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
Under many countries, including Singapore, Employment Agencies are licensed organisations. Generally you are required to obtain an employment agency licence if you are providing recruitment and placement services to other employers. You do not require a licence if you are recruiting persons for the sole purpose of employing them for your own company/business.
Reduce your performance risk by acquiring human expertise to complete your most important products.
Acquire unlimited online and offline relationships with potential customers who provide the most impact to your top and bottom line.
Recruit blue and white collar workers to fulfil a particular business objective. Complete with residency visas (if needed) and employment contracts.
Acquire a technology (i.e e-commerce site) to be recognised and implemented in your business model. Objectives of the technology can be to either;
Unlimited sales and product / services training to your sales and distribution team, include dissemination of product / services updates and customer profiling for each sales member
A customer database as an interactive and intelligent contact list. Your database stores valuable information about your customers, such as emails, demographics, and purchasing history. The database provides visibility over customers who are buying your products or services, while driving acquisition, retention, and development of your customer base. You can make more informed selling decisions, as the most likely future customers are those who have bought from you in the past.