The Singapore Stored Value Facility Company
Since 2003, Healy Consultants Group PLC has assisted our Clients with registering the optimal vehicle for financial services companies all across the globe. One attractive business vehicle for e-wallet and payment card services is the Singapore Stored Value Facility Company (SVF company). More information on the same below.
What are stored value facilities?
- Stored value facilities (or SVFs) are all types of prepaid cards and vouchers allowing their users to hold e-money and make payments up to the amount of the stored value;
- Singapore regulations differentiate two types of SVFs:
- Single purpose SVFS, which can only be used to make payments or collect cash with the business which issued the card / voucher. For instance, a prepaid top up card;
- Multiple purpose SVFs, which allow customers to use the card / voucher with other businesses, not necessarily related to the business of the issuer. Singapore public transportation cards are an example, as they can also be used to make payments in selected shops.
What are the advantages of registering a Singapore company to offer SVF services?
- The regulations on Singapore are attractive for SVF businesses, because:
- Companies issuing single purpose SVFs are not legally required to secure a license with MAS;
- Multi-purpose SVFs are only required to secure a license with MAS if i) they become “widely used” and ii) and the total value stored by the issuer exceeds SG$30 million (US$22 million);
- Unless they are required to hold a MAS license, SVF businesses are not required by law to implement “know your Client” procedures, although this is still highly recommended.
- It takes less than one week to register a company in Singapore, and the minimum paid-up capital for doing so is only SG$1;
- If properly structured, companies registered in Singapore can also be legally exempt from Singaporean i) corporate income tax ii) withholding tax and iii) VAT. See this webpage on the Singapore offshore company for further details.
Our service package
- Our standard package of services includes the following: i) company registration services ii) company secretary and registered address services iii) nominee services for one professional passive resident director and iv) assistance to confirm with MAS the company is legally exempt from SVF licensing and registration in Singapore;
- Additionally, our Firm can also offer multiple additional Singapore company formation support services, including: i) virtual office services ii) assistance to recruit employees iii) accounting and bookkeeping services and iv) merchant account opening services.
|Standard cost||Draft invoice|
|Singapore SVF company||US$15,440|
Important legal considerationse
- Foreigners who are not living in Singapore are not legally allowed to offer prepaid cards or vouchers to Singapore residents or to market their services to customers in the City-State;
- SVF businesses managed from outside of Singapore may be subject to additional regulations in the countries where the directors live and / or where the business customers are based. We strongly recommend our Clients to inform themselves re the same;
- SVFs are not equivalent to credit cards, debit cards and ATM cards, and should not be marketed as such;
- Unlike banks and other financial institutions, customers of a SVF will never benefit from a Government guarantee, in the event that a SVF operator goes bust and they lose their stored e-money.