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Why Singapore Offshore is a Tax Heaven?

Singapore, known for its business-friendly environment, rational tax system, a strong economy and skilled workforce, presents lucrative opportunities not just for entrepreneurs but also for multinational companies.

Offshore business in Singapore is growing at a rapid pace, and over time, the offshore tax-haven has become one of the world's best destinations for building an offshore business. Singapore is regarded as a low tax haven because it has a flawed tax system for residents and non-residents in place. If you want to set up an offshore company in Singapore, there are no restrictions on allowed business fields. For all industries, 100 per cent international shareholding is permitted.

Furthermore, foreigners seeking to register an offshore company in Singapore do not need prior authorization from Singapore authorities. The offshore business has become a driving factor for the country's growth. Singapore Accounting and Regulatory Authority regulate and authorize offshore activities in the jurisdiction.

What is a Tax Haven?

A tax haven is a foreign country offering a safe business climate for individuals and companies with either limited or no tax liabilities. Offshore businesses in tax haven countries have access to meagre rates of taxation and pay only a nominal fee for the services the jurisdiction offers. Over the last few decades, there has been a substantial increase in starting an offshore company in Singapore.

It is mainly due to the tax advantages that the country offers to offshore companies founded in its territory. Different characteristics of a tax haven attract business owners and companies to start a business overseas. An offshore company gives the company operations flexibility and power, which may not be the case in residential jurisdiction. If you're looking to start an offshore company, then read on to learn about the factors that make Singapore a tax haven for overseas business.

Factors that Make Singapore a Tax Haven

Singapore has turned to be one of the widely chosen offshore jurisdictions due to several factors which include:

Minimum or No Tax Liability

Tax exemption is a crucial factor which makes Singapore a country with a tax haven. Offshore businesses are excluded from corporate taxation in Singapore. The company's capital wealth will thus be used in the business's economic expansion. Tax haven countries draw money into their banking and financial institutions by allowing their jurisdiction to participate in the offshore business. These countries usually charge their services a nominal fee.

Confidentiality and Privacy

Important Offshore business information, such as personal and financial information, is not recorded in public records. Confidentiality is a critical feature of the offshore industry as it guarantees complete confidentiality of company operations and practices. Business owners are drawn to tax havens, mostly because of the high degree of protection that helps protect corporate assets.

Offshore Banking

Singapore provides complete flexibility to the business owners to proceed ahead with the opening of an offshore bank account. Moving along with this option allows the business owners to proceed for international trading and enter into Offshore Forex Trading.


Absence of Currency Control

There are no limits on the operation of currency exchange for transactions to and from the Singapore territories. You can send money from the jurisdiction openly, without any restrictions. The lack of currency regulation is losing investors confidence. It ensures investments are safe and available whenever appropriate. Investing with a lack of currency control in these jurisdictions allows individuals and businesses to avoid complexity with the flow of money on each transaction.

Favourable Tax Treaties

Singapore has dealt with 28 countries on double taxation. Starting a wide range of businesses in the territory is suitable for investors. Double tax treaties are countries-to-country agreements which help investors avoid paying tax twice. In Singapore, there are many clauses of double tax treaties such as lower tax rates on worldwide income, no tax on capital gains, and tax exemption on interest, loyalties, and dividents.

Corporate Flexibility

Companies in tax haven countries do not have the requirement to pay out capital. Also, no declaration of operational objects involved in their business activities is required. Singapore's Corporate Strategy is versatile for offshore firms. Shareholders and directors of the company have a minimum limit on ownership of their business. The process of enterprise incorporation requires less time and resources. However, accounting and reporting are not compulsory in Singapore for offshore firms.


Starting an offshore company in Singapore is of immense benefit to individuals and companies looking to protect properties. A company's primary concern is high tax rates and regulation, which is not possible in the country of residence. Thus, tax havens serve as shelter for these companies in the form of an offshore company that enables businesses to take advantage of various benefits.

Key Highlights

Tax haven countries can be perfect for offshore companies because they help to save taxes.

Singapore has universal laws and legislation in its jurisdiction concerning the setting up of offshore companies. Offshore businesses may be assured privacy and confidentiality as regulatory authorities cover information relevant to the company.

The business will benefit from the Double Tax Treaty provisions.

Enterprise incorporation requires fewer resources and can be set up in a shorter time frame.

You can choose Singapore with a host of benefits available to get you started with your offshore company. Worldwide, we at Business Setup provide business setup solutions for starting a company in Singapore. If you need help with setting up the business, you can contact us today. We will be pleased to assist!

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