There are several benefits of incorporating an offshore company, especially one in Singapore. Some of the main advantages include:
Taxes are one of the key considerations for setting up an offshore company. One of Singapore’s unique advantages is its simple and low tax system.Singapore’s tax system is characterized by low corporate and personal income tax rates; tax incentives and tax relief measures; absence of capital gains tax; absence of dividend tax; territorial one-tier tax system and an extensive tax treaty network.
As Singapore follows a territorial basis of taxation, taxes apply to income that is accrued to or derived by the company from Singapore or foreign-sourced income received in Singapore. Foreign-sourced income received in Singapore that meets certain qualifying conditions is exempted from Singapore tax, while foreign-sourced income that is not remitted into Singapore is exempted from Singapore taxation. Singapore follows a single-tier tax policy which means once the income has been taxed at the corporate level, dividends can be distributed to shareholders tax free.The corporate income tax rate is approximately 8.5% for profits up to S$300,000 and a flat 17% above S$300,000. Furthermore, a newly incorporated company enjoys 0% tax rate on the first S$100,000 taxable income for each of the first three tax filing years, provided the company has a maximum of 20 shareholders of which at least one is an individual shareholder holding at least 10% of the shares.
Since Singapore is not a tax haven, an offshore company that is incorporated in Singapore communicates credibility and stature as a legal entity. By incorporating a Singapore offshore company, your business will be taken seriously by stakeholders such as employees, bankers or other professionals you will be dealing with.
Singapore was ranked #2 as the world’s easiest place to do business in 2018 by the World Bank Group.Company registration is quick and efficient and free of bureaucratic red-tape. The registration procedure is fully digital and involves only two distinct steps – company name approval and submitting incorporation documents. Both these procedures can be executed online and under normal circumstances a Singapore offshore company can be incorporated in 1-2 days.
Singapore’s foreign ownership policy is open and liberal. There are no restrictions on permitted fields of business activity if you want to set up an offshore company in Singapore. 100% foreign shareholding is allowed in all sectors. Shareholders can be individuals or corporate bodies. Additionally, foreigners looking to register an offshore company in Singapore do not require prior approval from Singapore authorities.
The Political and Economic Risk Consultancy has rated Singapore as the most politically stable country in Asia and Asia’s least bureaucratic country. The Singapore government is noted for its high integrity and pro-business approach. It is often described as rational, pragmatic, transparent and corrupt-free. Singapore is also characterised by a transparent, sound and efficient legal system. There are clear-cut rules and regulations pertaining to commerce, intellectual property protection, manpower and other business related areas. As a result, the level of risk involved in setting up and operating a Singapore offshore company is minimal and almost non-existent.
Singapore has emerged as the leading financial center in the Asia Pacific region. Singapore offshore companies are offered a broad choice of reputable local and foreign banks for opening an account. Banks in Singapore offer a wide-array of attractive features such as multi-currency accounts, internet banking, credit cards, trade financing, freedom to move funds across countries and more. Although most of the banks require physical presence at the time of opening the account, some banks are also willing to make an exception on a case-by-case basis. The account opening process may take anywhere from 2-15 days depending on the amount of due-diligence undertaken by the bank.
Some of the non-physical assets that we would add to realise a sales and distribution team
Technically, it is possible to start your business in China as a foreigner with no assistance. However, know that there will be a good amount of hurdles waiting for you. Hiring a local consultant can really ease the process if you have what it takes when it comes to budget. A consultant can help you make decisions regarding your business structure, they can organize and file the paperwork, and act as the company representative while you are not in China. Also, know that there are multiple ways to set up your business in China. Each way has its own advantages and disadvantages.
Representative office (RO)
Joint venture (JV)
Wholly Owned Foreign Enterprise (WOFE)
Collaboration with other businesses is critical to allow businesses to survive and grow. In more competitive markets, the more burden there is to ensure that they come up with some new methods and approaches that are likely to assist them in the expansion of their businesses. There are many approaches that can be relied upon depending on the kind of business environment that it is operating in. The general term for that is called partnership agreements.
Register your brand elements in the local intellectual property offices, to prevent anyone in that country from claiming use of it. It provides trust to your team and customers that if they want to procure your product and services, they can only goto your company and no-one else.
Each country will regulate and tax international imports and exports. Many countries traditionally relied on an effective tariff system, together with careful regulation of imported goods, as a way to raise revenue for their treasury. If you want to run a business that requires getting goods from one country and sending goods to another country, it is important to know how to get a license for an import-export business.
Corporate tax planning is the development and implementation of strategies that result in lower tax liabilities by an organization. Given the complexity and variation of tax laws from one country to another, this is usually a lengthy and complicated process. Corporate tax experts are usually hired to develop and implement corporate tax plans.