Setting Up A Holding Company In Singapore
Among Asian countries, Singapore is the most competitive country for setting up a holding company and doing business, in which the rules for setting up a company are the simplest. It is a country with constant growth, practically without corruption, with a very well-structured system of work and a truly modern infrastructure system. The industrial center of Singapore is called Block 71 and, according to many experts, is the place where there are hundreds of startups.
Due to its strategic location in the center of Asia, it is an excellent base for setting up a holding company in Singapore and entering a market of at least 600 million young people under 35 with great economic opportunities.
Singapore’s economy is considered one of the freest in the world. In just 50 years, the per capita income of Singaporeans jumped from $300 to $90,000. The quality of life is very high; it is a safe, modern country with a stable geopolitical situation and one of the richest in the Asian region.
The Republic of Singapore is legally a city-state. It covers an area of about 720 square kilometers and has a population of over 5 million. One Singapore dollar, SGP, costs about $1.4. There are more than 60 islands in total, but the administrative and commercial center is the megalopolis of Singapore.
The population of Singapore is represented by over 40% of foreign workers, of which 50% work in the service sector. English is the franc’s language for work, making it ideal for overseas entrepreneurs proficient in English and planning to start a holdings company in Singapore.
Starting a Singapore holding company in this Asian state is an excellent choice because Singapore is the fourth largest financial center in the world. It plays a key role in international finance and trade, and its port is the fifth largest in the world in terms of traffic.
Singapore is known for its strange laws that impose very strict sanctions for compliance. For example, it is forbidden to throw cigarette butts on the ground, create groups of more than four people on the street, and not cross the corresponding pedestrian crossing. The police, even in plain clothes, are constantly present, and the press has limited freedom.
Why is it convenient to start a holdings company in Singapore?
Singapore is a jewel of technology, from the world’s first Singapore Airlines to the world’s best healthcare and infrastructure. The most advanced sectors are logistics, biomedicine, and electronics. Suffice it to say that cash payments have practically disappeared here; you pay for everything by credit card.
The Singapore government has concluded bilateral agreements on the avoidance of double taxation with 76 countries worldwide. But besides this, in general, the government offers a very accessible system. The legal bureaucracy is minimized, and there is no elite regime, as in other states (for example, in Luxembourg), which makes starting a holdings company in Singapore very convenient.
Singapore is also home to most of the global banks and supports foreign capital investment. Much attention is paid to protecting innovation and intellectual property due to Singapore’s very strict copyright laws.
The country is very active in financial assistance, and there is an opportunity to access both capital and financing through cash payments, business incubators, and debt financing.
Finally, to set up a holding company in Singapore, it is not necessary to go in person; it is enough to contact a specialized agency and send all the documentation by e-mail and pay by bank transfer or via PayPal.
Given the country’s high technological specialization, the sectors of biomedicine, chemistry, and industrial engineering are ideal. All Singapore holding companies find an excellent environment for development here, and catering, particularly Italian, should be avoided as it is very common and hyped.
The best way to start a Singapore holding company is to do it remotely, without applying for a residence permit, because the cost of living in Singapore is very high. The population density is one of the highest in the world. It is not recommended to open financial companies related to the local press, education, and hazardous substances because the control is very strict.
Singapore tax system
In Singapore, VAT is 7%. The taxes applied to individuals range from 0 to 20% with a brace system. Singapore-based companies have a tax rate of 17%, which becomes 10% if they are international companies. Companies are also not taxed on dividends, bank interest, inheritance, or capital gains. In addition, startups have full tax exemptions for income up to $100,000 for the first three years.
Requirements for opening a Singapore holding company
There are many types of companies in Singapore, but the most common for foreign investors are registered limited liability companies and Singapore holding companies. In addition to the initial capital paid at the time of incorporation, the shareholders of this type of company are not liable for debts incurred by the company. On average, opening a company takes only two days.
- The text governing Singapore’s corporate rules is called the Singapore Companies Act and requires the appointment of a qualified accountant within six months of incorporating a company.
- The minimum paid-up share capital is 1 Singapore dollar (SGD).
- The headquarters of the company should be opened in Singapore.
- The company requires at least one director and one resident partner in Singapore.
- It is obligatory to open a current multicurrency account.
- To register a company in Singapore, you need to hire a local agency. This process is fully automated and managed by the Registrar of Companies of Singapore.
Benefits of starting a Singapore holding company:
- There is a flat tax of 17%.
- The Singapore government does not carry out special checks.
- Foreign branches are not required to maintain accounts
- VAT 7%.
What documents are required when starting a company in Singapore?
- Notarized copy of your passport
- Proof of Residence as proof of your residential address
- Fill out a simple questionnaire with a brief description of the activities and the name of the company, director, and shareholders.
- Founding Act and Statute (MAA).