Singapore has continued to raise its bar in terms of financial performance and overseas investments. For decades, it has been a go-to location for diverse businesses, industries, and investors. Streamlined tax structure, robust policies, and a strong financial system make Singapore an offshore haven. Here are some key reasons that might encourage you to consider this attractive jurisdiction for your next business venture.
1.Schemes For Startups:
Singapore has a streamlined tax structure with corporate and GST taxes. It offers schemes such as PTE (Partial Tax Exemption) and SUTE (Start-up Tax Exemption) that extensively promote needy and emerging businesses. These schemes provide much-needed tax breaks and significant exemptions, enabling hassle-free operations. Those seeking offshore company formation in Singapore can leverage this arrangement for increased savings in their initial years.
2. Attractive Tax System:
Singapore imposes no taxes on income generated and remitted overseas. Additionally, there are no capital gains, gift, or estate taxes, making Singapore an appealing jurisdiction for international endeavors.
Also, Singapore has liberal tax policies for incoming foreign income. It imposes no taxes on such incomes if they adhere to Section 10(25) and Section 13(8) of the Income Tax Act.
3. Potential to Invest in Thriving Hospitality Sector:
According to Modar Intelligence, Singapore's hospitality sector is poised for massive growth, with its overall market valuation expected to reach approx. USD 28.51 Billion by 2030. This indicates that the growth of hotels, restaurants, bars, and entertainment parks will be on peak in the coming years.
Singapore has many projects in the pipeline, entirely dedicated to boosting tourism. One of which is the Jurong Lake District. Situated adjacent to the new Science Center, the Jurong Lake District will be the country’s finest and the most significant mixed-use real estate project, boasting commercial and residential spaces. The project includes several service accommodations, restaurants, and scenic areas, specifically designed to boost tourism.
So what's in it for you?
By setting up an offshore company in Singapore, you can either buy, lease, or invest in such projects without legal hassles.
4. Flexible Company Structures:
Singapore offers a range of business structures for overseas entrepreneurs and investors. These include Limited Partnership, Limited Liability Partnership, Private Limited Company, Partnership, and so on. All these structures are easy to incorporate due to the streamlined registration process.
However, it must be noted that each structure comes with its own set of legalities, pros, and cons. So, weigh each against your business requirements and your tolerance for handling liabilities and compliance. It is an important decision; do not rush to register unless you are sure the given structure aligns with your needs. Consult an agent or a seasoned business advisor to make informed decisions.
5. Unmatched Asset Protection and Wealth Planning:
Singapore’s Trustees Act is a key to unmatched asset protection and wealth planning for foreigners. The act does not recognize the forced heirship arising under the settlor’s country's law. This simplifies asset management and dissemination by shifting entire control to the trustee.
Furthermore, there is a Qualifying Foreign Trust (QFT), which explicitly favors foreigners by ensuring tax efficiency on income (rent, interests, and royalties) arising outside Singapore. It means Singapore will impose no taxes on such income generated under QFT.
And most importantly, Singapore has no capital gains, gift, or inheritance taxes, which simplifies wealth transfer across generations. Lastly, there are no taxes on income paid to non-resident beneficiaries either- a win-win situation for all the parties involved.
6. Enjoy Trademark Protection Across 130 Nations:
Singapore is an esteemed member of the Madrid Protocol- a global initiative that simplifies international trademark protection. It means you can file an application concerning a trademark in Singapore through the Intellectual Property Office of Singapore (IPOS) to avail protection in 130 countries worldwide. Businesses in Singapore, whether local or international, can scale their operations across borders without fear of costly infringements.
In conclusion, Singapore has continued to impress investors worldwide with its attractive tax system, thriving sectors, robust IP protection, and liberal trade policies. There is no better time than now to set up an offshore company in Singapore. All these benefits can translate into seamless business operations, significant asset protection, and improved tax savings.
If you have made up your mind to commence a business journey in this part of the world, BSW’s expertise can be game-changing. As a top-rated offshore partner, BSW takes pride in simplifying the company formation process for clients worldwide. A partnership with us can save you from the trouble of handling tedious legalities and complex paperwork. Contact us now to book a free consultation.