Singapore is frequently voted the best Asian city in which to live due to its excellent infrastructure and public services. It has one of the lowest crime rates in the world and offers a high quality of life to its residents. Globally, it is rated one of the wealthiest countries when measured by GDP per capita.
Minimum investment of SGD 10 million
Eligibility for citizenship after two years of permanent residence
Benefits of Singaporean residence by investment
Benefits of Registering an Offshore Company in Singapore?
1) Tax Benefits
One of the most significant benefits of registering an offshore company in Singapore is the favorable tax system. Singapore has a territorial tax system, which means that only income earned within Singapore is taxed. Offshore companies that are registered in Singapore are exempted from paying taxes on foreign-sourced income that is not remitted to Singapore. The tax rate for companies is also relatively low, with the current rate being 17%.
2) Political Stability
Singapore is known for its political stability and sound governance. This creates a favorable environment for businesses to operate in. The government is supportive of foreign investment and has implemented policies to attract businesses to the country. This means that offshore companies registered in Singapore can operate without any political instability or interference.
3) Easy Company Registration Process.
The process of registering an offshore company in Singapore is straightforward and efficient. The government has streamlined the registration process, and it can be completed within a few days. The process involves submitting the necessary documents, such as the company's memorandum and articles of association, and the appointment of a local director. Singapore's business-friendly policies make it an attractive destination for entrepreneurs looking to start a business quickly.
4) Strategic Location.
4) Strategic Location.
Singapore's strategic location in Southeast Asia makes it an ideal location for businesses looking to expand their operations in the region. The country is well-connected to major Asian markets, such as China and India, and has excellent air and sea links. This makes it easy for offshore companies registered in Singapore to access markets and customers in the region.
5)Protection of Intellectual Property
Singapore has a robust legal system that protects intellectual property rights. The country is a signatory to several international conventions, such as the World Intellectual Property Organization (WIPO) and the Paris Convention for the Protection of Industrial Property. This means that offshore companies registered in Singapore can benefit from strong protection of their intellectual property.
Singapore has a highly skilled and educated workforce. The country's education system is world-renowned, and many of its graduates are sought after by multinational companies. Offshore companies registered in Singapore can tap into this pool of skilled labor, which can help them operate efficiently and effectively.
The Singapore Global Investor Program
It is one of the Singaporean government’s objectives to attract talent to the country for residence and work. The government’s intention is for foreign nationals to make Singapore their home by becoming permanent residents.
The Singapore Global Investor Program has been designed for wealthy and experienced foreign entrepreneurs, business owners, and managers who are interested in starting a business or investing in Singapore and who wish to make the country their home. Successful applicants receive Singaporean permanent residence status within nine to twelve months.
Requirements of the Singapore Global Investor Program
Singapore has emerged as a world-class destination with a harmonious multiracial and multicultural community. It has a population of 6 million people, with English and Mandarin as the main languages spoken. Living in Singapore means that residents benefit from the country’s political stability and economic prosperity. Singapore also has a reputable education system and a reliable healthcare system.
The country has a friendly tax regime and has continued to introduce tax regulations that favor foreign investors. Singapore’s taxation system operates on a territorial basis.
Requirements of the Singapore Global Investor Program
Established business owners, next-generation business owners, founders of fast-growing tech companies, and family office principals with substantial entrepreneurial, business, and management experience may select one of the following investment options to acquire Singaporean permanent residence.
Demonstrate an investment of SGD 10 million (including paid-up capital) into a new or existing business in Singapore, and hire at least 30 employees to be eligible for the re-entry permit renewal after the initial five-year period. At least half the employees must be Singaporean citizens and 10 must be new hires if the business was already in existence.
Invest SGD 25 million into a fund approved by the Singapore Economic Development Board that invests in Singapore-based companies.
Establish a Singapore-based single-family office with assets under management of at least SGD 200 million. At least SGD 50 million of the assets must be deployed and maintained throughout the five-year residence period in any one of the following investment categories:
To qualify for the re-entry permit renewal under Option C, hire at least five incremental family office professionals by the end of the five-year period. At least three employees must be Singaporean citizens.
Procedures and time frame of Singaporean residence by investment
The procedure to gain permanent residence under the Singapore Global Investor Program takes nine to twelve months. Applicants who wish to live in Singapore must submit a personal profile and a proposed investment plan using an e-application form with supporting documentation in hard copy. They are required to attend an interview after submitting the application. If an applicant meets all the criteria, the Immigration and Checkpoints Authority of Singapore will issue an approval in principle. This approval is valid for six months during which applicants must make the requisite investment under the chosen investment option. Successful applicants must formalize their permanent residence status within one year of receiving their final approval letter.
The spouse of the investor and their children (under 21 years old) are eligible to apply for permanent residence under the investor’s application. Male dependents will be liable for national service.
Parents and unmarried children of the investor who are 21 years old and above are not eligible to be included in the application for permanent residence status, but they may instead apply for a five-year long-term visit pass.
Re-entry permit validity
· * Step 1: Choose a company name and business activity
*1 The first step in setting up an offshore company in Singapore is to choose a unique name for your business. The name must not be identical or similar to any existing registered company name in Singapore, and it must comply with the relevant regulations.\You will also need to decide on the nature of your business activity, which will determine the relevant business license or permit requirements.
* Step 2: Engage a professional services firmTo register an offshore company in Singapore, you will need to engage the services of a professional services firm, such as a corporate service provider (CSP) or a law firm. These firms can provide expert guidance on the registration process, assist with the necessary paperwork and documentation, and ensure compliance with local regulations
* Step 3: Choose a business structure
Most offshore companies in Singapore opt for the Pte Ltd structure, which offers limited liability protection and greater credibility with customers and suppliers.
· * Step 4: Register your company with the Accounting and Corporate Regulatory Authority (ACRA)
· Step 5: Apply for business licenses and permits
Depending on the nature of your business activity, you may need to apply for one or more business licenses or permits. Some common licenses and permits required in Singapore include a business license, employment pass, and goods and services tax (GST) registration.
Your professional services firm can guide you on the necessary licenses and permits and assist with the application process.
· *Step 6: Open a corporate bank account
Finally, you will need to open a corporate bank account in Singapore. Singapore offers a wide range of local and international banks, and it is advisable to shop around to find the best account for your business needs.
In Conclusion, registering an offshore company in Singapore certainly could be a straightforward and streamlined process if you follow the necessary steps and meet the relevant requirements. By engaging a professional services firm, choosing the right business structure, and complying with local regulations, you can establish a successful offshore company in Singapore and take advantage of its favorable tax system, political stability, and a strong economy.