Singapore

Singapore Managed Companies

Synopsis

Singapore was founded as a British trading colony in 1819. It joined the Malaysian Federation in 1963 but separated two years later and became independent. Singapore subsequently became one of the world's most prosperous countries with strong international trading links (its port is one of the world's busiest in terms of tonnage handled) and with per capita GDP equal to that of the US and leading West European countries. To many, Singapore is the 'Switzerland' of the Far East enjoying economic, banking and social stability including a robust legal system very similar to that of the UK and USA. If there is a downside it is that just like Switzerland its prestige comes with a price! Singapore occupies a mere 697 sq. kilometres and has a population of 5,460,302 (July 2013 est.).

Star Ratings

Corporate registration efficiency

5

Cost

5

Confidentiality

5

Local Banking facilities

5

Legal system

5

Political stability

5

Reputation

5

singapore

Location

Singapore is located south of mainland Malaysia and north of Indonesia.

Tax Planning Credentials

Singapore is without doubt the most prestigious and secure Far-East territory in which to register and manage a limited liability company. The key benefit is that the territory operates a 'territorial' tax system, where-by only Singapore sourced income and/or remitted income technically becomes subject to the local 17% corporate tax rate. Notwithstanding this, the requirement for at least one local director and the need to (often) substantiate local management and control because of various tax treaty requirements will normally result in (by convention) even externally trading companies paying Singaporean corporate tax on around 25% of their worldwide income or approximately 4.25%. It should also be noted that even where foreign sourced income is remitted to Singapore, it may still be possible to avoid local corporate tax exposure if the following conditions are satisfied, namely:

  • The foreign income concerned must be received from a jurisdiction with a headline tax rate of at least 15% ('the Headline Tax Rate Condition'); and
  • The income must have been subject to tax in the jurisdiction from which it is received ('the Subject to Tax Condition').

Uses for the Singapore Tax Treaty Network

Singapore has a highly developed double taxation treaty network, that make it an ideal conduit country for many forms of business especially relating to those with interests in the Far-East and/or in the high tech and/or import and/or export sectors. However, it should be noted that Singapore does not have a tax treaty with the United States of America making it unsuitable in many cases for those with close ties to this jurisdiction.

Companies

Singapore uses the corporate friendly common law system inherited from its close historic ties to the former British Empire. This means that both British and Irish clients will feel very much at home with all the standard Singaporean legal documentation especially as they are in English and English is the standard language used in business.

Benefits

  • Pro-business environment
  • Singapore doesn't have specific transfer pricing legislation
  • Close ethnic connections to China
  • Stable legal and political environment
  • English is the main business language
  • Territorial Tax System
  • Corporate Tax is only 17%
  • The Singapore Dollar is very stable and worth about US 75c
  • Use of the common law system
  • Low corruption rate
  • Excellent double taxation treaty network.
  • Highly educated population
  • One of the World's primary shipping ports
  • Excellent communications with Asia and the rest of the World
  • Excellent, well capitalised and stable banks
  • No capital gains tax
  • Company registration procedures are efficient and straightforward

Double Taxation Treaty Network

The key benefit is that Singapore has an extensive and very favourable tax treaty network with presently 69 countries including the UK, Ireland, France, Germany, Canada, Australia, India, and all key EU nations but without doubt most importantly with China.

Administration & Accountancy Services

A Managed Singapore Company

All Singapore companies must have a local Director and should also carry out management and control at a local level if local tax treaties and benefits are to be fully realized. The key service offered by the SCF Group is that of a fully managed Singapore company where-by we can register your Company, act as the daily legal and accountancy administrators, liaise on your behalf with Singapore Inland Revenue, Company House, maintain the registered office, company minutes and in fact everything necessary to provide you with a fully functional company including the provision of a chartered accountant to steward or oversee all accountancy and business transactions.

Our Range of Fully Managed Company Services

  • The appointment of a qualified accountant to act as Company Secretary
  • The opening up of a bank account for your company with access provisions agreed by SCF, the bank and of course the beneficial owners
  • A Full Management Agreement (FMA) setting out the rights and obligations of all parties
  • The provision of a Singapore registered office address for service of process and official mail
  • The maintenance of all requisite company minutes, ongoing companies registration office submissions, annual returns and AGM preparation
  • The annual submission of the Annual Assessment of Tax Form
  • The maintenance of the company's accounts supported by a quarterly review ready for the submission to the Singapore Revenue including the corporate tax calculation. Accountancy will be maintained in either SAGE or Quick Books format
  • The appointment, if required or appropriate, of auditors
  • Advice on general Singapore tax mitigation and the company's maintenance by a dedicated company accountant

Set-up & Annual Maintenance Fees

Please see separate SCF Singapore Fee Quotation

The Fully Managed Singapore Company & Trading Office Package (Optional Extra)

This Package is identical to the Fully Managed Singapore Company Package save that it includes SCF actually providing the day-to-day trading, telephone answering, website management (if required), order reconciliation, invoice issuing and trading office facilities for your Singapore company operation, which can be made bespoke to your exact needs all at a fraction of the cost of setting up and maintaining you own office in Singapore. For more details please contact an SCF Consultant