Singapore has a pro-business environment, affordable taxes, and qualified workforce. However, business owners primarily set up offshore company in Singapore for its business laws.
What is a Singapore Offshore Company?
An offshore company is not a new company type. It is a normal Singapore company setup formed by you as a foreigner. Obviously, it is registered, managed and operated as per the Singaporean laws. It may receive legal, financial, and tax benefits for being formed in Singapore as inducements.
You may choose to set up offshore company in Singapore for the following reasons:
- Your institutional investors insisted on forming a Singapore offshore company to grow your business
- Your investment holding company wants to benefit from relief from Stamp Duty and Capital Gains
- You want to protect IP assets
- You want to maximize ROI
- You want to leverage tax planning and maximize reliefs
- You are in estate planning
- You desire enhanced privacy
Reasons for Setting UP Offshore Company in Singapore
Low Tax Regime
Business’ tax liability cuts into their profits. It makes sense for the owners to register their offshore company where tax rates are low.
Singapore company income tax rate ranges from 0% to 17%, and personal tax ranges from 0% to 22%.
Credibility
Singapore offshore company is a legal entity and enjoy credibility among shareholders, financial institutions, & employees.
Red-Tape Free Company Registration Process
It has an efficient process for company registration. It is free of bureaucratic hurdles and takes only 1-3 days to register a new company. In Singapore, you enjoy the ease of doing business.
Complete Foreign Ownership
In Singapore, foreigners can choose to own 100% equity in their company. They need no special permission from authorities for their Singapore company setup.
Pro-Business Environment
Singapore is politically stable, and the bureaucracy is pro-business. You see proactive & rational legislation & responses to changes in market conditions. The government is pragmatic and transparent in its action. It is a society that is almost free of corruption.
Top-Notch Banking Facilities
You get numerous options in offshore banking. In this business hub, you can efficiently operate multi-currency accounts. There are no restrictions on the transfer funds in/out of Singapore. You may have to be physically present to open an offshore bank account for your company. It takes about 2 to 15 days.
Opportunities for Investors
In Singapore, you can invest in industries that are active in the chemical, electronic, mineral, petroleum, transport, manufacturing sectors. The dividends disbursed are tax-free.
Opportunity for Startups
For the first three years, under the Start-up Tax Exemption Scheme, local startups get 75% tax exemption on their first S$100,000 taxable income. And 50% of their next S$200,000 taxable income. The country offers many incubators and accelerator programs to the startup owners. It also allows you to deduct expenses incurred before the commencement of business.
Singapore has no tax on capital gains (dividends) or accumulated earnings. It is usual for companies to pay 8.5% on taxable income of up to S$300,000. The existing companies also benefit from Partial Tax Exemption (PTE).
If you want to set up offshore company in Singapore, we at SBS Consulting Pte Ltd can offer you expert guidance. Contact us on +65-6536 0036 or email us at info@sbsgroup.com.sg for answers.
