Singapore’s history is one of riches and romance spice trading and piracy, colonialism and growth. In the 7th century, she was the Temasek, the trading center of Sumatra’s ancient Srivijaya empire. In 1963, Singapore was part of a political and economic alliance formed between the Federation of Malaya, Sarawak and North Borneo which is now Sabah under the nation of Malaysia. This alliance, proposed by the Malayan Prime Minister Tunku Abdul Rahman, was called Malaysia, and proved to be short-lived.

In 1965, Singapore separated from the Malaysian Federation to become an independent republic. Over 45 years, Singapore has relentlessly pursued the goal of becoming Asia’s Pre-eminent center for tourism, trade and finance, by developing education and technical training programs, investment strategies, aviation and environmental policies. Now the small island republic of only 633 square kilometers, boasts the world’s busiest port and an airport served by over 70 of the world’s major airlines, serving more than 21 million airline passengers year. This diamond-shaped island is only 224 square miles with the population of 6 million.

Singapore has a highly developed market-based economy that depends heavily on exports and refining imported goods, especially in manufacturing, electronics, petroleum refining, mechanical engineering and biomedical science sectors which could in the website in Wikipedia. This nation is a good example of model urban planning and a former colony of Great Britain, it is a tiny city state. It is a member of Association of Southeast Asian Nation or known as ASEAN. Singapore is a major international hub in whole Asia, it is positioned on many sea and air trade routes. Slum areas were eliminated and the urban planners have been knowledgeable about the planning experiences in other parts of the world especially in Western Cities. It is hoped that major cities in the Philippines such as Manila, Cebu, and Davao can learn a lesson from Singapore.

Setting up a Singapore offshore company does not convey the image of a tax haven. As such, opening bank accounts in other countries becomes easy. International banks are fully aware that an offshore company set up in Singapore is completely legal and subject to strict government regulations and laws. Even though Singapore is not seen a tax haven, setting up an this type of company in Singapore does offer considerable tax benefits. Global profits of corporate companies can be transferred to Singapore without difficulty and tax benefits can be enjoyed. Singapore is considered as one of the best offshore service jurisdictions. Registering a company in Singapore is strengthened by the exceptional infrastructure in current technology, very good political stability and governmental support, and extraordinary legal environment with full intellectual property rights. The major legislations that govern corporate entities registered in Singapore are The Companies Act and The Income Tax Act. Hence, the registration of a Singapore offshore company is not a complicated or cumbersome process.

The company can register itself as a resident company or a non-resident company. It can also register as a foreign branch operation or simply as having a representative office. The government does not normally impose any restrictions on financial transactions and funds transfer of Singapore offshore companies However, business entities that are related to financial services, media, education and other sensitive business operations that can have an impact on the politics and image of the island are carefully monitored and their business transactions are periodically scrutinised.

A Singapore offshore company enjoys all the powers as a natural resident or a local company. Since English is the main official language, the various legislations and the regulations are easily available in English. The corporate documents can also be submitted in English and will be accepted as such by all the related governmental authorities. This facilitates an easier registration process for the Singapore offshore company. The corporate tax rate on income sourced in Singapore is 17% from the assessment year of 2010. Still, the effective tax rate will be significantly lesser for business entities that are qualified to avail tax incentives. Based on these incentives, the effective tax rate can vary between 15% and 0%. Dividends sourced from other foreign countries, profits of foreign branches and service income sourced from other countries are exempted from tax in Singapore.