Singapore is universally acknowledged as a highly robust country for opening of company. It is also one of the leading international financial centres. A large number of multinationals have formed their offshore companies in Singapore because being a business hub it provides them with tax and financial benefits, better structuring and strategic banking systems.
Why choose Singapore to setup an offshore company?
- An offshore entity can conduct international trading through a legally tax exempt structure.
- Clients can use Singapore offshore solutions to conduct global business as it’s a country with strong laws and stable government. It supports International arbitration, has strong contract law, has laws that protect business investments and is a signatory to WIPO (World Intellectual Property Organization)
- The offshore company allows taking advantage of strong legal system to benefit from global trademark and intellectual property.
- Clients incorporate company in Singapore for International trading, holding companies, shipping companies, owning Real estate, owning copyright and patents and for International consulting services.
Types of Business Entities in Singapore
For individual entrepreneurs:
- Private Limited Company
- Limited Liability Partnership
- Sole Proprietorship
For Corporate entities
- Subsidiary Company
- Representative Office
- Branch Office
Requirements for Offshore Company Registration
- Minimum of one Shareholder – Should be minimum one and maximum 50
- Minimum of one resident director – As per the requirement of Singapore law, out of all the directors one should be a Singapore resident. Normally people hire a resident to be a director, that’s a common and legal practice. A nominee cannot make any business decisions however stands responsible in case of any wrongdoings or if the reports are late.
- Minimum of one company secretary – As per Singapore law each registered company should have a secretary. This officer is in charge of state compliance like filing annual returns, resolutions for changes etc.
- Minimum of initial paid-in capital of 1 Singaporean Dollar.
- A local registered address for company office – All Singaporean companies need to have a local registered address. This address would be used for all legal documentation.
Requirements for Foreigners in Registering Offshore Company
- Copy of passport
- Description of their business activity
- KYC documents – Residential address proof (Foreign), Bank reference letter, Personal profile, business profile, particulars of directors, company secretary and shareholders
Bank Account Requirements
Once the company is incorporated clients would like to open a bank account. Each bank has their sets of requirements to open a Remote account without physically visiting the bank.
They can do online interviews using video conference for KYC and would request for the documents to be couriered to them.
As per Singapore law even if you do not have any transactions, clients need to submit annual reports: estimated chargeable income, financial statements, annual tax returns called Form C and Form C-S. It is crucial to prepare and file the same on time. We can assist you to prepare and file the same.
What is the Timeframe?
We can have your company approved by and registered with the Accounting Corporate Regulatory Authority (ACRA) within 5-7 days upon receiving complete set of signed documents from you.
What is the minimum amount is of paid up capital?
A Singapore company can be registered with a minimum paid up capital of S$1 (or its equivalent in any currency). Standard amount we preferred is SGD 10,000
How much minimum deposit is required for bank account opening?
Each bank has its own different regulations; it depends on which bank you choose and which package you are interested in
Is physical presence required for Company incorporation and Bank account?
No, you are not required to visit Singapore. Company incorporation and bank account can be done remotely.
This blog is written by Ms. Nirmala, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. For more information on offshore company setup in Singapore, kindly contact us at firstname.lastname@example.org or call +971 4 4542366 for quality consultation.
Please Note: This article was published on 24th September, 2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.