Nowadays, registering offshore companies to develop overseas trade has become a trend for mainland companies. For mainland China, Singapore and Hong Kong are both one of the Four Asian Tigers and world-renowned offshore financial centers, becoming the primary choice for mainland enterprises to register offshore companies. However, due to the different actual situations in the two places, there are also differences in policy formulation between Hong Kong and Singapore.In recent years, registering a Singaporean company has become an increasingly popular offshore company for mainland enterprises to develop their foreign trade business. One reason for this is that Singaporean companies do not require auditing under certain conditions. Singapore is much more convenient than Hong Kong companies in this regard, which is also why many people are willing to register a company in Singapore. Hong Kong companies, whether operating or not, must be audited, while Singaporean companies need to meet certain conditions before they need to be audited and accounted for. In a nutshell, auditing Hong Kong companies is necessary, while Singapore companies may not. So which Singaporean companies do not need to undergo an audit? Hongyuan International takes everyone to take a look together. According to the Singapore Companies Act, starting from July 1, 2015, private limited companies or group companies that meet both of the following requirements are not required to be audited:

1. The total annual revenue is less than or equal to SGD 10 million;

2. Annual total assets less than or equal to SGD 10 million;

3. The number of employees is less than or equal to 50;

In addition to the convenience of not requiring audits, Singapore, as a member of the Association of Southeast Asian Nations (ASEAN), as well as a member economy of the World Trade Organization (WTO), The Commonwealth, and the Asia Pacific Economic Cooperation (APEC), has many benefits for domestic businesses to register a Singapore company, as follows:

1. Singapore is one of the world's largest transit trade ports, with a unique geographical environment and free trade port policy that allows Singapore to have close relationships with countries and regions around the world. By transshipping products through Singapore to countries and regions in Europe, America, Asia, Taiwan, etc., it can avoid the influence of some economic and political factors.

2. Advantages of international offshore trade. Singapore is a territorial taxation country, and Singaporean companies operating overseas are not subject to taxation. Realize true offshore trade.

3. Singapore government's tax relief advantages. Singapore is one of the countries and regions with the lightest tax burden in the world. With a light tax burden and reduced costs, it is more conducive to enhancing the competitiveness of products. Whether through local processing or transshipment of goods, it will bring excellent profit returns to the enterprise. Even if a Singaporean company operates locally in Singapore, the first 100000 Singapore dollars in profits are tax-free. And profits ranging from 100000 to 300000 only need to pay 9% income tax.

4. Breaking through international trade barriers, "ASEAN XX" manufacturing is easier to enter the EU and US markets than "Made in China" products, effectively breaking through international trade barriers. Singapore companies have no restrictions on sensitive technology trade with countries such as the United States, Europe, and Japan, as well as investment in resource industries in countries such as Australia. They have advantages in sensitive technology trade and international resource investment opportunities.

5. Singapore has signed double taxation agreements with over 50 countries, giving it the advantage of exemption from double taxation, making overseas investment and returning to China more convenient.

6. Singapore has relatively comprehensive confidentiality regulations, and the Singapore government refuses to exchange information with other members of the Organisation for Economic Co operation and Development, thus providing significant protection for investors.

7. Singaporean companies operate onshore businesses (locally), and entrepreneurs have the opportunity to obtain permanent residency by relocating their families to Singapore, achieving dual value addition for both businesses and families.

Besides the numerous advantages mentioned above, are there any inconveniences or relative disadvantages in registering a Singapore company compared to a Hong Kong company? Hongyuan International takes you on a look at the inconveniences of registering a Singapore company.

1. According to the Singapore Companies Ordinance, every company registered and established in Singapore must appoint a Singaporean resident as a director. Many clients initially found it difficult to accept this, but in fact, they only serve as directors and do not hold actual shares. Moreover, this Singaporean resident does not have to worry about finding one themselves, as Hongyuan International can provide it.

2. Singaporean companies are required to submit their annual financial statements to the Singapore Inland Revenue Department. This is actually easy to understand. Just submitting a financial statement to the tax bureau, as long as the company reports taxes normally, there is no need to worry.

After analyzing the disadvantages and advantages of registering a Singapore company, it will be found that compared to the advantages of a Singapore company, these two inconveniences are not as important anymore, and can be easily resolved through a secretarial service company. Overall, registering a Singapore company is a good choice for mainland enterprises to develop international trade. If there are any other questions about registering a Singapore company, you can communicate with Hongyuan International.