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Geri Cho / September 17, 2020 / Accounting, Business,

Do you have the following perennial burning questions:

– Can I get paid in USD in a Singapore company? 

– Can I have an account in USD? 

– Does Stripe work in Singapore? 

– I’m making 50k USD a month, how much can I really save in taxes? 

– How much is it going to cost me to move my accounting to Singapore?

– Or do I keep two companies?

– How long does this take and can I do it remotely? 

USD Account In Singapore

When you incorporate a company in Singapore, you will open a bank account in SGD or/and USD. Minimum sum really depends on the bank. It usually starts from USD500. You will need to maintain the minimum sum else there will be a bank fee.

Stripe Account

It is available here in Singapore since 2016 (https://stripe.com/blog/stripe-in-singapore) and fully integrated with the local banks so transfer of funds will be seamless. 

Attractive Tax Structure Of The Country

The Singapore Government (https://www.iras.gov.sg/irashome/Businesses/Companies/Working-out-Corporate-Income-Taxes/Companies-Receiving-Foreign-Income/Tax-Exemption-of-Foreign-Sourced-Income/)  has made it easy for businesses to support and grow in the country. There are a bunch of Free Trade Agreements and Double Tax Avoidance Agreements signed by the Government with several other countries, to facilitate trading across borders. The highest corporate tax rate on taxable income is 17% (.https://www.iras.gov.sg/irashome/Quick-Links/Tax-Rates/Corporate-Tax-Rates/)

The tax on capital gains and dividend income is 0%. No withholding tax is levied on post-tax dividends paid from Singapore. Equally important, all foreign-sourced income is tax exempt as long as the income has been subjected to tax in a country with a headline tax rate of at least 15%.

So how much you save in taxes really depend on how you structure the company in Singapore.

Cost of accounting support and incorporation in Singapore

With PikoHANA, the accounting support starts as low as SGD99 per month ! The incorporation fee is usually SGD1,000 and that includes bank account opening.

Does it take a long time to incorporate a company in Singapore?

When you are looking to set up business in a foreign country, there are many factors that should be taken into consideration before finalizing on a destination. One of the most important factors to ponder upon is the ease of incorporation. Singapore has one of the most productive, versatile and bureaucratic red-tape free incorporation regulations in the world. To incorporate in Singapore, you can do it remotely and only takes one day after the initial paperwork as the process is straight-forward and is created by keeping the interest of businesses in mind. Documents can be signed using docusign so there is no need for physical presence. However the bank account opening takes longer due to several factors such as due diligence and wet signatures for bank opening forms.

With PikoHANA, you can avail access to easy and affordable company incorporation and corporate secretarial services in Singapore. Since you are supposed to have a local Director in your company board, PikoHANA also assists you with the process of establishing nomination of local resident Directors.

In conclusion, if you decide to move your business and incorporate in a new country, it is only normal to have a multitude of doubts around it. In the short term, moving your business to Singapore can be a great way to build a huge capital because of the number of tax cuts and monetary concessions that the Government provides to incorporate Singapore companies in their initial years. Again, to think of the advantages in a long term basis, the excellent infrastructure of the Singapore that comprises of state-of-the-art, modern buildings, and transportation facilities can immensely add to the reputation of your business, hence allowing you to associate with other businesses and expand your presence in the industry.

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