Many company owners in Singapore have chosen to take ownership of an offshore company. Such a business owner may gain certain advantages by owning a company based in a foreign country such as those related to asset security as well as property ownership in that country.
An offshore company is defined as a company which is incorporated and registered in a country which is not the same country in which most or all of its investors live. Ownership of offshore companies is a global business trend which has been increasing in popularity in recent times. Such is also the case in Singapore. This is because many Singapore business owners have begun to consider expanding their range of business ownership to include offshore companies. However, those who plan to do so might have questions about owning a Singapore company and an offshore company at the same time; some might not even be certain if doing so is permitted according to the laws of Singapore.
On a related note, we at Paul Hype Page & Co provide services which will enable you to register and incorporate a company in Singapore. We will also contact all governing authorities on your behalf if you need us to do so. Our highly skilled and reputable incorporation team will ensure that your company will begin its existence in an optimal fashion.
Simultaneous Ownership of a Singapore Company and an Offshore Company
According to the current business laws which are in force in Singapore, there are neither any regulations nor restrictions which forbid the owner of a Singapore company from also owning an offshore company at the same time. Therefore, it is possible for a business owner in Singapore to own another company abroad at the same time. In fact, some might even say that such an action is encouraged by the Singaporean government. This is because the government of Singapore is one which has always been in favor of entrepreneurial activities conducted by its citizens. This fact is proven through the many tax incentives as well as other benefits on offer to business owners in Singapore who fulfill certain criteria. Since gaining ownership of a company based in another country is also a type of entrepreneurial activity, it would not be surprising to find that the Singaporean government would be in favor of Singaporean citizens choosing to do so.
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Reasons Why a Singapore Company Owner May Start and Own an Offshore Company
There are several reasons why someone who owns a company based in Singapore might choose to start and own an offshore company. One potential advantage of ownership of an offshore company is that of its location. Certain industries in Singapore are currently either in a state of decline or going through difficult financial times. However, these same industries could be enjoying positive business and financial conditions in other countries. For this reason, the owner of a Singapore business which is part of such an industry might opt to start an offshore company based in a country in which that same industry is experiencing much success so as to maximize the potential profit level of the business in question.
Some might also choose to start an offshore company because of the high level of asset protection provided through ownership of an offshore company. Singapore company owners who are concerned about the safety of the assets that have been placed within their company might choose to move these assets into the offshore company. Although Singapore’s level of asset security is relatively high, some countries are able to provide an even greater level of safety for assets within companies. Therefore, ownership of an offshore company reduces the risk of suffering severe financial losses.
Ownership of property in another country is another advantage of ownership of an offshore business. Depending on the business activities which are to be performed by the offshore business in question, ownership of properties in a foreign country could be of great advantage to the business owner. Thus, an offshore business could become more successful by owning properties in that country.