Singapore Company Registration Specialists » offshore

Rikvin Announces Singapore Company Incorporation & Visa Application Portal

admin — Fri, 25 Jun 2010 06:09:32 +0000

Rikvin is a leading Singapore incorporation, business registration and company formation consultant since 1995. Providing online incorporation for Singapore and employment pass visa, along with procedures, requirements and other essential information.

Rikvin announced the launch of an online Singapore Business Portal on its website at www.rikvin.com for entrepreneurs worldwide interested in setting up their business in Singapore. The portal provides you with comprehensive information on how to incorporate your Singapore business and provides you with in-depth information on Singapore Migration Visas. An extensive FAQ section, guides and documents will leave very little unanswered.

Singapore is ranked 1st for the ease of doing business in Asia (World Bank report: “Doing Business 2007: How to Reform”) and 1st for being the least bureaucratic place for doing business in Asia (Political and Economic Risk Consultancy, June 2006). These are remarkable testimonial to Singapore’s reputation as the ideal location for any business

Our online incorporation service was the first of its kind in Singapore, and has proven to be an invaluable tool for professional intermediaries who require a swift incorporation process.

Singapore Office

According to Ragini Dhanvantray, CEO of Rikvin Consultancy , Singapore is fast becoming the business city of choice, having had the recognition of excellent business infrastructure, political stability, and close economic ties with many of the world’s leading economies, there has never been better time than now, to set up your business in Singapore.

We are very excited about the total one stop solution portal for new service. The new forum will become an invaluable source of Singapore business for entrepreneurs worldwide.

One Stop Singapore Incorporation & Visa Portal

Rikvin specializes in providing company incorporation, registration and administration processing for all business types and sizes in Singapore and throughout the world. In addition, we facilitate the incorporation of our clients’ businesses and manage their statutory affairs. We provide the best company formation service, management and administrative facilities with maximum efficiency and productivity.

Rikvin Consultancy, a Singapore-domiciled company established in 1995, is now a part of the Rikvin Group of Companies providing corporate solutions to entrepreneurs worldwide.

Established in 1995 and well recognized for its service quality, Rikvin Consultancy specializes in providing Singapore company incorporation, foreign company business registration, and related business advisory services in Singapore.

Rikvin consultancy provides highly professional company incorporation services, both in attractive standard packages as well as customized services. Online incorporation being a hallmark service, other services of Rikvin include:

Set Up a Hedge Fund Company in Singapore

admin — Thu, 11 Feb 2010 09:38:46 +0000

Global capital is headed towards Asia- Pacific, which is outperforming the rest of the world in economic growth. The hedge-funds also follow the capital and expert predictions have almost become a reality, there is a shift in gravity towards Asia for the industry. Asia is considered both as a significant source of funds owing to the phenomenal increase in the proportion of high net worth individuals and also as source of sustainable returns. Singapore as an international financial center offers one of the most hospitable regimes in Asia for the hedge-fund industry. The government, through Monetary Authority of Singapore (MAS), the central bank and regulatory authority for the industry, has instituted a forward looking regulatory approach towards the industry to attract global fund managers to Singapore. As a result, the industry has gathered critical mass. MAS has rolled out several incentives in terms of reduced taxes and relaxed regulations and not only big funds are shifting their bases here but startups and smaller fund managers find Singapore’s regulatory regime welcoming. This page is an overview of the industry, providing an outline of the licensing requirements, regulations, taxation and incentives.

What Is A Hedge Fund?

The Singapore Code on Collective Investment Schemes (issued under the Securities and Futures Act 2001 and administered by the Monetary Authority of Singapore (MAS)) defines hedge funds in the following way:

There are different characteristics and investment strategies that define hedge funds. In general, a hedge fund seeks to deliver an “absolute” return independent of the directional move of equity, fixed income or cash markets. In considering whether a fund falls within these guidelines, MAS (Monetary Authority of Singapore) would consider, but not restricted to the following factors:

Strategies that use leverage, short-selling, arbitrage, derivatives and
Investment in non-mainstream asset classes (investments other than listed equities, bonds and cash)

Hedge Fund Structures

Based on the domicile, hedge funds are classified as

Domestic (Onshore) funds
Foreign (Offshore) funds

Domestic or Onshore funds are Singapore domiciled funds, therefore are governed by the Hedge Fund Guidelines set out in the Code on Collective Investment Scheme (the “Code”) issued by the Monetary Authority of Singapore (MAS). Trust and Company are typical structures used by Onshore Funds but from 2009 Limited Partnership is also an available fund vehicle.

Foreign or Offshore funds are funds established in jurisdictions other than Singapore.

Domestic funds can be offered to both domestic and foreign investors but conventionally it is marketed to the domestic investors only. Subject to certain conditions Offshore Funds can be marketed to domestic investors.

Distribution of hedge funds to retail investors is generally through distributor banks and licensed financial advisors. Distribution of non retail hedge funds is through private banks and other exempt institutions

Licensing Requirements

Fund managers operating with not more than 30 qualified investors are exempted from licensing. A “qualified investor” includes a fund (e.g. the hedge fund) which is (i) offered in Singapore only to accredited investors, meaning an individual with net assets exceeding S$2 million or a corporation with net assets exceeding S$10 million, or (ii) if offered elsewhere, such offer or invitation is made only to accredited investors, or investors in an equivalent class under the laws of the country or territory in which the offer is made. Therefore a qualifying hedge fund would count as “one” qualified investor. This is an option adopted by hedge fund managers/sub-managers in Singapore

The fund managers planning to market a fund to retail investors will have to obtain a Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (Chapter 289) (SFA). A minimum capital requirement must be met to qualify for the CMS License. Hedge funds offered to retail investors and constituted in Singapore are called Authorized unit trusts.

Offshore Fund Managers promoting to Singapore investors must be licensed or regulated in the jurisdiction of its principal place of business and be fit and proper. Offshore hedge funds offered to retail investors in Singapore are called Recognized unit trusts.

The investment adviser promoting a fund would need a Financial Adviser’s license (“FA Licence”). An exemption is available on the basis that a person resident in Singapore who acts as a financial adviser to not more than 30 accredited investors is exempt from licensing. This option is only viable if the Offshore fund manager qualifies as an accredited investor.

The following activities are regulated by Securities and Futures Act (SFA) and require a Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS)

Dealing in securities
Trading in futures contracts
Leveraged foreign exchange trading
Advising on corporate finance
Fund management
Real estate investment trust management
Securities financing
Providing custodial services for securities

The following activities are regulated by Financial Advisers Act (FAA) and require a Financial Adviser’s license (“FA License”)

Marketing of unit trusts
Offering of life insurance products
Advisory services on investment products including life insurance policies, foreign exchange contracts, etc.
Issuance of investment reports

Unless specifically exempted and funds with less than 30 qualified investors all other schemes and persons engaged in any of the above stated activities must obtain the appropriate license.

Overview of Regulations

Regulations of Marketing to Retail Investors

Promotion of hedge funds to retail investors is allowed if it is either an authorized or recognized funds.

The minimum subscription requirements are the same for Onshore and Offshore funds offered to retail investors and they are

Single hedge funds: S$100,000
Hedge fund-of-funds (FOHF): S$20,000
Capital protected/guaranteed hedge funds: No minimum

A prospectus in compliance with the SFA must be lodged and registered in the case of funds offered to retail investors. In the case of authorized Offshore Funds the foreign prospectus can be used if it contains all the information required under the SFA.

Ample measures are in place to protect the interest of retail investors, and there is substantial emphasize on disclosure of risks and uncertainties of the returns. Therefore the prospectus must state the material differences between the hedge fund and other types of collective investment schemes and must state that only relatively little information on how the hedge fund and underlying hedge funds are managed will be available, that there is limited liquidity and that most of the underlying hedge funds are subject to minimal regulation etc. Similarly marketing materials must highlight the risks involved and reveal information such as the fees and charges payable. Appendix 4 of the Code on Collective Investment Schemes contains a list of common examples (not exhaustive) of such disclosures.

In the case of Offshore funds that are recognized for retail subscription there must be a representative for the scheme in Singapore to act as a liaison between investors and the foreign manager. The representative must be an individual, a company incorporated in Singapore, or a foreign company registered in Singapore under the Companies Act. The Offshore Fund manager (together with its related companies) must manage at least S$500 million of discretionary funds in Singapore.

Recognized Offshore funds, for retail subscription are not subject to the investment guidelines set out in the Code of Collective Investment Schemes however are approved on the basis of sufficient regulatory oversight in the home jurisdiction. The MAS has the discretion to determine if a foreign jurisdiction’s regulatory framework is acceptable and would at the least require that the applicable regulatory framework is similar to that of Singapore.

In the interest of the retail investors the Onshore Funds authorized for retail subscriptions are subject to the following regulations

Regulation of Managers

The manager of a single hedge fund should have expertise in managing such schemes. Where investment decisions are outsourced to a sub-manager or adviser, the sub-manager or adviser should have expertise in managing such schemes. The professional experience, qualifications, assets under management and performance history of the manager or its sub-manager or adviser will be taken into account for assessing the expertise. The manager should have at least 2 executives who each have at least 5 years of experience in the management of hedge funds. In the case of FOHF, out of the 5 years at least 3 years must be in the management of FOHFs

Regulation of Investment

A Singapore single hedge fund may invest in another single hedge fund which is not a feeder fund. A Singapore FOHF may invest in another FOHF which should only invest directly in other hedge funds and not through another FOHF or a feeder fund.

In the case of Fund of Hedge Funds (FOHF) it should have diversification as one of its key objectives. The manager should have in place strategies to achieve adequate diversification and ensure that the fund is in line with the diversification strategy at all times. An FOHF should be diversified across at least 15 hedge fund managers or have not more than 8% allocated to a single hedge fund manager.

Regulation of Liability of Investors

The liability of investors must be limited to their investment. For this purpose, the constitutive documents of the hedge fund should contain a provision limiting the liability of investors to their investment in the scheme.

Regulation of Reporting

The manager should prepare and furnish to the trustee the annual audited accounts and reports, semi-annual accounts and reports, and quarterly reports for each of the four quarters of each financial year. The trustee must audit and send or cause to be sent the reports to the participants as stipulated in appendix 4a of the Code on Collective Investment Schemes. The reports should disclose the portfolio statement and top 10 holdings but this requirement is waived, if such disclosure is prejudicial to the interests of the scheme. Alternatively, the aggregate exposure for the scheme categorized according to country, industry, asset class and/or credit rating of debt securities should be disclosed. The performance fees paid or payable by the scheme for the period under review should be disclosed.

Regulation of Leverage

A single hedge fund may be leveraged up to the extent disclosed in the prospectus. An FOHF may borrow only for the purposes of meeting redemptions and short-term (not more than 3 months) bridging requirements. Aggregate borrowings for such purposes should not exceed 25% of the deposited property of the FOHF at the time the borrowing.

Regulations of Marketing to Accredited Investors

Restricted authorized (Onshore) hedge funds and restricted recognized (Offshore)hedge funds can be offered only to accredited investors. Onshore hedge funds offered to accredited investors (and other relevant persons) can only be offered to certain types of investors as defined under Section 305 of the SFA. These investors require a minimum total net asset size or annual income exceeding a certain amount (as set out in Section 4(A) of the SFA) or at a minimum of SGD 200,000 per transaction. The same applies to Offshore recognized schemes.

But unlike funds offered to retail investors, the restricted Offshore and Onshore Funds offered only to the accredited investors are not required to comply with any investment guidelines. Unlike offers to retail investors, there is no requirement for any prospectus or other offering document.

Regulations of Marketing to Institutional Investors

For both Onshore and Offshore funds marketed to institutional investors, there are no minimum subscription requirements for all funds (including hedge funds). As defined in section 4A of the SFA are exempted from all authorization and prospectus requirements under the SFA.

Taxation

An Onshore fund will generally be liable to Singapore income tax if it derives income sourced or deemed to be sourced in Singapore or receives foreign-sourced income in Singapore. A domestic fund is generally required to file an annual tax return with the Singapore tax authorities. Onshore funds which are established as Singapore-resident companies can generally avail of Singapore’s double tax agreements provided these funds can fulfill the relevant substance requirements.

Tax exemptions are available under the Singapore Income Tax Act (SITA) for foreign-sourced dividend, foreign branch profits, and foreign-sourced service income received or deemed received in Singapore, subject to conditions. Gains or profits which are capital in nature are not subject to Singapore income tax.

A foreign or Offshore fund distributed in Singapore which are not managed/ advised by a Singapore resident fund manager/ investment adviser are generally not subject to tax in Singapore and are not required to file an annual tax return to the Singapore tax authorities. However Offshore Funds are deemed to have permanent establishment in Singapore by virtue of their Singapore based fund managers, therefore are deemed to generate earnings from Singapore therefore are invariably subjected to tax. In this case, the foreign fund may be required to file a tax return with the Singapore tax authorities. In cases where no income is subject to Singapore tax, there could be reporting requirements for a foreign fund.

Tax Incentives

Exemption for Offshore Funds

A person in Singapore who manages a fund on a discretionary basis (whether Offshore or Onshore) will create a taxable presence for the fund in Singapore. However there are some exemptions available.

An Offshore fund managed by a Singapore-based fund manager will be exempt from tax on specified income from designated investments if the fund is a qualifying fund. For a fund to be a qualifying fund, in general, it

should not be resident in Singapore and
cannot be 100% owned by Singapore investors. Designated investments include investment like stocks, shares, securities, etc. It must be noted, immovable property in Singapore is excluded from the list.

But for an investor to derive tax exemption on incomes from qualifying funds, the investor must be

An individual investor
A foreign corporate body without presence or other forms of business activity in Singapore. In the case of foreign company, with permanent establishment in Singapore, it must not use Singapore generated funds to invest in qualifying funds
specific Singapore government entities
A Singapore resident corporate investor that owns not more than 30% (or 50% if the fund has 10 or more investors) of the qualifying fund.

Exemption for Onshore Funds

The above stated exemptions for offshore funds are also made available to Singapore funds with the introduction of Singapore Resident Fund Scheme, to encourage fund managers to base their fund vehicles in Singapore, by giving the same tax exemptions. To avail the exemptions a Singapore constituted fund must meet the following conditions:

It must be approved by MAS
The fund vehicle must particularly be a company

The key advantage that a Singapore fund has over an offshore fund is the access to Singapore’s large tax treaty network with over 50 countries.

Enhanced Tier Fund Management Scheme

This scheme was introduced to provide greater flexibility to the managers to source investors. There is no restriction on the residency of the investors or the fund vehicles. For funds under this scheme there is no cap on the percentage of Singapore investors. In order to qualify under this scheme the scheme must be approved by MAS and include a minimum fund size of SGD50 million at the time of application. The enhanced tier is open to fund vehicles in the form of companies, trusts and limited partnerships.

Fund Management Incentive Scheme

The FSI-FM scheme aims to promote fund management sector in Singapore. This incentive provides a concessionary tax rate of 10% for fund management and investment advisory activities, subject to certain conditions. For new applicants to qualify for a minimum 5 year award, the applicant:

must be licensed or exempted from having a CMS license in respect of its fund management or investment advisory activities
must have at least three professional staff engaged only in fund management or investment advisory services. Such professionals must earn a basic monthly income of more than SGD 3,500, and is engaged substantially in qualifying activities.

It must be noted that MAS will asses other factors such as growth targets in terms of assets under management, business spending etc while considering the applicants under this scheme

Investors are increasingly considering hedge funds as a source of diversification. Singapore implements the appropriate responses to build strong foundations for the fund administration and domiciliation activities. The strong fundamentals will enhance Singapore’s status as the Asian magnate of the fund management industry attracting capital, talent, managers and opportunities to build a thriving industry ecosystem.

Singapore – APEC Star Performer

admin — Mon, 26 Oct 2009 05:53:48 +0000

According to the Study Report of the 2007 Individual Action Plan Peer Review of Singapore, which was released in late August 2008, Singapore is a “star APEC performer” and “on track to meet the Bogor goals” of free and open trade and investment by 2010. According to the report Singapore has made rapid progress towards the Bogor goals in all categories, which has placed Singapore at the forefront of Asia Pacific economic Cooperation (APEC) economies. Established at the meeting of APEC Leaders’ in Bogor, Indonesia, in 1994, the Bogor Goals set the target of free trade and investment in the APEC Region at 2010 for industrialized economies and 2020 for developing economies.

The report said that Singapore takes justifiable pride in a 40-year development strategy that has enabled the economy to move up the value chain by adopting measures to respond to the changing global economy. The report said that Singapore has consistently strive to facilitate WTO business and the evolution of the Doha negotiations. Singapore’s trade regime reflects its embrace of globalization. Tariffs are applied on only six tariff lines. Non-tariff barriers do not exist except for those consistent with WTO rules related to universal public policy interests of health, safety and security. Singapore also has one of the most liberal services regimes in the world. Singapore’s liberal investment regime and predictable, transparent and market friendly policies have enhanced Singapore’s attractiveness as an investment destination. Singapore is also one of the most open economies for the movement of business people.

Commenting on the remarks of the analysts Ms. Ragini Danvantray of Rikvin Consultancy says,

“Singapore reacts to the challenges of globalization by constantly reinventing itself through policy adaptations which are friendly, proactive, transparent and viable for enterprises of all sizes. It attempts to create a level playing ground and ensures its resources are efficiently shared, and also accelerate liberalization. Pervasive integrity, stable governance, adherence to international best practices promotes trade, investment and overall a thriving enterprise friendly ecosystem. This is the reason why many international companies choose to establish their regional headquarters here and many start ups find it the best launching pad for their ventures.”

Offshore Incorporation
Singapore Immigration -EntrePass / Employment Pass
GST Registration
Accounting Services
Tax Planning & Consulting
Business Plan Drafting

Singapore’s Legal Sector Liberalized

admin — Mon, 26 Oct 2009 05:51:00 +0000

Following recommendations made last September by a committee tasked with developing the legal sector, headed by Justice V. K. Rajah, The Legal Profession (Amendment) Bill was passed in the parliament in late August. The amendment is expected to provide more leeway for foreign firms in Singapore.

The key changes resulting from the amendment are

Five foreign law firms will be allowed to hire Singapore-qualified lawyers to practice Singapore law in certain areas, namely high-end work in corporate and banking sectors.
Enhancement of the existing Joint Law Venture (JLV) scheme, where a local firm teams up with a foreign firm the foreign part of the venture, can henceforth share up to 49% of the local constituent’s profits.
Widening the scope of work that foreign firms can carry out in international commercial arbitration involving Singapore law

Law Minister K. Shanmugam said that one of the key drivers for the amendments have been the strong demand from the representatives of the Financial Services sector for a liberalized legal sector. As financial services sector is one of the key pillars of the country’s economy it is essential to accommodate the sector’s demands through such amendments. This amendment is expected to bring more choices for young lawyers and creating a more vibrant economic legal market.

Since its establishment in 1991, the Singapore International Arbitration Centre (SIAC) has made real strides in establishing itself as the arbitration hub in the region. Companies in Southeast Asia are increasingly looking to Singapore as the venue for the settlement of their disputes, whether through the Courts or through alternative dispute resolution.

Welcoming the amendments Ms. Ragini Danvantray of Rikvin Consultancy says “Globalization has changed the fundamentals of various sectors across the board and the legal sector is no exemption to this pervasive transformation. In order to support a sophisticate, knowledge intensive, borderless, highly competitive business environment it is essential to have a sound and updated legal infrastructure. The amendments are timely and this will open door to more competition resulting in better standards of legal services and also the deserving young local counsels will have an opportunity to work on quality offshore works and learn from international partnerships thus enhancing the intellectual capital in Singapore’s legal sector.”

Singapore – A Maritime Marvel

admin — Fri, 23 Oct 2009 12:53:57 +0000

At the 22nd Asian Freight and Supply Chain Awards (AFSCA), recently organized by Cargonews Asia, a leading transport publication, Singapore was conferred the award for “Best Seaport in Asia”. The international award was received by the Maritime and Port Authority of Singapore (MPA) acting chief executive Capt Khong Shen Ping. Winning this award has almost become a habituated practive for the MPA, because it is the 20 time it is bringing home the award eversince its first victory in 1987. Also at the same ceremony PSA bagged two prestegious awards. PSA International was named best global container operator for a fourth year, while PSA Singapore Terminals was voted Asia’s best container terminal for the 19th time.

MPA Singapore was voted as the best port based on several parameters including aspects such as cost competitiveness, container shipping-friendly regime, adequacy of investment in port infrastructure, visionary developments, and facilitation of ancillary services like logistics and freight forwarding., visionary developments, and facilitation of ancillary services like logistics and freight forwarding. More than 12,200 readers of Cargonews Asia were polled to select best-in-class companies in 42 industry specific categories. Award winners are regarded as industry benchmarks of excellence in their respective areas.

Singapore is strategically located in the Asia Pacific region and its seaport is the largest in the world in terms of shipping tonnage. With links to more than 600 ports world-wide, it is the focal point for more than 400 shipping lines. Singapore is also one of the world’s busiest ports in terms of shipping tonnage, the biggest bunkering port and fourth largest shipping registry. Singapore government and its agencies like MPA and PSA are keen on developing, promoting and sustaining Singapore as a premier global hub port and an international maritime center.

MPA, Infocomm Development Authority (IDA) and QMax Communications Pte Ltd (QMax) have jointly set up and launched the WIreless-broadband-access for SEaPort, or WISEPORT, project, a part of the three-year S$12 million joint initiative by the MPA and IDA to promote the use of infocomm technologies in the port and maritime community. Activities that had to be done onshore, such as regulatory filings, electronic data exchanges and access to Internet-based applications, can now be replicated offshore. Ever since WISEPORT’s recent launch shipyards and marine engineering companies, shipping lines, terminal operators, technology companies and government agencies have expressed interest to deploy the technology.

Congratulating the MPA and PSA on their sustained success Ms. Ragini Dhanvantray CEO of Rikvin Consultancy says,

“Maritime industry has evolved to play an indispensable role in the regional economy and in Singapore it is a key enabler as its ripple effect has a synergetic influence on the other sectors as well, therefore it is natural that we focus our resources and policies to provide the best service and nurture a favorable regime for the operators. Technology, innovation and service are the key drivers of the industry and Singapore has always ensured the best of the three. The awards further endorses the efficiency of other associated networks such as marine insurance, finance, ship managers, ship brokers, shipping agents, logistics & supply Chain industry as well. It is for theses reasons international trading houses, or even small time traders choose Singapore to setup their companies here.”

Singapore – Buoyant Marine & Offshore Industry

admin — Thu, 22 Oct 2009 12:30:51 +0000

The Marine and Offshore Technology COI will help marine and offshore companies, especially SMEs, develop new and innovative products, services and processes. A joint initiative by SPRING Singapore and Ngee Ann Polytechnic, the COI has invested some $5.5 million in state-of-the-art processing and development equipment. It is funded under SPRING’s $150 million Technology Innovation Programme (TIP) launched in August 2006. The TIP encourages SMEs to grow their businesses by adopting technology to create high value products and services and compete effectively in the global market.

The new COI is a one-stop technology center to help local companies, especially SMEs, increase the use of technology in their products and work processes. This will help them compete globally with a technological edge. It leverages on the facilities of Ngee Ann Polytechnic’s School of Engineering, such as a ship model tow tank, a wind tunnel as well as automation and control facilities. Three development labs are also being built at the COI to boost the infrastructure.

Singapore’s marine and offshore industry is the global leader, commanding about 70% of the world’s jack-up rig orders, and 70% market share in the conversion of specialized Floating Production Storage and Offloading (FPSO) platforms. Singapore has also established itself as a center for the repair of a wide range of vessels, especially the more complex and sophisticated ships. The Singapore marine industry involves ship repair, shipbuilding, rig building and offshore engineering, and other marine supporting services. It is also a niche player in the construction of customized and specialized vessels. Singapore is a one-stop marine center for ship owners, managers and agents around the world.

To tap on the boom in the marine and offshore industry growth manufacturers from around the world have setup shops here to manufacture, market and service their products. There is a wide range of opportunity spanning across the industry in terms of products and services in terms of electronics communication and navigation, automation precision machining, corrosion control, manufacturing or servicing marine equipment and components, design and consultancy and even marine inspection and surveying.

SME’s play a strategic role in the Singapore marine and offshore industry, as the major shipyards, outsource or subcontract a significant portion of the projects. The governmental agencies are keen to bolster the SME players who are critical to sustain the global leadership of Singapore in this industry, which has evolved into an important part of the Singapore economy. So collaborative efforts are taken to develop the SME in areas such as

Innovation management
Human capital development
Entrepreneurship promotion

Ms. Ragini Dhanvantray CEO of Rikvin Consultancy which is offering a seamless immigration and company incorporation services says

“Such programmes are highly beneficial to the SME in the industry as they recognise the importance of technology innovation to create new benchmarks to rule the global marine and offshore landscape. Singapore is well placed to continue to be a heavyweight in the key sectors of ship repair and conversion, ship building and the offshore sectors. The growth in Asia, which is undeniably the world’s manufacturing powerhouse, is fuelling an increase in demand for energy, giving the offshore sector a real boost. Together with the increase in ship owning, world tonnage and oil and gas exploration activities around the region, the marine industry is set to scale greater heights. To ride on this surge many enterprises irrespective of the size are keen to establish themselves in this regional hub which is reigning as a world leader in critical segments of the Industry, this is apparent by the sheer magnitude of incorporations that have happened in the last few years. Setting up a company in Singapore is an intelligent move that will have substantial payoff because the boom is felt across the board right from big shipyards to a small subcontractor. The enterprise players are upbeat because they also enjoy ample encouragement and support from the government, which helps them stay relevant and competitive through such programs.”

Singapore Emerging Attractive as Tax Havens are “Grey Listed” by Regulations

admin — Fri, 09 Oct 2009 15:09:16 +0000

The organization for Economic Co-operation and development’s ( OECD) has “grey listed” certain jurisdictions that were once deemed as tax havens. They include Monaco and Liechtenstein. Bankers have orchestrated that with regulations for offshore financial centers increasing it appears that the number of players in the offshore financial field will diminish particularly if they seek to function only as a venue to park assets.

At a private Banking summit it was stressed that a greater scrutiny was being imposed by developing countries on offshore financial centers who operate only as a tax haven and a place to hide money. Now these jurisdictions are at a risk of loosing their businesses. The OECD and other regulatory parties will force these “grey listed” jurisdictions to divulge a lot more information.

In the light of the current situation with these tax havens being “grey listed”, Singapore has merged as an attractive place to do business because of its sound tax policies .The tax rates are attractive to both local and foreign entrepreneurs alike and it continues to slide down. Singapore practices territorial and single tier tax system. It’s low tax rates and impressive infrastructure has proved extremely attractive to global trotting businessman.

The tax residence of Singapore is dependant on the control and management of its business. A company is non tax resident if the control and management is exercised from Singapore and non resident if the control is vested with an overseas parent company.

Though the basis of taxation is similar in both the categories a resident company enjoys:

Benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries.
Tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income under section 13(8) of the Income Tax Act.
Tax exemption scheme for new start-up companies

A non resident company though not open to Singapore tax benefits stated above is not liable to be taxed for income tax received out of Singapore. With its single tier tax system profits earned by the Singapore business are taxed only once. Further there are no taxes on dividends received in a Singapore Company and no capital gains tax. On the whole Singapore offers a world class infrastructure excellent business opportunities and an attractive tax system.

Singapore Budget 2008 – Key Corporate Tax Reliefs At a Glance

admin — Tue, 19 Feb 2008 03:40:39 +0000

In Singapore 2008-2009 budget speech, the finance minister unveiled a series of personal and corporate tax benefits designed to help both the working class as well as corporate business community in Singapore.

Key Corporate Tax Reliefs – At A Glance

The qualifying conditions on the existing tax exemption of S$100,000 on normal chargeable income for each of its first three consecutive tax filing years have been relaxed. (Newly Singapore setup Companies Pay Zero Corporate Tax for the first S$100,000 Profit for 3 years consecutively.)

According to the new policy, tax exemption is allowed as long as there is at least one individual shareholder that holds at least 10% of the shares. The rest of the shareholding can be owned by corporate entities.

All Singapore companies that earned income from countries that don’t have double tax agreement with Singapore, will be allowed a tax credit on their foreign-sourced income from those countries.

Making Innovation Pervasive

Allowed tax deductions for R&D done in Singapore increased from 100% to 150%. For example, with every S$100,000 of local R&D spending, a company will be able to deduct S$150,000 from its taxable income. The restriction of R&D done in Singapore must be related to a company’s existing business has been removed.

Singapore companies will be allowed to write down the cost of fixtures and fittings over a period of three years up to a maximum of S$150,000. They can do this every three years.

Licensed insurance companies to enjoy a concessionary tax rate of 10% on the income they derive from offering insurance broking and advisory services to offshore clients.

Shipping companies to enjoy a concessionary tax rate of 5-10% on income from container leasing activities.

Family owned investment holding companies to enjoy the same scope of exemptions that individuals currently enjoy on Singapore and foreign-sourced income.

Singapore Company Registration Specialist in the Heart of Singapore Business District

admin — Fri, 06 Jul 2007 03:55:28 +0000

With office rental in central business district rising sky high in Singapore, Rikvin decided to acquire it own building in the heart of the Singapore business district to serve its clients better.

Rikvin Consultancy is to shift its back office operations to a more spacious building, what makes the news special is that the new location will be their own premises ‘Rikvin Building’ located just 3 minutes walk from its present location at Equity Plaza, Cecil street where the Head quarters will continue its operations until June 2009.

Rikvin consultancy started in 1995 is an incorporation specialist specializing in company incorporation, registration and administration processing for all business types and sizes in Singapore and throughout the world. Rikvin facilitates foreign entrepreneurs’ immigration into Singapore by assisting in obtaining Entrepass for themselves and their families and employment pass for their employees. Rikvin also provides a full range of accounting services for companies who require a complete and properly constructed set of financial statements for their business purposes. As the reputation of Singapore grows as the hub of Asia for almost all industries with easy access to the burgeoning economies in the region, Rikvin’s client base has been growing. Rikvin is servicing clients from all parts of the world, and boasts of a highly satisfied client list from various industries. Rikvin has achieved 98% success rate in Entrepass application processing, on behalf of its clients.

The recent accomplishment of Rikvin is the ‘Rikvin building’ located at 120 Telok Ayer Street in the CBD area. Speaking on this achievement Ms. Ragini Dhanvantray, CEO of Rikvin says “We always put our clients before everything. This recent expansion of our service capacity and facility is to support the growing business volume as well as to ensure that our service quality remains always at top caliber and our employees have a comfortable work environment to render their best. Pleasing the clients and delivering more than what we promise is a tradition at Rikvin and as we grow we take our tradition with us.”

Reflecting on the future prospects of her industry Ms.Ragini says “The optimism keeps mounting, as the regional economies are expected to perform well and as Asia’s pie in the world market grows steadily. Singapore’s attractiveness as the regional base remains unchallenged, so we see a lot of new businesses coming up and existing foreign companies setting up operations here. Outsourcing the incorporation, accounting services and associated services, while establishing their operation is almost a standard practice followed by most of the home grown and foreign companies and as a one stop solution provider Rikvin is confident that we will remain a preferred partner for our existing clients as well as prospective clients”.

A review at the prevailing scenario substantiates Ms. Ragini’s optimism .Asia houses three of the top four economies in the world, measured by purchasing power parity – the People’s Republic of China, Japan and India. As Asia grows its share of the global economy, the movement of international companies, foreign SME enterprises, and a new breed of entrepreneurs is rising. Over the years, the Singapore has pulled out all the stops to become a hot spot for global businesses and investment. And the efforts have paid off handsomely. Singapore is often the first port of call for investors – big and small, and from diverse sectors such as manufacturing, information technology (IT) and education – looking to create, produce, manage and distribute products to the rest of Asia as well as the world market.

Ideal Time for Setting up Business in Singapore

admin — Tue, 26 Jun 2007 05:51:34 +0000

With Zero Corporate Tax* for New Setup, and with the Government of Singapore encouraging foreign Entrepreneurs to set up their business Operation in Singapore with open arms, it has never been a better time than now, says Ragini Dhavantray, CEO of Rikvin Group.

The survey of Monetary Authority of Singapore’s reveals that after the brisk 6.1 per cent pace in the first three months of the year, Singapore’s economic growth will be hovering just above 6 per cent in each of the following quarters, for a full-year figure smack in the middle of the official 5-7 per cent estimate.

The 16 economists who responded to the Monetary Authority of Singapore’s poll last month believe the economy will repeat this year’s first-quarter pace in the second quarter, and ease marginally to 6 per cent growth in Q3 before picking up to a 6.2 per cent pace in the final quarter. It is also heartening to learn that the 2008 GDP growth forecast has also been hoisted – to a 5.8 per cent median, from 5.5 per cent in the previous poll.

The Financial services sector and the construction industry are forecasted to continue as star performers through the year with around 10% growth rate. This indicates a shift in the growth drivers from manufacturing to services and construction sectors.

The building industry is anticipating 19 billion Singapore dollars (about 12.3 billion U.S. dollars) worth of contracts this year, the highest since 1997, reported Channel NewsAsia earlier in January. It is expected that construction demand of this year will be propelled by the launch of major developments such as the two casino resorts and the Business and Financial Center.

Commenting on the survey results Ms. Ragini Dhanvantray CEO of Rikvin Consultancy said “It is an ideal time for consultants and companies servicing the construction industry to set up a base here to capitalize on the booming market, Construction has been a key economic sector of Singapore, and as the industry revives its momentum it heralds a lot of opportunity for industry participant, not only from the local and regional markets, but from markets as far as Middle East. Not limiting it to this particular sector the forecasted growth will prove to be an impetus for all industries by stimulating the business and economic environment, hence the most opportune time to setup a new business for an energetic start”.