If you have been operating locally and want to take the business globally, it is advisable to start with an offshore entity such as a limited liability company in a good jurisdiction.
The main reason for incorporating a company in an offshore jurisdiction is tax benefits, better access to finances, and access to a bigger market. To enjoy these benefits and others, it is advisable to pick a jurisdiction of choice with greater care. Here are the main advantages of incorporating a company in Singapore.
Reduced tax requirements
Singapore has one of the most direct tax regimes in the world. The Singapore tax system has low personal and corporate tax rates that attract entities because they can retain most of the profits.
Some of these tax incentives you will enjoy after taking a company to Singapore include;
- Capital gains are not taxed
- Dividends are not taxed
- Attractive tax relief measures
- Extensive tax treaty networks
- Single tax policy (income taxed at the corporate level is not taxed at the shareholder levels)
Great ease of company formation
World Bank has ranked Singapore on top of the list of countries with the best economies to do business.
The process is easy, fast, and devoid of bureaucratic red-tapes. The process takes only two stages that are fully computerized; selecting the company name and submitting the required documentation. The process can be done online, and you can have the company up and ready in 24-48 hours.
The Hong Kong economy is very stable
In entire Asia, Singapore is rated the most stable country politically. This stability extends to all sectors of the economy.
This means that businesses have an even playing field so that it is the effectiveness of your product and brand that will define success. The rules of operations are clearly cut out, and any business is sure of fast growth if it has the right products and services.
Other important benefits of opening an offshore company in Singapore include access to many financial institutions and highly skilled labor.