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Singapore Offshore Company Formation

The tax haven of Singapore is located on the southern end of the Malay Peninsula. The country is well known for trade and tourism. Singapore each year attracts millions of visitors who come for the thrills that the exciting country has to offer. Singapore has made its business environment very attractive for foreign and local investors. The government offers business incentives in the form of tax reduction. At the moment the corporate tax levied on business companies and nonresident companies incorporated in the jurisdiction and doing business there is at a rate of 18%. This is considered to be very low since the corporate tax rate for many other counties in the world is twice that of tax haven Singapore. The low tax jurisdiction of Singapore also has a very sophisticated banking system which investor and business companies can take advantage of

The tax haven of Singapore incorporates nonresident companies. A non resident company is a company incorporated in a jurisdiction but has no business operations in the country. Nonresident companies are also known as exempt companies and offshore corporations. The process of formation of an offshore company in Singapore is not a complicated one. For offshore company formation in Singapore the documents which are necessary are a Memorandum of Association and Articles of Association. Singapore offshore company formation is governed by the Singapore Companies Act. The most common offshore business entities incorporated the tax haven of Singapore are Public Limited Companies.

The documents for offshore company registration in the jurisdiction of Singapore are submitted to the registrar of companies in the tax haven. The memorandum of association must have the following information:

  • The proposed name of the company
  • The authorize share capital of the company
  • The registered address of the company
  • State is the company is limited by shares
  • State whether or not the company will be limited by shares
  • The classes of shares and numbers of each types of share
  • The rights, privileges, powers and restrictions placed on each type of share

The Articles of Association of a Singapore offshore company outlines the laws by which the company will be governed. When the memorandum of association is registered the Registrar of companies will issue the Singapore nonresident company with a certificate of incorporation. This then means that the offshore company s a legal entity in the tax haven of Singapore and has all the rights of a natural person. The offshore company can now own assets, can sue and be sued. Offshore formation of a Singapore nonresident company can take up to five (5) days or less. The speed at which the company is incorporated usually depends on name approval.

For offshore company formation in the tax haven of Singapore one (1) shareholder is needed. The shareholder of a Singapore nonresident company can be a corporation or shareholder. There is no restriction as to the nationality of the shareholder. Shareholders for nonresident companies in Singapore can be residents of the tax haven. For the formation of an offshore business company in the tax haven of Singapore a minimum of one (1) director is needed. The director must be a resident of the jurisdiction. Non residents to the country can act as the director of an offshore business company in Singapore but a pass or the valid papers is requested from the government. If this request is fulfilled then a non resident can act in the capacity of offshore company director. For offshore company incorporation to take place the new nonresident Singapore Company is obligated to appoint a company secretary. The Secretary for a Singapore company must be a natural person.

There are strict laws which apply to offshore company formation in the tax haven of Singapore. For instance the registrar of Companies will refuse to incorporate a company if the proposed name of the company has already been used for incorporation by another company in the jurisdiction. Companies name cannot show any political affiliation nor have names which are considered to be politically sensitive. Companies to be formed in the jurisdiction of Singapore must have obtained a special license from the government to include the following words as part of the company name; Bank, Insurance, Assurance, Chamber of Commerce, Building Society, University, Fund Investment and Financial Institution among other names. Nonresident companies being incorporated as Private Limited Liability Company must include the phrase or abbreviation Private Limited (PLT) in its name. A Singapore nonresident company name can be written in any language which uses the Latin alphabet.

There are many benefits to offshore company formation in the low tax haven of Singapore. Nonresident companies or offshore companies can tax advantage of a tax free environment in the jurisdiction. A nonresident company which has no business undertaking in the territory is exempted from corporate and income taxes in Singapore. The only so called taxes to be paid by a non resident company incorporated in the jurisdiction is a license fee which is due at the end of each financial year.

An offshore company in corporate in tax haven Singapore is guaranteed to benefit from privacy clauses in the company act of the country. There is not obligation for an offshore company to reveal who the beneficial owner, shareholders and directors of the companies are.

Nonresident companies can be formed using nominee company officers (shareholders and directors) which is also a means of providing a Singapore nonresident company with privacy. Offshore companies in Singapore with membership below twenty, realizes net profits which is not more than 5 million Singapore dollars and the members of the corporation are individuals than the Singapore offshore company can keep its annual financial statement private and has no need to present this to any government official in the jurisdiction.

The tax haven of Singapore is well suited for the formation of offshore companies which will have significant advantages. Offshore corporations incorporated in Singapore can engage in business anywhere in the world including the tax haven of Singapore.