.

The following information is generally required to incorporate a Singapore offshore company

  • Name of the proposed company
  • Brief description of business activities
  • Shareholders’ particulars
  • Directors’ particulars
  • The registered address of the company
  • Company secretary’s particulars
  • Company constitution
  • Any other documentary requirements as may be required by the registered filing agent

The entire incorporation process is computerised and can usually be completed within 1-2 days.

We at Business Setup Worldwide can help you set up your offshore company in Singapore today. Our additional services include a business license, accounting and bookkeeping, offshore corporate bank account, corporate secretarial services, IP, and much more. Our experts have years of experience in this field and can make this process hassle-free. Contact us today to know more.

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