According to the Singapore Companies Law foreign individuals are allowed to register companies in the city-state. Foreign investors may also establish offshore companies in Singapore provided that they follow the legal requirements. In order to establish an offshore company in Singapore the following conditions must be met:
The offshore company must also have a registered address. However, there are no requirements for a minimum share capital. All foreign investor wanting to set up an offshore company must request the services of specialists in company incorporation in Singapore.
Foreign investors are required to appoint a resident director for their offshore company in Singapore. They can also appoint a nominee director that will be registered with the Singapore Companies Register. The nominee director of an offshore company in Singapore does not play any role the company’s management and has no power of decision. The nominee director may be a resident or a Singapore company that will render nominee director services.
The duties and responsibilities of the offshore company’s director are to conduct the annual general meeting, to file annual return with ACRA (the Accounting Compliance Regulatory Authority of Singapore) and the annual financial statements with the IRAS (the Inland Revenue Authority of Singapore). A nominee director of a Singapore offshore company will be held liable for statutory requirements and will represent the company in relation with third parties.
Offshore companies are required to open a bank account in Singapore prior to commencing trading activities. In order to open a corporate bank account a meeting with bank representatives is often required. The nominee director can meet with bank representatives and third parties also in order to complete all registration procedures, thus saving the owner’s time. The nominee director may also fulfill all other legal requirements arising when opening an offshore company in Singapore. Among these, the director may register the company for taxation purposes and obtain all relevant business licenses, if required.
For details about company registration and provisions of the Companies Act please contact our representatives in company formation in Singapore.