Reasons Why Number Of Offshore Companies Are Rising In Singapore
Over the years, Singapore has emerged as one of the most preferred destinations for
offshore company formation by entrepreneurs from all over the world. In fact business owners have started to recognize the number of advantages of forming a company in the country over the other nations popular for their offshore company laws. Most of the nations in the Caribbean Islands or British Virgin Islands were earlier popular amongst foreign business owners but this has started to change rapidly. Some of the reasons why number of offshore companies is rising in Singapore are as follows:
1) Ease of company setup: Singapore ranks amongst the top 10 nations in the world for ease of company setup. In fact Singapore ranks in the premier position for ease of doing business by foreign entrepreneurs. Currently overseas entrepreneurs can setup a company in Singapore without even visiting the nation. If they arrange for the required documents on time, then the entire company registration process can be completed within a day or two even if the entrepreneur is not present in Singapore.
2) Favorable laws: In Singapore, foreign company owners do not need special permissions to setup a company or they are not required to go through complicated compliance requirements. Setting up a private limited company would mean that the foreign owners personal assets are safeguarded against any liabilities, debts or claims against the Singapore Company.
3) Liberal Taxation policy: One of the main reasons why many entrepreneurs have an offshore presence is to save on taxes. In Singapore, offshore company owners are not taxed on their foreign sourced income as long as that income is not deemed to be remitted to Singapore. Hence for many offshore companies, their tax liabilities in Singapore can be completely nil irrespective of their revenues from business activities all across the world.
4) Credibility: One of the advantages that Singapore offers that most other offshore company hotspots do not offer is the credibility factor. Being an important global business hub with a vibrant economy and home to some of the biggest and most innovative businesses in the word, there is a lot of pride in having a presence in Singapore. Most other offshore company destinations are mainly seen as tax havens and are even looked down upon by many governments. This is not the case with Singapore as the nation is a respected member of the business world and is revered for its amazing economic growth.