Company in Singapore
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Singapore is one of the world’s most successful economies and the country is a major regional and worldwide force in shipping, trading business, high technology manufacturing, banking and financial services. Many of the world’s largest manufacturing and financial services companies have their Asian headquarters located in Singapore.
The standard Singapore company used for international business is the ‘Singapore Private Limited Company’, normally abbreviated to ‘Pte. Ltd..’
Tax registration documents are available but specific Certificates of Residence for corporation tax purposes can only be obtained in respect of income which is or will become subject to tax in Singapore.
Agency/Commission arrangements are often used for Singapore company operations.
Singapore resident corporations are subject to corporation tax at a general rate of 17% . However, there is an exemption from corporation tax on income earned outside Singapore unless this income is remitted to Singapore, therefore foreign trading operations may be conducted tax-free through a Singapore company and profits earned outside Singapore will not be subject to Singapore tax.
It is also possible to operate Singapore companies on a ‘mixed-tax’ basis, with both foreign (tax-exempt) income and income remitted to Singapore being subject to tax. Tax residence of the Company can switch from one year to another depending on the circumstances.
Dividend income from foreign sources received by a Singapore company can generally be redistributed free of any withholding taxes.