How to open an offshore in Singapore in 2023

Singapore is an ideal option for offshore business if you need to optimize taxes. Jurisdiction offers low corporate tax, no capital gains taxes and dividends. The only thing is that opening an offshore in Singapore in 2023 - quite a complicated process, so you need to seek help from the professionals of our company, which are well versed in all legal and financial aspects.

The advantages of Singapore for offshore

Among the main reasons why offshore companies open a business here is low tax rates, if compared to other developed countries. Thus, if we consider the corporate tax, its size - 17%. It also affects profits earned in other countries, if the money was transferred to Singapore. If not, you do not have to pay, and this is a big plus for international business.

There is also a policy which allows an offshore company to distribute dividends to shareholders and not pay taxes. The condition is that profits are already taxed at the corporate level.

Singapore has signed double taxation treaties with many countries, under which the tax is levied only in one country: where profits are created or payment is made. The agreement covers income from business, shipping and air freight, dividends, royalties, capital gains, directors' fees, etc.

Basic requirements for a Singapore offshore

• One director must be based in Singapore - have citizenship, residence permit, work permit or EntrePass visa. Other directors can be located anywhere.
• There is no maximum number of directors.
• Director in Singapore can only be a natural person. Shares can be fully owned by foreigners.
• Shareholders of the company, which has been registered as an exempt private company, must be individuals. Their allowed number is from 1 to 20.
• Among the shareholders of a private limited liability company may be legal entities. Their number is from 1 to 50.
• If there are more than 50 shareholders, registration as a joint stock company is required.
• Minimum authorized capital is one Singapore dollar.

How to open an offshore

Before registering an offshore in Singapore in 2023, you need to determine the goals and business model. This will help choose the appropriate form of legal structure for the business. Also, it is necessary to hire a legal advisor who will help prepare documents and conduct registration.

Next, you need to proceed as follows:

• Choose a unique name for the company and get approval from ACRA.
• Draw up a registered office.
• Applying for registration with ACRA, presenting corporate documents and certificates, which confirm the legality of the business.
• Open a bank account, through which financial transactions will be conducted in the jurisdiction.
• Draw up all necessary licenses and permits to operate in the jurisdiction.
• Hire local staff if necessary to ensure the effective operation of the offshore.
• If employees must move here from another jurisdiction, it is necessary to provide them with work visas, work permits, residence permit or permanent residence permit.
• After registration, a secretary must be hired. He must be a natural person, a citizen of Singapore, have the appropriate qualifications. This position can not hold a director or shareholder.

After registration, you must clearly comply with all local tax and legal requirements. An employee of our company will help you to do this. You should also regularly monitor changes in laws affecting your business and, if necessary, adjust your development strategy.

How to register offshore in a prestigious country

To open an offshore company in Singapore contact IT-OFFSHORE specialists.