The Republic of Singapore, also known as the 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 on the Malay Peninsula and north of the Indonesian Riau Islands, separated from them by the Singapore Strait. Its population is approximately 5.5 million, of which approximately 75% are Chinese and the remainder 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 currency in Brunei. Similarly, the Brunei dollar (BND) is commonly accepted in Singapore.

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

Singapore is the commercial hub of Southeast Asia. Home to the world's busiest port, Singapore is a developed country with one of the fastest-growing regional economies.

It has enormous potential for startups and internet entrepreneurs from around the world. The country promotes entrepreneurship, and the government supports free markets.

One of the most advantageous aspects 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 technological innovation.

Additionally, companies incorporated in Singapore can benefit from 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 financing for your business at any stage of development.

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

Singapore's courts are governed by common law and are known for their speed. The Singaporean judicial system can provide them with reliable hiring support, clear laws, and good governance with low levels of corruption for entrepreneurs looking to establish a presence in the field.

The country is also a major international financial hub, with a robust banking system that leads the global private banking industry, offering first-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 cryptocurrency laws.

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

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

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

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

Singapore Offshore Company: Types of Business and Controls

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

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

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

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

Startups can benefit from a three-year tax exemption on their first taxable income of SGD 100,000 and a 50% tax exemption on the next 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 the profits have been taxed at a CIT rate of at least 15% in the foreign jurisdiction. If the foreign income was exempt from tax due to tax incentives in the foreign jurisdiction, it can be considered to have satisfied the condition.

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

Royalty: Royalty income derived from Singapore is taxable, and foreign-sourced 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. Undistributed income from foreign subsidiaries is not subject to tax.

When income is remitted to Singapore, if it originates from treaty countries, a tax credit is generally available for the foreign taxes paid. For non-treaty countries, a unilateral tax credit is granted against the foreign tax on all foreign-source income. These foreign tax credits can be cumulated, 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 applied on dividends paid to non-residents. Interest and royalties are subject to a 15% and 10% withholding tax, respectively, unless the rate is reduced by a tax treaty.

Losses: Losses arising from taxable income can be carried forward indefinitely, provided that the shareholding in the loss-making company has not changed beyond 50% of the total number of issued shares and that the same operation has continued. Losses up to SGD 100,000 can be carried forward for one year.

Inventory: There are no special rules regarding inventory valuation methods for a continuing operation, as long as the basis is consistent from year to year. However, a LIFO (last in, first out) valuation basis is not permitted for tax purposes. Generally, tax reporting is consistent with accounting reporting.

Anti-Avoidance Regulations: 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 Singapore tax treaties, and related party loans and services.

Singapore has no thin capitalization rules or controlled foreign corporation regulations.

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 maximum 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 tax credit is granted against foreign tax on all foreign-source income. These foreign tax credits may be cumulated, under certain conditions.

Income from the marketing of certain IP assets is taxed at a preferential rate. Other tax incentives are available for financial services companies, shipping companies, international traders, regional headquarters, and mergers and acquisitions, among others.

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

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

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

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

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

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

Stamp duties are levied on certain transactions. The transfer of shares and stocks is subject to a stamp duty of 0.2% on the purchase price or the market value of the transferred shares, whichever is higher. The transfer of real estate is subject to a stamp duty of 3% on the purchase price or the market value, whichever is higher. Additional stamp duties of up to 16% may apply, depending on the type and use of the property and the owner's country of residence. Leases are subject to a tax equal to 0.4% of the total rent.

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

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

Country code: SG

Legal basis: Common Law

Legal Framework: Companies Act (Amendment), 2017

Corporate form: Private Limited Company (Pte. Ltd.).

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

Share Capital: No authorized share capital has been established. The minimum required issued and paid-up capital is SGD 1.00. It may be denominated in SGD or any other currency. No par value or bearer shares are permitted.

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

Directors: At least one director, who must be a natural person, must be a Singapore resident or citizen, and may be a shareholder. Undischarged bankrupt persons cannot be directors and cannot manage a company without the approval of the Court or the Official Agent. Details of the directors are publicly available.

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

Annual General Meeting: An annual general meeting must be held at least once every calendar year, or 15 months after 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 incorporation. A corporate shareholder must appoint a corporate representative to sign documents on behalf of the company; individual shareholders may appoint proxies to attend on their behalf.

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

Board meetings can be held anywhere. However, for the company to be considered tax resident in Singapore, the Comptroller of Taxation requires board meetings to be held in Singapore.

Electronic signature: Allowed.

Re-domicile: Effective 31 March 2017, internal re-domicile of a foreign individual 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 Accounting and Business Regulatory Authority (ACRA) and pay the annual filing fee.

Accounts must be audited by a Singapore certified public accountant, unless the limited liability company had total revenues or total assets of SGD 10,000,000 or less, or fewer than 50 employees, for two of the previous three financial years. Instead, they only need to submit a solvency declaration signed by the company directors and the company secretary in the prescribed form.

Limited liability companies are required to file their tax returns annually with the Inland Revenue Authority of Singapore (IRAS). Inactive companies may request an exemption from this requirement.

In addition to opening your Singapore Offshore, you will probably be interested in creating a life insurance policy on your tax situation by taking 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