About Singapore
The Republic of Singapore - is a Southeast Asian city-state with a small territory so that the authorities have to increase it by popping up. At the same time Singapore is one of the financial and trade center of the world as well as one of the largest electronics manufacturers in the world.
Singapore has been a part of the United Kingdom for a long time, that is why its legislation is based on English law.
Low level of taxation and corruption, investment climate and English as official language made Singapore one of the most attractive state to registration business.
LEGISLATION
Company activities in Singapore are regulated by Singapore Company Law and Limited Liability Partnerships Act.
Types of companies
Singapore Company Law provides some corporate forms (public, private, limited and unlimited), the most popular of which is Private Limited Liability Company (Pte. Ltd). Singapore can also be used for registration of holding companies because of its tax system.
COMPANY REGISTRATION IN SINGAPORE:requirements
LIMITED LIABILITY COMPANY (PTE. LTD):
- The minimum authorized capital – not established. The minimum issued capital is S$1.
- Shares – registered and preferred without par value.
- Director – at least 1 individual, Singapore resident. Director and shareholder may be the same person. Directors are responsible for illegal actions of the company.
- Members – at least 1, individual or legal person, no residency required.
- Secretary – required, an individual, Singapore resident.
- Publicly available information: information about the directors and shareholders. Information about beneficiary owner may be hidden by using nominee service, however, since 2020, the register of controllers of Singapore companies is kept not only by the secretary, but also by the accounting and Corporate Regulatory Authority (ACRA). Information from this register is available to government agencies upon request.
- Singapore registered company is obliged to keep and submit an annual financial report, be audited. Companies that meet at least two of the three criteria below are not audited:
the company's annual turnover does not exceed S $ 10 million;
total assets of the company at the end of the financial year do not exceed S $ 10 million;
the number of full-time employees does not exceed 50 people.
- Registered office in Singapore is required.
- Annual meetings of shareholders are required (in any place).
LIMITED LIABILITY PARTNERSHIP (LLP):
- The minimum authorized capital – not established.
- Members – at least 2 partners, individuals or legal persons, no residency required.
- Director – at least 1 individual, Singapore resident.
- Secretary – not required.
- Publicly available information in Singapore company registry: information about the partners.
- Company is obliged to keep and submit an annual financial report and declaration of solvency.
- Registered office in Singapore is required.
- LLP is not subject to corporate tax and partners pay income tax. Thus, the partners who are residents of low-tax jurisdictions may use this provision for the payment of taxes on distributed profits of partnership in the country of registration.
TAXES
There are resident and non-resident companies for the purpose of taxation. Residents pay usual taxes and are able to use agreements on avoidance of double taxation.
Non-resident companies (managed from abroad) pay taxes only on income gained from the sources that located in Singapore.
To use tax exemption a company must confirm the information about nature and amount of the income, country of origin of the income, the tax rate of the country, the amount paid as tax in a foreign country. You should note that Singapore authorities carefully examine the information.
Corporate tax - 17%. If the firm has paid corporate tax, shareholders do not pay dividend tax.
The legislation provides for benefits for new firms in the first three years of their work.
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Taxable income in Singapore dollars
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Deduction provided,%
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Effective tax rate,%
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The first 10 thousand (от 1 до 10,000)
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75%
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4,25%
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Second 10 thousand (от 10,001 до 200,000)
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50%
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8,5%
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Over 200 thousand
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0
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17%
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An additional deduction is also provided, which is 25% (but not more than 15 000 Singapore dollars) of the amount of the accrued tax.
Dividend tax - 0%.
Interest tax - 15%.
Royalty tax - 10%.
GST (VAT) - 9%.
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AGREEMENTS ON AVOIDANCE OF DOUBLE TAXATION
Singapore concluded more than 70 agreements on avoidance of double taxation, including Ukraine.
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FEATURES
Is Singapore offshore or not? Singapore is not an offshore zone and is not included in the “black lists” of jurisdictions. At the same time, it is very profitable to register a business in Singapore, since the local tax system provides benefits and preferences, in particular for new investments and start-ups. Therefore, in some expressions, Singapore may be used as "offshore". Ukraine also does not recognize Singapore as an offshore zone.
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If you need to open a business in Singapore or company registration services, please contact our lawyers for advice:
+38 (098) 737-88-88
We will help you buy an offshore company in Singapore or in any other jurisdiction on the most favorable terms. Registering business or company in Singapore with the Campio Group is safe and easy.
The cost of registering a company in Singapore is formed individually for each client and depends on the chosen form of the enterprise, so get the final price in the commercial offer after clarifying all the details by our lawyer.
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