An offshore company is a legal entity that is incorporated in a jurisdiction outside of the company’s main operations or the principal investor’s home country. The advantages of setting up an offshore company is getting certain tax, legal and financial privileges for being incorporated in that country.
Singapore is no stranger to being home to Asia’s preferred country for offshore company registration for many multi-national companies that are looking into gaining international exposure, market expansion, and revenue growth in and around the ASEAN region.
Today, we will take a look at some of the benefits to Register Your Offshore Company in Singapore:
1. Low Tax Rates
Singapore is well known for its attractive corporate tax regimes in Asia. Since its taxation system is territorial based, only income derived from within Singapore is subject to tax. The country has a very simple and supportive tax system to incentivise foreign investors with many tax breaks for certain industries. Depending on the size and industry of company, corporate tax rate is set from 0%-17% and personal tax rates vary from 0%-20%. Furthermore, once income has been taxed at the corporate level, Singapore’s single-tier tax policy allows businesses to avoid double taxation in countries to conduct cross border businesses and investments freely.
The corporate income tax rate is approximately 8.5% for profits up to S$300,000 and a flat 17% above S$300,000. Furthermore, a newly incorporated company enjoys 0% tax rate on the first S$100,000 taxable income for each of the first three tax filing years, provided the company has a maximum of 20 shareholders of which at least one is an individual shareholder holding at least 10% of the shares.
Despite a barrage of tax breaks and reduced tax liabilities for foreign investors, Singapore is not a tax haven. As a legal entity, an offshore company incorporated in Singapore conveys legitimacy and stature. By incorporating a Singapore offshore company, stakeholders such as staff, bankers or other professionals you will be working with will take your business legitimately.
3. Political Stability
Singapore has been ranked as the most politically stable country and Asia’s least bureaucratic country. Singapore government is noted for its high integrity and pro-business attitude and also defined as logical, pragmatic, open and free from corruption. A straightforward, sound and productive legal system also characterizes Singapore in providing minimal risks both financially and legally in setting up an offshore company.
4. Progressive Foreign ownership policy
Foreigners and non-residents do not require prior approval from the government before registering an offshore company in Singapore due to its open and liberal policy. Both corporate and individual bodies can be assigned as shareholders fully or partially in all sectors.
However, Singapore law does not allow foreign individuals or entities to register an offshore company in Singapore on their own. Which is why it is imperative to engage a corporate secretary in Singapore to register a Singapore offshore company.
5. Easy incorporation of offshore company
To register an offshore company in Singapore is quick, efficient and free of bureaucratic restrictions. The registration procedure is fully computerised and involves only two distinct steps – company name approval and submitting incorporation documents. Both these procedures can be executed online and under normal circumstances a Singapore offshore company can be incorporated in 1-2 days when engaging a corporate secretary in Singapore.
Singapore has been a business hub for many MNCs across the globe for years. The Singapore government has been encouraging and inviting foreign investors to invest by attracting them with financial and tax offers which makes Singapore best choice for company expansion and entrepreneurial activity in Asia. We hope the reasons above has convinced you enough to start setting up your offshore company in Singapore and EBOS is your go-to corporate secretarial service provider if you wish to do so.