Singapore is perhaps one of the leading financial centers of the world, which is immensely popular for its business environment. It promotes and encourages the growth of the private sector by providing a host of benefits and incentives for emerging ventures. The country is quite suitable for international trading activities with exponential development across various sectors and industries.
Offshore businesses are an integral part of Singapore's business ecosystem. Due to the growing popularity of offshore companies, the government is putting in a lot of effort to encourage offshore activities in the jurisdiction. It offers tax benefits, investment incentives, banking facilities, and security for offshore companies, which in turn attracts more investors and business owners to the country. The following section highlights the types of offshore company structure in Singapore.
An offshore business entity is a legal structure or vehicle which is formed according to the laws and regulations of a particular jurisdiction. All offshore activities in Singapore are managed by the Accounting and Corporate Regulatory Authority (ACRA). Choosing the right business entity is essential to operate and maintain a company successfully. Business owners must place a particular emphasis on the type of business entity that they choose before the offshore company set up in Singapore as it determines the operational and financial aspects of the business.
Singapore allows two types of offshore company structure:
Depending on the nature of business activities, company owners can choose one of these offshore structures to operate in the province of Singapore legally.
An Exempt Private Limited Company (EPC) is similar to a private limited company that is limited by shares and is not allowed to have more than 20 shareholders. It is a commonly used company structure in Singapore owing to its simplicity. Most of the business owners and investors prefer this form of a corporate entity as it is quite suitable for business activities in the jurisdiction. EPCs enjoy tax exemptions and various other incentives offered by the Singapore local authorities.
A holding company in Singapore is an offshore entity that involves a company that buys and owns shares of other companies. It is a single offshore structure that holds shares of other companies that are known as its subsidiaries. It is important to note that holding companies do not tax art in trading and business activities. Its purpose is limited to holding assets in subsidiary companies. Business owners usually choose holding companies as it helps in effective risk management, and streamlining business operations, according to that, is suitable for growth and sustainability.
The most important aspect of conducting offshore business is the tax rates associated with it. Generally, resident countries impose higher tax rates, which is not feasible for business owners and investors. Offshore company formation in Singapore is thereby a suitable option as it provides many tax benefits and investment incentives to promote the growth of offshore business activities in the jurisdiction.
Another crucial aspect concerning the offshore company is the level of security and confidentiality that the jurisdiction offers to individuals and business owners. Singapore has flexible corporate laws that are beneficial for offshore companies as it ensures confidentiality concerning company information and business activities. Also, it provides asset protection for offshore companies, thereby safeguarding essential company assets.
Conducting an offshore business in Singapore is easy and convenient. The process of company registration is quite straightforward and easy to follow with the help of professional business setup services. The offshore laws of this jurisdiction are well-suited for the company requirements of business owners and investors.
Offshore companies in Singapore can access a wide range of amenities and utilities such as advanced infrastructure, the presence of financial centers, spacious office spaces, high-speed internet connectivity, telecommunication, and transportation. These amenities act as additional benefits that attract most of the company owners and investors to this jurisdiction.
Professional services are vital to make the offshore business registration process convenient and easy. The following are some of the reasons why you should opt for professional services:
Business Setup Worldwide is your one-stop solution for offshore company setup requirements. We have years of experience with offshore company formation in Singapore. Our experts will guide you through the entire procedure and provide extensive support. You can contact us today to know more about our offshore company setup services.