As one of the most convenient countries for doing business in the world and the headquarters of more than 600 local and foreign financial institutions, Singapore provides a variety of convenient conditions for entrepreneurs to invest and start businesses. According to the 2018 Global Financial Centres Index (GFCL) ranking report, Singapore is the fourth largest international financial centre and one of the vital service and aviation centres in Asia. In addition, Singapore is also one of ASEAN, WTO, Commonwealth and APEC member economies. Therefore, many large Chinese enterprises take the company registration in Singapore as the first step for the company to go global.
Advantages of registering a Singapore company
1. Reasonable overseas tax planning
Singapore is known for its extremely low tax rates and strict scrutiny regime, enabling companies that come to the country to develop a good reputation while enjoying ample tax incentives. The company's business transactions in countries or regions other than Singapore may not be taxed by the Singapore government. Many domestic entrepreneurs and investors register a Singapore company in order to operate an offshore account to receive payment, and then they can enjoy tax incentives after deducting the purchase cost.
2. Build an international brand
Many mainland enterprises have set up their headquarters in Singapore, and after registering a Singapore company, they have registered overseas trademarks. These trademarks are used to increase the added value of domestic products, build international brands, and at the same time, greatly promote the corporate image.
3. Re-export trade
Singapore is one of the largest entrepot trade ports in the world. The unique geographical environment and free trade port policy make Singapore close to countries and regions around the world. Re-exporting products to Europe, America, Asia, Taiwan and other countries and regions through Singapore can avoid the influence of some economic and political factors.
4. Round-trip investment avoids trade barriers
After the establishment of a Singapore company, you can return to China to invest, and let the domestic enterprise become a foreign-funded enterprise or a Sino-foreign joint venture, and enjoy the preferential treatment of foreign investment. After the establishment of a company in Singapore, domestic companies can also export products to their own Singapore companies, and then use Singapore companies as re-exports to export to these developed countries, which can circumvent trade barriers to a certain extent.
5. Overseas listing
For large enterprises, overseas listing and financing is the most important role in registering an overseas offshore company. If Chinese companies go public directly overseas, they will be subject to many restrictions by Chinese policies and regulations. However, it is much more convenient to set up an overseas offshore company and control the domestic industry to go public.
Which industry is more suitable for development in Singapore
Investment category: global resource investment, Southeast Asia investment;
Trade category: global procurement (global traders) Southeast Asia trade/offshore trade;
Headquarters plans: Asia-Pacific regional headquarters, international headquarters;
R&D base: R&D and incubation industry services/biomedicine;
Production category: certificate of origin and trade barriers from OEM to brand establishment;
Logistics and supply chain: global or regional express delivery, supply chain management;
Petrochemical: petrochemical product trade, petrochemical service supply;
Ships and maritime: ship maintenance and supply, other maritime services;
High-end professional services: engineering consulting, professional evaluation;
Brand intellectual property: intellectual property holding, international brand strategy.
Documents required to register a Singapore company
1. Company name: The Singapore company name must be in English, and Chinese name registration is not currently accepted;
2. Registered address: Singapore companies must provide a local registered address in Singapore. If the registered address is changed, the Singapore Accounting and Corporate Regulatory Authority must be notified within 14 days;
3. Business scope: Singapore companies can choose up to 2 business items;
4. Registered capital: The minimum registered capital of a Singapore company starts from SGD 1, and there is no upper limit;
5. Identity documents: shareholder's identity document, share ratio and director's identity document.
