Offshore Company Incorporation
Are you a foreign firm looking to setup a Singapore company?
*Find out more under Offshore company in Singapore tab
Perhaps you are looking for a Tax haven to incorporate and park your profits?
*Find out more under Offshore / Tax Haven company (Not in Singapore) tab
An offshore company
From a layman point of view, the definition of an offshore company, there are many suggestions such as below:
- An entity which is set up not in the ultimate beneficial owner’s or operational jurisdiction
- An entity that is incorporated in Tax haven jurisdiction such as BVI, Cayman Island and etc
Type of Offshore Companies:
- Offshore companies were broadly divided into two categories. On the one hand were companies which were statutorily exempt from taxation in their jurisdiction of registration provided that they did not undertake business with persons resident in that jurisdiction. Such companies were usually called International Business Companies, or IBCs.
- Separately from IBCs, there are countries which operate tax regimes which broadly achieve the same effect: so long as the company’s activities are carried on overseas, and none of the profits are repatriated, the company is not subject to taxation in its home jurisdiction. Where the home jurisdiction is regarded as an offshore jurisdiction, such companies are commonly regarded as offshore companies. Examples of this include Hong Kong
Offshore company in Singapore
There are several benefits of incorporating a Singapore offshore company.
- Reduced tax liability
- Credible Singapore image
- Sophisticated banking facilities
- Ease of offshore company incorporation
- Political stability
- Liberal foreign ownership policy
To understand more about Company Incorporation in Singapore.
Offshore / Tax Haven company (Not in Singapore)
These are for the companies that are not in Singapore.
Danger of Offshore Companies to take note of :
OECD set out a number of factors for identifying tax havens and in many countries especially USA and Europe region; they have already introduced many legislations such as FATAC to counter offshore Tax evasion by Offshore Company. Factors to note if you fall under the OECD Offshore Company Blacklist:
- No or nominal tax on the relevant income;
- Lack of exchange of information;
- Lack of transparency;
- No substantial activities.
The use of an offshore company has concerned global governments to the extent that they have jointly enacted the Base Erosion and Profit Shifting (BEPS) Initiative.
The Paul Hype Page Solution: If you fall understand under the blacklist, it does not automatically mean that you are not wrong. Offshore companies can be exempt from tax legally, as client can establish an offshore company such as BVI for estate planning, fund management, or holding property assets. Although, the use of an offshore company as a tax haven, or legal method to pay little or minimal tax, has concerned global governments to the extent that they have jointly enacted the Base Erosion and Profit Shifting (BEPS) Initiative. There still many factors to consider before saying that you are breaking the tax law. Based on our experience, our firm believes that you will benefit from an offshore company such BVI with proper professional advice. Our team has international Tax advisers who assist you in choosing a suitable offshore company jurisdiction for your needs. Please click link to schedule an appointment: http://www.paulhypepagemanagementservicespteltd.gettimely.com/