IT business relocation to Singapore: what is re-domiciliation
Moving your IT business to Singapore is ideal for firms that want to change their jurisdiction. It is a stable and reliable country with clear rules and a secure rule of law. Among other advantages, we should name high standards of accounting, minimum taxes, or even their absence, if the company does business outside the jurisdiction. The application process and requirements are simple and clear. There is a re-domiciliation algorithm developed for existing companies. English is the national language in Singapore, so there are no problems with translation.
Instructions fo transferring a business to Singapore
In 2017, Singapore allowed foreign legal entities to transfer their businesses there from other countries. The company has to comply with the local rules but in general, it allows to securely relocate and redomicile business and preserve the corporate history and brand name.
Applying for redomiciliation
For the business transfer to Singapore to go smoothly, one must apply for a change of incorporation according to the redomiciliation procedure. It's important to keep these points in mind:
- When the transition is complete, the company will be incorporated as an LLC.
- Changing the place of registration is not the creation of a new legal entity, so the obligations, property, and litigation also remain in force, as well as a reputation.
- The company must notify its contractual counterparties about the change of place of registration.
- It's not necessary to change the bank but the financial institution may require you to provide re-domiciliation documents.
- Application for change of place of incorporation is submitted to the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. The application can be processed for about 2 months after all the documents are submitted. When a positive response is received, it is necessary to deregister the company in the country from which it is moving within 2 months.
The outgoing jurisdiction may charge the company exit tax, stamp duty, or capital gains tax. The Singapore authorities have envisaged it, and can partially reimburse the losses if the company has never before been engaged in business in Singapore.
Obtaining a visa
When the re-registration is completed, one must apply for a work visa in Singapore. Obtaining EntrePass will allow you to act as the company's local director. You should also apply for a Permanent Residence Permit or Permanent Resident Card, which will allow you to stay in Singapore without any inconvenience.
If you do not want to relocate, you can appoint a resident director as required by local laws. We will help to resolve this issue.
Transferring business assets
Once you've obtained your visa, you can start transferring business assets. These include contracts, intellectual property, cash, stocks, inventory, etc. You also have to settle obligations you made in your company's home country.
Transferring an IT business: when you need to register from scratch
An IT company can only relocate a business to Singapore if it's permitted by the jurisdiction where the company is incorporated. For example, the UK and Hong Kong do not allow this. In this case it is necessary to register the company in Singapore from scratch.
How to quickly transfer an IT business to Singapore
We recommend contacting IT-OFFSHORE experts to simplify the transition process and move your IT business to Singapore in 2022 as quickly as possible.