THE FINANCIAL CENTRE
The backbone of Singapore's modern economy was for some time high technology manufacturing industries. More recently Singapore has made successful efforts to develop as a financial and business centre. Various incentives and treaty arrangements have assisted this development. Singapore is now one of the world's leading foreign exchange centres, has well-established securities and insurance industries and offers a wide range of banking services.

SINGAPORE COMPANIES
Singapore companies are incorporated pursuant to and governed by the Singapore Companies Act. Most companies are private companies limited by shares. Unlimited companies and companies limited by guarantee may also be incorporated. The ATA corporate formation & management LTD can provide Singapore companies incorporated specifically to client

instructions. Following are some requirements for Singapore companies.

A. Name
Company names which are the same as or similar to existing names are not permitted. A holding company can, however, consent to its name being included as part of a subsidiary's name. Private limited liability company names must end withthe words "Private Limited" or "Send irian Berhad" or an abbreviation ofthe same.The name ofa company can be changed

in about 14 days.

B. Share Capital
-The usual authorised share capital is SGD100,000. Share capital can be denominated in any currency. Separate classes ofshares may be created with differing rights to dividends or otherwise.
-By virtue of the Companies (Amendment) Act 200S, the concept of par value and authorised capital is abolished. Thenotion of issued and paid capital would continue to be relevant. Only one shareholder is required to establish a company.Shareholders can be individuals or corporations. Shareholders need not be Singapore resident.

C. Directors
Companies may have only one director. Directors must be natural persons and one director must always be ordinarily resident in Singapore. The directors' particulars must be filed with the Registrar.

D. Secretary
There must be a secretary who is a natural person and whose principal or only place of residence is in Singapore. The secretary may also be a director unless he is the sole director.The secretary's particulars must be filed with the Registrar.

E. Registered Office
Every company must have a registered office in Singapore.

F. Annual Audit
Audited accounts must be prepared by a qualified independent auditor and laid before the shareholders for approval at each annual general meeting. Details of certain exemptions to the audit requirement can be requested from ATA corporate formation & management LTD's Singapore office.

G. Annual General Meeting
A company can dispense with holding Annual General Meetings by passing a unanimous members resolution to do so. Where a company decides to hold AGMs, the AGM will receive the audited accounts and the directors' and auditor's reports and appoint the auditor for the upcoming year. The first AGM must be held within 18 months of incorporation. Thereafter an AGM must be held once every calendar year and not more than 1S months after the previous meeting.

H. Annual Return
Within one month of holding an AGM an annual return must be filed with the Registrar. If a company has resolved to dispense with holding AGMs, the annual return must be filed within one month of when an AGM would have been required to be held had the company decided to hold the same.

I. Tax Return
The tax year is the calendar year ending 31 December and income is subject to tax on a preceding year basis. An assessment will be issued at the end of the calendar year and tax returns are due by 31 July each year.

REGISTRATION OF FOREIGN COMPANIES
Companies incorporated outside Singapore and wishing to establish a place of business or carryon business in Singapore may do so by registering as a "Foreign Company" under Part XI of the Singapore Companies Act.

DIRECT TAXATION
Singapore's income tax is based on the territorial concept. As a general rule Singapore tax is only levied on income:
-Accrued or derived from Singapore
-Received in Singapore from outside Singapore though as of 1 June 2003 certain exceptions apply
-Income Subject to Taxation
Tax is payable on the following main categories of income:
1.Income from a trade, business, profession or vocation carried on
in Singapore
2.Interest and discounts. Interest is deemed to be sourced in Singapore if borne by a Singapore resident person orestablishment or is deductible against Singapore taxable income, or where the funds on which interest is charged are brought into or used in Singapore
3.Pensions, charges or annuities
4.Rents, royalties, premiums and other income arising from property
5.Employment income

Dividends are not taxable in the hands of the shareholder and, as of1 January 2003, companies are no longer reqUired to deduct tax when paying diVidends.
The Singapore Government has committed to reduce corporate and top personal tax rates to 20%. Details of the exact rates applying in any year can be requested from ATA corporate formation & management LTD's Singapore office.

INDIRECT TAXATION

Stamp Duty
Conveyances of Singapore shares and other Singapore property are the transactions most commonly affected by stamp duty considerations. Transfers of shares are charged at 0.2% of the consideration except Stock Exchange of Singapore scripless share transfers. Conveyances of other property are subject to duty of up to 3% of the consideration.

Property tax
This is usually based on the annual gross rental of buildings and land. Owner-occupiers are taxed at 4% and other property owners at 10%.

Estate duty
In general terms estate duty is levied on the principal value of immovable property situated in Singapore passing on the death of any person and regardless of whether that person is domiciled in Singapore or elsewhere at the date of death.

Where a deceased person was domiciled in Singapore at the date of death, movable property wherever situated that passes on that person's death is also subject to estate duty. There are generous exemptions. Details of the exact rates applying in any year can be requested from ATA corporate formation & management LTD's Singapore office.

Goods and Services Tax
GST is calculated on the value of almost all goods and services consumed in Singapore. Sales and rentals of residential properties are exempted. The Singapore Government's target GST rate is 5%. Details of the exact rates applying in any year can be requested from ATA corporate formation & management LTD's Singapore office.

DOUBLE TAXATION AGREEMENTS
Singapore has concluded double taxation agreements with many countries. The terms of the agreements vary from

country to country.

24 hours SINGAPORE registration hotline: 852-27826888
24 hours SINGAPORE registration faxline: 852-34278882
24 hours SINGAPORE registration E-Mail: chan@ata.com.hk

http://www.ata.com.hk