SINGAPORE

　　Major international financial and trade centre

　　Tax efficient legislation

　　Significant ongoing statutory requirements

　　INTRODUCTION

　　Singapore is located on the southern tip of the Malaysia peninsula. One of the original tiger economies, Singapore

　　is now a major international financial and trade centre and rivals Hong Kong as the world’s biggest container port.

　　Singapore has a reputation for being highly regulated, however it is in reality, a carefully administered jurisdiction.

　　LAW AND TAXATION

　　Singapore has a British based legal system and corporate law operates on a common law basis. Currently, tax on corporate profits is 20%. Singapore is a signatory to a number of double tax and investment protection treaties which provide some tax planning and security advantages. A Singapore company with external investments that are correctly structured and administered may not be liable for tax on profits generated from activities conducted outside Singapore.

　　LOCAL INFRASTRUCTURE

　　Singapore is a sophisticated international business and financial centre and as such there are numerous domestic and global banks, stockbrokers and finance houses. All the majorinternational legal and accounting firms have offices in Singapore. Singapore has a stable government and a rich pool of professionals who are able to assist in all international business transactions.

　　CORPORATE REQUIREMENTS

　　Each Singaporean company must have a local registered office which must be a physical address and not just aPost Office box.

　　Each company must have at least one director. Corporate director is not permitted and the director must be either a Singapore citizen, a permanent resident or and employment pass holder.

　　For incorporation purposes, an individual subscriber is required. Thereafter, the share may be held by a corporate shareholder ( i.e. holding company). Bearer shares are not permitted. Each private limited company must have a local company secretary and maintain books of account which must be audited by a local auditor. A qualified local company secretary is only required for a public company. A sole director may not act as the company secretary.

　　The current law allows an exempt private company to be exempted from audit requirements in respect of a financial year if its revenue in that year does not exceed SGD5 million for financial years starting on and after 1 June 2004.

　　Details of the company’s directors, shareholders and secretary must be filed at the Registry of Companies and are on public record.

　　Each year, the company’s must submit an annual return together with audited accounts ( unless exempted). Penalties apply for late filings.

　　Subject to the Companies (Amendment) Act 2004, private companies may dispense with Annual General Meeting.