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Setting up a Holding Company



Setting up a holding company in Singapore can be a straightforward process, but there are a few things you need to know before you get started.


What is a holding company?


A holding company is a company that owns shares in other companies. This can be done for a variety of reasons, such as to:

  • Centralize control of multiple companies.

  • Protect assets from liability.

  • Reduce taxes.

  • Facilitate succession planning.

Why set up a holding company in Singapore?


There are several reasons why Singapore is an attractive location for setting up a holding company. These include:

  • A pro-business environment with a strong legal system.

  • A low tax rate of 17%.

  • A network of double taxation treaties.

  • No capital gains tax.

What are the requirements for setting up a holding company in Singapore?


The requirements for setting up a holding company in Singapore are:

  • A minimum paid-up capital of S$1.

  • At least one shareholder (either local or foreign).

  • At least one local director. He or she should be a permanent resident or citizen of Singapore.

  • At least one resident company secretary. He or she should also be a permanent resident or citizen of Singapore.

  • A local Singapore address that can be provided as the registered address of the company. This address must be a physical address and not a P.O. box.

How to set up a holding company in Singapore


The process of setting up a holding company in Singapore is as follows:

  1. Choose a company name. The company name must be unique and not offensive. You can check if a name is available on the ACRA website.

  2. Appoint a local nominee director. If you are a foreigner, you will need to appoint a local nominee director to act on your behalf. A nominee director is a Singaporean citizen or permanent resident and does not hold shares in the company.

  3. Prepare the required documents. The required documents include the company's constitution, the director's particulars, and the company secretary's particulars.

  4. Submit the application to ACRA. You can submit the application online. The application fee is S$315.

  5. Receive your company registration certificate. Once your application has been approved, you will receive your company registration certificate. This certificate is proof that your company has been registered in Singapore.

Opening a corporate bank account


Once your company has been registered, you will need to open a corporate bank account. This will allow you to deposit and withdraw money from your company's account.


Taxation


Holding companies in Singapore are subject to a corporate tax rate of 17%. However, there are a number of tax exemptions and incentives available to holding companies.


Additional considerations


In addition to the above, you should also consider the following when setting up a holding company in Singapore:

  • The purpose of your holding company.

  • The structure of your holding company.

  • The tax implications of your holding company.

  • The compliance requirements for your holding company.


Seeking professional advice


It is advisable to seek professional advice from Bestar accountant before setting up a holding company in Singapore. We can help you to ensure that you are compliant with all the relevant regulations and that you are taking advantage of all the available tax incentives.


Seeking professional advice from a reputable accounting firm like Bestar can be highly beneficial when setting up a holding company in Singapore. Our expertise and experience can help you navigate the complexities of company formation, tax regulations, and compliance requirements. Here's how Bestar can assist you:

  1. Company Formation: Bestar can guide you through the entire company formation process, ensuring that your holding company is registered properly and adheres to the legal requirements. We can help with preparing and submitting the necessary documents, appointing a local nominee director (if required), and opening a corporate bank account.

  2. Tax Planning: Bestar's tax experts can assess your specific situation and develop a tailored tax plan that minimizes your tax liabilities. We can advise you on tax exemptions, incentives, and strategies to maximize tax efficiency.

  3. Compliance Management: Bestar can help you stay compliant with all the relevant accounting and tax regulations in Singapore. We can maintain accurate financial records, prepare tax returns, and ensure that your company meets all compliance deadlines.

  4. Business Consultation: Bestar's team of accountants and business consultants can provide valuable insights and guidance on various aspects of your holding company structure, operations, and financial management. We can help you make strategic decisions that align with your business objectives.

  5. Ongoing Support: Bestar can provide ongoing support and assistance as your holding company grows. We can handle your accounting and tax matters, ensuring that your finances are managed effectively and efficiently.

Contact Bestar today!

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