Singapore firm setup by foreigner (need advice)

[Aski]

Hi there,

I'm not resident and considering an opportunity to setup a small internet startup in Singapore. Read a lot of information on IRAS but still can't get several points.

1. To use tax exemption: "A company is resident in Singapore if the control and management of its business is exercised in Singapore" - what does that mean? What requirements except nominee local director should I comply to obtain resident status?

2. If we start but not as resident (for the first year) could it be possible to become resident later (from the second year) and to get tax exemption for startup?

3. And last but not least. Can we open a local bank account without being required beneficiaries to come in Singapore? I like OCBC offer for startups but not sure.

Thanks in advance

Not sure is it allowed? But also I look for professional advice in these steps. Because (as I said before) I'm not a resident atm.

A.

[livingontheedge]

1. The Company (or management team of the Company) needs to effectively exhibit that key decisions, directions and strategies over the Company's affairs are conducted in Singapore. The generally cited evidence is conducting Board Meetings and Meetings over key strategic directions and decisions of the Company in a place in Singapore. Other factors include the tax residency status of key Directors on the Board, presence of a local Director who holds an executive position or Key Management who are of local residence, the location of business activities and the location where the accounting records are maintained.

2. Good question - no idea. But I would err on the side of "no" since satisfaction of the qualifying conditions for tax exemption status (for the first 3 YAs) is on the date of incorporation of the Company.

3. Don't understand your question - if your Company is incorporated in Singapore and a resident in Singapore, then.........it can directly obtain an OCBC bank account and will be the beneficiary?