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SPV


SPV | Bestar
SPV | Bestar


A Special Purpose Vehicle (SPV) is a separate legal entity typically in the form of a private limited company created for a specific, narrow purpose – usually for investment. SPVs are often used to:

  • Segregate risk. By placing assets in an SPV, the parent company can protect its own assets from the risks associated with the assets in the SPV. For example, a company that owns a portfolio of hotels might create an SPV to hold the mortgages on those hotels. If one of the hotels defaults on its mortgage, the parent company would not be liable for the debt.

  • Attract investors. By creating an SPV for a specific investment project, a company can make it easier for investors to understand the risks and potential rewards of the project. This can make it easier to attract investors who are willing to put money into the project.

  • Obtain financing. An SPV can be used to obtain financing for a specific project. For example, a company that is developing a new product might create an SPV to raise money from investors. The investors would then own a share of the SPV, which would own the intellectual property rights to the product.

To set up an SPV in Singapore, you will need to:

  1. Choose a name for the SPV.

  2. File the necessary paperwork with the Accounting and Corporate Regulatory Authority (ACRA).

  3. Open a bank account for the SPV.

  4. Register the SPV for tax purposes.

Once you have set up the SPV, you can then use it to carry out your specific investment objectives.

Here are some of the benefits of using an SPV in Singapore:

  • Limited liability. The shareholders of an SPV are only liable for the debts of the SPV up to the amount of their investment. This means that the shareholders' personal assets are protected if the SPV goes bankrupt.

  • Tax efficiency. SPVs can be structured in a way that minimizes tax liability. For example, an SPV can be set up as a tax-exempt entity, such as a charity or a trust.

  • Flexibility. SPVs can be structured to meet the specific needs of the investors and the project. This flexibility can make it easier to attract investors and obtain financing.

If you are considering setting up an SPV in Singapore, you should consult with a lawyer or accountant to discuss your specific needs.


Why SPV in Singapore


There are many reasons why a company might choose to set up an SPV in Singapore. Some of the most common reasons include:

  • Limited liability. As mentioned above, the shareholders of an SPV are only liable for the debts of the SPV up to the amount of their investment. This means that the shareholders' personal assets are protected if the SPV goes bankrupt.

  • Tax efficiency. Singapore has a very attractive tax regime for SPVs. For example, SPVs are not subject to corporate income tax on their profits. This can save companies a significant amount of money.

  • Regulatory flexibility. Singapore has a relatively light-touch regulatory regime for SPVs. This means that companies have more flexibility in how they structure their SPVs and operate their businesses.

  • Favorable location. Singapore is a well-connected financial center with a strong legal system. This makes it a good place to set up an SPV for companies that are looking to raise capital or do business in Asia.

In addition to these general reasons, there may be specific reasons why a company might choose to set up an SPV in Singapore for a particular project. For example, a company that is developing a new product in the healthcare sector might choose to set up an SPV in Singapore because Singapore has a strong reputation for innovation in the healthcare industry.


Ultimately, the decision of whether or not to set up an SPV in Singapore is a complex one that should be made on a case-by-case basis. However, the factors listed above should be considered by any company that is considering setting up an SPV in Singapore.


Here are some additional benefits of setting up an SPV in Singapore:

  • Strong legal system. Singapore has a strong legal system that provides investors with protection.

  • Favorable tax regime. Singapore has a favorable tax regime for SPVs, which can save companies money.

  • Easy to do business. Singapore is a business-friendly country with a simple regulatory environment.

  • Strategic location. Singapore is a well-connected financial center with a strong economy.

If you are considering setting up an SPV in Singapore, you should consult with a lawyer or accountant to discuss your specific needs.


How Bestar can Help


Bestar is a leading corporate services provider in Singapore that can help you set up an SPV in Singapore. They have a team of experienced lawyers and accountants who can help you with all aspects of the process, from choosing a name for your SPV to registering it with the Accounting and Corporate Regulatory Authority (ACRA).


Bestar can also help you with the following:

  • Choosing the right structure for your SPV. There are different types of SPVs, and the best structure for your needs will depend on the specific purpose of your SPV. Bestar can help you choose the right structure and draft the necessary documentation.

  • Obtaining the necessary approvals. In some cases, you may need to obtain approvals from the government or other regulatory bodies before you can set up an SPV. Bestar can help you with this process.

  • Managing your SPV. Once your SPV is set up, Bestar can help you with the day-to-day management of your SPV, such as filing annual returns and paying taxes.

If you are considering setting up an SPV in Singapore, Bestar can help you every step of the way. They have a team of experienced professionals who can help you choose the right structure for your SPV, obtain the necessary approvals, and manage your SPV on a day-to-day basis.


Here are some of the benefits of using Bestar to set up an SPV in Singapore:

  • Expertise. Bestar has a team of experienced lawyers and accountants who can help you with all aspects of the SPV set-up process.

  • Convenience. Bestar can handle all the paperwork and filing for you, so you can focus on your business.

  • Cost-effectiveness. Bestar's fees are very reasonable, and they offer a variety of payment options to fit your budget.

If you are interested in setting up an SPV in Singapore, contact Bestar to discuss your specific needs. They can provide you with a free consultation and quote.


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