When the International Institute for Management Development (IIMD) recently released their findings on the economic competitiveness, the results placed Singapore at the top. This report is similar to other ranking done by World Bank that also ranked Singapore among the first three most competitive economies based on economic performance, infrastructure, the efficiency of businesses, and efficiency of government.
The competitiveness of the economy has made Singapore a top destination for investors who want to enter and grow rapidly in the Far East. The most notable of these benefits include favorable tax regime, ready market, and many bilateral agreements that make trading in neighboring countries easy.
To take advantage of this great investment destination, the first step is opening a company. The following is the key information that you need to know when opening offshore company Singapore.
The process of company registration is guided by the Companies Act. Under this law, the main requirements for incorporating an offshore company include;
A resident company secretary
This is one of the most crucial requirements when incorporating an offshore company in Hong Kong. The secretary acts as the main bridge between the company and Singapore administration.
The secretary is required to have ample academic and practical experience in business matters. It is important to check for a person who has held a similar position in the past and delivered great results.
A resident director
Though the Companies Act does not place a cap on the number of directors that a company can have, one of them must be a resident. The Singapore administration holds the view that when some of the directors are based in Singapore, it is easy to understand the local market dynamics.
Singapore market is very competitive. As a demand-supply driven model, understanding the local dynamics is crucial in keeping the company competitive. The law also requires that the resident director should not be bankrupt or have a criminal record.
The company auditor
To operate in Singapore, you must select a company auditor three months after registration. This is the expert who will always do the annual audit for the company. Note that the company can be exempted from carrying an annual audit if it has less than 50 employees, the assets are less than $10 million, and its total revenue is lower than $10 million. Note that it is crucial to seek expert input if you think the company qualifies for the audit exemption.
Get appropriate licenses
Depending on the nature of the enterprise you want to engage in, an additional license might be required. For example, companies in telecoms, catering, and finances are subject to additional regulation. It is important to establish whether additional authorization is needed when opening offshore company Singapore.
Using an agency to register an offshore company
If you find it difficult to follow the process of preparing the documents, a better method of opening offshore company Singapore is using an agency. Agencies are licensed entities that are allowed to fast-track the process for clients. Unlike registering the company alone, agencies are run by experts who help to prepare top-notch documents and present them for faster registration.
Most agencies also carry regular surveys about the Singapore market to help clients understand the new market and craft entry strategies with ease. They also walk with you every step of the way to grow fast in the local market and expand to other nations in the Far East.