Setting up your business in Singapore, the world’s hottest hub is one of the wisest decisions an individual or company can make in today’s era. Singapore has yielded lucrative returns and maximum ROI for entities and companies for decades, and it will proliferate in the upcoming years.
Singapore has one of the most competent, talented, and skilled workforces in the Asia Pacific, and its business environment makes it the perfect regional hub for MNCs and well-established firms to expand their business operations and take advantage of incentives, initiatives, schemes, policies, and taxation systems.
If you wish to start your Offshore Company in Singapore and need clarification, this blog is for you. In this blog, we will explain why and how you should set up an Offshore Company in Singapore.
What is an Offshore Company?
Let us first quickly walk you through what an Offshore Company is. It is incorporated in a jurisdiction other than its base (headquarters), where the parent company, directors, and shareholders are located.
Offshore Companies are incorporated to take benefit of laws and policies, which are absent in their principal location, such as favourable taxation systems, efficient financial regulatory institutions, and government initiatives to promote business growth.
They can engage in any business activities and operate with a different name than their parent company. You can apply for Business License from the GoBusiness Licensing website, a Singapore Government Agency website.
You can refer to our other blog, “How to Pick the Right Name for Your Company in Singapore?” for assistance in selecting a name for your business in Singapore.
Why Should You Set Up an Offshore Company in Singapore?
Let us answer the most asked question by Individuals and Companies across the globe by walking you through the reasons and benefits of setting up an Offshore Company in Singapore.
Singapore has the most efficient, favourable, and intriguing tax regimes in the Asia Pacific, as companies and entities can enjoy a flat 17% corporate tax & only those revenues & gains attained in Singapore or remitted into the country are considered taxable for Tax calculations.
Because of its single-tier tax policy, Offshore Companies can distribute tax-free dividends to their shareholders, provided income has been taxed at the corporate level. It also means that Offshore Companies are liable to pay less taxes than their jurisdiction location.
They can also enjoy numerous tax benefits if the control and management have been exercised for the prior Assessment year in Singapore (the year when income is assessed). It helps safeguard from double taxation & tax exemptions on specific income types.
You can read our other blog, “Tips to Manage Company Tax in Singapore.” for your reference.
Hottest Financial Global Hub
Singapore has undoubtedly been one of the trending fintech hubs globally and ranks #3 on the Global Financial Centres Index list. It is ranked #7 in business environment and human capital, #3 in Infrastructure, #5 in Financial Sector Development, and #3 in Reputational & General.
These facts and figures are enough to lure any MNC and firm based abroad to consider Singapore for setting up an Offshore Company. With 200+ foreign banks and 1400+ foreign financial institutions, it is a no-brainer that companies will have unparalleled financial services support to boost their operations.
With Singapore Government’s new policies and initiatives, Offshore Businesses will have access to several advanced fintech products to foster their organisation development and meet their financial needs to gain a competitive world in a dynamic and fast-paced world.
Business-Friendly Regulatory Environment
Singapore has been rated highly by World Bank for business commencement for MNCs and firms worldwide. There are numerous reasons behind this, such as transparent, fair, and efficient corporate & financial regulatory institutions for borrowing/lending funds and capital for business setup and growth and political stability, which has kept lucrative schemes and initiatives to aid startups and new businesses.
Also, you will have ease of public and private transportation and services for commute and administrative support. Company Incorporation in Singapore is straightforward and quick as Singapore Government grants foreign companies 100% ownership of their Offshore operations in several sectors.
How to Set Up an Offshore Company in Singapore?
You can incorporate your Offshore Company in Singapore via ACRA’s BizFile+ portal. You will be required a SingPass ID to log into Bizfile+, and you can contact us, and our Business Advisory Consultant will guide you through the entire process of Company Incorporation. The following is the list of information required for Offshore Company Incorporation in Singapore:
- Proposed Company Name
- Company’s Registered Address
- Brief Description of Engaged Business Activities
- Company’s Constitution
- Particulars of Directors, Company Secretary, and Shareholders
Note: Apart from the above documents, Filing Agent may ask you to provide additional information for Company’s Incorporation.
The following requirements must be kept in mind:
- Must have a registered physical office in Singapore for communication via mail and sending notices.
- Must appoint a Singapore Resident as Company Secretary within six months of the Company’s Incorporation.
- Must have at least one Director who is a Singapore resident, with a minimum of 18 years of age and not have been involved in any charges of dishonesty and fraud.
You can complete the entire process within 24-48 hours.
Things to do after Setting Up an Offshore Company in Singapore
After company incorporation, you will receive an official confirmation via email from ACRA containing your company’s registration number (Certificate of Incorporation in Singapore). The following are pivotal things to do after the Offshore Company is set up in Singapore:
After Incorporation, your Offshore Company is naturally qualified for Corporate Income Tax with the IRAS. If your expected annual turnover and turnover exceeds S$1 million in 12 months of business, you must register for GST in Singapore. At Bestar Services, we provide GST Registration Services in Singapore and contact us for any questions and assistance for the same.
Corporate Bank Account Set Up
You must set up a Corporate Bank Account in Singapore to facilitate the administration of Financial Accounts. Some banks will ask for the physical presence of company directors and other authorised signatures for the Offshore Corporate Bank Account opening. In contrast, some allow the option of opening an account online.
After reading the blog, you will have sturdy comprehension and clarification about Why and How to set up an Offshore Company in Singapore and things to do after company incorporation. However, if you have questions, feel free to contact us.
At Bestar Services, we provide comprehensive Company Incorporation Services, including Foreign Business Set Up in Singapore. We recommend hiring Business Advisory Consultant from us to simplify the process, and we will formulate a bespoke Company Incorporation that fits within your budget.
We have helped 100s clients successfully set up their business operations in Singapore. We handle every aspect, including obtaining Licensing, GST Registration, Opening a Corporate Bank Account, and more.
Contact us for a consultation by calling at +65 62994730 or emailing at email@example.com.