Reasons for Setting up an Offshore Company in Singapore

 


Singapore has pro-business laws, rational tax system, dynamic economy and qualified workforce. It makes setting up an offshore company an attractive proposition even for multinational companies.

What is a Singaporean Offshore Company?

Singaporean offshore company is a company incorporated under the Singapore Companies Act. Such a company can be used for business outside of Singapore. It benefits from a low or no tax regime.

You could think of setting up an offshore company in Singapore for the following reasons:

·         You want to use an offshore company as a growth vehicle to expand your business. Most probably, the investment for the growth will come from institutional investors who prefer such companies

·         You have an investment holding entity and want to cash on relief from Stamp Duty and Capital Gains offered by Singapore authorities

·         You want to your Intellectual Property in various jurisdictions

·         You expect a higher return on investment

·         You want to benefit from tax planning and relief you will get in Singapore

·         Estate Planning

·         Enhanced Privacy

Reasons for forming a Singapore Offshore Company

Singapore has a hassle-free incorporation process. Setting up a Singapore offshore company opens up many business opportunities. It has proved to be a game-changing decision for MNCs and SMEs. The reasons are as follows:

Singapore is a Tax-friendly Jurisdiction

Business owners take taxes seriously. Many times it is a crucial point where they form their company. Singapore offers them a better deal. Singapore levies no taxes on capital gains or accumulated earnings.

The corporate income tax rate is in the range of 0%-17%. It comes to approximately 8.5% for profits up to S$300,000. Taxable income above S$300,000 is taxed at a flat rate of 17%. Singaporean startups get full tax exemption on the first S$100,000 taxable income for the first three tax filing years.

Credible Image

Being a Singapore offshore company, you enjoy credibility among the stakeholders, lenders, & employees. After all, it is a proper legal entity. Stakeholders take it seriously.

Easy Company Incorporation Process

Singapore ranks 2nd in the list of ease of doing business indicator. It has a reliable, free of red-tape, and efficient process for company registration. Usually, it takes only 1-3 days to complete the process. There are only two computerized steps in the process.

Company Ownership

Singapore allows foreigners 100% ownership in their company without any restriction. Foreigners do not need any prior approval from authorities to set up their offshore company in Singapore.

Stable Political Environment

Singapore offers them a stable political environment and the least amount of bureaucracy. MNCs count on the government's integrity. The government is rational in making legislation, pro-active in responding to market trends, pragmatic, transparent in action, and corruption-free.

World-Class Banking

Singapore is a leading business hub. It offers choices in offshore banking. You can open multi-currency accounts and transfer funds in and out of the country. 

Opportunities for Investors

Singapore is home to many companies that operate in chemical, electronic, mineral, fuel, transport, manufacturing industries. It is an attractive market for investors.

Singapore is home to many MNCs from all over the world. The proactive policies implemented by the Singapore government has attracted them. If you have decided to set up an offshore company in Singapore, we at SBS Consulting Pte Ltd can guide and help you. For any queries, contact us on +65-6536 0036 or email us at info@sbsgroup.com.sg for answers.

 


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