Company in Singapore - crap or not?

[JustAnotherNomad]

So it only invoices other companies owned by you, that's why there aren't a lot‌ of profits...?
If it's an operative business that simply doesn't have a lot of profit,‍ then of course there isn't a lot of tax to pay, but that's how it⁠ would be in any country?

 

[hlepic211]

My main goal to run my setup from Singapore was to avoid bureaucracy and stupid‌ EU laws, but still have a reputable jurisdiction to run a business in with 0‍ questions asked on outgoing (and incoming) payments. Again, this was the best choice I've made⁠ moving my business there. Regarding taxes check pwc.com they have a great overview on all⁤ countries. Btw regular IT business here, 10 year history. In the EU I had my⁣ accounts closed down, funds frozen etc

 

[JustAnotherNomad]

Sure, but your profit is just 50k? What if your business goes well and you‌ have 1M in profits? You intend to just pay tax in Singapore and pay yourself‍ dividends?

 

[hlepic211]

If that's the case you structure it in a⁠ way where the company getting this profit is in a low tax jurisdiction + substance⁤ + your residence also matters.
Example: Dubai + Singapore

But don't do any direct transfers⁣ between them if you're the ubo + director that will classify as profit shifting which⁢ can cause problems later.
Or if you have clients that pay only with crypto any︀ banana republic company can work.

Why this is needed in my case - can't transfer︁ anything from UAE to EU or other way around without AML bs, from Singapore to︂ EU - zero problems.

 

[daniels27]

You mean your Singapore company is not actually tax resident there. You just have one‌ employee for fun and a bank account to remit what you pay him as salary?‍

You have 1M profit, remit 50k which you later pay out as salary locally. Thus⁠ no taxes? And management is in UAE and they don't care about any P(o)E(M)?

 

[hlepic211]

Not a tax resident in SG yes. They only cared about⁣ shareholder's residence.
However we have a local director which is their requirement + 10 employees⁢ based around the world. We pay their salary (freelancer agreements) and they pay taxes based︀ on their residence.

It depends on the business, where is the profit coming from? Investments,︁ payments from clients for you services, real estate flipping...? If you have clients who pay︂ in USDT for example you can use the UAE company for those payments, if they︃ pay fiat use your Singapore company. Cover your business costs from your Singapore company.

 

[turmpy]

What does the 10 employees do for your setup,⁠ it has no influence for having the company ?

 

[hlepic211]

They work and get paid. No, you‍ can have the company without employees.

 

[JustAnotherNomad]

Now it's beginning to make a bit more sense.
So a client pays fiat to︁ the SG company and the SG company purchases services from the UAE company, lowering the︂ profit of the SG company?
And then you also keep all/most expenses of the business︃ in the SG company, further lowering profits, while the UAE company has very low expenses︄ and hence high profits?
SG probably doesn't even apply transfer pricing checks since the company︅ isn't tax resident in SG?
But then why would you have to pay any tax︆ in SG at all? What do you tell SG where the company is actually managed?︇
Or do you tell them it is managed from SG (and thus tax resident in︈ SG)? But then how do you get around the transfer pricing restrictions?
Also, is the︉ UAE company exempt from tax? On what basis (which qualifying activity)?
Sounds very interesting.

 

[burden]

how would you go about it in that case?

 

[lavel]

Do you setup your company in Singapore, if so, can you let me know how⁢ much you paid, what you got and what provider please?

 

[slink]

Was it hard to get OCBC as your business bank account? Did you⁣ fly to Singapore for it?

I have a Singapore registered company but live elsewhere. I'm⁢ currently with Aspire for banking as I was told it was very difficult to get︀ a tradtional bank account at OCBC / UOB / DBS unless you live in Singapore,︁ even if you fly to Singapore to try and open one. Is this true or︂ not? Has anything changed recently?

 

[bibing]

I'm always surprised by how people don't mention that having a SG company is kind‌ on the expensive side considering you need to pay for a local representative...

 

[slink]

I pay for a local company director through my accountants but it's⁠ a token one that will be a director for dozens of businesses so i don't⁤ think banks like that.

 

[bibing]

Yes but the problem is that when I inquired⁠ it was almost as expensive as the company registration itself...

How much do you pay⁤ for your local director?

 

[slink]

I think it's around 1500 SGD per year.

 

[kokunut]

Why do you have so many companies for your business?

 

[belarus]

ahhh, very good, if that works I got a solution for my setup after all.⁣