While not as well known as other jurisdictions offering offshore banking, the Singapore government has enacted legislation which makes it an attractive international financial center. The legislation which allows Singapore banks to assist investors with company formation, trust and corporate administration makes Singapore’s over 200 banks a popular offshore banking destination.
The Singapore banks offer safe offshore banking opportunities for those looking to protect their privacy, preserve their capital and assets and legally reduce their tax liabilities through offshore tax planning strategies like foreign corporations, limited liability corporations, foundations and annuities.
Advantages of Opening an Offshore Banking Account in Singapore
• Banking services in Singapore are delivered over a safe, reliable internet service – in English.
• Singapore has a state of the art financial centre and highly developed economy.
• Singapore’s banking regulations and independent, English-based judicial system offer a flexible offshore banking opportunity.
• Interest earned on bank deposits and income which is not generated in Singapore is exempt from Singapore taxes.
• Singapore has no capital gains tax or estate tax.
• The Singapore accounts are multi-currency accounts offering a protection for those who foresee the devaluation of the US dollar or Euro.
• Accounts may be opened in the name of foreign corporations, trusts and LLCs, providing a greater degree of privacy and asset protection and avoiding, in some instances asset reporting requirements.
• Protecting account holders privacy is not only a strong component of the Singapore banking laws it is part of the banking culture in Singapore.
Disadvantages of Opening an Offshore Account in Singapore
• The biggest obstacle to opening an offshore account in Singapore is the banking regulations do not permit the opening of accounts by mail, unless the client is already known to the bank. So, in most cases you will have to travel to Singapore to open an account. You may be able to open an account without taking the trip to Singapore if you have enough assets or are already a client of the bank. HSBC, for example, may be able to arrange for banking officials to open a Singapore account at a local HSBC office in your home country. If you are talking about a substantial investment some of the private banks may be willing to arrange for banking officials visit you at your home to establish the account. Also a possibility for wealthy clients is the option of opening an account through a representative office. A representative or foreign sales office is staffed by private bankers who will handle the day-to-day management of your account.
• The level of deposit required to open a Singapore account can be substantial. Some of the most discreet private banks require 0,000 or more to open an account. Initial deposit requirements will vary among banks so shop around. Just understand you will most likely get a higher level of personal service at the private banks requiring the higher initial deposits.
So, depending on your banking requirements and level of investment you are considering the advantages of banking with a Singapore bank may outweigh the initial hassles associated with opening the account.