OFFSHORE INCORPORATION SERVICES
An offshore company is one that is incorporated in a jurisdiction other than the one where the company’s main location of operations or primary investors are located. Offshore, in a wide sense, refers to a jurisdiction other than your own.
Forming an offshore business in Singapore is simple and easy. It is commonly set up as an International Business Corporation in jurisdictions such as the British Virgin Islands (BVI), Marshall Islands, Seychelles Islands, and others, where there are no corporate or personal income taxes, capital gains taxes, reporting requirements, or restrictions on company employment policies.
Tax advantages, simplified reporting requirements, flexibility of business formation and administration, and so on are some of the main benefits of forming an offshore company in Singapore. The jurisdiction in which you form an offshore company is a crucial decision because it can have a substantial impact on your business. A Singapore offshore company, in this view, provides a tax-efficient business structure that is straightforward and easy to operate in a politically and economically stable country.
So, Why Incorporate Offshore Company In Singapore?
- Simplicity Of Offshore Company Incorporation
In 2018, the World Bank Group ranked Singapore as the second-easiest country to do business in the world.
The procedure of forming a corporation is simple, quick, and free of bureaucratic red tape.
The registration process is totally computerized and consists of only two steps: approval of the company name and submission of incorporation documents.
Both of these procedures can be completed online, and a Singapore offshore company can be formed in 1-2 days in most cases.
- Stability In Politics
Singapore is Asia’s most politically stable and least bureaucratic country, according to the Political and Economic Risk Consultancy. Singapore’s government is known for its honesty and pro-business stance. It is frequently described as logical, pragmatic, transparent, and free of corruption.
Singapore also has a legal system that is transparent, sound, and efficient. Commerce, intellectual property protection, personnel, and other business-related industries all have clear laws and regulations. As a result, the risk of forming and operating an offshore company in Singapore is very low, if not non-existent.
- Credible Reputation
Due to the fact that Singapore is not really a tax haven, an offshore company formed in Singapore conveys legitimacy and credibility. Your business will be considered seriously by stakeholders such as employees, bankers, and other professionals that you would be interacting with if you incorporate a Singapore offshore company.
- Tax Liability Reduction
One of the most important factors to consider when forming an offshore corporation is taxes. Singapore’s uncomplicated and low-tax system is one of the country’s distinctive advantages. Low corporate & personal income tax rates, tax incentives and tax relief measures along with no capital gains tax, no dividend tax, a territorial one-tier tax structure, and a large tax treaty network characterize Singapore’s tax system.
Due to the fact that Singapore follows a territorial basis of taxation, taxes apply to income accrued to or generated by the corporation from Singapore, as well as foreign-sourced income received in Singapore. Foreign-sourced income received in Singapore that fits specific qualifying criteria is exempt from Singapore taxation, while foreign-sourced income that is not remitted to Singapore.
Singapore has a single-tier tax system, which implies that after corporate income is taxed, dividends can be delivered to shareholders tax-free. For profits up to S$300,000, the corporate income tax rate is around 8.5 percent, and for profits over S$300,000, the rate is a flat 17 percent.
Moreover, a newly registered company pays no tax on its first S$100,000 in taxable income for the first three tax filing years if it has a maximum of 20 shareholders, at least one of whom is an individual shareholder holding at least 10% of the shares.
- Open foreign ownership policy
Singapore has an open and liberal foreign ownership policy. If you wish to set up an offshore company in Singapore, there are almost no restrictions on the kind of businesses you can do.
In all industries, 100 percent foreign ownership is permitted. Individuals or corporations can be shareholders. Furthermore, foreigners wishing to establish an offshore corporation in Singapore do not need to seek approval from the authorities beforehand.
- Advanced Banking Facilities
Singapore has risen to become the region’s major financial center. For account opening, Singapore offshore corporations have a wide range of reputed local and international banks to choose from.
Multi-currency accounts, internet banking, credit cards, trade finance, and the ability to shift funds across borders are just a few of the appealing features offered by Singapore banks.
Although the majority of banks need physical presence when opening an account, some are willing to make exceptions on a case-by-case basis.
Depending on the amount of due diligence performed by the bank, the account opening process might take anywhere from 2 to 15 days.
Be it whether you are deciding to incorporate your Singapore offshore company or have completed the incorporation, feel free to take a look at our corporate services for compliance. Give us a call if you need a free consultation.
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