Numerous companies have been setting up offshore operations. Due to economical reasons, multinational companies (MNCs), small to medium sized (SMEs), are based offshore. Companies start to outsource since it has been proven to be less costly. There are a lot of reasons why businesses choose to incorporate offshore companies such as low taxes, lesser cost of living, ease of company formation, etc. Tax rates, laws, regulatory requirements and economic expenses also vary from country to country.
Every company wants the opportunity to increase their profit. There are different ways in maximizing one’s revenue and this can be done through outsourcing. Outsourcing is becoming a trend due to the amount of savings that they get from it.
There are company incorporation specialists who offer services to help start company in the advantageous jurisdictions. All you need is a company that knows and understand laws your targeted country has. Such companies that can help you in company incorporation, company registration and company formation can be found online. The right company can help you minimize cost if they are the tax laws.
Singapore has been known as a pro-business country. One of the main attraction of doing business in the island republic is its low corporate tax rate of 17% – the 2nd lowest in Asia after Hong Kong. In addition, new startups are given a 100% tax break on their first S$100,000 earned for the first three consecutive years. In addition to that, the next S$200,000 chargeable income has 50% exemption.
There are various other reasons like the high education level of its people, the ease of migration for foreign entrepreneurs, good governance and transparency, stable political environment, and good infrastructure.
The regulatory body responsible for overseeing companies and businesses in Singapore is ACRA. Some of the basic requirements to incorporate a company include:
• At least one local director who has to be a Singaporean, or Singapore PR, or Singapore employment pass holder;
• At least one shareholder, you do not need a Singaporean for a shareholder.
• Minimum paid up capital is S$1
There are various company registration agents who can help you get through the incorporation process, with fees starting as low as S$600. There are well-versed with the local laws and some even provide supporting services like nominee director and company secretary services. Hence, it is well worth spending the little money on fees to ensure that you get the incorporation process correct, right from the start.