What Singapore Offshore Company Owners Need To Know

Setting up an offshore company in Singapore is proving to be a popular option for many business owners from around the world

. Last year over 4000 offshore companies were formed in Singapore and the numbers are expected to grow every year. Foreign entrepreneurs who are considering setting up an offshore firm in Singapore are provided with a number of benefits and incentives. However, they do need to know a few things to ensure they manage their offshore company formation in the country effectively. Some of these things are as follows:

1) While offshore company owners are allowed to setup their companies from outside of Singapore, they do need to engage the services of a professional incorporation service provider who is a local Singapore resident. Foreign owners need not visit Singapore during the company setup procedure as the local incorporation agent can handle all activities related to company registration. All you need to do is courier the required documents to them and they will take care of the rest.

2) Offshore companies should opt to register a Singapore private limited company. This is the best form of business to own in Singapore as it is considered as a separate legal entity and the personal assets of the foreign entrepreneur is safeguarded against any liability, debt or legal claims against the Singapore offshore company.

3) Even though offshore companies in Singapore can be 100 per cent foreign owned and shareholders can live anywhere in the world, they still need to follow the mandatory statutory requirements. Statutory requirements include having at least one local director, having one local company secretary and having a registered business address in Singapore. All three of these mandatory requirements can be fulfilled by engaging the services of a professional incorporation service provider as they can provide with a business address as well as with nominee directors and complete company secretary services.

4) Ongoing compliance requirements are taken quite seriously in Singapore. Not meeting compliance requirements can be seen as a criminal offence as well. Most important ongoing compliance requirements include maintaining proper books of accounts, maintaining proper financial records and filing annual returns and annual tax returns on time.

5) Foreign sourced income is not taxable in Singapore. However, if that income is deemed to be remitted to Singapore, then the standard corporate tax rates apply. It is important offshore company owners talk to a consultant and understand what exactly constitutes foreign sourced income and when it is deemed remitted to Singapore.

by: Bryan Wong

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