There are several restrictions on starting a business in Singapore. One of the most important facts is that the state is entering a zone requiring full disclosure of information from business owners. Special Registers are kept in which directors and shareholders of operating enterprises are recorded. Note that it is possible to use the nominee service.
Some lists are not available to third parties but can be provided at the request of the financial authorities. These are lists of beneficiaries and nominee directors.
Non-resident companies can carry out business activities outside Singapore, however, to receive tax benefits, the company must be controlled by the territory of the islands. Also, a business is required to have a registered office in Singapore. The address must be strictly actual, not postal.
To open a company, you will need two directors, one of whom is a citizen of Singapore. Both are individuals. Also, the company secretary must be a resident of the state.
An annual meeting of shareholders is mandatory.
Having registered in Singapore, the company must provide financial and accounting statements. The audit is carried out by a resident specialist with a special certificate.
Because Singapore is a popular investment center, registration, and maintenance of a business are quite expensive here.
How to open an offshore company in Singapore
Before organizing a business on the islands, consider the main forms of business organization:
- individual entrepreneurship;
- an exempt private enterprise is the most profitable due to the simplified accounting of the accounting department; here there are no more than 20 shareholders and they are not legal entities;
It is often possible to purchase a ready-made company in tax-free zones, but this is not possible in Singapore. You can register a company in Singapore only from scratch. The circuit is pretty simple. Let’s consider it step by step:
- choose a unique name in Latin; avoid political connotations, an additional license will be required for titles that mention direct work with finance.
- The ending “Privat Limited” is used if an LLC is opened, and “Limited” is used when an OJSC is opened.
- decide on directors, one of whom is a resident.
- fix the authorized capital.
- apply for registration, the company charter and constituent documents are attached, as well as indicate the information about the registered address in Singapore.
Nuances in company registration
Please note that the authorized capital to register an enterprise in Singapore will amount to 100,000 Singapore dollars, and you can put only 2 at least in the bank.
Let’s dwell on the composition of the company again.
In it – from 2 shareholders. Information about them must be published in the public register.
It is compulsory to have a resident secretary.
Also at least 2 directors, one of whom will be a Singapore citizen. It is he who will be responsible for the legality of the work. Both must be individuals. Information about directors is also entered in the registers.
The firm must conduct exclusively legal activities.
The presence of the company seal is needed.
You cannot buy an offshore company in Singapore.
Tax policy and state duties
The most important feature of Singapore’s financial policy is that income tax is paid only by those who received it in Singapore. Profits earned outside the country’s borders are not subject to taxation unless transferred to Singapore. Such a translation should be understood as:
- transferring money to accounts in a Singapore bank;
- buying property on the islands;
- repayment of debts arising on the territory of the islands.
The government offers powerful concessional support to young businesses.
For the first 3 years, small businesses do not pay income tax up to $ 60,000, and the rest is paid at a rate reduced by half.
Those persons whose profits do not exceed 12 thousand dollars do not pay any government fees.
Research and development companies may not pay taxes for 10 years.
Companies that have been on the market for 3 or more years pay an effective tax – up to $ 300 thousand – at a rate of 8.5, the rest of the profit – at a rate of 17%.