How to open an offshore in Singapore in 2023
Singapore is an ideal option for offshore business if you need to optimize taxes. This jurisdiction offers low corporate tax, no capital gains taxes, and dividends. The only thing is that opening an offshore in Singapore in 2023 is a pretty complicated process. You must seek help from professionals to get it done. Our company, for instance, is well-versed in all legal and financial aspects.
The advantages of Singapore for offshore
Among the main reasons offshore companies open a business in Singapore is the low tax rates, if compared to other developed countries. For example, if we consider the corporate tax, its size is 17%. It also applies to profits earned in other countries if the money was transferred to Singapore. But if you don't transfer money to this country you do not have to pay corporate tax, which is a significant advantage for international business.
A policy also allows an offshore company to distribute dividends to shareholders without paying 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 or payments are 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.
- A director can only be a natural person. Shares can be fully owned by foreigners.
- The company's shareholders 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.
- The minimum authorized capital is 1 Singapore dollar.
How to open an offshore
Before registering an offshore in Singapore in 2023, you must determine the goals and business model. It will help choose the appropriate form of legal structure for the business. Also, hiring a legal advisor who will help prepare documents and conduct registration is necessary.
Next, you need to proceed as follows:
- Choose a unique name for the company and get approval from ACRA.
- Draw up a registered office.
- Apply for registration with ACRA, presenting corporate documents and certificates, confirming the business's legality.
- Open a bank account to conduct financial transactions in Singapore.
- 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 to Singapore from another jurisdiction, it is necessary to provide them with work visas, work permits, residence permit or permanent residence permits.
- After registration, a secretary must be hired. He must be a natural person, a citizen of Singapore, and have the appropriate qualifications. This position can not hold a director or shareholder.
After registration, you must 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
Contact IT-OFFSHORE specialists to open an offshore company in Singapore.