Offshore Company Formation in Singapore

Offshore companies are companies that are set up outside of their home country. Therefore, it is important to correctly choose the country that you want to incorporate your offshore company in because it can either make or break your business.

As a major country in the Asian region and an international business hub, Singapore is one of the choices that you can consider to incorporate your offshore company in. Due to the country’s stable economy, stable political situation, and an environment that is mainly focused on business, your risk is from little to none.

Besides that, if you happen to be spoilt with a choice of whether to register your company as an onshore company or an offshore company, there are formation experts that can offer in-depth information and advice on the different types of company registrations and offer an appropriate solution.

Advantages

The advantages of forming an offshore company in Singapore are:

    • Due to the computerized registration, the process is quick and effective while removing any unwanted restrictions or red tapes because bureaucracy almost didn’t exist in this process
    • Your offshore company can be formed within a period of 1 or 2 days
    • According to the World Bank, Singapore is ranked as one of the easiest places in the world to conduct business in
    • Although Singapore is not considered as a tax haven, offshore companies are still able to enjoy substantial tax savings due to its simple and low tax system
    • Corporate taxes only apply to territorial profits, and this means income are only taxed if they are earned in Singapore or received from a foreign source
    • The company only need to pay 8.5% tax rate for income up to 300000 Singaporean Dollars
    • 17% tax rate will be charged for income over 300000 Singaporean Dollars
    • Foreign income that is not delivered in Singapore are not taxable
    • If the foreign income meets the qualifying conditions, then the company may not even need to pay any taxes
    • It is not compulsory to do an audit on company’s financial statements if your turnover is below 5 Million Singaporean Dollars
    • Newly formed companies are not required to pay taxes for the first 3 years provided that they meet certain requirements such as having 20 shareholders and one of shareholder must own at least 10% of the shares
    • Singapore is least corrupted country in the world because the Singaporean Government ensures openness, transparency along with strict regulations on all business matters, conducts, and transactions
    • Singapore has a solid and reliable legal system hence this reduces your worries further should your company be caught in any legal disputes
    • If you happen to fall in love with Singapore and would like to stay in Singapore for good, the country offers lenient immigration guidelines that make it easy for foreigners to receive a Permanent Residence status
    • Foreigners are allowed to own 100% of the offshore company incorporated in Singapore in all industries

 

  • No authorization will be requested during the time of registration

 

 

Required Documents

The required documents to incorporate an offshore company in Singapore are:

  • Company name that is approved by the Accounting and Corporate Regulatory Authority (ACRA)
  • At least 1 Resident Director that is residing in Singapore locally
  • At least 1 shareholder and you are allowed to have a maximum of up to 50 shareholders
  • Company Secretary that is a local resident and locally registered in Singapore
  • A minimum paid-up capital of 1 Singaporean Dollars
  • An address that is registered locally
  • Incorporation Agent
  • Documents for Incorporation
  • Passport copies of Directors and shareholders
  • Residential addresses of Directors and shareholders
  • Details on the parent company

 

Procedures

The procedures to incorporate an offshore company in Singapore are:

    • Make sure that the company name is approved by Companies Registrar
    • Register the company with the Company Registrar of Singapore
    • Set up a bank account

 

  • Register the company for Goods and Service Tax with the Inland Revenue Authorities of Singapore

 

 

Recommended Industries

Some of the best industries that you can consider to incorporate your offshore company in includes the following list:

  • Trading
  • To offer professional consultancy services
  • Investment
  • Asset Holding
  • Ship management
  • Intellectual property ownership
  • Real Estate
  • Yachting

 

How to Set Up a Bank Account

To open a bank account for your offshore company in Singapore, you are required to go for a personal interview with a banking officer at a specific bank in Singapore. In addition to attending a personal interview, many Singaporean banks also require extra documents including company’s owner qualifications, the offshore company’s business profile, and more. Unfortunately, it is getting increasingly difficult to open a bank account in Singapore compared to the previous years. Fortunately, the whole process may not be that daunting as it sounds because certain locally registered agents can also help you to facilitate the whole process by evaluating your proposed company profile and documents, to determine which bank fits your qualification and profile, and arranging for a personal interview. Nevertheless, these extra services will come with some additional charges.

 

Required Documents to Open a Bank Account

The standard documents that are required to open a bank account are:

  • A copy of your international passport
  • One or two copies of your utility bills that are not older than 3 months to proof your residential address and these documents must include your full name and full address
  • Curriculum Vitae
  • Bank reference
  • Description of the company’s business
  • Offshore company documentation that is certified by the notary and legalized with Apostil
  • Any other documents that the banks will request as they see appropriate