Singapore, known for its business-friendly environment, rational tax system, strong economy and skilled workforce, presents lucrative opportunities not just for entrepreneurs but also for multinational companies. Multinational companies around the globe prefer company incorporation in Singapore for many reasons but most of all because of its business laws. Asia’s most desirable place for setting up a business has also been a preferred location for offshore company incorporation. What is Singapore offshore incorporation? Why is Singapore best suited for it? What are the benefits of company incorporation in Singapore? Let’s find out.
What is an Offshore Company?
An offshore company refers to a company registered, managed and operated in a foreign land where it has been provided with certain legal, financial and tax benefits. In other sense, an offshore company is a company which has been set up in a foreign country that has its own jurisdiction and receives special benefits for being incorporated in that country.
Why Singapore for Company Registration?
The question to be asked is, “Why not?” Company incorporation in Singapore has been a game changer for many big MNCs, because of the following reasons:
Company incorporation in Singapore cuts out taxes like capital gain tax, withholding tax, VAT (Value Added Tax), sales tax and accumulated earnings tax.
Reliable Image in the Market
Being an offshore company in Singapore will build for you a trustworthy and credible image among the stakeholders, bankers, employees and other professionals.
Ease of Company Incorporation in Singapore
One of the reasons to start a business in Singapore is the ease of company incorporation here. It takes only 3 days for company registration in Singapore, which makes it easy for MNCs from the point of view of expansion.
An offshore company in Singapore receives 100% foreign ownership, as per its liberal ownership policy. A company is permitted by the Singaporean government to have full foreign ownership without restriction in all types of businesses.
Politically Stable Environment
Singapore has the most politically stable environment for the business world. Singapore is Asia’s least bureaucratic country. Governmental integrity and professional approach make it attractive for MNCs.
Things to Know before Company Incorporation in Singapore
There are certain things it’d benefit you to know before setting up a business in Singapore:
1. Company Name
The company name should be approved by the Company Registrar prior to incorporation and company registration, as part of the company formation process.
2. Company Secretarial Service
The company secretary is one of the most people of a company and has direct involvement in the registration process. The company secretary should be a local resident and a qualified professional. He/she has to be a natural person and not an organization. No member of the board of the company can act as its company secretary. Availing the right company secretarial service for a company can speed the process of its registration.
3. Board of Directors
An offshore company in Singapore should have at least one local resident as a member of the board. The company can have an additional foreign or local board member, and the director should be 18 or above in age and cannot be a corporate body.
The maximum number of the shareholder in an offshore company in Singapore is 50, at least one of whom should be a local resident. A director can also be a shareholder of the company.
5. Capital and Document Requirements
Company registration in Singapore does not require any minimum capital; a company can have $1 as their paid-up capital, and no authorized capital is required. The documents required for company registration are:
- Passport copies of all the proposed directors and shareholders
- Residential proof of the proposed directors and shareholders
- Details of the parent company (if any) are also mandatory at the time of registration
Singapore has been a business hub for many MNCs across the world and now we know the reasons why. The government of Singapore has been encouraging and inviting foreign investors to invest by attracting them with financial and tax offers. An offshore company in Singapore is the best choice for company expansion and entrepreneurial activity. There are certain other minutiae to know before you register your offshore company in Singapore, and we at Business Setup Worldwide can guide and help you with it. For any queries regarding Singapore company registration, you can contact us, we’d be glad to be of assistance.