Singapore is a model of ultra-rapid development in modern times.

Today Singapore, strategically located at the main crossroads of both Asian air and sea traffic, is the largest financial services center in Asia, the biggest container port in the world, a mighty industrial powerhouse, as well as an important trading and technology nation and a popular tourist destination.

Political and legal systems are both extremely stable. Although corporate formalities are promoting local influence considerably more that in other jurisdictions, and in spite of a fiscal system not competitive with other onshore destinations, Singapore has become an increasingly important corporate hub with a much broader focus than its main competitor, Hong Kong. Together with excellent accessibility, infrastructure and communications, this is a highly interesting option as a corporate operational basis.

Political Situation

Both political and legal systems are extremely stable


As a former Сrown Colony, Singapore inherited its legal system from the British, and has developed and updated it


English (official business language), Mandarin, Malay, Tamil


Anonymity of corporate ownership is permitted through the nominees; no statutory disclosure of beneficial owners is mandatory


Excellent access by air from anywhere in the world; Changi International airport is one of the major Far-Eastern hubs
Telephone, fax, telex, mail and courier services are excellent. Courier mail arrives in Europe latest in three days at the latest

Foreign Exchange

No restrictions


Reasonable incorporation and annual costs when compared to the overall place advantages; mandatory audit and tax filing charges must be also taken into consideration


Corporate income tax is 17% (there is a partial tax exemption under certain circumstances)
No capital gains tax
Withholding tax: 15% on interest, commissions, and fees in connection with loans; 10% on royalties
No withholding / income tax on dividends
GST (Goods and Services Tax) 7%


Due to mandatory accounting, auditing and reporting, Singapore Companies technically and legally shall be considered as onshore companies. This eliminates problems of business trans¬actions with the states having more strict fiscal legislation, thus providing the formal proof of accounting, auditing, and paying the taxes. However, there are some restrictions towards (re-)financing or holding/ exploitation of intellectual property rights.


− Minimum recommended capital SGD* 10.000 (USD 8.000); no authorized share capital
− Minimum issued/paid capital SGD 1.00
− Declaration of share capital and of basis currency for accounting in SGD (or any other currency permitted)
− Increase or reduction of share capital by amending the Memorandum of Association is possible; change of authorized capital must be filed and registered


− Only registered shares with no minimum par (face) value
− Shares may be issued by the Board after initial sub-scription
− A share register should be kept at the regular place of business of the company


− Minimum one shareholder; duly registered and of public records
− Nominee Shareholders permitted
− Corporate shareholders permitted
− Shareholders are of public records


− Minimum one director registered and of public records
− Minimum one director should be Singapore resident
− Corporate directors not permitted
− Appointment of first director(s) by the founders
− Elections of the Board by the shareholders or by the Board majority (to be approved at following annual meeting)
− Dismissal of directors possible by the Board or Shareholder majority
− Board meetings anywhere in the world permitted, also resolutions by telephone or mail (to be recorded and filed with the secretary thereafter)


− Local secretary required
− Secretary cannot be (sole) director or sole shareholder at the same time

Registered Office

− Local registered office required; P.O. Box addresses not permitted
− Documents to be kept at the registered office:

  • - Certificate of Incorporation
  • - Statutory Books
  • - Register of Members

− Accounting Records unless directors decide otherwise

Shareholder’s Meetings, Assemblies

− Meetings and/or assemblies anywhere in the world; resolutions in writing signed by all shareholders permitted (to be recorded and filed with the secretary thereafter). The first meeting must be held within 18 months after incorporation
− Directors are required to submit audited or unaudited (in the case of dormant or small companies) financial statements closed at a date not more than 6 months before the meeting date

Power of Attorney

− General Powers of attorney permitted

Register of Companies

− Public register of shareholders and directors
− Beneficial owners may remain undisclosed
− Limited liability to be denoted by Pte Ltd
− The following company documents are of public records:

  • − Memorandum and Articles of Association including amendments
  • − Registered Office
  • − Directors and secretary
  • − Share capital and shareholders
  • − Charge and debentures
  • − Accounts

− Corporate seal not compulsory


− Accounting, auditing and reporting mandatory


− Corporate tax for profits up to SGD 300,000 8.5 %, capped at 17 % for profits above SGD 300,000. Tax holiday of 3 years at 0 % for profits under SGD $100,000 and 8,5 % for profits under SGD $300,000
− No capital gains tax
− Withholding tax of 15 % on interest, commissions, and fees in connection with loans; 10 % on royalties
− No withholding / income tax on dividends


− By shareholder’s resolution (common procedure, although complicated, lengthy and costly – approx. SGD 30,000)
− Striking-off available under certain conditions

*SGD = Singapore Dollars