Singapore has won the hearts of many as the best jurisdiction for locating a business. World Bank has consistently ranked Singapore number one on the ease of doing business index. For investors, a jurisdiction such as Singapore is of great interest because it guarantees them lower tax liability, ease of company incorporation, the sophisticated banking system, and liberal foreign ownership.
The two-step company registration process
Once you understand the benefits of taking a business to Singapore, the first step is incorporating it. In Singapore, the process to open offshore company in Singapore is fully computerized. This means that you can apply from any part of the globe and get the process completed fast.
Step One: The company name search and approval. Before commencing with the registration process, the Companies Act requires that you identify a name that has not been taken by another entity. After selecting and searching the name, it will be reserved for the company until the registration process is over.
Step two: Submission of the required documents: This involves uploading all the required documents so that the registration is processed.
If you get it right by searching the name and submitting the details of the company promptly, the company can be processed within 24-48 hours. This is supersonic speed compared to other countries here offshore companies take months to be cleared.
The main requirements for opening a company in Singapore
When you decide to open offshore company in Singapore, the Companies Act allows foreigners to have 100% ownership. Once a company is registered, it is considered a legal entity that communicates credibility. It is, therefore, taken with a lot of seriousness. From government authorities to employees and partners, your entity is greatly regarded. Therefore, the Companies Registrar requires the company to ensure it provides and meets the set requirements. Here are the main requirements;
- A duly searched and approved company name
- Articles of association
- Shareholders passports and their proof of address.
- A memorandum of understanding
- A resident company director
- A company auditor
- The business license
- Paid up share capital
The benefits of taking your business to Singapore
In addition to making the registration process easy, Singapore is very attractive because of the low tax regime. In some cases, you can qualify for 0% tax if the activities of the business are carried outside Singapore.
If your offshore company in Singapore has less than 20 shareholders (one of the shareholders has less than 10%), you will be subject 0% tax rate for the initial $300,000 taxable income. In ordinary cases, company profits of up $300,000 is taxed a corporate income tax of 8.5% while profit surpassing $300,000 is charged a flat rate of 17%.
The government of Singapore works on every avenue that can attract and retain enterprises in its jurisdiction. It ensures that the laws are stable and the financial sector vibrant to outdo other economies in Asia and globally. Whether your enterprise is at startup or has been in operation back at home, the decision to open offshore company in Singapore will never disappoint.