Blockchain Businesses and Token Offerings (ICOs)

Distributed Ledger Technology (DLT) industry is revolutionising the entire world, fundraising through token offering has raised approximately 5.6 billion USD in 2017.

DLT is largely changing the venture capital and financial services industry and many companies and start-ups are looking into integrating this very interesting and highly efficient technology into their businesses or are looking into formally setting up their operations within this industry through incorporating a company.

Opportunities for Blockchain Businesses in Singapore 

Choosing the right jurisdiction for incorporating a company is a strategic issue that should be considered carefully. The application of DLT can lead to different regulatory scenarios and is important to understand all the different regulatory available options before taking the next step. 

Eltoma Corporate Services has extensive experience in international corporate and tax matters as well as multijurisdictional regulatory assessment for cross-border operations. We have offices in 5 different countries, including Singapore. 

Singapore has been generally friendly to this relatively new industry and has taken important steps to attract businesses from all over the world, offering clear guidelines on the regulatory application to this industry. The Monetary Authority of Singapore (MAS) has issued official guidelines on the treatment of token offerings and virtual currencies. Moreover, depending on the type of token offering, a Capital Markets Services License and specific prospectus requirements will be necessary to comply with, in accordance with the Securities and Futures Act (Cap. 289) and the Financial Advisers Act (Cap. 110). Nevertheless, if applicable, licensing requirements are transparent and straightforward and we can provide you with support, advice, and guidance every step of the way.

Singapore Tax Advantages

Tax advantages in Singapore must also be considered, Singapore applies a territorial principle of taxation, whereby only income sourced or deemed to be sourced in Singapore and income received in Singapore will be subject to a Corporate Income Tax (CIT) of 17%. Moreover, there are certain allowable deductions and exemption for an eligible company, mainly during the first 3 years of operations. Finally, the Goods and Services Tax (GST) applies to the provision of goods and services to Singaporean tax residents at a rate of 7%, comparatively lower than in most jurisdictions. 

These and other benefits of Singapore make this jurisdiction an important destination for businesses from all the world that intend to operate in Singapore and/or internationally in the DLT and other industries.

Contact us today to see how we can help make your blockchain business to be a success.

+357 25 02 50 34
+65 315 91 676
+7 812 458 46 22