The establishment and ownership of an offshore company is no longer the domain of the extremely wealthy alone. An offshore company is defined as a company that one sets up away from the jurisdiction of their citizenship, away from their country, in this case, Singapore.
Many small–scale business owners all over the world who have chosen to start a company in Singapore have opted for this option because of its numerous advantages. Some of the benefits of starting an offshore company which is incorporated in Singapore include protection of assets, legal protection, tax benefits, and capital benefits. We will cover the following in-depth:
The protection of the company asset is one of the major advantages that come with setting up an offshore company in Singapore. If a company owner’s assets are tied to an offshore company, the risk of incurring a financial loss is substantially reduced. Since these assets in question are not directly attached to the business owner, it becomes unlikely that creditors will seize the assets. One also has the option to remove one’s name from the companies owned by an offshore company. This would therefore imply that the assets are no longer tied directly to the company owner and therefore provide significant legal and asset protection.
One of the primary benefits incorporation of an offshore company of the in Singapore is that of tax optimization. Should the company be regarded as a company which is a tax resident of Singapore, it will be possible for the company to make use of various tax exemptions available. It should also be noted that the corporate tax rate of Singapore is one of the lowest in the world. The current corporate tax rate in Singapore stands at 17%, a figure well below that of almost every other country. Furthermore, as mentioned, companies which are tax residents of Singapore are permitted to make use of specific tax exemptions which serve to further reduce their corporate tax burden.
Ease of Fulfilling Reporting Requirements
Another advantage of setting up an offshore company in Singapore is that an offshore company which has been incorporated in Singapore might not necessarily have to produce audited financial statements. This is because, in most instances, the corporate reporting requirements which are imposed upon offshore companies are more lenient when compared to those imposed on other companies.
Ease of Completing the Incorporation Process
The establishment of an offshore company in Singapore is neither tedious nor lengthy. Singapore stands in contrast to the incorporation processes of other countries in which there are many bureaucratic features and difficulties involved in completing the process of company incorporation. In Singapore, one will only need to have the required documents because the entire procedure can be completed online.
Anyone who would like to know how to go about the process of incorporation in Singapore may make use of the services provided by Paul Hype Page & Co. We have assisted many clients with the incorporation of Singapore companies, whether it be an offshore or any other company. Our services have been well-received by almost all who have used them, and for good reason; our incorporation team is regarded as one of the most knowledgeable and capable in the region.
We offer Singapore company incorporation, consultancy services, auditing, taxation, immigration work visas & annual compliance services.
Singapore is one of the leading financial hubs in Asia. The country is home to many options for banking facilities for offshore companies. Singapore offers business owners a variety of banking benefits such as the ability to have a multi-currency account, the option to have an account in a local or foreign bank, or the ability to transfer funds between two bank accounts. The process of opening a bank account in Singapore is not complicated, this also applies to offshore company owners intending to own a bank account; it should not take more than 15 working days to be completed. Most Singaporean banks require the owner of the account to open it by themselves. However, some allow a representative to have the account opened on behalf of the owner. Whether you choose to open an account by yourself or through an agent, be sure to provide all the documents required for Customer Due Diligence (CDD). CDD is carried out by all banks as required by the legal authorities to verify, the prospective banker, the company’s key leaders, the money source, and the nature of the business that a company does.
Low Amount of Required Capital
Offshore companies which have been incorporated in Singapore have the advantage of offering flexibility through the relatively low required capital for establishment. As business entities in Singapore do not require excessive amounts of capital to be established, the incorporation process there is relatively inexpensive.
Openness to Foreign Ownership
Another advantage is that any foreigner setting up an offshore company in Singapore and with the capability to take ownership of a Singapore company may choose to do so. You can own a company partially or fully. Regardless of the company’s industry, the Singaporean government as well as other authorities encourage foreign company ownership. Furthermore, authorities treat foreign-owned companies, whether offshore or otherwise, which have been incorporated in Singapore as a legal entity within the country.
In summary, Singapore is one of the leading destinations for foreigners who start a business in the Asia-Pacific region because of its business-friendly environment and its high level of ease of doing business. Furthermore, foreigners can incorporate companies in Singapore with ease. The low corporate tax rates and lenient foreign ownership laws have also served to increase the number of offshore companies which have been established in Singapore.
Advantages of Setting Up an Offshore Company in Singapore FAQs
What is the corporate tax rate for an offshore company in Singapore?Tiwi2020-11-23T16:05:18+08:00
Yes. Anyone who does not fall under the prohibited countries can set up an offshore company and fully own it. It is also good to ensure you research well on the activities, goods, and services that are permitted in order not to have a tedious incorporation process.
The government of Singapore will treat it as a legal entity provided it is registered and operating as per the company registration and operation guidelines.