Reasons Why Singapore Is The Best Country For Offshore Businesses?
An offshore company is defined as a company that has its jurisdiction outside the country in which the owner is residing. In simpler words, it is a company that is located in a foreign jurisdiction. In the country in which the company is incorporated, it is allowed to conduct normal business activities such as trading and holding assets outside of its jurisdiction.
When offshore companies conduct and limit their business transactions to outside the jurisdiction of the incorporated area, they are offered various benefits such as tax exemptions. Setting up a company offshore in Singapore adds to its safety and protection which is only offered by a legal system separate from the one in which the owner resides. It prevents any malicious entities from breaking into the company’s system of accounts and assets.
Moreover, such companies are treated as separate legal entities that are distinct from their owners, directors, or members. Any kind of debt, liability, or action taken by the company is not passed on to the owner or director and protects their assets affiliated with the company.
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Why Choose Singapore?
Incorporating a company in a separate jurisdiction comes with many advantages such as tax exemption, ease of setting up, least reporting requirements, and a business-friendly environment. Incorporating a business offshore in Singapore has many benefits such as:
1. Lower Tax Rates
Singapore has a very simple tax system that has affordable rates and easy payment methods. Singapore’s tax system offers low personal and corporate tax rates, various tax reliefs and incentives, the absence of dividend and capital gains tax, and most importantly, a one-tier tax system.
2. Ease of Incorporation
Singapore is the second most cost-effective place for conducting business in the entire world. The registration process is efficient, quick, and free of bureaucratic red tape. The process only involves getting the approval of the name of the company and submission of incorporation documents.
3. 100% Foreign Ownership
In Singapore, the foreign ownership policy is liberal and does not require any foreigner to get prior approval from the Singapore authorities. Shareholders are allowed 100% ownership in all sectors and can be both, individuals or corporate entities.
4. Credibility & Image
The offshore companies that are incorporated in Singapore automatically earn credibility and trust as corporate entities. The business is taken seriously by bankers, investors, employees, and customers.
5. Corporate Banking Facilities
Singapore is the leading financial center in Asia. offshore companies that have been set up in Singapore have multiple choices for baking facilities as there are many local and foreign banks functioning in the country. They offer a range of features such as being business-friendly, net banking, credit cards, multi-currency bank accounts, and easy movement of funds across countries.
6. Stable Political System
Singapore is the most politically and economically stable country in the continent of Asia. The Government of Singapore is corruption-free, transparent, sound, and efficient. The legal system is defined clearly and has separate laws pertaining to every area, including business, property protection, and manpower. All the laws make it a suitable, risk-free destination to set up an offshore business.
7. Multiple Funding Options
The financial policy of Singapore is such that it is easy to raise funds for your business through various measures. It allows equity fundraising through private investors, investment and contribution from angel investors, and private funding from banks and financial institutions.
Singapore is the ultimate destination for taking your business offshore. Its rules and regulations allow easy incorporation and functioning of your company. The efficient law system, stable political environment, easy fundraising, and stature of credibility provide an ideal and suitable opportunity for your business.