How to open a cryptocurrency company in Singapore in 2022
Singapore is the largest financial center in the world, which offers many prospects for cryptocurrency companies. Here it is possible to trade tokens on different platforms, issue digital currency, offer wallets for its storage. The country provides a lot of tax benefits, and if the company is registered as Exempt Private Limited Company, it can be fully owned by a foreigner. The nuances of opening a cryptocurrency company in Singapore 2022 will be explained by IT-OFFSHORE specialists.
Advantages of Singapore for cryptocurrency business
- Ability to work not only with Bitcoin, Litecoin, Ethereum, but also Ripple, EOS, NEO, Dash and other types of digital currency;
- Virtual money, which is treated as goods and sold to non-residents, is not subject to VAT;
- A cryptocurrency company can be set up as a startup and grow in that direction;
- If the cryptocurrency organization does not operate in other areas related to the financial sector, no additional licenses are required;
- Singapore is one of the few countries that has a Cryptocurrency and Blockchain Industry Association for small and medium-sized businesses;
- Due to the absence of currency controls, money can be transferred in any amount without conversion.
What cryptocurrency businesses in Singapore are allowed to conduct
A cryptocurrency company in Singapore can engage in these types of activities:
- Offer electronic wallets where cryptocurrency can be stored.
- Exchange tokens for real money.
- Operate cryptocurrency ATMs that exchange tokens for real money and back, and earn a percentage of the profits.
- Extract/issue tokens.
- Create a casino that accepts cryptocurrency payments.
- Offer advisory services related to investing in cryptocurrency.
Some business ideas do not require a license, while others require one (e.g. e-wallets, cryptocurrency exchanges). Contact at IT-OFFSHORE specialists to learn more.
Who regulates cryptocurrency companies
Cryptocurrency organizations are regulated by the Monetary Authority of Singapore (MAS). It also develops and promotes laws that regulate their operation, issue and use of tokens. The regulator pays special attention to combating money laundering.
Requirements for opening companies
A cryptocurrency organization in Singapore can be registered as:
- Company Limited by Shares;
- Company limited by guarantee;
- Unlimited Company.
An organization registered as Exempt Private Limited Company is exempt from financial reporting if the turnover is less than 10 million Singapore dollars per tax year. This option is ideal for start-ups that can reduce the cost of doing business.
Documents for opening a company
To open a cryptocurrency company in Singapore in 2022, you need to file the following documents:
- Notarized copies of all owners;
- Constituent documents package with articles of association, copies of meeting minutes.
How long does it take to register
If all papers are filed, the company is registered within 2 weeks.
Income tax is not payable to firms that work with non-residents. It also does not apply to:
- foreign investments;
- money that hasn't been deposited in Singapore bank accounts.
If you plan to work with local residents to transfer income to the Singapore banks, must pay 17% tax on income.
How to quickly open a company in Singapore
For quick registration of a cryptocurrency company in Singapore in 2022, contact at IT-OFFSHORE specialists.