Benefits of Singapore Offshore Company
Singapore is known as a global financial hub and a major trading nation. Its location makes it a natural choice for companies looking to establish a presence in the region. In fact, Singapore ranks third globally in terms of foreign direct investment inflows and being one of the major financial hubs in the world, it offers numerous benefits to entrepreneurs looking to set up offshore companies.
Here are six reasons why we think opening an offshore company in Singapore makes sense for you and your business.
Reduced Tax Liability For Singapore Offshore Companies
Singapore is one of the most attractive countries for setting up offshore companies due to its favourable tax regime. The government offers generous tax breaks to attract foreign investment. These tax incentives include no withholding tax on dividends, no withholding tax on interest payments, exemption from capital gains tax, and exemption from value added tax.
Due to the tax incentives offered to businesses, the effective corporate income taxation rate is around 8.5% for earnings up to S$300,000 and flat 17% above S300,000. A new corporation enjoys even higher tax incentives, they enjoy 75% taxes on the first S$ 100,000, 50% taxes on the next S$100,000 taxable incomes for the first 3 tax filings years.
Another reason why Singapore is such a great place to invest is due to its territorial taxation system. This means that income generated outside the country is not taxed unless it enters the country. Additionally, companies do not pay any tax on profits earned overseas.
Credible Image For Your Overall Brand
Incorporating a Singapore offshore company provides your business with a credible image and reliability. Having a company in Singapore will communicate credibility and stature for your overall brand as a legitimate legal entity.
As a matter of fact, most banks and financial institutions prefer dealing with companies registered in Singapore because they know that such companies are reliable and well-managed. As a result, your business will be taken more seriously when dealing with banks, investors and/or other professionals during the course of your business.
Furthermore, Singapore is well-known for having a favourable investment climate. This means that it is possible to attract international investors easily for your brand if you are looking to do so.
Ease of Incorporation & Business-Friendly Environment
Singapore ranks second globally as the easiest place to set up a business according to the latest ease of doing business rankings published by the World Bank Group, which measures how easy it is to start and run a business across 190 economies.
As a result, doing business here is efficient because of the transparency and low bureaucracy in the political system, which makes it easier to start a business.
Furthermore, English is the number one spoken language in Singapore which reduces the language barrier and difficulty in conducting your business worldwide.
Liberal Foreign Ownership Policy
Being one of the most popular offshore jurisdictions, Singapore allows 100% foreigner shareholding in almost every business sector. Furthermore, shareholders can be individuals or corporate entities.
Singapore ranks highly among political stability indexes compiled by the Economist Intelligence Unit (EIU). Its score of 7.5 out of 10 places it ahead of countries such as Japan, South Korea, Taiwan, Hong Kong and China.
The EIU’s index measures political risks based on factors including corruption levels, electoral process, civil liberties, human rights, security, judicial independence, media freedom and the rule of law.
According to the report, Singapore scored well because of its low levels of corruption, good governance, transparency and accountability, and strong institutions.
In addition, the city state ranked fifth globally for ease of doing business, according to World Bank data.
Sophisticated Banking Facilities
Another benefit of establishing a company in Singapore is the availability of banking facilities.
Singapore has emerged as the leading regional financial centre in the Asia Pacific region, according to a recent report published by the World Bank. Singapore offers a broad range of sophisticated banking facilities including international remittance options, multi-currency accounts, trade finance, online banking, credit cards, etc.
Banks in Singapore offer competitive interest rates and flexible repayment terms. DBS
Singapore offers a broad range of sophisticated banking facilities including multi-currency accounts, Internet banking, credit cards, etc.
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How To Open A Singapore Offshore Company?
The process of setting up a Singapore offshore company is relatively straightforward. However, there are several things you must consider before doing it.
Step 1 – Choose Your Business Structure
There are three types of companies you can choose from:
1. Sole Proprietorship
2. Partnership Firm
The process of setting up a company in Singapore involves filling out a form online, paying a nominal fee, and waiting for approval within 24 hours. Once approved, you can start operating immediately.
1. Registering a Business Name
2. Filing Articles of Association
3. Applying for Accounting Services
4. Paying Fees
5. Opening a Bank Account
Opening A Bank Account For Your New Singapore Offshore Company
To open a bank account for your company, you will need to submit a banking application form. Most banks require a copy of your passport, proof of residence, and a letter stating why you want to open a bank account. Once approved, you will receive a temporary banking reference number, which you will use to make payments into your account.
Do you have any questions? Please provide us with your contact and we will get back to you shortly.
Frequently Asked Questions on Singapore Offshore Companies
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