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Singapore is one of the leading international financial centers in the region. Incorporating a company in Singapore can provide a tax efficient corporate structure in order to conduct international business.
Singapore is a city state located at the southern tip of the Malaysian Peninsular with a population of approximately 4.8 million. It is known as one of the four ‘Asian Tigers’ and is the major center for business and trade within the region.
The official business language in Singapore is English but Mandarin and Malay are also widely spoken. The work force is well educated and hard working with a high level of expertise. Singapore is one of the leading international financial centers in the region and offshore investors will find most of the major banks present along with numerous financial institutions, investment management companies and accounting and legal firms.
The single ruling party since independence in 1965 is the people’s action party. the government effectively plans and manages the social and economic development of the country resulting in Singapore becoming one of the most politically stable and corruption free countries in the world.
In 2006 a study by KPMG rated Singapore as one of the most competitive business locations amongst industrialised countries in the world. The World Bank’s ‘Doing Business 2011′ study has also recently concluded that Singapore is the best country in which to run a business. The study rates 183 countries on the ease of which they allow firms to operate using criteria such as how easy it is to start a business, get credit etc.
There are various benefits attached to incorporating a Limited Liability Singapore company.
Some of these benefits are listed below:
- English is the official business language and therefore all company reports are produced in English and all information is available in English.
- Common law is in place.
- Singapore is a world leader in foreign trade and investment and has one of the best business environments in the Asia Pacific region.
- Singapore is the best country in which to run a business according to a recent world bank study and it has been named as having the most open economy for international trade and investment and least corrupt economy in the world.
- Singapore has one of the most highly developed and well-regulated financial centres in the world which has been built on the highest regulatory and prudential standards.
- The Singaporean tax system is straightforward and stable.
- There are no restrictions for foreigners to be shareholders or Directors of a Singapore company.
- The incorporation process for a Singapore company is quick and efficient.
- No minimum requirements for share capital.
- Only one Director and Shareholder is required to form a limited liability company.
- There is a concept of territorial taxation where foreign source trade profit is not subject to Singapore income tax if it is not repatriated in Singapore.
- There is no capital gains tax in Singapore.
- Foreign dividends are not subject to Singapore income tax.
- Tax credits for foreign tax paid are available in Singapore. However, they are is subject to some conditions.
- There are some partial income tax exemptions available in Singapore.
- There is no net worth tax in Singapore.
- Intensive double tax agreement system with more than 60 agreements signed and ratified with other countries.
Requirements for company liquidation in Singapore
There are various conditions a company must fulfil in order to be struck-off legitimately. One of the conditions is that the company must have filed all the tax returns until the date of the strike off. The Directors and Shareholders must ensure that any outstanding income, tax returns, accounts and tax computation have been submitted up to the date of cessation.
FATCA and its preliminary effects on Cyprus and Singapore banks
The Foreign Account Tax Compliance Act (FATCA) is a U.S. law with the purpose to detect and impede the evasion of tax by U.S. persons including individuals who live outside the country. The purpose of FATCA is to eliminate and discourage offshore tax evasion by citizens or residents.
Liquidation and voluntary winding up of a Singapore company
A Singapore company might decide to wind up as a result of various reasons and such procedures may be a challenging and lengthy task. The difficulties faced and time to complete is dependent upon many factors, including how well the company has been managed and administered throughout its existence, the method chosen for closing down and who performs such a processes.
XBRL filing made simple
Welcome back to our web-series where this episode we are trying a new style of video whilst discussing XBRL filing requirements for Singapore based companies. Join Amotles friend from Singapore who is an expert in all things XBRL-related and wants to share some tips with you!
How to set up a Singapore trust
Singapore is gaining more attraction as a trust jurisdiction internationally. A range of factors have contributed to achieving a reputable offshore trust status, including but not limited to the following reasons:
Withholding tax in Singapore: when to file and pay
Any person who withholds tax from interest, royalties, management fees, Directors’ remuneration or other payments paid to a non-resident person must complete and submit the IR37 form to the Comptroller together with the relevant amount of tax withheld.
Taxation of investment holding companies in Singapore
Withholding tax in Singapore: non-resident Director's salary