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Singapore

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It is considered the fourth most important financial center in the world and the third place in the world belongs to it in terms of income per capita. In recent times, Singapore has become the most sought-after Asian offshore destination of the 21st century. Singapore represents one of the most politically stable countries in the world with minimal corruption. The services of most major international banks, financial institutions, investment management companies, accounting and legal firms are available to offshore investors. The Singapore government creates an attractive environment for foreign investment through favorable tax and financial incentives.

Company formation and business in Singapore

Singapore is not one of the classic offshore jurisdictions, but establishing a company brings significant advantages. Simplicity and speed. The whole process of setting up a company is very simple and set up in such a way that delaying bureaucratic procedures are eliminated.

The tax system in Singapore is governed by the territorial principle. This means that you only pay tax if the profit is derived from an activity in Singapore. So when all of the company's profit comes from sources outside of Singapore, the company is not liable to pay tax. In the case of onshore transactions, the basic corporate income tax rate is 17 %. But the government offers tax breaks for newly established companies. During the first three years, profits up to $100,000 are completely exempt from tax, for incomes up to $300,000 the rate is halved. There is zero tax on capital gains and dividend payments in Singapore. Singapore is made for offshore business!

Singaporean law offers very liberal rules regarding foreign ownership of a business. Since Singapore is a modern financial center, many large financial institutions and consulting firms are based here.

Owning a company in Singapore is a prestigious matter in the eyes of partners and clients. Long-term political stability is also very important.

Types of companies
The basic type of company is a Private Limited Company, the establishment of which requires only one partner, who can also be a resident of any country. However, one director who is a citizen of Singapore is mandatory. According to the law, the secretary must also be a resident. The company must have a registered office at a physical address, PO Box is not allowed in this case.

Anonymity
The register of companies is publicly accessible, for greater anonymity it is possible to use the so-called nominee services. We believe in and respect every person's right to privacy – and entrepreneurs in particular. That's our opinion!

And as a final bonus – Singapore is a signatory to many double taxation treaties.

The World Bank has rated Singapore as the country with the best access to set up and operate and start a business. According to information from the American CNN and the London-based research company WealthInsight, Singapore will take over the position of the largest tax haven by 2020.

According to analysts, the Asian city-state is the fastest growing tax haven. In addition to Singapore's low tax burden, the fact that more and more wealth is being created in Asia also helps. Moreover, the concentration of mobile individuals is growing rapidly in China, Indonesia and other Asian countries.

Singapore, or the little Asian tiger, is the easiest country in the world to start a business. But it does not mean that it is the best in all ten evaluation criteria. It is an unrivaled leader in the conditions for international trade, it holds the top ranks in investor protection or in ensuring compliance with contracts, but for example in property registration it ranks as high as 36th.

Generally, income generated outside Singapore is not subject to local taxation. The tax return is mandatory and is submitted every year even when the company shows no activity.

Basic information

  • Minimum number of directors: 2
  • Only a natural person can be a director, and one of the directors must be a resident of Singapore. This director is responsible for ensuring that the company's ope­rations comply with Singapore's le­gal order
  • Minimum number of shareholders – 1. They can be natural and legal persons – residents of any state
  • The minimum amount of share capital is not set
  • The suffix of the business name (name) of the limited liability company must contain the words (Private) Limited" or „(PTE) LTD“
  • The register of shareholders and executives is not publicly accessible

Taxation

  • Companies – residents pay tax on income both from sources located in the territory of Singapore and from foreign sources
  • The income tax rate is 26 %
  • Non-residents pay income tax only from sources within the territory of Singapore and international double taxation treaties are not applicable to them
  • An annual report containing data on all changes in directors, shareholders and secretary, name and registered office of the company must be submitted to the commercial register
  • Annual financial statements and the auditor's report are submitted to the tax office and copies of these statements must be available at the company's head­quarters
  • The general income tax rate is 0–20 %
  • All income from sources within the territory of Singapore is taxed, as well as income from sources located outside the territory of Singapore, if it has been transferred to Singapore
  • Singapore has signed international double taxation treaties with the following countries: Australia, Bangladesh, Belgium, China, Denmark, Philippines, Finland, France, India, Indonesia, Israel, Italy, Japan, South Korea, Canada, Malaysia, Germany, Netherlands, New Zealand, Norway, Thailand, Taiwan, Sri Lanka, Sweden, Switzerland, Great Britain

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