Singapore has emerged as one of the top locations for the formation of offshore companies because of its pro-business environment, low tax rates, political stability, state-of-the-art infrastructure, and highly educated workforce. This comprehensive guide to setting up an offshore company in Singapore will cover in detail Singapore’s tax system, company registration process, banking industry, and special ability to open bank accounts for non-residents.
Singapore’s tax system is very appealing to businesses because it has a corporate tax rate that is only 17%, which is lower than that of many other developed countries. The country provides a number of tax breaks and incentives for companies involved in R&D, intellectual property, and investment. Businesses can pay less in taxes thanks to Singapore’s tax agreements with more than 80 countries.
Foreign companies can register as a branch office or a private limited company, and the registration process can be completed quickly and easily online. The only requirements for registering a company are having a registered office address in Singapore and having a director who resides there. Singapore makes this possible by allowing foreigners to own and control 100% of the shares of companies.
One of Singapore’s distinctive features of the business environment is the country’s well-developed banking sector, which supports international trade. Singapore’s more than 200 banks—many of them foreign—provide corporate banking, trade finance, and wealth management services to businesses. Singapore is home to numerous international law and accounting firms, which help businesses operating there.
Non-residents may also open a bank account in Singapore with the help of a local agent, who will handle all required banking formalities on their behalf. Singapore is therefore a very practical choice for offshore businesses looking to establish a presence in the region.
In conclusion, Singapore is a desirable location for the registration of offshore companies due to its pro-business environment, low tax rates, political stability, state-of-the-art infrastructure, and highly educated workforce. Its simple company registration process, tax incentives, and well-established banking industry support international business. Singapore’s ability to allow non-residents to open a bank account makes doing business there simpler.
As always, it is crucial to follow all relevant laws and regulations and to obtain professional advice before establishing an offshore company in Singapore.
Author: Pooyan Ghamari, Swiss Economist