Offshore and outstation company formation requires some basic information about the laws of the state where it is being off shored. In most countries offshore companies are to be registered separately. The company registration must be carried out by someone residing outside the offshore jurisdictions. The company should not trade in any way within the offshore jurisdictions. Therefore, an offshore company is one which has its client’s base in another area while the company located somewhere else.
With easy communication facilities, truly world has become a global village. Off shoring of companies is becoming more and more common resulting in reduction of monthly expenditure and increased efficiency. Singapore is one of the most famous countries that offer great facilities for such companies. Due to good reputation, offshore company incorporation in Singapore leaves a positive image on all stake holders, customers, governments, banks, investors and venture capitalists. Singapore is also known as a tax haven for such companies and few lenient laws are required to be obeyed to form a Singapore company.
Most companies opt for places where government is more stable, a place that imposes minimum taxes, easy terms and conditions, privacy for directors and share holders. BVI company act allows companies to register from any part of the world and to run legitimate international business with least taxes to pay. This means that you actually don’t have to visit BVI Island to register, instead you can base your business in Singapore and discuss the details sitting in USA, Hong Kong, Africa or even UK.
Singapore doesn’t have any offshore company formation legislation. All companies are registered under Singapore Companies Act as a private limited company. To setup a Singapore company it is necessary to submit a form to Accounting & Corporate Regulatory Authority (ACRA). The company is considered as a totally separate identity and is therefore not liable to any debts the original company has. Suffix such as Pte. Ltd or Ltd. is used to discriminate between the original company and the one based in Singapore.
An application is needed to be submitted to the Registrar of companies. Memorandum and Articles of Association are needed to be lodged. Details of share capital, share holders, nominee share holders, directors and nominee director are to be submitted. Every registered office must have a legit address in Singapore.
The rate of taxation is 20 percent from 2005 but for companies qualifying for tax incentives may enjoy lesser tax of up to 15, 10 or even 0 percent. The tax will be imposed on only the income that is Singapore sourced or remitted to Singapore. Auditing and annual returns are liable to companies that have more than 20 members or a turnover of more than $5million. Annual General Meetings must be conducted in Singapore. The first AGM should be conducted within 18 months of company registration. After which one AGM must be conducted before 15months from last meeting in Singapore. Read further and understand about Moving and Starting a Business in Singapore.
Watch the Charles Farran, Managing Director of Amanda J Molyneux & Company Limited presents an introduction to Offshore Company Formation.