Forming a Singapore company: Pros and cons
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- Опубліковано 4 жов 2024
- www.nomadcapita...
Many entrepreneurs ask about forming a Singapore company to conduct their location independent business, but Singapore may not be the right place for everyone.
The problem with choosing Singapore or any other country to start an offshore company is that, without unbiased research, you may get stuck in a jurisdiction that doesn't serve you.
Andrew explains why a Singapore company may be a good, low-tax option for fixed businesses with an office and staff, but not as good for nomadic companies or sole traders.
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ABOUT NOMAD CAPITALIST
Andrew Henderson travels to nearly 30 countries every year to stay up to date on the latest legal strategies for entrepreneurs and investors to pay less tax, grow their money faster, and build their personal freedom.
Andrew started Nomad Capitalist to help people like you follow his five magic words: "go where you're treated best". He has personally started foreign companies, opened offshore bank accounts, and obtained multiple second passports.
He also learned the hard way that perpetual information seeking is often the biggest barrier to getting the results you want. Many entrepreneurs spend months and even years constantly researching how to pay less in tax or live overseas, but are afraid to make the jump.
As a result, they get stuck and keep paying a fortune in taxes and never get the lifestyle they deserve.
Nomad Capitalist's UA-cam channel is based on Andrew's vision that focusing on the end result, rather than the latest shiny object, is the best way to actually obtain the benefits of the Nomad Capitalist lifestyle.
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its a very limited point of view, Syngapore has no capital tax gains, and foreign income is not taxed, you can easily set up an investment firm in Singapore and make investments in offshore companies with 0 taxation, then reallocate those earnings in other assets like real estate in China or the US, then disburse those earnings as 0% taxed capital gains, Singapore is the BEST offshore jurisdiction by far
This is exactly what I plan to do. Can you give further details how to proceed?
@berbo55 This is not advice, just my opinion. Ask a lawyer for advice. This example is for a Singapore homding invest8ng abroad in real estate, it also depends in what country you are tax resident. For people in US, I would set up a holding company in Singapore, then a disregard llc in Wyoming to invest in us real estate, then you must file several forms with irs for foreign partnerships to avoid tax withholding. Since Singapore holding doesn't pay taxes on foreign income, you only pay taxes for us investments in the us. Then you take that profit and invest in another country, for example China, (I don't know if you can form a disregarded llc in China but you can buy directly the real estate under the Singapore holding), same thing, you only pay taxes in China. If you want to take profits out of Singapore tax free, you then move to Singapore l, Dubai, or other tax heaven and take them tax free (meanwhile you are not us citizen), or you just reinvest profis in the Singapore holding forever.
Buying and selling bullion precious metals in Singapore are exempt from any VAT and Capital gains Tax, also without any restrictions on the amount of capital from those proceeds being transferred anywhere int the world.
By offering such unbelievable incentives Singapore is looking to be the number 1 location to o do business in precious metals in Singapore.
Singapore has one of the lowest tax rates in the world despite the rising living costs.
They have a low population, they don't need high taxes to support their population against the downsides of capitalism.
I love singapore!
This is true......never setup a company in Singapore coz the rent is very high and they were tax your company...... If I want to setup a company this were be in Malaysia or Hong Kong coz the the cost is much lower.......
So.....which country u recommend?
cock country
Go to UAE and bank in Singapore :)
I heard it's the most competitive economy in the world. My father has been living here for 27 years.
We moved here with him about 8 years ago. But moved to Johor 2 years ago and realized Johor is transforming very fast and lots of room for growth.
My father runs a construction business in Singapore and we have around 33 workers. Still extremely hard to make money as a small company. Lost couple of hundred thousand dollars last 3 years. Main contractors squeeze sub contractors to stay afloat. Father and 2 of his friends already opened a company in Johor and probably will start farm and cloth factory business in two weeks. I'm just 21 and one of the directors for the company 😁.
Recently parents got their MM2H application approved. We're confident about the future.
i can be your director too🤫
How did he start? Because it takes a lot of money to do so no ?
Pro tip: hire a malay to be the face of the company.
what is best countries
A tax lawyer is curently recommending me to set up a PTE LTD in singapore over a UK holding. They provide a company secretary and a local director, without the access to my businiess accounts or authority do take actions. They told me I need them because otherwise I would have to tax my income in croatia, with this structure I would be able to pay zero taxes within this structure and I even could reinvest that money without paying taxes as long as the earnings are earned outside of and not transfered to singapore.
Is a structure like that possible?
under audit this is unlikely to hold up if you are the person who is doing the majority of the management/actions
Lovely... Excellent insights!
You can only hire 1 foreigner for 6 Singaporeans. That's a difficult ratio to maintain given there is no local tallent
This is like the most Captain Obvious advice maybe coz i'm Singaporean, the system in Singapore is set up for people to bring their businesses here and contribute to the local market and not use it ONLY as an overseas tax haven
Not really true. The local market has been reserved for the government boards.
As Far as my understanding,
Sports betting is tax free in uk ..
But crypto and forex is taxable..
AND
Crypto and forex is tax free in dubai ..
But Sports betting is illigal in UAE ...
I want to do both by giving lowest possible tax and also have good lifestyles...
What are the better option for me ???
As far as starting a tech company, although I’m unsure about the tax implications, many are opting for Shenzen, I thought. If a westerner is starting a tech company and they’re not taking China into account these days, they chances of failure is greater, I think.
China also invest in new companies if they are categorized as Tech Startups, so is not a bad option. You only have to take in consideration that US sanctions can put u out of business if your sales volume/revenue is not high enough to cover the costs.
let's work together. I am Russian.
Damn right! There are too many ridiculous regulations in Singapore!!!!
Where do you think it is best to set up a company or rather an offshore office with a Bank account, DO NOT WANT ANY GCC COUNTRIES.
Thank you for outlining the tax consequences. If 17% can be beat, let's beat it.
Too vague
which country best for start/form company?
True!
Not for doggy deals
17% tax... thats 11% less then my current country.
And they have formula 1.
I'm coming singapore
Cayman Islands has a 0% income tax rate.
I wish I watched this video before an SG accounting firm screwed us over $10k USD in incorporation and service fees..
The Hung Le that's because you are converting from Vietnamese dong
fyi, I was born and raised in Australia in which I have companies based in both Australia + US. Don't assume vietnamese dong just because of my name.
Also Vietnamese overhere living in Germany. I’m Surprised that they costed you 10.000 Usd. I thought it was just 3000 incl bank account etc. ? Did you have to pay 17% tax?
@@thuhanguyen7094 Hello Thu Ha! I visited Berlin back in 2018 and have such a soft spot for that place :)
Yes, most places will quote you on a '$3K USD' range to have things set up and then they 'll slap you with a bunch of other fees (i.e. nominated director fees, filing fees, admin fees, advisory fees etc.) so it ended up costing ~$5,100 USD per incorporation (i.e. >$10K+ USD since I had this executed for 2 of my portfolio companies.)
Furthermore, we kept running into multiple banking issues and decided to just use the Pte Ltd entity as an SPV (special purpose vehicle) and ended up acquiring a complimentary business, which was in line with our global expansion initiative and yes, we still pay >17% tax since company revenues are well above the $1million SGD threshold. However, if you make
@@HungLeEntrepreneur thanks for the extensive answer. Probably the nominated director is the trigger by which most services make money I guess? Do you have to pay the nominated guy annually? I‘m still quite a rookie in this subject 😬
I want to sell mexican food in Singapore one day.
Give it a go, there is no mexican food in Singapore.
Do it!
Do it
Would be great
I will go there :)
So basically people want to leach off all the benefits of taxation and spending, but without paying tax themselves? What a great bunch of people you are.
Better Start up Company in bali Dude
bali? are you mental, indonesia is the rock bottom worst country to do business, most corrupt country by far.
setting up company in indonesia should be avoided at all cost, unless you plan to do business in indonesia. too much red tape, you need to know how to make "things faster" with the bureaucrat there. and thats for indonesian, if you are a foreigner be prepared to get major headache. even some shady banana republic in caribbean is better!
The people in indonesia trouble u alot from paper, till the staff u will recruit all very very slow and very unrealiable.. Law is very weak and high corruption.. Its a huge headache even for the indonesian themself and not to mention multiple layer of tax for seting up business or even to import things