What Offshore Company Owners Prefer About Singapore
With the number of offshore companies being setup in Singapore on the rise, a lot of overseas business owners have started to ask what offshore company owners prefer about Singapore. Last year more than 4000 offshore companies were registered in Singapore and many expect the number to go up considerably over the next few years. While the reasons for incorporating in Singapore can be different for various business owners, most of them seem to prefer the following regarding the country:
1) Foreign sourced income is completely tax free in Singapore. This is because the country follows the territorial system of taxation. As per this system, only that income is taxed that was sourced from within the jurisdiction of Singapore. However, this rule applies to only that income that is not remitted to Singapore and hence is more beneficial for offshore companies whose business is usually overseas and not inside Singapore.
2) Offshore company owners do not need to be present in Singapore when registering their company. Everything can be completely from overseas by appointing a local incorporation agent. All required documents can be couriered to the local agent and they can complete all formalities for you. Incorporation service providers also help in meeting with the mandatory structural requirements such as appointing a local director, a local company secretary and obtaining a local registered business address.
3) Singapore allows foreigners to own 100 per cent of companies incorporated in the country and they are allowed to reside anywhere in the world. There are no requirements of having to relocate to Singapore or visit Singapore for company matters.
4) Since most offshore companies choose to register a private limited firm in Singapore, their personal assets are safeguarded against any business liability, debts or claims against the Singapore Company. The capital risk of the owners is limited to their investment in share capital. The minimum paid up capital for incorporating in Singapore is only SGD $1 and hence a Singapore offshore company is relatively a risk free setup.
5) Since Singapore is a fully developed country and a leading financial center of the world, banking in Singapore is extremely simple and funds and be transferred to the country or from the country with ease and minimal restrictions. Many corporate banks even allow foreign entrepreneurs to open accounts without a face to face meeting. A telephone meeting is often all that is needed to open corporate bank accounts and this can be arranged by the local incorporation agent as well.
1) Foreign sourced income is completely tax free in Singapore. This is because the country follows the territorial system of taxation. As per this system, only that income is taxed that was sourced from within the jurisdiction of Singapore. However, this rule applies to only that income that is not remitted to Singapore and hence is more beneficial for offshore companies whose business is usually overseas and not inside Singapore.
2) Offshore company owners do not need to be present in Singapore when registering their company. Everything can be completely from overseas by appointing a local incorporation agent. All required documents can be couriered to the local agent and they can complete all formalities for you. Incorporation service providers also help in meeting with the mandatory structural requirements such as appointing a local director, a local company secretary and obtaining a local registered business address.
3) Singapore allows foreigners to own 100 per cent of companies incorporated in the country and they are allowed to reside anywhere in the world. There are no requirements of having to relocate to Singapore or visit Singapore for company matters.
4) Since most offshore companies choose to register a private limited firm in Singapore, their personal assets are safeguarded against any business liability, debts or claims against the Singapore Company. The capital risk of the owners is limited to their investment in share capital. The minimum paid up capital for incorporating in Singapore is only SGD $1 and hence a Singapore offshore company is relatively a risk free setup.
5) Since Singapore is a fully developed country and a leading financial center of the world, banking in Singapore is extremely simple and funds and be transferred to the country or from the country with ease and minimal restrictions. Many corporate banks even allow foreign entrepreneurs to open accounts without a face to face meeting. A telephone meeting is often all that is needed to open corporate bank accounts and this can be arranged by the local incorporation agent as well.
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