Using a 'Shell Co' vs 'Registered Business'

[lloydbee]

After searching the forum for relative information I am here to start a new thread in search of some answers in regards to. . .

I am an Australian wanting to relocate on paper if possible (I am thinking of a Subsidiary Company without Relocation if necessary) to Sg and trade the US Equity markets and the possibility of Mentoring such skills and possibly eventually relocating in person at a later stage.

I am wondering what is the best visa to apply for so that I can attain the necessary paperwork/identification ie: bank account, address, tax number or visa needed to open a trading account in Sg.

I have read about a Registration of Subsidiary Company while using a local Nominee Director, this sounds good mostly because I am unsure if I would meet the requirements for an EP and as I understand it to receive such visa I need a sponsoring company so to speak. I have also looked into Shelf Companies and like the sound of these.

Any thoughts on if setting up a company will be the answer for me as a trader.

[Strong Eagle]

You usually only find shelf companies in countries where the process of incorporating a company is long and drawn out... like Thailand, Indonesia, and to a lesser extent, Malaysia.

There really aren't shelf companies in Singapore because you can incorporate one in about an hour online.

You would be talking about forming a private limited company, limited by shares, with all shares wholly owned by your AU company. You would need a nominee director and a registered address.

As long as you have a resident nominee director, you can also be a director, non-resident, and via a director's resolution (and the standard bank boilerplate resolutions) open a bank account and name yourself as the sole signatory.

Your trading profits will be taxable in Singapore, as for all intensive purposes it is a Singapore company conducting the trades in Singapore. Where is gets a lot fuzzier is how you go about compensating yourself in AU... this may be a Singapore taxable event as well... you need a good CPA to fill you in on this... PM me for the name of mine, if you wish.

Bottom line, there is no visa, other than a social visit pass required to come in and set things up.

I will add that several traders have started a company, requested an EP, and been granted same IF they have a successful trading track record previously.

[lloydbee]

You would be talking about forming a private limited company, limited by shares, with all shares wholly owned by your AU company. You would need a nominee director and a registered address..

How or where do you get these? I know I can pay companies to manage this but is these types of companies my only real option?

As long as you have a resident nominee director, you can also be a director, non-resident, and via a director's resolution (and the standard bank boilerplate resolutions) open a bank account and name yourself as the sole signatory.

Your trading profits will be taxable in Singapore, as for all intensive purposes it is a Singapore company conducting the trades in Singapore. Where is gets a lot fuzzier is how you go about compensating yourself in AU... this may be a Singapore taxable event as well... you need a good CPA to fill you in on this... PM me for the name of mine, if you wish.

Bottom line, there is no visa, other than a social visit pass required to come in and set things up.

Sounds ok and fair enough once set-up.

I will add that several traders have started a company, requested an EP, and been granted same IF they have a successful trading track record previously.

Any idea on their track record length? Is it months, years that they would be interested in seeing?
Is it much different or easier if I am to be classed as a consulting company?

[Strong Eagle]

You would be talking about forming a private limited company, limited by shares, with all shares wholly owned by your AU company. You would need a nominee director and a registered address..

How or where do you get these? I know I can pay companies to manage this but is these types of companies my only real option?

Yes. Since you want to create a company whose stock is held by an Australian firm a private limited is the only way to go. You "get" one of these companies by having your nominee director apply online at www.acra.gov.sg. Lots of good information there. Having a company wholly owned by a foreign company is somewhat more complicated and you may want to use a CPA here to get it done. The key though, is that a normally resident director does the formation.

You get a nominee director and a registered address through one of the companies that advertises such services (expensive) or through a CPA... like mine... who generally has someone willing to serve as your resident director... for a fee... usually arounf S$1000 to S$1500 per year.

As long as you have a resident nominee director, you can also be a director, non-resident, and via a director's resolution (and the standard bank boilerplate resolutions) open a bank account and name yourself as the sole signatory.

Your trading profits will be taxable in Singapore, as for all intensive purposes it is a Singapore company conducting the trades in Singapore. Where is gets a lot fuzzier is how you go about compensating yourself in AU... this may be a Singapore taxable event as well... you need a good CPA to fill you in on this... PM me for the name of mine, if you wish.

Bottom line, there is no visa, other than a social visit pass required to come in and set things up.

Sounds ok and fair enough once set-up.

I will add that several traders have started a company, requested an EP, and been granted same IF they have a successful trading track record previously.

Any idea on their track record length? Is it months, years that they would be interested in seeing?
Is it much different or easier if I am to be classed as a consulting company?

Nobody on this board is privy to any special information from the Ministry of Manpower. We do know that about 3 years ago, they seriously tightened up the requirements for the Entrepass because it was being abused. The requirements basically eliminated anyone who wanted to work as a trader or a sole practitioner because of the hiring and turnover requirements.

We do also know that people who have experience, or consulting contracts, or a successful track record, especially in the financial or technology industries, have formed a pte ltd, and successfully applied for an employment pass.

As to your questions? Who knows? Ya rolls the dice and takes your chances. MOM will not publish evaluation guidelines... or guess what... everybody's application would look like the guidelines.