The Republic of Singapore, also known as Lion City or Little Red Dot, is an island city-state in Asia, consisting of the main island and sixty-two other islets, and a founding member of ASEAN.

It is located south of the state of Johor in the Malaysian peninsula and north of the Riau Islands of Indonesia, separated from these by the Singapore Strait. Its population is about 5.5 million, of which about 75% are Chinese and the rest are Malay, Indian or Eurasian minorities. This multicultural diversity is reflected in the country's four official languages, English, Chinese, Malay and Tamil. Its official currency is the Singapore dollar (SGD), which is also accepted as the local currency in Brunei. Similarly, the Brunei dollar (BND) is routinely accepted in Singapore.

Singapore is a multi-party unitary parliamentary republic, with a unicameral parliamentary government system.

Setting up a company in Singapore: fees and costs

Singapore is the trade center of Southeast Asia. Home to the busiest port in the world, Singapore is a developed country in one of the fastest growing regional economies.

It has huge potential for internet startups and entrepreneurs around the world. The country promotes entrepreneurship and the government supports the free market.

One of the most beneficial parts of doing business and setting up a company in Singapore is the clear and transparent tax regime and the availability of numerous tax breaks and incentives for startups and tech innovation.

Additionally, companies incorporated in Singapore are eligible for an extensive list of over 70 tax treaties that Singapore has concluded with foreign jurisdictions.

There are many government grants, incubators, accelerators, private equity funds, and banks that can provide funding for your business at every stage of development.

Financing is a vital component in any business and Singapore offers the best alternative investment market in the world.

Singapore courts are under common law jurisdiction and are known to be fast. Singapore's judicial system can provide them with secure hiring support, clear laws and good governance with low levels of corruption for entrepreneurs who wish to have a seat in the field.

The country is also a major international financial hub, a strong banking system leading the world's private banking sector, offering world-class corporate banking services and a wide range of banking, investment fund and insurance services, among others . Singapore is Crypto friendly and has one of the most modern laws in this regard.

Singapore also has the fourth largest foreign exchange and capital market in the world, behind New York, London and Tokyo.

Additionally, Singapore's economy is considered to be one of the most open economies, welcoming thousands of foreign investors, expatriate entrepreneurs and employees of multinational companies.

Singapore's immigration policy is geared towards attracting foreign talent, with different visa schemes to attract highly qualified foreign employees, entrepreneurs and investors.

Singapore participates in the OECD Automatic Exchange of Information for Tax Purposes (AEoI) and is conducting information exchanges through the Common Reporting Standard (CRS).

Singapore Offshore Company, business types and controls

All in all, Singapore is an excellent to incorporate and its private limited company, a powerful vehicle for international trade, start-ups looking to raise capital, internet entrepreneurs, holding companies, merchants and any cross border business.

Tax Residence: Companies managed and controlled in Singapore are considered Singapore tax residents. The location of management and control is usually where board meetings are held.

Basis: Corporate income tax is levied on income accrued or derived from Singapore and on income remitted or deemed remitted to Singapore.

Tax rate: Income tax is levied at a rate of 17.5%. An exemption can be applied to 75% of the first SGD 10,000 of taxable income and 50% of the next SGD 290,000.

Start-ups are eligible for a three-year tax exemption on their first taxable income of SGD 100,000 and 50% tax exemption on the subsequent SGD 200,000.

Capital gains: Capital gains are not subject to taxation.

Dividends: Dividends received by a resident company from another resident company are exempt from tax.

Dividends received from non-resident companies and branch profits may be exempt, provided that the profits have been taxed at a CIT rate of at least 15% in the foreign jurisdiction. If the foreign income has been exempt from tax due to the tax incentives of the foreign jurisdiction, it can be considered to have satisfied the condition.

Interest: Singapore-derived interest income is taxable and foreign-sourced interest is taxable when remitted or deemed to be remitted to Singapore.

Royalty: Singapore-derived royalty income is taxable and foreign-source interest is taxable when remitted or deemed to be remitted to Singapore.

Foreign Source Income: Foreign source income is generally exempt from taxation, provided it is not remitted to Singapore. The undistributed income of foreign subsidiaries is not subject to tax.

When income is remitted to Singapore, if it comes from treaty countries, a tax credit is generally available for the foreign taxes paid. For non-treaty countries, a unilateral foreign tax credit is granted on all foreign-source income. These foreign tax credits can be combined, under certain conditions.

Foreign dividends, foreign branch profits and foreign service fee income remitted to Singapore may be exempt from tax if they meet certain conditions.

Withholding Tax: No withholding tax is levied on dividends paid to non-residents. Interest and royalties are subject to 15% and 10% respectively, unless the rate is reduced due to a tax treaty.

Losses: Losses from taxable income may be carried forward indefinitely, provided that the holdings in the loss-making company have not changed by more than 50% of the total number of shares issued and that the same operation has continued. Losses up to SGD 100,000 can be carried forward for 1 year.

Inventory: There are no special rules on valuation methods for inventories in the case of a continuing business, as long as the basis is consistent from year to year. However, a LIFO (last in first out) basis of valuation is not permitted for tax purposes. Typically, tax reporting complies with accounting reporting.

Anti-avoidance rules: The Inland Revenue Authority of Singapore (IRAS) has issued transfer pricing guidelines covering the application of the arm's length principle, documentation requirements, advance pricing agreements, requests to invoke the mutual agreement procedure under of the Singapore tax treaties and for related party loans and services.

Singapore has not enacted rules on thin capitalization, nor regulations on controlled foreign companies.

Employment Tax: Employers and employees are required to pay contributions to the Central Provident Fund (CPF) at 17% and 20% respectively of employees' monthly income, up to a ceiling of SGD 6,000. Contributions are payable by Singapore citizens and permanent residents.

Tax Credits and Incentives: For income from treaty countries remitted to Singapore, a tax credit is generally available for foreign taxes paid. For non-treaty countries, a unilateral foreign tax credit is granted on all foreign-source income. These foreign tax credits can be combined, under certain conditions.

Income from the marketing of certain IPs taxed at a preferential rate. Other tax incentives for financial services companies, shipping companies, international merchants, regional headquarters and for mergers and acquisitions, among others.

Compliance: On average, a private limited company may require 5 payments and 66 hours a year to prepare, file and pay taxes.

Personal Income Tax: An individual is tax resident in Singapore if he spends more than 183 days per year or is in regular employment in the country.

Residents and non-residents alike are subject to personal income tax on their Singaporean income. Foreign source income is only taxable if received in the country by a resident through a partnership in Singapore. Usually, an individual is tax resident in Singapore if they spend more than 183 days a year or have a regular job in the country.

Residents are subject to personal income tax at progressive rates of up to 22% on annual income exceeding S$320,000. Non-resident income is subject to a flat rate of 22%. Capital gains, dividends and interest are generally not subject to tax.

Other Taxes: A monthly foreign worker tax and training tax for all employees may be levied on the first gross monthly salary of SGD 4,500 at a rate of 0.25% for companies in certain sectors.

Property tax is levied on the annual value of houses, land, buildings or public housing. Non-owner occupied residential properties are taxed at graduated rates from 10% to 20%, owner-occupied residential properties 0% to 10% and land and commercial properties at 10%.

Stamp duties are levied on certain transactions. The transfer of shares and stock is subject to stamp duty of 0.2% on the purchase price or market value of the transferred shares, whichever is higher. For the sale of real estate, a stamp duty of 3% is applied on the purchase price or on the market value, whichever is higher. There are additional stamp duties of up to 16%, depending on the type and use of the property and the owner's state of residence. The leases are subject to a tax equal to 0.4% of the total rent.

There are excise goods and services such as intoxicating liquor, tobacco products, motor vehicles, petroleum products, and gambling.

There are no inheritance, gift and net worth taxes in Singapore. VAT The standard rate is 7%.

Country code: SG

Legal basis: Common Law

Legal framework: Companies Act (Amendment), 2017

Company form: Private limited company (Pte. Ltd.).

Liability: The liability of its shareholders is limited to the amount of the share capital.

Share capital: An authorized share capital has not been established. The minimum issued and paid-up capital required is SGD 1.00. It can be denominated in SGD or any other currency. Shares at nominal value and in bearer form are not permitted.

Shareholders: Pte. srl can be established by up to 50 shareholders, who can be natural or legal persons, resident or non-resident, without limitation. The details of the shareholders are publicly available.

Directors: At least one director, who must be an individual, at least one director must be a resident or citizen of Singapore and may be a shareholder. Non-resigned bankrupts cannot be directors and cannot manage a company without the approval of the Court or the Official Mandate. The details of the administrators are publicly available.

Secretary: A secretary must be appointed within 6 months of incorporation and be a natural person ordinarily resident in Singapore. A sole director cannot be the secretary of the company. A resident director may be a secretary when the company has more than one director. The secretary must meet the requirements set out in the Companies Act.

Registered Address: Limited Liability Companies must have a registered physical address located in Singapore, which cannot be a PO Box and must be open for at least five hours during normal business hours on each business day.

General Meeting: An annual general meeting should be held at least once each calendar year, or 15 months from the date of a company's previous general meeting, whichever is earlier. Currently, there is no restriction under the Companies' Act requiring a company to hold its AGM in Singapore. The first general meeting must be held within 18 months of establishment. A corporate shareholder should appoint a corporate representative to sign documents on behalf of the company, individual shareholders can appoint proxies to attend on their behalf.

Alternatively, the Assembly may be by written resolutions, for which a meeting is not required.

The board meeting can be held anywhere. However, in order for the Company to be regarded as a Singapore tax resident, the tax controller requires board meetings to be held in Singapore.

Electronic signature: Allowed.

Re-Domicile: As of 31 March 2017, domestic re-domicile of a foreign person in Singapore is permitted.

Compliance: Limited liability companies are required to prepare and maintain financial statements and file them in their annual return to the Corporate and Accounting Regulatory Authority (ACRA) and pay the annual filing fee.

Accounts must be audited by a Singapore Certified Accountant, unless the Limited Company has had a total turnover or total assets of SGD 10,000,000 or less or less than 50 employees, during two of the three financial years previous. Instead, they only need to submit a statement of solvency signed by the company directors and the company secretary in the prescribed form.

Limited liability companies are required to file their tax return annually with the Inland Revenue Authority Of Singapore (IRAS). Dormant companies can apply for a waiver of this requirement.

In addition to opening your Singapore Offshore, you will probably be interested in creating a life insurance policy on your taxation, taking up a second tax residence, in a country with territorial taxation, such as a residence in Panama or a residence in Paraguay

Also consider a company in Panama