Singapore is one of the biggest financial hubs in the world. It is a huge player in world trade and has the world's fifth busiest seaport. As a leading financial centre it provides a very attractive location for the establishment of a corporate presence. What makes it even more appealing is that Singapore offshore company set up is usually a relatively easy procedure. Having said that, anyone considering establishing a company in Singapore should obtain expert guidance in advance. That expertise can be beneficial for legal matters as well as for financial matters.
Why would someone wish to establish a company in the Republic of Singapore in the first place? Well one reason might be that the person intends to live there. According to experts, it has the best quality of life of any city in Asia. Recently, and possibly as a result of this, Singapore is becoming an increasingly more expensive place in which to live.
But apart from increased cost of living, a very favorable taxation regime for Singapore offshore companies exists. That attractive regime applies to the individuals as well as to companies. For example, there is no local tax liability on profits gained from non-Singaporean sources, subject to certain conditions. This includes dividends and income sourced from abroad. A company incorporated in Singapore and, correctly structured, is effectively exempt from taxation of profits earned outside the republic.
Setting up a company in Singapore is relatively straightforward, although the authorities still implement stringent guidelines to ensure legitimacy of business operations and maintain the reputation Singapore holds. The amount of capital required by law is low. Indeed the Republic is regarded as one of the easiest places in which to operate a company from the point of view of regulatory obligations. One prerequisite that must be adhered to is, that at least one director has to be ordinarily resident in Singapore. To support a start up company in Singapore, the procedure for setting up a corporate bank account is also relatively easy and a good professional services firm can manage this process for you.
Singapore is not regarded as a 'tax haven'. This term has been used in reference to low tax jurisdictions and is viewed with suspicion by revenue authorities fighting tax evasion. Singapore also has the benefit of being a very stable country, politically and economically.
The Singapore government is very business friendly. Many local consultants offer virtual office services. There are little or no restrictions on fund transfers and general international financial transactions. In 2010 it was voted the world's "easiest places to do business" by the World Bank.
English is an official language and all official documentation is accepted in English. While an annual financial statement must be submitted to the Inland Revenue Service, an annual financial audit is only required for companies with sales / turnover of five million Singapore dollars or above. Singapore has double taxation agreements with over sixty countries worldwide.
Other benefits of Singapore company formation for business people include a very strong legal framework and strict protection of intellectual property of companies. From the information technology viewpoint, Singapore is in the top three countries worldwide. Singapore is now the third largest Southeast Asian country in terms of the value of foreign direct investment. A Singapore offshore company set up is a very attractive vehicle for entrepreneurs throughout the world.
Author: Lawrence R Smith
Article Source: EzineArticles.com