Singapore offshore company

Singapore offshore companies

Uses of Singapore offshore business entity

  1. An offshore company in Singapore can also be referred to as a non resident company or a paper company;
  2. A non resident business in Singapore is legally tax exempt if certain conditions are met including i) no business conducted in the country ii) no banking within the country and iii) the company’s legal control is outside the country;
  3. A non resident company is also exempt of i) capital gains tax ii) withholding tax iii) value added tax iv)sales tax and v) accumulated earnings tax;
  4. Our firm legally registers non resident companies in Singapore supported by i) a business bank account in Hong Kong, Malaysia or Vietnam and ii) a business address in Singapore. We also make sure that the business bank account is with a reputed international bank;
  5. Incorporation of a Singapore offshore company can be completed within one week with a share capital of only US$1. Only one shareholder and one director will be required and they will not need to travel to complete the engagement;
  6. Information of Singaporean offshore companies like shareholder names, share capital and director details are publicly accessible through the ACRA website. Although this affects individual privacy, it also increases the transparency and reputation of Singapore’s offshore solutions. We will assist our Clients with this matter.

Table of Comparison between Singapore onshore and offshore entities

 Singapore onshore companySingapore offshore company
Incorporation period1 week1 week
Shelf companies allowedYesYes
Minimum shareholders11
Minimum directors allowed11
Minimum share capitalUS$1US$1
Corporate tax rate payable16.50%0%
Bearer shares allowedNoNo
Wholly foreign owned companyYesYes
Public register availableYesYes
Annual accounting and tax obligationsYesYes
Corporate directors allowedNoNo
Singapore resident company secretary requiredYesYes
Type of companyLLCLLC
Singapore bank account allowedYesNo
Can buy Singapore propertyYesNo
Can rent an officeYesNo
Can conduct business within SingaporeYesNo
Can hire staff in SingaporeYesNo
Annual license renewalYesYes
Singapore national director or shareholder requiredNoNo
Allowed to own shares in Singapore companiesNoNo
May own yachts registered in SingaporeYesYes
Healy Consultants company incorporation feeUS$6,980US$7,940
Draft InvoiceHK LLC setup costHK LLC setup cost

Uses of an offshore company

  1. An offshore entity in Singapore can conduct international trading through a legally tax exempt structure while looking good to Clients, investors, suppliers, banks and Governments;
  2. Corporate Clients can use Singapore offshore solutions to conduct global business while being domiciled in a reputable country with strong laws and a stable government. Singapore i) supports international arbitration ii) boasts strong contract law iii) houses laws that protect business investments and iv) is a signatory to WIPO;
  3. Offshore company registration allows entrepreneurs to take advantage of the strong legal system to house global trademarks and intellectual property;
  4. A Singapore offshore business can be a regional or global holding company and receive regular investment income including dividends and management fees;
  5. Some of our Clients support their companies with other off-shore services like i) offshore merchant account for tax exempt online credit card sales and ii) offshore corporate brokerage account to trade global securities while enjoying legal tax exemption;
  6. Our Clients, generally, incorporate Singapore offshore companies for i) international trading ii) holding companies iii) shipping companies iv) owning real estate v) owning copyright and patents and vi) for international consulting services.

Singapore offshore banking options

  1. To enjoy legal tax exemption, the offshore bank account cannot be located in Singapore;
  2. Our firm will assist our Clients in opening an international corporate bank account with one of the top 10 global banks in Hong Kong, Malaysia, Vietnam, Germany or Latvia;

Offshore company fees and timelines

Offshore business incorporation costs in Singapore in year 1 amount to US$1,940 and annual company costs in year 2 and thereafter amount to US$600. Average engagement fees approximate US$7,940 including i) offshore Singapore company formation ii) opening an offshore corporate banking account and iii) Singapore resident director services. Press this tab to view a sample draft invoice for a Singapore offshore entity:

Annual administrative obligations

  1. Singapore tax law mandates that all annual unaudited financial statements be submitted to IRAS, together with the tax return. Our firm assists our Clients efficiently and effectively complete this statutory Singapore accounting obligation;
  2. An offshore business setup in Singapore must lodge an annual return confirming relevant details of the company for the public register including names and addresses of all directors, address of principal place of business and details of all share-holdings;
  3. The company must appoint a resident company secretary and a resident director and maintain a legal registered Singapore offshore business address. The majority of our Clients appoint our firm to fill these legal positions;
  4. The process of deregistering a Singapore based offshore  formation is dictated by the Government and will take at least 6 months. Our fee to manage company de-registration is US$1,450. During this 6 month period, it is mandatory to maintain the resident company secretary and the legally registered office.

The steps to incorporating an offshore company in Singapore

  1. Singapore company law only allows resident individuals with a valid SingPass account to self-register an offshore entity. Hence, the Client must engage a local company secretary such as Healy Consultants to help them in the process;

  3. Prior to incorporating the offshore entity, Healy Consultants and our Client agree i) the planned business activities are in compliance with local and international tax laws and meet the planned objectives ii) the directors and shareholders to be included in the corporate structure and iii) bank account location taking into account business banking and cash flow considerations. Thereafter our Client i) settles Healy Consultants’ fees ii) signs and returns our engagement letter and iii) provides us the required due diligence documentation;
  4. To optimizing engagement transparency and appropriately set our Client’s expectations, Healy Consultants drafts a detailed engagement project plan, mapping out weekly engagement milestones. Immediately thereafter, Healy Consultants prepares the incorporation forms, director resolutions and Healy Consultants registered office agreement for Client’s signature;

  6. After receipt of signed incorporation documents by the director(s) and shareholder(s), Healy Consultants appoints the resident secretary and resident director (for their offshore company in accordance with the legal requirement under s126 of the Singapore company law 1992;
  7. Healy Consultants legally incorporates our clients offshore company through Accounting and Corporate Regulatory Authority (ACRA) website. Immediately, we email our Client the business profile confirming the successful registration of the company. ACRA mails the Certificate of Incorporation to Healy Consultants’ office within 1 week;

  9. On behalf of our Client, Healy Consultants liaises with the preselected international banks agreed during the planning phase and submits a complete corporate bank account application including i) a business plan ii) personal and corporate due diligence documents and iii) completed signed bank forms. Within 3 weeks Healy Consultants secure bank account approval and provides our Client with the international banking and e-banking details;
  10. Following engagement completion, Healy Consultants couriers a full company kit to our Client, including original corporate documents, unopened bank correspondence and a Client feedback survey.

Frequently asked questions

Contact us

For additional information on our offshore company services in Singapore, please email us at Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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