Advantages and disadvantages of incorporations in Singapore
As globalization is changing the world's economy, an increasing number of businesses are now turning to overseas investment and incorporation to keep pace with the ever changing market trends. The reason for setting up incorporations aboard is simple; one is so that businesses can a strong foothold into the international market, and the other is so that businesses can take advantage of the many tax breaks offered by foreign countries. Singapore is one such country that offers foreign investors and businessmen the chance to pay very little in taxes.
The reason so many people are incorporating a business in Singapore is because this country is the perfect place where East meets West. One of the Asian Tigers that lead to Asia 's economic resurgence Singaporean markets not only have US affiliations, but European and Asian influences as well. A former British and American colony, Singapore has a legal and financial system similar to that of the US and the UK. Today a leading financial hub in Asia, Singapore has offices of most of the major international banks, multinational organizations and financial institutions of the world. With a strong currency and a well established infrastructure Singapore is known as the ' Lion City'. A great place to incorporate a business in Singapore offers businessmen the opportunity to set up an overseas corporation in a sound and stable environment.
So what are the advantages of incorporations in Singapore? Listed below are some reasons why you should consider incorporating your business here.
In Singapore anyone including foreigners can set up and operate a business.
Setting up a business in Singapore is relatively easy; all you have to do is register your firm with The Registry of Companies and Business in Singapore city.
It usually takes about three weeks to from a company in Singapore. It takes about a week to the get the go-ahead for a proposed company name and another two weeks after you have submitted the necessary corporate documentation with the Registry of Companies and Business.
Singapore has a complex infrastructure and a well regulated economy.
Singapore is a zero-tax haven for a number of non-resident controlled companies.
Singapore only taxes companies sourced within the country or foreign sourced income that is remitted into Singapore.
In Singapore resident companies take advantage of the fact that Singapore has an extensive double tax network treaty.
Some disadvantages of incorporations in Singapore are:
Though Singapore has a sophisticated infrastructure and good regulations in place, this country is among the most expensive in the world, as the cost of living here is very high.
When choosing a company name for your business proper approval is required. All company names must end with 'Private limited or 'Pte Limited'.
In Singapore annual accounts and annual returns are required to be filed by all businesses.
You have to file your annual returns with both the Companies Registry as well as with the Income Tax authorities.
To set up an LLC two directors are required, one of whom must be a Singapore resident, a native Singaporean, or someone who has a Singapore Employment Pass.
The directors of an LLC must be individuals. Corporate entities cannot act as directors in Singapore.
There must be at least two individual, or one corporate shareholder for a business to be set up.
Bearer shares are not allowed in Singapore.
Every foreign company registered in Singapore must have two agents acting on its behalf in the country. These agents must be native Singaporeans, permanent residents of the country or must have a Singapore Employment Pass.
A resident, qualified Singapore auditor must do the business' accounts.
A general meeting must be held on an annual basis.
People who have declared bankruptcy cannot be nominated as directors.
