Minimum paid-up share capital for registration of a Singapore company is only S$1 and the share capital can be increased any time after incorporation.
The share capital is permitted by any currency. The concept of authorized capital and par value of each share have been abolished.
A company can have one director who must be resident in Singapore - a Singapore Citizen, a Singapore Permanent Resident, a person who has been issued an Employment Pass.
Corporate directors are not permitted.
A foreigner who wishes to act as a local director of a company can apply for an Employment
Pass from the Employment Pass Department of the Ministry of Manpower.
A minimum of one resident director (defined as a Singapore citizen, a permanent resident, or a person who has been issued an employment pass).
Only one shareholder of any nationality is required for your Singapore Pte company. A director and shareholder can be the same person 100% foreign shareholding is allowed.
The Financial Action Task Force (FATF) for Anti-Money Laundering and Counter-Terrorist Financing Mutual Evaluation Report on Singapore, released in September 2016, highlighted that Singapore needs to enhance the transparency of beneficial ownership of legal persons.
Singapore has also been identified as a tax haven.
The creation of an offshore company in Singapore offers several tax advantages.
Regarding profits earned in the territory, for instance, in the first three years of the company, profits of up to SGD 100,000 are exempt from taxes. On profits between SGD 100,001 and SGD 300,000, the company will have to pay 8.5% tax, and on profits above SGD 300,000, 17% tax.
To benefit from this exemption, the company must satisfy the following criteria:
- Be incorporated in Singapore.
- Be tax resident in Singapore.
- Not have more than 20 shareholders, at least one of which holds a minimum of 10% of the shares.
Regarding profits earned overseas, on the other hand, companies are completely exempt from all taxes on all profits, as well as profits from financial securities. Additionally, Singapore has opted for a single level tax policy; that is, if the company was taxed on the profits, dividends may be distributed to the shareholders, which will be free of taxes.
Singapore Public and Private companies which are limited and unlimited by shares must file must submit annual financial statements to the Singapore Accounting and Corporate Regulatory Authority. Solvent exempt private companies (EPCs) are exempted from filing financial statements, but are encouraged to file financial statements with the Singapore Accounting and Corporate Regulatory Authority.
As per section 171 of the Singapore Companies Act, every company must appoint a qualified company secretary within 6 months of its incorporation and the secretary must be resident in Singapore. In the case of a sole director/shareholder, the same person cannot act as the company secretary.
Double Taxation Agreements:
Singapore’s status as a preferred holding company jurisdiction is primarily attributable to the city-state’s favorable tax regime and close connection to emerging Asian markets. With more than 70 avoidance of double taxation agreements (DTAs), low effective corporate and personal tax rates, and no capital gains tax, controlled foreign corporation (CFC) rules, or thin capitalization regime, Singapore has one of the most competitive tax systems worldwide.