Singapore, one of the best jurisdictions due to its easibility to do business in, easibility to do business in, prestigue, banking stability, business laws, open market, and much more. Main highlights:
- 0% tax rate if structured properly according to tax law.
- No bank will have a problem opening a bank account for a company incorporated in Singapore.
- Singapore is one of the most open economies in the world. Not a low of legal restrictions, and where there is control by, for example, the Monetary Authority of Singapore, the requirements are not set in a way to hold back businessmen.
- One of Top 3 tax havens, and not located in the European Union, which allows Europeans to, maybe, have a better tax planning (tax treaties, information sharing agreements, etc)
- A pioneer jurisdiction in regards to cryptocurrency. Singapore is one of the few jurisdictions where you can open a bank account even if your business is cripto related. Singapore is familiar with cryptocurrency assets.
Singapore Private Limited Company Formation
Shareholders: 1 shareholder minimum required. The shareholder(s) can be foreigners and/or non residents.
Director: one local director is required (Singaporean Citizen or Permanent Resident). A nominee director is often appointed to comply with this formation requirement. The other directors can be non resident foreigners.
Corporate Tax Residency: Corporate Tax Residency in Singapore in determined by where the company is controlled and managed. So a company can be incorporated in Singapore but not be a tax resident in Singapore if the control and managed is exercised outside of Singapore
Corporate Tax Rate: 17%. (if tax resident)
Foreign Earned Income: Foreign Earned Income of a tax resident company will not be taxed as long as such is not remitted to Singapore.
Dividends: there is no withholding tax on dividends.
Minimum Yearly Compliance for Private Limited Companies
Private Limited Company Annual Return before ACRA
The Annual Return, submitted to ACRA, contains the particulars of the company such as the name of the directors, secretary, its members, and the date to which the financial statements of the company are made up to.
Registered office address,
The particulars of the company officers,
The details of registered charges are up to date. If the information has changed or is incorrect, you must update the details.
Confirm whether there are any changes to your company’s primary and secondary business activities.
Verify your company’s shares details, such as the number of shares held, issued share capital, and amount of paid up share capital.
The company must attach its Audited Financial Statement to the Annual Report.
Non-Audited Finanancial Statement: If the company classifies as a small company (a company whose revenue and total assets for the current financial year do not exceed S$500,000and S$500,000, respectively.), it will be exempt from filling the Audited Financial Statement.
Tax Returns before IRA
Estimated Chargeable Income (ECI)
ECI is an estimate of your company's taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).
Deadline: Your company has to file ECI within 3 months from the end of your financial year
ECI Filing Waiver: Your company does not need to file ECI in any Year of Assessment (YA) when both criteria are met:
Annual revenue is $5 million or below for the financial year; and
ECI is nil for the YA. The ECI should be the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.
Form C-S is a simplified Corporate Income Tax Return for qualifying small companies to report their income to IRAS. There are fewer fields in Form C-S than Form C.
Form C-S is comprised of:
A declaration statement of the company's eligibility
Information on tax adjustments
Information from the financial statements
If your company qualifies to file Form C-S, it is not required to file its financial statements and tax computation together with Form C-S. However, your company should prepare these documents and be ready to submit them upon IRAS’ request.
Who Can File Form C-S
Your company qualifies to file Form C-S if it:
Is incorporated in Singapore;
Has an annual revenue1 of $5 million or below
Only derives income taxable at the prevailing Corporate Income Tax rate of 17%2; and
Is not claiming any of the following in the YA:
Foreign Tax Credit and Tax Deducted at Source
Form C-S Lite
If the company qualifies to file Form C-S and has an annual revenue of $200,000 or below, the company can opt to file Form C-S, which is a simplified version of Form C-S that requires only 6 essential fields to be completed by companies with straight-forward tax matters. Similar to Form C-S, the company is not required to file its financial statements and tax computation. However, the company should prepare these documents and be ready to submit them upon IRAS’ request.
If the company does not qualify to file Form C-S or Form C-S (Lite), the must file Form C.
The company is required to file its financial statements, tax computation and other supporting documents together with Form C.
Bank Account: We can assist you in opening a bank account remotely in Singapore, in a traditional bank.
Bitcoin Banking: Opening a bank account for crypto trading can be hard nowadays. Since Singapore is very familiar with Bitcoin and other crypto assets, opening a business bank account for crypto trading is possible.
0% Tax Rate. If structured Property, owners of Limited Companies can profit from a 0% tax rate. In addition, Singapore has signed several tax treaties to avoid double taxation
Taxation in Singapore
For tax purposes, a Singapore Company can be used in several ways for your benefit
17% Corporate Tax Rate with access to tax treaty network: Singapore has signed many tax treaties which allows you to move your earnings to Singapore and be taxed at a lower rate than if you were to be taxed somewhere else. For this, the company has to be a tax resident in Singapore, a status not expensive to get.
0% Tax Rate in Singapore if money is not remitted to Singapore: if the company is a tax resident in Singapore, it can elect to not taxes in Singapore provided that the income was not remitted to Singapore, and provided that the Company paid taxes somewhere else.
0% Tax Rate for Company formed in Singapore, but managed outside of Singapore: Corporate Tax Residency in Singapore is based on Place of Management, not on place of incorporation. So if the company is managed outside of Singapore, it will not pay taxes in Singapore, but it will not have access to the tax treaty network Singapore has signed.
Services we Provide
Singapore Company Formation.
Yearly Nominee Director (No Deposit Required).
Introduction to Banking Partner.
Accounting and Tax.
Pricing: Since each client's needs are different, please send us an email to email@example.com to get a pricing quote, we reply in less than 24 hours.