Situated in close proximity to China and other Southeast Asian countries, Singapore is a preferred destination for setting up a business. Its growing reputation as a financial hub of Asia adds to the charm. The business-friendly regulations, coupled with efficient laws, enhance the competitive edge. Myriad entrepreneurs and corporations flock to this island nation to streamline their business operations. If you are among them, establishing a holding company in Singapore is the correct strategic choice.
What is a Singapore Holding Company?
A holding company in Singapore is a parent company that holds various subsidiaries or assets under it. It does not engage in day-to-day operating activities of a business. It holds investments such as properties, shares, and companies, and earns income from dividends and rent. So, instead of earning money through direct business activities such as selling products and services, they earn money through ownership of assets.
Benefits of Holding Company in Singapore
There are various advantages of setting up a holding company in Singapore:
A Singapore holding company is a separate legal entity and is deemed legally distinct from the owner. It has its own legal rights and obligations, and owners are not liable for its actions.
Setting up a holding company in Singapore offers various tax exemptions. There is no capital gains tax, tax on dividends, or withholding tax. It allows for retaining the income within the company.
Access to International Trade Agreements
Singapore has various international trade agreements and double taxation treaties in place. Thus, any holding company in Singapore avoids unnecessary taxation on income earned in a different jurisdiction, i.e., there is no duplicate taxation.
Transferring assets under the name of a Singapore holding company protects them from illegal claims. It protects valuable assets by keeping them separate from an individual’s liability.
Steps to Setting Up a Holding Company in Singapore
Here’s a quick overview of the steps to incorporate a Singapore holding company:
Appoint a Certified Business Expert
The first move is to appoint a certified business expert who is well-versed in the company incorporation process. Completing the process can be tedious, and a business consultant can help you sidestep the hurdles with ease.
Compile the Documents
Ensure all company-related documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA), as well as shareholding details and directors' details, are easily accessible. All documents are mandatory and must be submitted to the relevant authorities for approval and verification.
Decide Business Trade Name
Selecting a trade name is a crucial part, as it will reflect your business. The name must comply with the legal requirements of the country. It should be offensive or copy a name of the existing company. It is advisable to follow a business expert’s guidance when selecting a name.
Get the Approvals from the Respective Authorities
Setting up a holding company in Singapore requires approvals from the authorities. The Accounting and Corporate Regulatory Authority (ACRA) provides the licenses for the business entity.
Open an Offshore Bank Account
Finally, you need to open an offshore bank account to conduct business transactions. An international bank account allows investment in cryptocurrency and forex trading.
How do You Avail this Service with BSW?
Setting up a company is easy with Business Setup Worldwide. You can contact us via WhatsApp, chatbot, or email. A designated manager will be assigned to you to guide you through the process.
Why Choose BSW?
Singapore is known worldwide for its stringent legal and regulatory framework. Navigating the regulations is tough for new business owners. Join hands with Business Setup Worldwide! We have 8+ years of experience in company formations for entrepreneurs and corporations alike. Our team of experts has a strong grasp of the jurisdiction and will guide you through the process. Contact us now to get started!
