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Business and Banking Offshore in Singapore - Little Country with Big Benefits
Like Hong Kong and Macau, Singapore is one of the few areas of the world that can boast a near-even blend of Eastern and Western culture. The colonial history of these regions is often sad and brutal, but out of the ashes raises a unique cultural and business environment, that always makes a big impact on the business world.
Singapore is home to all the major financial institutions and large law and accountancy firms, and is the fourth largest Forex center in the world. It has state of the art infrastructure, yet retains some of the beneficial Asian aspects of its economy. We look at Singapore financial services and banking offshore in Singapore, as well as the different types of companies and trusts available in the region.
The fact that the major financial institutions all have offices in the city-state makes banking offshore in Singapore safe and simple. You may even be able to open an account through a branch in your home country; however, utilizing Singapore financial services that specialize in overseas companies or offshore banking can be extremely useful.
The government has also been trying to increase the growth of financial services in the region, and has created several fiscal incentives to this end. There are tax exemptions on trading income, that is, capital gains and income made by financial service companies trading for non-resident clients. This makes Singapore a very attractive base for non-resident investors. There are also concessionary tax rates for Singapore financial services companies on their own income from handling client investments.
Company formation services in Singapore can create several different structures - an unincorporated association, or one limited by guarantee or by shares. Limited liability companies may be public or private, and a new structure was recently introduced, the limited liability partnership. A company's turnover and number of shareholders determine whether it is exempt from filing accounts and from audits.
Companies with less than 20 shareholders who are all natural persons, and a turnover of less than S$5 million annually is exempt from filing - a director's statement and an income tax return are required instead.
While offshore investment business managers do see some benefits from remaining non-resident in Singapore (in particular industries, for example), generally taxation for resident and non-resident companies has the same basis.
Resident companies do have some fringe benefits, though, including an entitlement to benefits conferred under Avoidance of Double Taxation Agreements, being tax exempt for foreign-earned dividends, branch profits and service income, as well as being eligible for the tax exemption scheme for new start-up companies.
Most of the other benefits of offshore investment businesses in other jurisdictions are also applicable in Singapore. The minimum paid-up capital of the business is S$1, the minimum number of shareholders and directors is 1, and nominee shareholders are allowed. However, companies should keep in mind that local directors are required, and a local registered office is required. Bearer shares are not allowed, according to business consultancy services, and neither are corporate directors.
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