Benefits and Reasons for Setting Up a Holding Company in Singapore

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore

• There are different categories of companies set
  up in Singapore, from Holding to Subsidiary to
  Offshore, and the list goes on. Every company
  type offers numerous advantages to the owners,
  and fascinating schemes and regulatory
  requirements are in place for operating a company
  in Singapore. We will walk you through what a
  Holding Company is, its benefits, and reasons for
  setting up a Holding Company in Singapore with
  Bestar Services.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore
What is a Holding Company?

• A Holding Company is a parent company, generally
  a corporation or LLC, limited by shares. The
  internal structure of a Holding Company doesnt
  differ from an LLCs. They are primarily formed
  to buy a companys group assets and control the
  ownership interests of its subsidiaries.
• They arent engaged in the production and trading
  of goods and services. Their chief purpose is to
  own subsidiary companies assets or stocks to
  establish a corporate group.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore
Tax Planning While Being In Singapore

• In laypersons terms, any large corporation
  operating under another name is a Holding
  Company. Some illustrious examples are JP Morgan,
  Nestle, and Alphabet (owned by Google).

Benefits of Setting Up a Holding Company in
Singapore

• There are several benefits of setting up a
  Holding Company in Singapore, and the salient
  ones are as follows

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore
Reduction in Tax Obligations

• Singapore Regulatory Requirements, such as ACRA
  and IRAS, offer numerous tax incentives and
  advantages to Holding Companies in Singapore.
  They have formulated a tax regime that must be
  followed. One of the most astonishing benefits of
  setting up a Holding Company in Singapore is the
  lower corporate tax rates.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore

• It will reduce your Tax Obligations. You can even
  file a single tax return for your Holding
  Company. It enables you to offset the losses of
  one subsidiary company against the gains of
  another. It means the comprehensive taxes payable
  by all group subsidiary companies will be less
  than taxes of individual subsidiaries where
  profits are significant.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore
Reduction of Risk on Assets

• By setting up a Holding Company in Singapore, you
  will increase the protection of your company
  assets because a Holding Company is considered a
  separate legal entity in Singapore from its
  subsidiary companies.
• Our Singapore Business Advisory Consultants
  highly recommend keeping your organisations
  valuable assets with the Holding Company and
  letting its subsidiary companies handle the
  business operations.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore

• It helps to mitigate the risk of giving up on
  assets by keeping them secured from liabilities
  and creditors of subsidiary companies, especially
  in the scenarios of debt and insolvency.

Financial Advantages and Risk Reduction

• Setting up a Holding Company in Singapore
  presents you with a set of advantages, such as a
  significant financial position compared to its
  subsidiary company because of owning/holding
  substantial assets and stocks.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore

• Due to its outstanding business structure, a
  Holding Company reduces the risk of overall
  company failure and helps lower the cost of
  capital. Because of this, Holding Companies have
  the astounding benefit of raising loans from
  financial institutions at lower interest rates
  compared to sole company structure.
• They can distribute the loan amount to their
  subsidiary companies for their business
  operations and expansion, thereby reducing their
  cost of capital. Subsidiary Companies are
  considered LLCs in Singapore, and the financial
  aid through loans helps them to invest in
  higher-risk segments of their business.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore

• Note The Holding Company is liable to repay the
  loan even if it gives the loan amount to its
  subsidiary company. Due to this, it builds solid
  trust amongst financial institutions for Holding
  and Subsidiary Companies.

Reasons for Setting Up a Holding Company in
Singapore

• We have ample reasons to persuade you to set up a
  Holding Company in Singapore, and the key ones
  are as follows

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore
Straightforward Compliance

• You will be delighted that Holding Companies in
  Singapore enjoy the substantial benefit of
  relatively easy compliance with the regulations.
  You are required to fulfil two primary compliance
  obligations for preserving your Holding Company
  in Singapore Financial Reporting obligations and
  Tax Filing obligations.
• Holding Companies must submit their and
  subsidiary companies consolidated accounts in
  the Financial Reporting obligations. They are
  also required to submit an entire group balance
  sheet that must comply with IRAS Financial
  Reporting Standards.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore

• In Tax Filing obligations, Holding Companies in
  Singapore can submit a single tax return of their
  and subsidiary companies by off-setting losses
  against profits. Such straightforward compliance
  processes and regulations make it smooth to
  sustain a Holding Company in Singapore.

Tax Planning While Being In Singapore
Lucrative Tax Regimes

• Singapore has one of the best Tax Regimes in the
  world because of its lower corporate tax rates,
  business incentives to help companies foster, and
  Single-Tier Tax system. Such attractive benefits
  and long-term advantages make Singapore a top
  choice for setting up a Holding Company. By
  leveraging these lucrative Tax regimes, you can
  optimise your Tax Liabilities.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore

• With the Single-Tier Tax System, you are required
  to pay Company Tax on corporate profits only once
  in a financial year. Also, taxes arent levied on
  income from dividends and interest from your
  Subsidiary Companies. Also, Singapore has no
  capital gains tax, enabling you to sell assets
  worry-free.
• To know more read, Tips to Manage Company Tax in
  Singapore, for your reference.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore
Conclusion

• After reading this, you will have firm
  clarification about what a Holding Company is,
  its benefits, and the reasons for setting up a
  Holding Company in Singapore. You will enjoy
  various benefits apart from the ones mentioned in
  this.
• You have operational flexibility to set up your
  Holding Company in Singapore and its subsidiaries
  in another country where you have assets,
  investors, stakeholders, and a target audience
  for growing your business. However, if you have
  any questions, feel free to contact us.

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Benefits and Reasons for Setting Up a Holding
Company in Singapore
Tax Planning While Being In Singapore

• At Bestar Services, we provide comprehensive
  assistance for setting up a Holding Company in
  Singapore from Incorporation to Registration and
  even with Financial Audit and Assurance and
  Statutory Services.
• Our Business Advisory Consultants in Singapore
  will assist you with the entire Holding Company
  setup and registration process in Singapore. Our
  Financial and Tax Experts will handle the tax
  compliance and financial reporting segment.
• Contact us for a consultation with our Singapore
  Business Advisory Specialists by calling us on
  65 62994730 or emailing admin_at_bestar.com.sg.

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