A Singapore offshore company provides several benefits to corporations and organisations all over the world. Some of the major advantages in having a Singapore offshore company are listed below.
Setting up a Singapore offshore company does not convey the image of a tax haven. As such, opening bank accounts in other countries becomes easy. International banks are fully aware that an offshore company set up in Singapore is completely legal and subject to strict government regulations and laws.
Even though Singapore is not seen a tax haven, setting up an this type of company in Singapore does offer considerable tax benefits. Global profits of corporate companies can be transferred to Singapore without difficulty and tax benefits can be enjoyed.
Singapore is considered as one of the best offshore service jurisdictions. Registering a company in Singapore is strengthened by the exceptional infrastructure in current technology, very good political stability and governmental support, and extraordinary legal environment with full intellectual property rights.
The major legislations that govern corporate entities registered in Singapore are The Companies Act and The Income Tax Act. Hence, the registration of a Singapore offshore company is not a complicated or cumbersome process.
The company can register itself as a resident company or a non-resident company. It can also register as a foreign branch operation or simply as having a representative office.
The government does not normally impose any restrictions on financial transactions and funds transfer of Singapore offshore companies However, business entities that are related to financial services, media, education and other sensitive business operations that can have an impact on the politics and image of the island are carefully monitored and their business transactions are periodically scrutinised.
A Singapore offshore company enjoys all the powers as a natural resident or a local company.
Since English is the main official language, the various legislations and the regulations are easily available in English. The corporate documents can also be submitted in English and will be accepted as such by all the related governmental authorities. This facilitates an easier registration process for the Singapore offshore company.
The corporate tax rate on income sourced in Singapore is 17% from the assessment year of 2010. Still, the effective tax rate will be significantly lesser for business entities that are qualified to avail tax incentives. Based on these incentives, the effective tax rate can vary between 15% and 0%. Dividends sourced from other foreign countries, profits of foreign branches and service income sourced from other countries are exempted from tax in Singapore.
The above points illustrates how opening and operating a Singapore offshore company offers immense benefits to all kinds of business entities and entrepreneurs from all over the world. Singapore has emerged as a major global financial centre, and provides an efficient domicile for companies across a broad range of business sectors.
Author: Lawrence R Smith
Article Source: EzineArticles.com