Singapore: a unique territory in Asia
This year, you are planning to launch an offshore company. However, you are hesitating between several countries for registering your company: Hong Kong, but also Singapore. Are the tax benefits the same in these two territories? How can you make the right choice based on your company’s specific characteristics?
The Republic of Singapore is what is known as a city-state. It is located in Southeast Asia and covers only 719 km². However, despite its small area, Singapore has the second-highest population density in Asia. Its GDP per capita is also among the highest in the world. The tax system is territorial, as in Hong Kong, which attracts foreign investors, even though the rules in force are not exactly the same in these two territories. The Republic of Singapore is also on the OECD’s white list, despite its undeniable tax benefits: the territory takes a very strict stance against corruption.
Why create an offshore company in Singapore?
Singapore is a particularly attractive jurisdiction for setting up an offshore company. Every year, entrepreneurs make this choice when launching their business in the Asian market.
Here are its many advantages:
Global financial center
It is the world's fourth-largest financial center: an asset for the development of a company seeking economic dynamism.
Political stability
The political situation is stable, making it possible to consider domiciling a company there over the long term.
Reputable banks
Banking institutions are reputable and offer services comparable to those of major European banks.
International credibility
By setting up your offshore company in Singapore, you will enhance its credibility: the jurisdiction is on the OECD's white list, just like Hong Kong.
Reduced taxation
Taxes are not nonexistent, but reduced.
System flexibility
The system is generally much more flexible than in France or any other European country.
Things to know before choosing
Key considerations before choosing Singapore
However, setting up an offshore company in Singapore requires familiarity with a few rules specific to this jurisdiction: when a sum of money is received into a Singapore bank account, that sum is automatically taxable, which is not the case, for example, in Hong Kong if the business is conducted outside the territory. The administrative procedures are also somewhat different: a resident director must be appointed.
Hong Kong or Singapore?
In Asia, Hong Kong and Singapore are therefore prime jurisdictions for entering the offshore system. However, Singapore offers somewhat more limited advantages than Hong Kong: its taxation system is not nonexistent, merely reduced. This is why it is generally advisable to keep Hong Kong as the first choice and favor Singapore as an alternative.
But rest assured: if Singapore is the only viable option for your offshore company, bear in mind that you will benefit from considerable tax advantages.
Can our company assist you in setting up your offshore company in Singapore?
Historically, we have only handled assistance with setting up offshore companies in Hong Kong. However, if you would prefer to establish your company in Singapore or are unable to register it in Hong Kong, we remain at your service.
We will do everything in our power to facilitate the launch of your offshore company in Singapore. In particular, we will put you in touch with local partners who will be able to oversee your project under optimal conditions.
Contact us now if you would like to learn more about the differences between Hong Kong and Singapore: we will answer all your questions!