An offshore company, as already evident by its name is the one which is set up in a place other than where its original investors basically reside. And then, since they are operated on foreign lands, there is no specific scarcity of skilled workforce in this case. Thousands and lakhs of labourers from all over the world are available and the pool of talent is really the best to choose from, to say the least. The lucrative opportunities available abroad can very well be utilised if not anything else. And then, Singapore being a business hub is all the more suited for the above task. Now, the question is that why Singapore should be chosen as a business hub when there are so many other nations offering the same? The answer goes as follows:
- Singapore has a really credible and trustworthy image in the market of being able to do business ethically.
- Work is valued here. It is not that, being an outsider, the work is going to be less valued and acknowledged on the basis of nationality. No, that is never the case. The business grounds in Singapore are really open and liberal and 1005 shareholding is allowed in almost all the sectors.
- The tax friendly regime of Singapore comes as no surprise. This is mainly owing to the politically stable environment of the nation as Singapore also happens to be a bureaucratic country. So, less important taxes such as UAT and sales tax gets ruled out all at once.
- Thirdly, bank facilities in Singapore are extremely sophisticated as it is a leading financial centre without a doubt. The wide array of foreign banks to choose from, and the multi-currency accounts in Singapore makes it an obvious contender. And then, a place where account opening would merely take-up a span of 2-15 days, would obviously be preferred over the rest, isn’t it?!
- The most important part is that, everything is executed online here. The registration process is quick and all the more so as it is computerised. As foreigners from other parts of the world, it is not going to be a herculean task to get the company registered after getting the approval from authorities (debarring some necessary ones), and is rather done in a matter of a few simple steps.
- Business licenses are required almost anywhere and everywhere. Be it a restaurant or an employment agency, or even a company providing financial and educational services, a license is a must. Given the republican form of government in Singapore, obtaining such licenses for the smooth functioning of the business is just a cakewalk. The only legal requirement is the Memorandum of Articles Association which can be acquired from Singapore’s registrar. Apart from this, a paid-up capital of a mere $1 is enough to get a business started. The capital, can very well be increased once the company is incorporated firmly in corporate spheres.
Not content with being the world’s second freest economy, the offshore companies in Singapore would now take the world by storm, quite literally. In terms of economic freedom, the government here kind of understands people’s viewpoints, resulting it to become a large offshore financial centre without a doubt. The lesser competition levels and the methodical jurisdiction practices here, undoubtedly makes Singapore one of the best places to invest on corporate lines for the time being. Singapore, is no global leader on the field but with the kind of innovations made in the place, it is surely keeping up with the global trends and how!
Now, for the correct working of an offshore company in Singapore, the jurisdiction needs to be just correct in its functioning ways. It also does take up time for research to get the best of the same. So, it is always better to contact a professional help to ensure that the jurisdiction adopted in synchronisation with the needs of the offshore company. Also, when the company is going to be based out of the hometown, it is always assuring to have a great jurisdiction body at the top. Now, obviously the company in question firstly needs to qualify as an offshore company by Singapore’s standards. The host country also needs to be paid a fixed annual fee for that matter, though taxes are negligible to say. In return for these, the host country does offer the offshore companies an array of benefits with no need of producing audit and financial statements every now and then. So, the issue of monetary control does not apply here and the owner too, is under no obligation to reside in Singapore. An official visit as and when required would make up for it which is kind of liberating.
Following are some of the few pointers which need to be kept in mind before setting up a company in Singapore:
- The company must be approved by the registrar. A seal of approval comes in handy in times of crisis. Also, it is recommended that the shareholders must be above 18 years in age, for a better understanding in business. The board of directors too, must be a resident of the state itself considering the seriousness of the job posts involved here.
- For a company to get registered in Singapore, a huge amount of capital is not really required. So, the scare of a dent in the bank account is already done away with in this stage itself. The only documents required for registration are passport copies of all shareholders and residential proofs for the same. The shareholders need to be aware of the company they would be working for, in the first place. They must surely be knowing the work that they would be about to do. One local resident in the group shall only make things easier as they would be well acclaimed to the language and other procedures at Singapore, itself.
- The concept of so many small and mid-sized companies in Singapore, can be very well attributed to the fact that subsidiary companies of the parent company is encouraged to be set up here, with no restrictions whatsoever. That is an opportunity right here, as setting up a company in any other country might just not be so easy with the entire multiple and complex processes going on in the background. So, the formal presence of the foreign companies in Singapore is enhanced furthermore. Branch offices, can also be opened without creating a separate entity altogether. However, the liabilities of the branch company must be borne by the parent company itself, though there is going to be a surge in the respective business on international grounds with such developments.
If World Bank Reports are to be believed, Singapore ranks second in number as the financial and transport business hub of the world. Now, that is quite an assurance that out of all the things Singapore as a business hub would never disappoint. As an individual, one might think of setting up businesses such as Private Limited Company & Sole Proprietorship. While, for corporate sectors, branch offices and representative offices are the best of the lot. Business, itself would be guaranteed to be on a smooth sail in an area where the business laws are on such a high. So what is the wait for? Go ahead and open your own offshore company in Singapore, today!