Opening an offshore company in Singapore: advantages and nuances
The political and economic stability of Singapore, a minimal package of documents and low cost of registration are the reasons why non-residents want to open an offshore company in Singapore. The country is not an offshore zone in the literal sense, but if you plan to work outside of it, you will not have to pay tax.
Advantages of Singapore as offshore
Thousands of new firms are opened in Singapore every year by non-residents. There are several reasons for its popularity:
- Stable economy.
- No double taxation (signed a treaty with 21 countries).
- No currency control, allowing you to transfer funds in any quantity without conversion.
- Legislation based on British law.
- Easy and fast company registration due to the competent actions of the authorities (some services are available online).
- English is the state language, so you can safely keep documentation in a common language.
- The country is ideal for businesses that focus on Asia.
- High confidence in local banks by the international community.
Singapore is not on the "black lists," which confirms the respectability of the jurisdiction, so any contact with companies registered there does not cause problems in Ukraine, Russia and other countries.
Features of tax policy and accounting in Singapore
If a Singapore company works with residents and transfers profits to local accounts, you must pay an income tax of 17%. But there is a nuance: you don't have to pay if the money is sent from abroad and the following:
- it wasn't deposited into a Singapore bank account;
- it wasn’t spent on the purchase / rental of local real estate.
Thus, businesses that do not operate in the local market, make a profit abroad, are exempt from tax. At the same time all Singapore companies, regardless of the origin of profits must keep accounting records, show the records to the regulatory authorities.
Peculiarities of registration of an offshore company in Singapore
To register an offshore company in Singapore, it is necessary to rent a legal office. There must be a local representative (resident) on the list of directors.
The company name must be unique and not repeat the name of the company already registered in the country. In the end it is necessary to specify the type of ownership - Private Limited (Pte Ltd).
Period of registration of offshore company
1-2 weeks if you use IT OFFSHORE services. Self-registration of an offshore company in Singapore in 2021 may take several months.
What documents are required for registration of the company
- Notarized copies of documents of founders, shareholders, directors, etc.
- Constituent documents with articles of association.
- Copies of meeting minutes.
Does the personal presence of the founders is necessary
The personal presence of founders is not obligatory. Thanks to the introduction of IT-technologies in the work of state authorities many formalities can be handled remotely.
To register an offshore company in Singapore, contact IT-OFFSHORE specialists. We know all about the local legislation, we can help you find a resident director, open an office, keep accounting records.