Letter to Business Owners For APAC Expansion via Singapore

If you operate your business within Asia or plan to do so in near future, then you know how dynamically Singapore has changed in last few decades and how much more Singapore is going to change in coming decade.

Jim Rogers, famous US investor, once said,

If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.

Doing Business in Singapore

Singapore has been ranked as best country to do business repeatedly in recent years. A business jurisdiction famous for its dynamic and strong economy, Singapore is a sophisticated place to start and grow your business. Singapore is a high-income economy with business friendly laws and regulations. Both individuals and corporations can avail multiple benefits by setting up offices in Singapore. Policies formulated by Singapore government are pro-business that provide easy entry / exit through special visas and passes.

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A Handy Guide Explaining Strategies For Expanding Asia Pacific (APAC) Business Operations via Singapore

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Singapore Business Incorporation

Incorporating your business in Singapore is a straightforward process. However, prior research is advisable to select appropriate business structure and other related preferences.

Assistance of Professional Firm

It is strongly advisable to hire the services of a professional firm for incorporating your business in Singapore. Generally, such professional firms provide end-to-end services, including, preliminary advisory for selecting appropriate business structure, incorporation with ACRA (Accounting and Corporate Regulatory Authority) Singapore, company secretary services, facilitation of company’s incorporation documents (kit), assistance regarding opening of Singapore corporate bank account, accounting and tax filing services, and the like.

Types of Business Entities in Singapore

Singapore offers a wide range of business entities to select from, including LLC (limited liability company), Foreign Company Registrations, Sole Proprietorships, and Partnership Firms.

Singapore Holding Company

A holding company generally does not deal directly with any goods or services but owns stock in other companies with a view to control other company or a group of companies. Holding companies are preferred to own tangible and intangible assets. Tangible assets may include real estate while intangible assets may include intellectual property, such as, for example, patents, trademarks, copyrights, designs, trade secrets, and the like.

Holding companies usually prefer Singapore as favorable jurisdiction due to attractive tax rates and double taxation avoidance treaties. Singapore has signed Double Taxation Avoidance Agreements (DTAA) with multiple jurisdictions that can help residents in managing their taxation efficiently by providing reduction and / or exemption of taxes on certain types of income.

Patent (IP) Holding Company in Singapore

Economic developments depend majorly in Intellectual Property Rights and business owners formulate profitable strategies to monetize IP (patent) rights. It is common for global businesses to centralize ownership of Patents and other IP by forming holding companies as licensing vehicles.

Singapore is highly advantageous to hold, own and license (transfer) IP rights due to attractive tax rates and strong IP protection laws. Generally, companies transfer their IP to Singapore based holding company, which then transfers such IP (patents) to third party by various mechanisms, such as, licensing, assignment, franchisees, distribution etc.

Raising Funds and Investments via Singapore Company

Apart from numerous schemes and investment offerings for startups by Singapore government, private equity financing is highly favored for Singapore companies. Recent trends show that Angel Investors, Venture Capitalists and Private Funds are highly active in Singapore. Among others, angel investment is a major source to raise funds in Singapore and rise within Asian startups has resulted in vibrant funding activity in Singapore.

Conclusion

To review, Singapore acts as a bridging jurisdiction between Asia and the west as business owners utilize Singapore strategically to expand their operations globally. Each of the above-mentioned points will be elaborated further with case studies in upcoming blog posts.

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For discussing profitable strategies to expand your business in Asia Pacific (APAC), feel free to reach out to us directly. We would be glad to have thought provoking conversations to help you achieve your business goals.

Originally published here (article source): http://www.techlaw.attorney/business-owners-expanding-operations-singapore-asia/