Offshore companies are defining components of current international economy.





Anguilla Limited
Singapore Limited
Cayman Limited
BVI Limited
Belize Limited
Hong Kong Limited

Singapore Limited

Singapore is not an offshore jurisdiction but has legislation that enables Singapore limited companies to operate as tax exempt international business companies.

Singapore limited companies fall under two main classes, namely Singapore resident and non-resident companies.

A Singapore limited company is considered resident when it is managed in Singapore and non-resident if managed in a foreign country, allowing the directors, shareholders and other officers of the Singapore limited company to be owned and controlled either by locally and locally based or foreign and overseas based individuals and companies. This regime for the Singapore limited company establishes a sort of offshore system for international companies that are registered in Singapore, simply because Singapore non-resident companies are exempt from all local tax obligations, can operate internationally, but cannot be owned by a local resident if operating as a tax exempt company. In spite of this, a Singapore non-resident company can operate in Singapore but will become liable to local taxes as they become applicable for the type and nature of business that is conducted within Singapore.

This system allows Singapore limited companies to operate in an environment that is without tax burdens, creating better opportunities for maximizing taxes. Income or profits earned from operating a Singapore limited can be banked and managed in an offshore bank account, or if remitted to Singapore to tax free if over 15% in transfer or other fees and taxes were paid in one or more countries in order to send the funds to Singapore.

A Singapore limited company also presents the chance of accessing emerging markets in Asia given the growing economies and new business sectors that are constantly being introduced throughout the world. Following the global meltdown and disappointments experienced with US markets, many investors turned to setting up Singapore limited companies as an alternative to the offshore company and for diversifying their portfolios in foreign markets.

Singapore limited companies that are intended for offshore use can be incorporated as companies limited by shares or by guarantee, foreign branches of parent companies, private limited companies (Pte Ltd.) or foreign companies. This makes it possible for corporations and private investors to form the type of company of they wish to without being restricted to any specific type of legal entity or form in order to be able to trade internationally or achieve specific results.

The type of Singapore limited company established is therefore a matter of personal preference, and what in the investor’s view increases chances for borrowing funds, is easier to incorporate and requires less documentation, provides a greater degree of tax efficiency outside of Singapore, credibility as a legal entity and guarantees a certain amount of privacy for both personal and corporate affairs.

For example, partnerships are not considered companies in Singapore and due to their structure may not be the best choice for international trade and accessing funds internationally as a regular Singapore limited company.

It is highly recommended to first obtain professional tax and financial advice before incorporating a Singapore limited company to undertake any form of business venture, so as to ensure proper strategizing and planning. But once properly used and managed, a Singapore company is sure to produce desirable results.

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