Singapore - International Business Corporation (IBC) Offshore financial centers are coming under strict scrutiny because of the regulatory pressures exerted by organizations such as OECD. In the present scenario Singapore with a strong reputation as an international financial center offers a tax system that is equally attractive to resident and non resident companies alike. Singapore’s status and reputation as a trusted and responsible business and financial hub committed to the international efforts to combat cross-border tax evasion, is attracting high net-worth individuals and companies who seek unsullied image along with effective tax management. Singapore Company, if properly-structured is an attractive, tax-efficient corporate structure to conduct international business. Certain inherent provisions make a Singapore resident company an attractive entity for holding foreign investments. Similarly a non-resident company is not subject to Singapore income tax on foreign sourced income if it is not received in Singapore. Therefore non-resident companies are also an attractive vehicle as international holding or trading companies Features of Singapore Company Ø Minimum paid-up capital of just S$1 and allows 100% foreign ownership Ø Minimum 1 shareholder is required and corporate shareholders are allowed, the details of shareholders appear on public register, however nominee shareholders are allowed. Nationality of the Shareholder does not matter. Ø Minimum of one director and need at least one Singapore resident director. Corporate directors are not permitted. The details of directors appear on public register Ø Details of beneficial owners are publicly accessible Ø A natural person must be appointed as company secretary who can also act as a director, but in the case of sole director the same person cannot serve as company secretary and director. Ø Must file annual accounts Ø For companies with an annual turnover exceeding S$ 5 million, annual audited accounts are required to be filed with the Registrar. The accounts are required to be audited by Singapore auditors. For companies with an annual turnover less than S$ 5 million, annual accounts need to be filed but there is no auditing requirement. Ø Must conduct Annual General meeting Ø A registered office in Singapore is required Merits of Singapore Company Ø A Singapore company is resident and domiciled in a country with a highly regarded international reputation Ø Singapore has political stability, sound economic and financial fundamentals, and reasonably comparable client confidentiality standards of other offshore jurisdiction Ø No restriction on the free entry and repatriation of funds Ø Foreign sourced income which is earned and retained outside Singapore is not taxed in Singapore. Ø Singapore follows a territorial tax system whereby tax is levied only on incomes sourced in Singapore or received in Singapore Ø Subject to certain conditions a Singapore company can enjoy tax exemption from its foreign-sourced dividends, foreign branch profits, and foreign-sourced service income that is remitted into Singapore Ø Singapore follows a single-tier tax system whereby the dividends in the hands of shareholders are not taxed Ø No tax on capital gains Ø Attractive tax rate of just 17% and with the available incentive schemes and exemptions effective tax rate is as low as 8.5% for new startups and for small and medium sized companies Ø Singapore has over 58 Double Taxation Treaties, Singapore resident companies can access the benefits of DTA Limitations
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Redomicilation is not permitted Details of company members and directors is available on public registry
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Tags: Offshore company formation, offshore incorporation, offshore company incorporation, offshore company registration, set up offshore company, Singapore International Business Corporation, singapore ibc, international business coporation