Why Set Up an Investment Holding Company in Singapore?
In the realm of business finance, Singapore shines as a beacon of opportunity, attracting entrepreneurs and investors from around the globe. If you’re considering establishing an investment holding company (IHC), Singapore offers a myriad of compelling reasons to choose it as your business hub.
What is an Investment Holding Company?
An investment holding company is defined as a firm that possesses assets like properties and shares for long-term investment purposes. It generates income, known as ‘non-trade income,’ from sources such as dividends, interest, or rental revenue. The primary function of the company revolves around holding and managing these investments.
Why Choosing to Set Up an Investment Holding Company in Singapore is a Smart Move
1) Tax Advantages
Singapore’s tax framework is tailored to bolster business growth, with enticing benefits for investment holding companies. From Double Taxation Agreements (DTAs) to schemes for holding companies and low corporate tax rates, Singapore provides a conducive environment for financial success.
2) Stable Political System
Backed by efficient governance and minimal corruption, Singapore boasts a stable political environment conducive to business prosperity. With world-class infrastructure and fair regulatory practices, it’s a haven for entrepreneurial ventures.
3) Excellent Labour Force
Singapore is renowned for its highly-educated, skilled workforce, offering businesses access to top-tier talent. Whether local or international, finding competent personnel is seamless, facilitating operational efficiency and growth.
4) Corporate Structure Flexibility
Setting up an Investment Holding Company in Singapore is straightforward, with options for various corporate structures. Opting for a private limited corporation offers optimal business benefits, supported by a flexible regulatory framework.
Requirements of registering an Investment Holding Company
The Accounting and Corporate Regulatory Authority (ACRA) mandates certain prerequisites for registering an Investment Holding Company in Singapore. These include:
1) Appointing a resident or nominee director (He/She must either be a Singapore Citizen, Singapore Permanent Resident or an EntrePass or Employment Pass (EP) Holder)
*EP Holders should first get a Letter of Consent (LOC) from the Ministry of Manpower
2) Securing a business name
3) Local registered office address
4) 100% foreign ownership is allowed
How to Set Up an IHC in Singapore
Registering a holding company in Singapore with a corporate service provider like Counto is very straightforward.
-
Sign up for a Counto account
-
Have an initial KYC video meeting with our team
-
Decide your company structure (e.g. Pte Ltd), shareholding and directors
-
We’ll appoint a local nominee director for you (if you don’t have one)
-
We’ll submit the required documents for company registration
-
We’ll help you open a business bank account
Summary
Establishing an Investment Holding Company in Singapore opens doors to a world of opportunities, However, navigating the complexities of company incorporation in Singapore is made easier with expert assistance. Counto’s dedicated team of professionals ensures a seamless process from inception to operation.
Using an incorporation service as an extension of your team
Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.
Here are some articles you might find helpful: