Establishing a Singapore offshore company involves registering and operating a business from a location separate from its primary stakeholders and operations. In essence, the company is a local Singapore company and its ownership, management and control may be outside of Singapore. The appeal of Singapore for entrepreneurs and investors is rooted in the diverse advantages offered by offshore companies in the country.

Foreign investors and business owners favour Singapore for several reasons. Most notably, these are the popular considerations:

Tax benefits
Simple reporting regulations
Global business opportunities
Political stability
Transparent, corruption-free environment
Reliable legal system

These factors contribute to the credibility, trustworthiness, and legal standing of offshore Singapore-based companies.

 

Features that make Singapore offshore companies attractive to foreigners

  1. Ownership structure noteworthy features of Singapore offshore companies include the allowance of 100% foreign ownership and the preference for the private limited structure, which provides benefits like capital raising, limited liability, corporate credibility, and tax advantages. 100% foreign ownership means that foreigners can outright own all shares in the Singapore company. If the foreigner obtains a valid work pass, he or she can also be the local resident director of the company. That would mean that the company is 100% foreign-owned and run.
  2. Banking systemSingapore offshore companies also enjoy access to advanced banking facilities, such as multi-currency accounts and Internet banking platforms, adding to their overall appeal. The banks have their own mobile applications as well as web portals for access anywhere around the world.
  3. Political and economic stabilityThe political and economic stability in Singapore ensures a low-risk environment for Singapore-registered companies. Since independence, there has been only one political party that has formed the government. The incumbent continues to remain the popular choice and obtain the majority vote in elections. This does not seem likely to change in the next few elections. This has contributed to very stable business laws and environment. This has allowed many Singapore businesses to flourish. Singapore also remains an open economy that is welcoming to foreign investment. That is not likely to change in the short to medium term as the incumbent is likely to remain in government.Singapore is ranked as the world’s second-easiest and most lucrative place to do business, offering an open foreign ownership policy and non-considered tax haven status. The country’s political stability and high GDP contribute to a low-risk environment for offshore companies, building trust and credibility.
  4. Streamlined and swift incorporation processThe incorporation process for a Singapore offshore company is streamlined, involving only two steps: obtaining approval for the company name and submitting incorporation documents. For foreigners, incorporating a Singapore company will involve engaging a corporate service provider like Raffles Corporate Services Pte Ltd. The incorporation can be done in as quickly as an hour if all relevant documents are provided.
  5. The versatility of the Singapore companySingapore offshore companies are versatile in terms of business activities, ranging from investment holding to intellectual property management. Additionally, they can avail themselves of support services like fund administration, company secretarial, and director services, enhancing their financial services ecosystem.
  6. Tax efficiencyThe tax efficiency in Singapore is notable, with low corporate and personal income tax rates, no capital gains tax or dividend taxes, and an extensive double tax treaty network.

 

Legal obligations of establishing and maintaining a Singapore offshore company

However, establishing and maintaining a Singapore offshore company comes with legal obligations and compliance requirements. These include a registered business address, a resident company secretary and director, and adherence to annual reporting and filing obligations. Offshore companies must comply with industry-specific regulations and licensing requirements, particularly in regulated sectors like financial services.

 

Conclusion

In conclusion, Singapore’s business-friendly environment, tax incentives, efficient incorporation process, and access to world-class banking facilities make it a preferred destination for setting up offshore companies. However, ongoing compliance with legal and regulatory requirements is crucial for the success and sustainability of these entities.

 

 

If you are looking to incorporate a Singapore-registered company, you may contact the incorporation team at [email protected]. You may also call or WhatsApp us at +6585017133.

 

Yours sincerely,

The editorial team at Singapore Secretary Services