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Tax is one of the major considerations when choosing an area for business. Entrepreneurs would normally invest on countries where there are reasonable tax rates. Today, Singapore’s attractive tax benefits have attracted a lot of entrepreneurs to consider Singapore as one of their investment locations. Preferable taxes are outlined both to local and foreign entrepreneurs.

Below are some of the tax benefits given to a Singapore company:

Full tax exemption is granted on the first 0,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively
Reduced corporate tax rates for selected industries including Offshore Leasing, Oil Trader, Securities Company, Arts and Antique Dealers, Insurance and Re-insurance Co., Cyber Trader, Trustee Company, Commodity Derivatives Trader and Asian Currency Unit.
No tax for capital gain.
Low stamp duty tax for property transfer in Singapore.
7% General sales tax

These benefits are only made available to tax residents. A company is considered as resident in Singapore if the control and management of the business is exercised in Singapore. Although the term “control and management” is not defined explicitly by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of Board of Directors and not the day-to-day decision making and operations.

Apart from these benefits, the government of Singapore also continues to remind companies that it is mandatory by law to file for the annual tax return, to comply with the statutory requirements stipulated in the Singapore Companies Act, and to submit annual filing requirements to Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). It is imperative for all companies to stay in compliance with the statutory regulations to avoid penalties and quite possibly, legal repercussions.

If you need a more thorough explanation on corporate tax benefits, you can contact Rikvin, Singapore’s leading corporate solutions specialist.

  

Foreign individuals and corporate entities received myriad benefits in off-shoring the banking to a tax haven. Few people know that you can even offshore companies for tax benefits. The aforementioned arrangement is referred as an IBC or International business company. Caribbean Style company act is the company act adopted by the above-mentioned type of company. On the other hand, the type of act is not used as commonly as the Channel Islands model which is used to create off-shored companies in Europe, the Turks and Caicos islands and St. Kitts.

An IBC or off-shored company can be defined as a company that is created in a tax haven specifically for the purpose of doing business all over the world except the country of incorporation. However, the company owner cannot sell items in the off-shored country but they may lease land for even fifty years depending on the country and it may conduct business with other local IBS’s in the same country and even enjoy local banking facilities. Almost all IBC’s conduct financial business without any problems from wherever they are located and this has a lot of benefits for the parent company. Below are a few of the benefits.
There is no need to hold an annual meeting and telephonic meeting can be done as needed. Also, the directors, shareholders and officers can be any nationality and having the ability of keeping their names private if necessary. The company can also benefit from the savings with a reduction of professional fees in certain countries. Relative to ones needs, an option of a tax haven can be done wherein tax is paid minimally or no tax impose in corporate level at all.

On the other hand, it is very important for a company to ensure that links to communication in a company is taken cared of since transmitting vital instructions immediately and timely communication is important for the success of a company. You should also make sure the privacy of your customers is given due importance since off-shoring business can cause privacy issues if they are not foreseen.

It is advisable for one to choose a stable country so that one will not be stigmatized in the future as a function of not choosing the right country. Also, it is wise to opt for an old and reliable country in setting up an international company rather than those that are just recently publicized. Countries where the unhealthy trade practices have forced the local people to resort to bank offshore or maintain bank accounts offshore due to the inherent risks of banking in their own country where the security or political situation is not conducive.

The above-mentioned phenomenon is referred as flight capital. The phenomenon is characterize by capital leaving the country because of certain disadvantages which is the usual cause of offshore banking.
Hence it can be seen that the benefits of maintaining an offshore company will give you a lot of tax benefits but one must be careful of the country that one chooses to start the company in. Being fluent in the native language of the country you choose to invest in is necessary to prevent deceit. Choose your offshore company location with care to reap huge benefits in terms of stability and profitability.

Singapore has not only encouraged foreign investment and made incorporation of companies so attractive with low tax rates; it has also made the registration process clear and straightforward.  The role of the Company Registrar is clearly discussed in the website of the Accounting and Corporate Regulatory Authority. Such website contains not only information you need regarding the set up of a Singapore company but also all the functions of the Singapore Company Registrar. Furthermore, you will find there all the necessary legislation and regulation documents that will have to be adhered to when considering starting a business or relocating an already formed company to Singapore.

The legal and regulatory body responsible for the incorporation and regulation of companies in Singapore is the Singapore Company Registrar.  Chapter 32 of the Business Regulation Act contains provisions for the regulatory responsibility of the Company Registrar.  Below is an enumeration of some basic facts about the Registrar and the responsibility relating to business formation.

Authority: The Law Society of Singapore and the Registrar of the Supreme Court granted regulation to the Singapore Company Registrar.  Subsequently, this regulation powers is authorized by the Minister for Finance of Singapore under sections 4(1B) and 37 of the Business Registration Act .  On 1 April 2004, the ACRA was formed as a statutory board from the merge of the Registry of Companies and Business (RCB) and the Public Accountants’ Board (PAB).

Scope: The ACRA serves as the official and national regulator of business and such entities in Singapore.

ACRA not only facilities business development and public accountancy but it also regulates the accountancy profession. It also performs monitoring functions as to the business ecosystem in order to ensure corporate compliance, disclosure requirements and statutory audits.

Functions: ACRA performs the following functions: administration of the Accounting and Corporate Regulatory Authority Act, Accountants Act, Business Regulation Act, Companies Act, Limited Liability Partnerships Act and the Limited Partnerships Act2008.  All of these regulatory acts can be found at the ACRA website; the availability of these documents to the public falls under the Singapore Company Registrar’s purview as well.  The ACRA is required to make reports to the Government of Singapore and it also makes recommendations on the regulation of business and public accountants.   If there are changes in the structure of business, compliance regulations, governance for corporate entities and legislation, it is the duty of the Singapore Company Registrar to facilitate the publication and understanding of these changes to the business ecosystem and the public in general.  Finally, the Registrar represents the Government of Singapore internationally on matters of regulation and registration relating to business and public accountancy.

Board: The Singapore Company Registrar Board is comprised of respected and experienced business professionals, academics, members of private enterprise as well as public sectors employees.

If you are an entrepreneur interested in expanding your business overseas, you can consider reaching the Asian region by establishing a company in Singapore. Singapore has become widely known to be a financial and economic hub and fast growing to be an ideal location to set up a business. There are two major types of companies recognized in Singapore: the public limited companies and the private limited companies. Limited companies are companies limited by shares and are called  as such because of one unique characteristic – they feature limited liability as to their shareholders when it comes to company losses or liabilities. This means that a company of this type is given a separate legal personality from its shareholders such that whatever losses, debts or any liabilities the company encounters, the shareholders are liable only as to the extent of the amount of investment they made on the company and they cannot be held personally liable.

What is a Public Limited Company? A Public Limited Company in Singapore is a type of a limited liability company usually of a medium to large scale and is well-established and recognized.

It is allowed to have more than 50 shareholders and are often listed in the stock exchange. It is allowed to raise capital through issuance of shares and debentures. Before it can be allowed to offer to the public its shares and debentures, a public limited company is required to register first a prospectus with the Monetary Authority of Singapore. The other features of a Public Limited Company are as follows:

● It can easily raise additional capital by issuing more shares and debentures and thus ensures company liquidity.
● Due to its higher value of shares and because it is a listed company, it maintains an image of being a reputable and trusted company.
● Enhances the confidence of its trading and financing partners because of its image as a strong company.
● Since shareholders can easily acquire or sell shares, acquisitions are easily made.
● Company directors are accountable to a much larger number of shareholders.
● The value of the company is determined by financial markets by reason of company shares trading.
● Financial affairs are compelled to make public disclosures.

On the other hand, a Private Limited Company is a locally incorporated limited liability company in Singapore and is considered to be ideal for a start-up company. It is required to include the suffix “Private Limited”, “Pte. Ltd.”, or “Ltd.” in the company name. The number of shareholders cannot exceed 50 but full foreign ownership of shares is allowed. It is required to appoint a local director who must be a Singapore resident and must be a Singapore citizen or Employment Pass holder. A Singapore Private Limited Company in Singapore is considered a tax resident, and therefore eligible for tax exemptions. New start-up companies are charged a Zero Tax on the first S0,000 of chargeable income for the first three consecutive years. A 50 percent exemption is given on the next S0,000 of the chargeable income. As opposed to a Public Limited Company, a Private Limited Company cannot offer to the public their shares or debentures, and so the company can raise capital only from among the shareholders or through debt financing. Singapore laws, however, also allows a private company to convert to a public company either voluntarily or involuntarily, subject to certain procedures.

Singapore is not only strategically located in the heart of South East Asia but it is also recognized as one of the fastest-growing economies in the world, with GDP growth expected to be 15% for 2010. The positive image of Singapore makes the set up of a company in the country an an excellent corporate vehicle to promote to customers, suppliers, investors, venture capitalists, governments and banks.  

A Singapore company is not perceived as an offshore company in a tax haven.  This is because Singapore maintains its image as a reputable, highly regulated, business jurisdiction. According to the 2010 Corruption Perceptions Index by Transparency International, Singapore is ranked equally with Denmark and New Zealand as the least corrupt country. This provides reassurance for companies deciding on ideal location for their regional or global headquarters. By registering a company in Singapore, you are given access to a highly competitive economy.  It is consistently ranked as the world’s second-freest economy in the Heritage Organisation’s Index of Economic Freedom. Singapore company registration is straightforward and cost-effective.  The World Bank’s Doing Business 2010 Survey lists Singapore is the world’s easiest place to do business.

Singapore tax rates are very competitive compared to other leading business centers around the world.  Singapore’s corporate income tax rate is 17%.  Singapore companies enjoy legal tax exemption on profits earned outside Singapore, as outlined by the Inland Revenue Authority of Singapore.  In addition, S0,000 (approximately US3,000) of corporate profits earned in Singapore can be legally tax-exempt for the first three years of business trading, provided total profits exceed 0,000. A Singapore company enjoys access to comprehensive double taxation treaties with 62 countries including major trading jurisdictions. To highlight Singapore’s tax advantages, the city state has been voted as having the least burdensome taxes in the world.

Singapore is one of the most modern cities in Asia, and the world.  It boasts of being well equipped in terms of telecommunications, public transportation, and technology. Singapore offers the highest standards of living in Asia according to the 2010 Quality of Living Survey by Mercer Human Resources.

Singapore is an excellent location when it comes to registering  intellectual property (IP), including global trade marks and patents. Singapore is proud to be a signatory to international conventions including the World Trade Organisation’s (WTO) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), which helps protect against IP rights infringements.  Singapore is also a signatory to the Berne Convention and the World Intellectual Property Organization Copyright Treaty. Singapore boasts strong client confidentiality laws and meets the international guidelines set by the OECD for disclosure of taxation related information. Singapore Singapore is the fifth-largest recipient of foreign direct investment (FDI) in Asia according to the United Nations Conference on Trade and Development (UNCTAC).

Unlike some jurisdiction, it is not necessary to rent a physical office to register a company in Singapore.
Singapore Company formation only requires a minimum of one shareholder, one director, one local company secretary, a local address and a share capital of .

As an international business hub, Singapore has much to offer to the Asian region and to the whole world. Investors and entrepreneurs that want to set up a company in a country offering low taxes, stable economy and political environment, good quality of life will enjoy Singapore as the place for their business and corporate needs.

Singapore’s corporate taxation has contributed a major part in Singapore’s worldwide popularity as a pro-business country.  The corporate taxation states that start up companies are to pay Zero tax on the first S0,000 of chargeable income for the first three consecutive years.  Furthermore, an exemption of 50% will be given on the next S0,000 of the chargeable income. This is the major reason why in the list of World’s Easiest Place to do Business given by World Bank, Ease of Doing Business Report, 2010, Singapore ranked first. As a consequence, many foreign individuals and companies have been encouraged to start a Singapore company.

Foreigners will find it easy to incorporate a Singaporean company because many company registration providers in Singapore have made the process convenient. Through the aid of online technology, an entrepreneur can incorporate a company from overseas because incorporation documents can all be transmitted electronically or in the mail.

However, face-to-face interviews with company stakeholders are still require by most banks in Singapore. It is a good thing that there are already many available incorporation companies which can aid you in setting up your company.

Asiabizservices boasts of a services team composed of professionals who have extensive experience with Singapore’s legal, financial, tax, corporate and regulatory frameworks. Our executive team has over 20 years of relevant professional experience.  They are highly efficient and trained in their area of practice. They will guide you through each step in the procedure, promptly respond to your needs, and closely monitor your application progress so that that your case is presented in the best possible manner that it deserves.
We are aware that time is of essence and so we work hard on giving you the most objective opinion and advice on what options are best for you to achieve your goals. We render personalized consultation taking into view your unique circumstances and analyze each case, meticulously so that the application process is free of delays or surprises. The rules on i Immigration and incorporation are dynamic and complex. Our experts handle all the paper work and manage the entire process so assiduously, that we make the complex process appear very simple for you.

We have been assisting clients from all over the globe in their Singapore immigration and company incorporation matters.  We have a phenomenal success rate and almost all our clients have entrusted to us even the routine management tasks such as book keeping and secretarial services and they have been continually impressed beyond our promise. We also render specialist services that complement our services performed by our comprehensive network of associates. Therefore hiring us will render utmost satisfaction until your arrival and beyond.