I am writing this article both as an expert in opening bank accounts in various offshore and foreign banks around the world and as a professional of international tax planning.
Recently, more and more business persons tend to work with private limited companies (Pte Ltd.) registered in Singapore. We have already written about using Pte Ltd. in Singapore for opening bank accounts in Switzerland, for example, which no longer welcomes offshore companies not filing their financial reports.
In Singapore, there are several types of companies available for registration, but the most popular option with non-residents of Singapore is private limited company (Pte Ltd.). This form of business organization (Private Limited Company) is also the most common. In fact, all new companies in Singapore are registered as Pte Ltd’s.
Private Limited Company (Pte Ltd.) in Singapore. Minimum requirements for registration:
- Shareholder (natural person/legal entity);
- Resident Director;
- Company Secretary;
- Original paid-up share capital of at least 1 SGD;
- Actual address of the registered office in Singapore.
Private Limited Company (Pte Ltd.) in Singapore. Distinctive aspects:
- It is an independent legal entity.
- The directors and shareholders of a private limited company are not liable for the company debts.
- Pte Ltd. can own property.
- The company can have from 1 to 50 shareholders, no more than 20 shareholders who are natural persons. If the company has corporate shareholders, it must have 1 natural person as a shareholder with 10% or more.
- Singapore Private Limited Company (Pte Ltd.) is considered a tax resident and has rights to local tax benefits and incentives.
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Private Limited Company (Pte Ltd.) in Singapore. Conditions for Exemption from Mandatory Audit (the main criterion is small business status, and 2 out of 3 conditions must be met):
- Total income not more than 10 million SGD.
- Total assets not more than 10 million SGD.
- Number of employees not more than 50 people.
Private Limited Company (Pte Ltd.) in Singapore. Terms of Exemption from Preparing an Audit Report (such companies prepare an unaudited report, the directors’ report):
- Sales turnover does not exceed 5 million SGD.
- The company has no more than 20 shareholders.
- The company has no corporate shareholder at any time during a particular fiscal year.
Here are some of our featured services in Singapore:
- Set Up a Singapore Company with a Hong Kong Account Remotely
- Open a Company in Singapore in 2022 with an Account in an Island Jurisdiction of Belize
Main Advantages of Setting Up an Onshore or Non-Offshore Company in Singapore
These advantages are so numerous that Private Limited Company (Pte Ltd.) in Singapore holds leading positions in the preference ranking of business persons who choose to incorporate a business in Singapore. You are always welcome to ask our experts for details on the Private Limited Company registration.
Advantages of Incorporating a Private Limited Company (Pte Ltd.) in Singapore:
- New companies in Singapore can qualify for the SUTE (Start-up Tax Exemption) program. It provides a 75% tax exemption on initial taxable income of 100,000 SGD + 50% exemption on the next 100,000 SGD.
- There is no tax on capital gains by the company.
- No tax on dividends distributed to shareholders.
- No tax on foreign-sourced income not repatriated to Singapore.
- The highest level of data security and protection of personal assets.
- Legislative protection of bank secrecy.
- Stability of the financial system and the Singapore dollar.
- No foreign exchange control.
- No restrictions on withdrawal/repatriation of capital.
- Singapore Pte Ltd’s after their registration (but not partnerships or sole proprietorships) provide the opportunity to obtain Singapore residency. Please note that they mean the opportunity to obtain a so-called EntrePass, but not the right to obtain it (we are ready to make you an offer you cannot refuse, see below for details).
- Digitalization of business. All communications with the various authorities and government agencies in Singapore are possible online. You can follow the news of public services via Twitter.
- Filing of information/reports to ACRA is possible online (via BizFile, FIN No. and SingPass will be required). This can be done using a smartphone or an iPad.
- Singapore companies are not offshore companies and do not cause any negative feelings to bank officers at banks around the world. On the contrary, when bankers see the documents of a Singapore company, they smile. The chances that you will be able to open a corporate bank account with the best foreign banks of the world increase significantly if you come to the bank with the documents of your Singapore company (or send the bank copies of documents of your Singapore company).
- Non-resident companies in Singapore are not disadvantaged at all. Non-resident companies in Singapore have all the rights (but not the obligations) of resident companies or natural persons.
If you are interested in registering a company in Singapore, we will be happy to take care of all the administrative work. We work with our customers using their convenient language/mother tongue, exclusively in a remote format and with a formal contract.
In my opinion, the Singapore companies are ideal for those who wish to keep a finger on the pulse of their foreign business. In a number of ways, the Singapore companies outperform the Hong Kong companies.
More information on Singapore:
If Singapore seems to you a distant, unknown and unexplored country, you can always find information about Singapore on the Internet without even leaving our blog. We have prepared information about Singapore (including company registration) which is relevant to international business persons. Please feel free to email us at info@offshore-pro.info (or use alternative communication channels).
