Offshore Company Formation In Singapore
A Brief Overview of the Nation
An island country in Southeast Asia with modern infrastructure offering a robust business environment. Singapore is known as the global economic powerhouse and a central hub for business opportunities. Singapore is the 4th easiest jurisdiction to start a business. The nation also stands 2nd in the index of doing business.
The government adopted various measures for offshore company registration in Singapore. It’s home to over 200 banks and is considered a popular financial hub in the region.
Thriving Business Sectors in Singapore
The largest industry in Singapore is the manufacturing sector, which contributes to 20%-25% of the country's GDP. The leading industries are electronics manufacturing, financial services, and tourism. Singapore is the busiest cargo seaport in the world. There are numerous business sectors in the country responsible for economic growth. Here’s a list of thriving industries in Singapore:
Manufacturing: As mentioned earlier, manufacturing is the most thriving industry in Singapore. One third of the world's mass spectrometers and thermal cyclers are also produced here. Other sectors in this industry are pharmaceuticals, energy and chemicals.
Medical Devices: The medical device industry in Singapore is expected to reach USD 1.3 billion by the end of 2023. More than 60 multinational medical technology companies are trying to expand into Singapore or open their branches in Singapore.
Pharmaceutical and Biomedical Sectors: Modern infrastructure with thriving research work has grown this nation into this sector. This has resulted in importing pharmaceutical products worth USD 11.92 billion by the end of 2023.
The Benefits of Offshore Company Setup in Singapore
You can enjoy numerous advantages of offshore business registration in Singapore. Some of them are as follows:
Tax Liability: Singapore's tax system is divided into 2 types: corporate tax and personal income tax. Foreign-based income is tax exempted in Singapore. The country follows a single-tier tax structure. It means once the income has been taxed at the corporate level, dividends can be distributed to shareholders tax-free in Singapore.
Ease of Offshore Company Registration: Singapore is globally ranked 2nd in terms of the ease of doing business. The offshore business registration process is fast and really quick. There are only two steps included. One is company name approval and document submission. This whole process is computerised and can be done within 2-3 working days.
Credible Image: Singapore offshore company formation comes with stability and increases credibility for offshore businesses. It's a sophisticated legal entity with experienced stakeholders. Numerous financial institutions are situated in Singapore. One can avail of multi-currency bank accounts, trade financing, internet banking and all sorts of facilities in the country.
Liberal Foreign Policy: Singapore's foreign policy is liberal. You”ll not face any restrictions on any business activity. 100% foreign ownership and shareholding are allowed in the nation. There’s no need for approval from the authorities for offshore company setup in Singapore.
Political Stability: Singapore is one of the most politically stable countries in the world. The corruption-free and transparent nature of the legal system makes the nation a perfect destination for offshore business setup. The risk associated with the company formation in Singapore is very low.
Offshore Company Registration Checklist in Singapore
Here is the list of all the requirements for offshore company registration in Singapore:
Directors: One local director above 18 years is mandatory in Singapore. However, a nominee director can be appointed for an offshore company.
Shareholders: : One shareholder is required for offshore companies in Singapore. A director can be a shareholder. And they can be an individual or corporate entity.
Company Secretary: A secretary for offshore companies in Singapore is required. The shareholder and the director can't become the company secretary.
Paid-up Capital: The minimum paid-up capital for offshore company registration is $1 in Singapore.
Registered Address: For every company in Singapore, a registered office is required.
The Process of Starting a Business in Singapore
One must go through a certain procedure for company formation. The offshore business setup in Singapore process is mentioned below:
1. Contact a Registered Agent:
The first step is to contact a company formation service agent. They’ll assist in company formation in Singapore and look after all sorts of necessary documentation and approval procedures.
2. Submit the Documents:
Prepare the following documents and submit them to the service agent and wait for approval:
- Address proof of the shareholders and directors.
- Passport copies of the shareholders and directors.
- Details of the parent company if the shareholder is a corporate entity.
3. Open a Bank Account:
Open a bank account once all approvals are received from the authority. The bank will be responsible for keeping track of all your financial transactions.
4. GST Registration:
Offshore companies might have to register for goods and services tax. Follow the GST compliance and register the company.
5. Obtain the License:
Only certain types of businesses require a business license. A business license will vary depending on the type of business activity. Check with the business advisor to learn more about it.
6. Meet the Ongoing Compliance:
The last step is to check for the other rules and requirements for your business. There might be some additional requirements according to your business in Singapore. Follow the compliance and then start the business.
Business Entities in Singapore
There are many legal entities in Singapore, which are as follows:
- Private Limited Company: This type of company is perfect for any small business. The liability of the shareholder stays limited in this type of company.
- Branch Office: A branch company is an extension of the parent company. Singapore approves foreign investors starting a branch company.
- Representative Office: A representative office in Singapore is a company structure that's not involved in profit-yielding services.
Our Business Setup Services in Singapore
Business Setup Worldwide is offering a wide range of services regarding your offshore company formation in Singapore. Have a look at some of the services provided by our consultancy:
- Visa Processing
- Accounting Bookkeeping
- Virtual Office Space Setup
- Assisting in bank accounting
- Company Formation Services
- Intellectual Property Services
We at Business Setup Worldwide can assist you with the required services regarding your company formation in Singapore.
What are the requirements for registering a company in Singapore?
Generally, you need at least one Singapore resident director, a local address as the registered office, a company secretary, and a minimum paid-up capital.
Is it necessary to engage a professional firm for company registration?
While it is possible to register a company independently, many businesses prefer engaging a professional firm or a corporate service provider to ensure compliance with regulations and a smooth registration process.
What is the minimum capital required to register a company?
As of my last knowledge update in January 2022, Singapore has no specific minimum capital requirement for company registration.
How long does it take to register a company in Singapore?
The registration process is efficient in Singapore. It typically takes 1-2 days once all the required documents are submitted.