Company Formation Singapore, Company Formation, offshore company formation, offshore company, limited company
Company Formation Singapore
- Index Company Formation Singapore
- Tax planning via a network of international tax advisers and attorneys
- Examples for the legal reduction of corporate taxes
- DTA permanent establishment concept
- Parent companies and their subsidiaries in the European Union
- OECD: Articles of the Model Convention with Respect to taxes on income and on capital
- Basic considerations within the framework of international taxation
- Beware of cheap founders!
Company Formation Singapore: Package
-Package: Company Incorporation + Nominee Local Director
Package FE1 is suitable for foreign entrepreneurs who wish to incorporate a Singapore company but don’t plan to relocate to Singapore at present. Therefore this package includes the services of our nominee director to satisfy the statutory requirement of at least one local director.
-Package: Company Incorporation + Employment Pass
Package FE2 is suitable for foreign entrepreneurs who wish to setup a business in Singapore and relocate (themselves or one of their key executives) to Singapore on an Employment Pass to operate their new business. Under this package, we will first incorporate your company and then apply for Employment Pass
-Package: Company Incorporation + Entrepreneur Pass
Package FE3 is suitable for foreign entrepreneurs who wish to setup a business in Singapore and relocate to Singapore on an Entrepreneur Pass (EntrePass) to operate their new business. Under this package, we will first apply for your EntrePass and upon approval, incorporate your company
-Package: Subsidiary Registration + Nominee Local Director
Package SC1 is suitable for foreign companies that wish to register a Singapore subsidiary but don’t plan to relocate any of their key executives to Singapore at present. Therefore this package includes the services of our nominee director to satisfy the statutory requirement of a local resident director
-Package: Subsidiary Registration + Employment Pass
Package SC2 is suitable for foreign companies who wish to register a subsidiary company in Singapore and relocate one of their key executives to Singapore on an Employment Pass to operate their new business. Under this package, we will first incorporate your subsidiary and then apply for Employment Pass for the key executive
-Package: Representative Office Registration + Employment Pass
Package RO1 is suitable for foreign companies that wish to register a representative office in Singapore and relocate one of their key executives to Singapore on an Employment Pass. Under this package, we will first register your representative office and then apply for the Employment Pass
-Package: Branch Registration + Nominee Local Agent
Package BO1 is suitable for foreign companies that wish to register a branch office in Singapore but don’t plan to relocate any of their key executives to Singapore at present. Therefore this package includes the services of two nominee local agents to satisfy the statutory requirement of two local agents
-Package: Branch Office + Employment Pass
Package BO2 is suitable for foreign companies that wish to register a branch office in Singapore and relocate one of their key executives to Singapore to run branch office operations. As part of this package, we will register branch office, apply for Employment Pass for the key executive (who will act as one of the local agents) and provide nominee local agent service to satisfy the second local agent requirement.
Company Formation Singapore: GENERAL
Singapore is referred to – and not without good reason – as the “New Switzerland”. This is, above all, because of banking secrecy and the fact that Singapore hardly gives out any information to other countries. On the other hand, Singapore also has a wide network of double-taxation agreements with countries such as Germany, Austria, Denmark, Switzerland, China and Japan. In addition, Singapore is attractive with its low rates of taxation. Certain business activities (offshore financial services) are taxed at a standard rate of 10%. Foreign income is even tax-free. In addition, Singapore supports technolgies in a targeted way through generous investment sponsorship when companies actually set up in business there (EDB: Economic Development Board).
Company Formation Singapore: Taxes
The tax on income from offshore financial businesses is 10%. The top rate of tax on income is 17%, whereby the maximum rate of tax is only reached with an income of 320,000.00 USD:
Setting Up New Companies in Singapore:
- first $100,000: no taxes
- $100,001 to $300,000 : 8.5% tax rate
- thereafter a flat rate of 17%
Companies already present in Singapore:
The basic rate of tax is 4.5%, otherwise there is the same progression as above.
All foreign income is exempted from taxation (exempt company principle). However, the regulations of existing double-taxation agreements do NOT apply to exempt companies/ non-resident companies. Thus if the shielding effect of a DTA is to take effect (such as within the context of the tax collected at source in the case of associated companies) and/or if the existence of business premises abroad for tax purposes is to be defined on the basis of 5 DTA, then the company would have to do business in Singapore. One approach to solving this, in this context, would be the interposition of an EU holding company, insofar as there are associated companies are in the EU.
The banking secrecy of Singapore is firmly anchored in the constitution and one of the supporting pillars of the city state. Requests for legal assistance from other countries fail pathetically, unless evidence is produced that it is money resulting from money laundering or the drugs trade. Facts relating to suspected tax avoidance are not pursued or no information is given to other countries.
Company Formation Singapore: Service
- Company Incorporation, entry in the register, apostille, certified translations of the documents establishing the company in the language of the country where the client is domiciled
- domiciliation of the company, incl. an address for the delivery of mail,telephone, fax
- opening of a business account with a major bank in Singapore
- appointment of a company secretary
- on request: appointment of a trust director (5 DTA: location of the senior management of the business as the location of the business premises for tax purposes, provided that there is no production facility, no facility for the exploitation of mineral resources or any construction work being carried out that will last more than 9 months, in which case the business premises are in Singapore, irrespective of the location of the senior management of the business)
A lawyer who is normally resident in Singapore will act as a trustee, that is only “outwardly”, as a director of the company).
- on request: appointment of a trust shareholder (a domestic or foreign company will act in a trustee role as a shareholder of the company)
- on request: opening of a private account (only in connection with the setting up of the company)
- tax arrangements at associated companies, interposition of an EU holding company
- arranging a legal firm with tax consultants in Singapore
- when actually relocating business premises: applications for subsidies, application for total exemption from taxation for the first 3 years, help with the search for offices/production sites.
It takes approx. 14 days to set up an INC in Singapore, and 4 weeks to open an account.
The fees depend on the services, please ask about:
Singapore Company Incorporation:
- Name check and reservation
- Preparation of memorandum & articles of the company and other incorporation documents
- Preparation of registration forms
- Professional & filing fees
- E-Certificate of incorporation
- Preparation of compliance corporate kit, including corporate seal, share certificates, register and minutes book
- Minutes of first board meeting
- Resolution to open a bank account
Corporate Secretarial Retainer Service:
- ACRA compliance alert & reminders
- Named company secretary registered with ACRA for 12 months
- Maintaining the statutory books, preparation of all relevant minutes for directors’ and shareholders’ meetings.