The Republic of Singapore is located at the center of Southeast Asia. Singapore has an excellent international trading links and its location is along the major air routes and shipping services of Asia. Singapore gained its independence from Great Britain in 1965 and is a British Commonwealth country. Singapore is one of the leading financial center, offshore investors are served by major international banks and financial institutions. The economic and political stability provided by the Republic offers investors security and peace of mind.
Singapore imposes company or income taxes on the next income of residents on foreign source income if remitted into Singapore and on the net income of residents from sources within Singapore. Business or non-resident companies are taxed in Singapore on income derived from sources within the Republic.
CAPITAL DUTY
Sums not exceeding S$100,000 the fee is S$1,200, for every S$100,00 of capital after this sum up to the sum of S$1,000,000 the fee is S$400, for every S$1,000,000 after that the fee is S$300
COMPANIES
Companies incorporated in Singapore may be limited by shares, by guarantee or may be an unlimited company. Companies may be either public or private with limited or unlimited liabilities.
Company incorporation is made by registration under the Singapore Companies Act.
Every company incorporated in Singapore must have at least two directors, one of whom must be ordinarily resident in Singapore. Corporations are not permitted to act as directors or secretaries of Singapore incorporated companies. The companies secretary must be a qualified person as described by the Companies Act. A company need only have one registered shareholder if it is a wholly owned subsidiary of another corporation. All other companies are required to have a minimum of two shareholders.
ACCOUNTS
Companies incorporated in Singapore must maintain records of their account outside Singapore by providing information for preparation of financial statements to the registered office of the company. The appointment of Auditors must be within three months from the date of incorporation. Companies classified as not exempted must file their annual audited financial statements to the Registrar of Companies.
To be classified as an exempt company:
a. private limited company ie a company which restricts the right to transfer shares and prohibits any invitation to the public to subscribe for shares or debentures
b. not have any other corporation entitled to a beneficial interest in its shares and
c. less than 20 members
Similarly, tax returns must be filed with the Controller of Income Tax even if the company is inactive.
