Offshore companies are the ones formed outside of the nation where their founders (directors, stockholders, etc.) are situated or where it principally conducts their running business. In other words, any firm that is formed in a foreign country compared to where its principal business operations or stakeholders are located is considered an offshore corporation.
However, the terms offshore, offshore area, or offshore authority are frequently used to describe a nation or territory with unique commercial laws intended to attract international corporations. Low or no taxation, clear business reporting and governance guidelines, and asset protection are a few laws countries make to encourage offshore company formation.
Let us now talk about the steps to register an offshore company in Singapore.
Steps to register offshore company in Singapore:-
STEP 1: Understanding Singapore’s criteria for registering businesses.
Having at least one shareholder
For registration in Singapore, a company must have a minimum of one shareholder. A person or another business may be a shareholder. A maximum of 50 shareholders are allowed for Singapore offshore company formation. Keep in mind that 100% foreign shareholding is also permitted.
Minimum SGD1 in capital
You just need 1 Singapore dollar to register an offshore company in Singapore. Later, if necessary, you can infuse more money and inform the business registration to expand the capital.
One director who resides in Singapore
As long as a Singapore firm has a minimum of one Singapore-resident director, both Singapore residents and foreign residents are eligible to serve as directors. Corporation directors are not allowed; in other words, a director must be a person, not a corporation.
Secretary for the company who resides in Singapore
A Singaporean resident must be chosen for the position of the company secretary. The firm’s compliance with regulatory requirements and filings is the responsibility of the company secretary.
Singapore registered address
All statutory documentation for the firm must be stored at the registered company address, which must be in Singapore. A PO box cannot be the address.
STEP 2: Select the corporate structure, then gather the necessary documentation.
Choosing a corporate structure is the next stage in the Singapore company registration process. The following are some of the key inquiries you need to think about:-
- Who will own what percentage of the company’s shares as shareholders, and who will they be? Your current local or international firm will be the only shareholder if you establish a subsidiary in Singapore. If you are launching a new business, the shareholders will be you and any other partners you may have.
- Who will serve as the company’s directors? Who will serve as its director who resides in Singapore?
- What will be the company’s first share capital? Typically, most businesses are founded with a modest amount of cash, like SGD 100.
The Singaporean company registration act requires the corporation establishing a company in Singapore to gather and verify identity and background knowledge about the intended investors and the company’s directors. The documentation that should be submitted to meet this criterion is outlined below.
STEP 3: Get your company’s name approved.
According to Singaporean company legislation, a firm must first have independent approval for its name before being established. As long as you adhere to the following rules, the name approval process will go smoothly:
The name of the company should be unique and unreserved. It should not have any trademark infringement and must not be obscene.
STEP 4: Signing documents for incorporation.
Following approval of the name, the following paperwork has to be created, signed, and sent to ACRA:
- A Company’s bylaws. You can use the ACRA-recommended standard Singapore company constitution.
- Approval to serve as a director from each board member.
- Agreement from the company secretary to serve in such a capacity.
- Controllers of the company’s declaration.
STEP 5: Incorporating company and bank account opening
- E-Certification of the incorporation
- Creating a business profile.
Singapore is now one of the most tempting options if you intend an offshore company formation to expand your business overseas. It is renowned worldwide for being an investor-friendly nation with pro-business policies at the foundation of its regulatory strategy. Since 2009, Singapore has been listed on the OECD’s “white list.” Singapore offers a perfect value proposition for business owners and seamless financial integration with nearly all nations of the world. The government offers free trade deals, no capital gains tax, and a meaningful and attractive tax structure to support businesses.
If you are looking to register an offshore company in Singapore, then PikoHANA can be your one-stop solution. We provide company registration and accounting services in Singapore. Our team of experts can help you with your company’s documentation and incorporation in line with the policies and procedures in Singapore. For more details, feel free to visit our website today!