Singapore is one of the most respectable and safest jurisdictions. According to the World Bank it is a number one country for ease of doing business.
It is a common law jurisdiction and English is one of four official languages in Singapore.
The advantages of a Singapore Company are the following:
- Territorial taxation (subject to certain provisions);
- No controlled foreign company rules;
- Limited liability for shareholders;
- 100% foreign ownership allowed;
- No capital gains tax;
- No dividend tax (dividend income from foreign investments is exempt from taxation in Singapore, if the foreign tax is at least 15% and has been paid in the foreign country; dividends from local investment is exempt of dividend tax);
- Goods and Services Tax (GST) which is similar to VAT is 7%;
- Over 75 taxation agreements and 8 limited treaties dealing with shipping and airline enterprises income.
Formation of a Singapore company is very fast. The name check of the company takes up to an hour. If the incorporation documents are ready and have been signed by the directors and shareholders of the new company, the submission of the incorporation request as well as the approval from the Registrar of Companies can be completed in few hours.
- A company is required to have a local director and local company secretary.
- A shareholder of the company can be either an individual or corporate. 100% foreign ownership is allowed.
- A physical Singapore office address is required and it cannot be a P.O. Box.
Corporation tax is 17%. However, 75% of the first SGD 10,000 and 50% of the next SGD 290,000 are exempt.
Bank account opening in Singapore for either Singapore or offshore company is quite straightforward provided necessary paperwork is submitted and the banks are satisfied with the given information. Most of the international banks have their presence in Singapore.
The accounting standards are based on the IFRS and known as Singapore Financial Reporting Standards (SFRS). All Singapore companies are required to submit accounts annually to the Singapore Inland Revenue and to the Company Registrant.
Please note that you must appoint a professional firm to register a Singapore company as Singapore law does not allow foreign individuals or entities to register a company themselves. For further information or assistance, please contact us.