Private Limited Company is a legal entity. The authorized capital limits the liability of the company. A shareholder can be an individual or corporate body, resident of any country. There is no authorized capital required.
Most of the limited liability companies in Singapore are PLCs.
Basic requirements for Singapore offshore companies:
- A company name is required to end up with the words “Private Limited” (abbreviated “Pte Ltd”). The following words are not allowed (you must obtain a license or special permission to use them): Bank, Building Society, Savings, Loans, Insurance, Assurance, Reinsurance, Fund Management, Investment Fund, Trust, Trustees, Chamber of Commerce, University, Municipal
- Shares are distributed among shareholders of no more than 50 and cannot be traded in a free sale.
- The number of shareholders must not exceed 20 and the minimum is one.
- You need to appoint a qualified resident company secretary
- At least one director must be a resident in Singapore.
- Financial reporting
In Singapore, the use of nominee service is allowed (even though directors have a high threshold of responsibility). Given that at least one resident director (Singapore citizen, Singapore permanent resident, or Singapore work pass holder) is required, the use of nominee directors is a common practice. This advantage, among other things, makes it possible to acquire a shelf company when there is a need for quick incorporation.
Here, a quasi-territorial principle of taxation is applied: companies which do not carry on a business in Singapore and derive no income on the Singapore territory are not liable to tax. However, the income, transferred to a bank account in Singapore is treated as taxable income. In addition, Singapore’s taxation is a system of tax discounts and benefits for newly formed enterprises. The standard rate of income tax is 17%. As a rule, income tax is levied on income if it is received from sources in Singapore or transferred to Singapore from sources abroad.
There are tax breaks for Singaporean companies in the first 3 years of their existence, and small companies could receive an exemption from the annual Audit. Singapore has signed treaties on double taxation avoidance with more than 50 countries. It has all kinds of free trade agreements and investment guarantee contracts with different countries. Also, the legislation on Intellectual Property is perfectly balanced in this country.
You can open an account in a Singapore bank, even if beneficiaries from the CIS countries own the Company. Opening an account with non-resident beneficiaries is an opportunity that sets Singapore apart from Hong Kong and classic offshore countries, where it is difficult to open bank accounts.
Best uses for a Singapore company include import transactions in international trade. They often act as intermediaries between the EU, the CIS, and Asian countries (Vietnam, China, Japan). Thus, a Singapore company buys the goods and resells them to a buyer. It allows to move financial assets and reinvoice at the level of the Singaporean company. It is also possible to regulate the price of the goods within the company. As a reseller, the Singapore company contracts at a bargain price, which will allow it to concentrate all the main profit from the deal in Singapore. As the profit was received outside Singapore, it is a tax-exempt (zero taxation or minimum taxation).
Singapore is not included in any offshore black list, which guarantees your company prestige and trust from international business partners.
AFORTIS Group helps entrepreneurs and international businesses set up in Singapore.