Uses of a Singapore company

Uses of a Singapore company

(a) Countries(e.g. Indonesia) that prohibit the use of International Business Companies (IBC) to trade may indirectly do so by setting up a Singapore company to act as an agent for the IBC so as to circumvent any direct trading between Indonesia and the IBC.

(b) There is no capital gains tax in Singapore and as such, an Investment Holding Company may be set up to hold overseas investments which may later be disposed as capital gains.

(c) Singapore has entered into Investment Guarantee Agreement with the Belgo-Luxembourg Economic Union, Canada, People’s Republic of China, France, Germany, Netherlands, Sri-Lanka, Switzerland, Taiwan and United States. Under these agreements, investments in each contracting country are protected for a specified period (usually 15 years) against war and non-commercial risks of appropriation. In the event of non-commercial appropriation, Singapore will compensate foreign investors either directly or through their governments based on the market value of the property destroyed or appropriated.

(d) Singapore is a member of the Association of South-East Asian Nations (ASEAN).
Companies incorporated in Singapore can benefit from the signing of an Asean Free Trade Agreement that aims at creating a free trade area for 10 years. Over 15,000 items produced by member nation have been placed on the Asean Preferential Trade Agreement and will enjoy various margins of preference.

(e) The removal of exchange controls on capital brought into Singapore and tax free Remittance of profits and repatriation of capital in June 1978 are some of the major factors in influencing foreign corporations to invest in Singapore.

(f) With the use of nominee/trustee shareholders and together with the appointment of Nominee Directors one could ensure complete confidentiality and anonymity of the beneficial shareholders.