An offshore company is one that is incorporated in a jurisdiction other than the jurisdiction that constitutes its main place of operations or where the company’s principal investors reside. In a broader sense, offshore simply means a jurisdiction other than your own.
Singapore has a number of benefits with regards to offshore company incorporation:
1. Taxes
Singapore is an attractive location, tax-wise, for both individuals and businesses. The taxes are relatively low, and the tax structure itself is simple. There aren’t any ‘hidden’ taxes like those observed in European countries. This is not to say the tax procedure is lax; it is well regimented due to the strong rule of law in Singapore. It should not be confused with a tax haven, just a country with straight-forward, relatively inexpensive tax rates.
2. Credibility
Building on the idea of Singapore’s strong rule of law, it is a very credible location to incorporate your business. Singapore has a strong international image, and within the country, you are unlikely to fall victim to any fraudulent schemes.
3. Incorporation with ease
The World Bank Group ranked Singapore as the 2nd easiest place to incorporate a company. This can be done entirely online, and is boiled down to two steps: confirming availability of company name, and submitting incorporation documents. Entrepreneurs don’t need to jump through too many hopes to get incorporated in Singapore.
4. Tolerance of foreign shareholders
Singapore is fairly tolerant of companies with entirely foreign ownership and shareholders. Though most local banks do require a local director, this person does not need to own any part of the company, and this is a service that PikoHANA provides. It may be difficult to secure grants from your Singapore bank if you don’t have any local ownership, but otherwise, you should be able to operate with ease even if you have no local shareholders.
5. Political stability and advanced infrastructure
Singapore is very well developed, with a remarkably stable government, and strong infrastructure – from transportation to phone and internet coverage. This advanced characteristic of the Little Red Dot makes it an attractive location for business. There should never be any fear of political risks or prolonged service outages in Singapore.
