Low Taxes in Singapore

The fact that Singapore has low tax rates for companies which are registered there, has resulted in many businesses from around the world to register in that country in order to save on tax bills and therefore become more competitive. As the economic situation around the world continues to change with some countries having to raise their tax rates for businesses, it is likely that more companies will register in Singapore. When you read this guide you will only get a brief look at what benefits can be received by a company or corporation when it registers in Singapore and just a few of the criteria which have to be met in order to do so.
As well as having a low tax rate for businesses, as an added incentive for companies to register there, Singapore may also offer a newly registered company, a still further reduced tax rate for its first 3 years. Unlike other countries which may have an unstable political system which allows tax rates for businesses to continuously fluctuate; Singapore enjoys a very stable political system which allows it to continuously offer tax incentives to any business which is considering registering there. The country is also wealthy, ranking number 3 in the Forbes magazine for the wealthiest countries in the world and so its economy is also stable which can also attract companies to register in Singapore. If a company does decide to register though, there are still certain things which it has to satisfy the government about first. The first of these is that the company will establish an office in Singapore, not just an address like a post office box but an actual address complete with a manned office at least during regular business hours. A second thing the company will have to do is nominate a director. Although a company may already have as many directors as it may like, if none of them are Singaporean citizens or permanent residents of the country, they will have to nominate someone that is, unless one of the directors applies for receives an appropriate Singapore employment card. The Singapore government also requires that certain records and accounts are kept and that those records and accounts are kept by a Singaporean citizen who shall be named the corporate secretary for the company. Even though none of these stipulations are major problems, it is still easier for a company applying to be registered, to seek assistance from one of the Singapore businesses that specialize in assisting foreign companies with registration. The assistance that these businesses can offer are of great help as is can include people that could be suitable as directors and people that are qualified to be named the company’s corporate secretary and it can also assist with the finding of vacant office space. If the registering company is not happy with any of the suggested corporate secretaries, then the Singapore business may even take on that role itself, allowing the company to continue to register.