When incorporating an offshore company, Singapore is one of the most advantageous jurisdictions to settle in. It offers many different tax benefits and the process is very easy. The country is situated in a stable political environment and they have signed numerous tax treaties all over the world.
Singapore tax system
Singapore offers reduced tax liability due to their simple and low tax system. Investors pay low corporate tax, and there is an absence of capital gains as well as dividend tax. Foreign sourced income is usually exempt from tax with a 0% tax rate on the first $100,000. After that, there is an 8.5% rate for profits up to $300,000 and over that a flat rate of 17%.
An offshore company in Singapore enjoys full liberty in terms of shareholders. There is 100% ownership and shareholders can either be a legal or natural person. Foreigners do not require any special approval from authorities to set up a company and the process is easy, without any bureaucratic red tape.
Process of forming a Singapore offshore company
The process of finalising an offshore company in Singapore can be completed within 2 days. In order to get the process started, the shareholders must meet certain requirements. The name of the company has to be approved by the registrar and it has to be unique. There must be a minimum of 1 local director above the age of 18. Other directors may be from other countries. There has to be at least one local or foreign shareholder on board and there is a limit of 50 shareholders. A local company secretary has to be employed, and a bank account has to be opened.
There is a minimum capital of S$1 required and the company must have a registered company address (no P.O boxes). Business licenses and permits have to be obtained if needed. The documents that need to be submitted are passport copies of all directors and shareholders proof of address of all shareholders, and details of the parent company if it is a subsidiary.
For more information on company formation in Singapore, contact us today and a friendly agent will be able to assist you.