Singapore Company Formation

richardleb · Dec 21, 2015

Hi all,
i would like to start a company in Singapore and found out that www.guidemesingapore.com
offers a complete service,

well, would you recommend it? What do you think about this website at first glance? Is it trustable?

pseudonym · Dec 21, 2015

which issue are you attempting to solve? "just" having an sg company will do nothing for you. you could also "just" register a UK one online for 60 pounds...

what is the underlying issue you are trying to solve?

Paranoid Android · Dec 21, 2015

a couple of days you pinged me about HK company? you jumped to sg already

Its hard, real hard, you need a local director who charges you an arm and a leg and a testicle for a year's fee, and the auditing requirements are crazy in singapore. go with HK unless you have got millions in turnover.

Ralph Urner · Dec 21, 2015

Now since there is auto info exchange between OCED nations, your options are really slim.
Unless you have a team of lawyers, you'll get caught and put in prison for tax evasion.

AquaticGamer · Dec 21, 2015

Are you trying to start a local store or an online business in singapore? If it's a local company you just have to register for a business on the online government website and once you have that you can just rent a location and start selling it's not that difficult.

RuthSam · Dec 21, 2015

If you can get a complete service in Singapore you may go for it.. there are other jurisdictions cheaper

SEMWORLD · Dec 21, 2015

Okay, You can do it. Because you decided that it will reasonable for you. I checked these site. It's good, really good but it'll hard to carry on. So take care.

Paranoid Android · Dec 21, 2015

Ralph Urner said:
Now since there is auto info exchange between OCED nations, your options are really slim.
Unless you have a team of lawyers, you'll get caught and put in prison for tax evasion.

bullshit

google has Google Ireland Limited incorporated in Bermuda, passed 11 billion $ to bermuda in total last year, 0 tax, nothing happens to them. if he holds the money in his name in an offshore bank hes in trouble, but not so when a company holds the money

I-marketer · Dec 21, 2015

HK is easier&cheaper to incorporate than Singapore.

richardleb · Dec 21, 2015

Thank you for all your replies.
Honestly i am taking in consideration every opportunity and btw i have an online business.
I don't need a local store because i can travel anywhere and working from my smartphone at same time. Which option should i consider most to pay taxes and stay legal?

Ralph Urner · Dec 21, 2015

Paranoid Android said:
bullshit

google has Google Ireland Limited incorporated in Bermuda, passed 11 billion $ to bermuda in total last year, 0 tax, nothing happens to them. if he holds the money in his name in an offshore bank hes in trouble, but not so when a company holds the money

Your comment is pointless,
Google has team of lawyers and their company structure allows them to take advantage thru transfer pricing.
I am speaking for EU, things don't work like that here. You can't just incorporate offshore and get 0% tax.

If you are really an American, I am sure you are aware of FACTA. You can't just incorporate offshore being an American, you pay taxes in US.

pseudonym · Dec 21, 2015

richardleb, what matters most in post-31 december tax planning is the location of your physical body... the location of your bank, your website, your company, your whatever all do not matter very much anymore after 31 december. after 31 december the only thing you can do is locate your physical body somewhere favorable. or have children who were born in brazil, chile etc., do not claim eu citizenship and own everything under their name. and similar solutions...

BuildMoreLinks · Dec 21, 2015

is this company formation in SG only for tax saving? moving money offshore? or you want local business setup in SG? need some more details.

richardleb · Dec 21, 2015

First, i wanna be completely white hat. I want to pay taxes and if i can choose a country even if i'm not a resident, that's even better.

I was thinking about setting up in SG or HK or UK, but every option is welcome.

I don't need to set up a local business because i sell digital products in some different ecommerce sites.

Where will i be physically located? Well, that's hard to say. I'll be in eu for the next 3 years (i'm eu citizen) but i plan to travel anywhere in the world with my business set and running.

Thank you everyone for helping.

Edit:
for example, this solution is very appealing to me: https://www.rapidformations.co.uk/package/non-residents/
But i don't know how to proceed and mostly if i can trust these kind of websites.

pseudonym · Dec 22, 2015

richardleb said:
First, i wanna be completely white hat. I want to pay taxes and if i can choose a country even if i'm not a resident, that's even better.

I was thinking about setting up in SG or HK or UK, but every option is welcome.

I don't need to set up a local business because i sell digital products in some different ecommerce sites.

Where will i be physically located? Well, that's hard to say. I'll be in eu for the next 3 years (i'm eu citizen) but i plan to travel anywhere in the world with my business set and running.

Thank you everyone for helping.

Edit:
for example, this solution is very appealing to me: https://www.rapidformations.co.uk/package/non-residents/
But i don't know how to proceed and mostly if i can trust these kind of websites.

you will be sought to be liable for taxation based on your own personal physical body is. not where you have registered or opened a company, website, payment processor etc., i have told you this many times now. germany will keep asking you to pay tax as long as they see that you are renting something there. explaining that you own a financial vehicle on the other side of the world will not remove your german tax liability

Paranoid Android · Dec 22, 2015

AFAIK, if you got a company in HK, and that company raises invoices and does normal business, you are liable to pay taxes only in HK. You most certainly have to pay taxes on your dividends in Germany, but the comapny's profits are the comapny's money and the jurisdiction of that company is Hong Kong.

Germany can ask you for taxes if you run your business sitting in Germany, collecting money in Germany and stashing it away in a financial vehicle in Hong Kong. Thats going to get you into trouble, but not on the money that a Hong Kong company makes by invoicing clients or trading out of Hong Kong.

pseudonym · Dec 22, 2015

Paranoid Android said:
AFAIK, if you got a company in HK, and that company raises invoices and does normal business, you are liable to pay taxes only in HK. You most certainly have to pay taxes on your dividends in Germany, but the comapny's profits are the comapny's money and the jurisdiction of that company is Hong Kong.

Germany can ask you for taxes if you run your business sitting in Germany, collecting money in Germany and stashing it away in a financial vehicle in Hong Kong. Thats going to get you into trouble, but not on the money that a Hong Kong company makes by invoicing clients or trading out of Hong Kong.

this is the part he doesn't understand. no matter where in the world he registers companies, runs payment accounts or moves money, ... as long as his physical body is consuming resources in Germany, the German government will want to know what pays for these resources (rent, groceries) and tax him fully. as it will not be considered business or employment income, but simply "from other sources" which carries the absolute highest tax rate. guy doesn't know what he's beginning!

Paranoid Android · Dec 23, 2015

the company pays him a salary or dividend. Dividend taxes are usually lesser than income taxes. Germany definitely is not going to claim taxes for the money earned by the company in Hong Kong, the german national only pays taxes on the money he gets from the company and not all the money the company makes. So if the company makes 5M and he pays himself a salary or dividend of 100k, he pays taxes only on the 100k and the remaining 900k remains in HK.He can use that money to buy a house in the UK or USA in the comapny's name, but not Germany as thats where he's been living in. I suggest you do more reading on how people do it.

Ralph Urner · Dec 23, 2015

Paranoid Android said:
the company pays him a salary or dividend. Dividend taxes are usually lesser than income taxes. Germany definitely is not going to claim taxes for the money earned by the company in Hong Kong, the german national only pays taxes on the money he gets from the company and not all the money the company makes. So if the company makes 5M and he pays himself a salary or dividend of 100k, he pays taxes only on the 100k and the remaining 900k remains in HK.He can use that money to buy a house in the UK or USA in the comapny's name, but not Germany as thats where he's been living in. I suggest you do more reading on how people do it.

As company is wholly owned by OP, he will be taxed in Germany as he is a German tax resident.
It would be different if OP owns less than 50% of the company.

German government will use double taxation and take the cut.
If OP is taxed in HK at 0% rate, he will be asked to pay the tax at DTAA rate to the German government.

kekmaw · Dec 23, 2015

This is what I will do in early 2016.
I'm from a EU country where I don't need to pay tax in if I'm not a resident there.

So I will become a non resident -> go to HK, open up biz and bank account -> live as a nomad for a while = 0% corp tax and 0% income tax.

Singapore Company Formation

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