Setting up a business involves plenty of research and planning, with location an integral part of the Singapore company formation services. The right business location can boost your company’s exposure to the right customers, while a poorly chosen one can have a negative impact to your business.
With its straightforward incorporation procedures, Singapore is recognised as one of the best countries to do business in Asia. Entrepreneurs favor Singapore in setting up their offshore company for the attractive opportunities it provides to foreign businesses.
Here are the top 5 reasons why incorporating your offshore company in Singapore is a wise move for your venture:
1) Quick And Easy Company Incorporation
It only takes one to two days for a company to be fully incorporated in Singapore, whereas in other countries, the process could take several months to a year. Registration only takes two simple steps: the approval of company name and submission of incorporation documents.
The procedure is fully computerised and done online, which is a great convenience for companies looking to do business in Singapore. If you are not available to go through the step-up or are unsure about how to proceed, a corporate services provider can take care of the procedures for you.
2) Lower Tax Liability
Tax is one of the major concerns of business owners who are looking to set up their businesses in another jurisdiction. This is where Singapore’s tax system shines. It is simple and business-friendly with its low personal and corporate tax rates. In addition, the system does not include capital and dividend taxes, which makes business transactions a breeze for foreign entities.
As Singapore implements a single-tier tax policy, dividends are tax-free. An offshore company income will only be taxed at the corporate level at about 8.5% for income up to SGD 300,000 and a flat rate of 17% for income above SGD 300,000. Even better, a recently incorporated company can enjoy 0% tax rate on its first SGD 100,000 taxable income in its first three years of operation.
3) Liberal Foreign Ownership
Singapore allows 100% foreign shareholding across all industries. Whether a company is operated by an individual or a corporate body, foreign business owners can rest assured in knowing that Singapore does not require approval from local authorities. Moreover, a foreign-owned company will be recognised as a legal entity in the country. Employees, banks, and other institutions will take it as a credible business.
4) Wide Choice Of Banking Facilities
As one of the leading financial hubs in Asia, Singapore offers a vast choice of banking facilities to offshore companies. Business owners have the option to open multi-currency accounts and transfer funds from international to local banks and vice versa.
Opening a Singapore bank account for an offshore company can take anywhere from 2 to 15 days. While most banks require business owners to open the account themselves, other banks allow representatives from a Singapore corporate services company to open an account on the owner’s behalf.
5) Strong Political Stability
Politics has a tremendous impact on businesses. Singapore takes on a pro-business approach and helps businesses excel through transparent and red tape-free transactions. Moreover, the country gives high regard to intellectual property protection, work force and businesses in general. This is good news for foreign business owners as these measures lower the risk of setting up their companies in the country.
Singapore has emerged as one of the leading destinations in Asia for foreign businesses. Thanks to its business-friendly climate, entrepreneurs can easily incorporate foreign-owned companies in Singapore. Offshore companies can benefit from Singapore’s strong political stability and quick incorporation processes, lower tax rates, liberal ownership and comprehensive choice of banking facilities.
Ready to open your own offshore company in Asia? Get in touch with a Singapore corporate services provider today to start incorporating your business today.