Background & General Outline
Singapore is a sovereign state in Southeast Asia. It comprises one main island and 63 smaller islands spread across 725 km2. It is home to over 5.7 million residents who speak English, Malay, Mandarin, and Tamil. Business within Singapore is mainly conducted in English or Mandarin.
Singapore is part of the “Four Asian Tigers” along with Taiwan, Hong Kong and South Korea. It has a highly developed market-based economy and even leads the way in the region in terms of the GDP per capita and is 7th globally.
It has a competitive, free, innovative, and business-friendly economy which is the second freest economy in the world. Singapore has an AAA credit rating from the Big Three, the eleventh largest foreign reserves, and is home to some 7,000 multinational corporations from the US, Europe, and Japan.
Its key industries are foreign exchange, finance, online gambling, oil refining, and logistics. It also has an emerging industry for blockchain and cryptocurrency businesses. The economy is highly diversified and provides numerous lucrative opportunities for company incorporation in Singapore.
Political Structure & Legal System
Singapore is a parliamentary republic and is ultimately governed by its Constitution. The country submits to a Westminster System and the President, advised by ministers, is the head of state. There is a Prime Minister appointed by the President and is the head of the government. In addition to this, the Singapore government is divided into three executive branches: the Executive, Legislative, and Judicial.
The country’s legal system is based on British common law. This means that the concept of precedents is practised within the judiciary. The Singapore legal system has four components including the Constitution, Legislation, Subsidiary Legislation and Legal Decisions, or precedents that are decided by judges.
Name Restrictions for Company Incorporation in Singapore
When considering company incorporation in Singapore, you must consider certain limitations when naming the entity. You’re not allowed to choose a name already attributed or reserved for a Singapore offshore company. Any offensive or crude names are banned, along with a list that the Minister deems unacceptable. This also includes any names that have religious connotations.
Singapore is an open economy and there are few restrictions on those wishing to incorporate a company there. A Singapore offshore company can be 100% foreign-owned, except if they wish to conduct air transportation, newspaper and media publishing, shipping, and public utilities.
Taxation in Singapore
A big benefit of offshore company incorporation in Singapore is that there are low tax rates and many financial incentives. The Singapore government taxes profit at 17%, not revenue. This can be reduced dependent on certain tax incentives and exemptions that are available. Dividends paid to shareholders are tax-free, there is no capital gains tax, and certain foreign-source income can be exempt from taxation.
Double Taxation Treaties
Singapore has signed over 80 double taxation treaties in order to avoid double taxation on Singapore-resident companies. Countries that have signed agreements include ones in the Americas, Asia, and Europe. There are circumstances where tax credits can be applied depending on each company’s unique situation.
Accounting & Financial Statements
As per the country’s Companies Act, any offshore company in Singapore must file certain reports on an annual basis. These include annual financial statements, annual return filing, annual tax return filing, and details and minutes from the annual general meeting. There are some exemptions for annual requirements, but these are dependent on the total annual revenue and the number of employees.
Disclosure of Beneficial Owner
In May 2020, the Singapore authorities implemented a central register of company controllers. This register contains the details of both those in controlling positions and potentially those who use nominee shareholders. These records are not publicly accessible, they are only accessible to the government.
Capitalization Requirements for Incorporation in Singapore
If you incorporate an offshore company in Singapore, the minimum paid-up capital needed is just USD 1. If your company is operating within a regulated industry there may be additional requirements. There may also be situations where a higher paid-up capital is beneficial to company prospects. This will be decided on a case by case basis.
There are no foreign exchange restrictions or control on currency, remitting, or repatriation of capital in or out of Singapore.
How Much Does Incorporation in Singapore Cost?
You can get your Singapore Offshore Company for as little as €3,400. You can also benefit from our special renewal package and additional optional services. To get full price details, related documents and services click on the button below:
Contact Us for Incorporation in Singapore
Singapore is a dynamic, innovative, and fast-paced jurisdiction. It’s highly developed and the fiscal system is one of the world’s simplest. With great tax incentives, a thriving international community of entrepreneurs, and a simple set-up process, it is gaining traction as a popular and versatile offshore incorporation jurisdiction. Contact us today to get your offshore company registered in Singapore.
More Locations to Incorporate Your Company
Not sure about Singapore? No problem! There are several other locations to consider. Select any of the countries below to learn more:
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