How to set up an offshore company in Singapore 2022
Singapore is one of the most interesting jurisdictions for offshore companies. It boasts a stable political and economic situation, and banks are trusted. The territory is on the EU white list and is considered the fourth financial center of the world.
There is no tax on foreign income that is not credited to local banks, as well as no tax on dividends, capital gains, and gifts. Double taxation agreements are signed with many countries around the world. Tax reporting procedure is flexible and streamlined. Read how to open an offshore company in Singapore 2022 in this article.
How to open an offshore business in Singapore
Registration of offshore companies in Singapore is handled by ACRA (Accounting and Corporate Regulatory Authority), a special regulatory body. It carefully checks documents, identity of owners as well as employees who represent business in Singapore.
Types of companies
Before you apply, you need to determine what type of company you want to start:
- A private limited company (Pte Ltd) is the most common option. Non-resident can own 100% of shares, the number of shareholders - from 1 to 50. A nominee director and shareholder are permitted, allowing the real owner to remain in the shadows. Registration takes 10 days;
- Limited Liability Company - defines the joint liability of shareholders, in proportion to their share in the business;
- Private (individual) entrepreneur - suitable for businesspeople who are not going to hire employees.
Requirements for company registration
To open a business in Singapore 2022, you must rent a legal office in the jurisdiction. There must be at least 1 resident among the directors. The name cannot duplicate another organization registered in this country.
To open a company, one must submit the following documents:
- Copies of passports of shareholders, beneficiaries, and directors, translated into English and notarized;
- Articles of Incorporation and other founding documents;
- Minutes of meetings (copies).
To apply for registration of the company the presence of the owners is not required. This can be done online with the help of a special service. The regulator considers about 2 weeks, after which it makes a decision.
After registering the business, ACRA will send an official certificate of registration with a unique organization number. It will have to be listed on all invoices and business letters. The owner will also be able to upload his\her business profile to the ACRA website, which will generate credibility with the companies he\she plans to work with.
If there are plans to hire employees, the foreign entrepreneur must obtain a special permit. This document is important for employees who earn more than S$3 600 or hold managerial positions, as well as have higher education and high qualifications.
Opening a bank account
After registering an offshore business, it is necessary to open a bank account in Singapore. The process is simple. It requires several documents, among which the certificate of registration of the company from ACRA, passport, and place of residence of its owners.