Offshore Company Singapore
(1) Geographic Location
Also known as “The Lion City”, Singapore is located in the south of Malay Peninsula and on the opposite side of Sumatra of Malay Archipelago across Strait of Malacca. Apart from its extraordinary geographical location, Singapore is a free port (or “free economic zone”), helping the country to boost up its export-import trade. Singapore is therefore also named as “Gibraltar of the East”.
The opening of Suez Canal in 1869 has driven a fast growth of global trade, turning Singapore the world’s principal trading location and Singapore Port one of the busiest ports global trade.
Regarding the heavy industry, Singapore has not only become the biggest refinery center in the region, but also shown a good development in various sectors, such as chemicals, shipbuilding, electronics and machinery; the well-known Jurong Industrial Park is right Singapore. The country’s international trade and financial sector also contribute to its airport economy, turning Singapore one of the most important financial and trading centers in Asia. Furthermore, Singapore is also a regional executive education hub in Asia. Every year, it attracts lots of students from mainland China and Malaysia. Singapore’s tourism industry also plays an important role in the country’s macro-economy.
(3) Tax System
The legal system of Singapore is based on the English common law system, providing local companies a good investment environment and tax system.
As companies’ stock dividend income that is not transferred into Singapore are exempt from tax as well as dividend remittance of holdings companies, many businessmen have been attracted to Singapore to set up holdings companies that have no substantial control and management right.
2. Conditions and Advantages of Establishment
- Scope of Applications International Trade and Investment
- Registered Capital No restrictions; will be registered according to customers’ funded position.
- Shareholders 2 (may be a natural person or juridical person)
- Directors 2 (corporate director is not allowed and at least one director shall be local resident).
- Secretaries One secretary of local company is required.
- Stock Issues Registered
- Company Information Information of directors and shareholders shall be provided to the government’s registration unit for reference. As all information shall be disclosed publicly, there is no privacy.
- Annual General Meeting of Shareholders All information shall be declared within a month after the annual shareholders’ meeting and relevant information shall be audited by CPAs; companies will be severely penalized in case of delaying the declaration.
- Annual Report and Statement Declaration The annual declaration must be completed before the end of June. The declaration mainly consists of Singapore companies’ annual meeting, basic data and CPA audit report (by local CPAs), financial statement and tax relevant details.
Accounting and Corporate Regulatory Authority (ACRA) Singapore enforced all companies in Singapore to, starting from 2012, adopt the XBRL archiving system to declare financial statements and annual report.
- Tax Burden Corporate tax is 17% (from 2010).Where holdings companies with no substantial control and management rights receive stock dividends that are not transferred to Singapore, no tax will be levied.
- Whether to mark its Chinese name. No
- Working days required to set up the company. Self-named company: Above 40 to 60 working days.