Singapore is Not a Tax Haven

A tax haven is considered to be a country where a company can register in and not pay taxes. Although companies that do register in one of these havens may not face tax bills, often they have large legal fees in other countries where it is claimed they owe taxes as they pay them nowhere else. Although Singapore likes to encourage companies to register there and so have low tax rates for businesses, they are not considered a tax haven and so any company that does register there, not only enjoys low taxation rates but also has no worries about huge legal fees in other countries. This has made Singapore a popular place for companies to register and many more are considering also doing so but in order to, they must agree to certain criteria as laid down by the Singapore government. There are three regulations which many consider to be the main ones and those are that a company wishing to register in Singapore, must at least have a presence in the country and at the very minimum, that presence must consist of a manned office which is open during regular working hours. This is opposed of course to a company only having a post office box number as their Singapore address. The second regulation requires that the company must have a director nominated that is either a Singapore citizen or a Singapore resident. Although this director does not have to have an active role in making financial or other decisions for the company, they must be the company’s representative for government purposes. This is one regulation that a company does not have to comply with if they have a director already in place that has a legal Singapore employment card. The last of these three regulations is that the company must keep records of any business that they undertake in Singapore and those records must also include accounts. The government insists that these records at least, are maintained by a corporate secretary that is a Singapore citizen. As keeping accurate records for a company will need that the secretary know the business, the government allows a 6 month grace period for this particular regulation to be met. Although one or more of these regulations may cause a company a problem, they do not have to if the company seeks assistance from a Singapore business like Singapore Incorporation Service (SIS) which specialize in assisting foreign companies to register in Singapore. As specialists in this field, these businesses can assist a company in fully knowing the registration requirements and also in meeting those requirements. They can help a business find office space and recommend personnel to fill the posts of director or corporate secretary, perhaps even taking on those responsibilities themselves. Although in order to attract businesses to their country, the Singapore registration process is as easy as possible, there still are stumbling blocks a company could fall foul of unless they take advantage of businesses like SIS.