Structuring Investments Into China via Singapore

by Shanker Iyer and Richard Ellard, , Shanker Iyer & Co, Certified Public Accountants, Singapore

Singapore Investment Holding Companies (SIHCs) have often been used as an investment holding company for China investments as Singapore's domestic tax rules, together with the provisions of the double tax agreement with China (the China DTA) typically mean no tax is suffered on dividends.

Singapore companies may be incorporated within a day with S$1 share capital. SIHCs need only a single shareholder, one resident director and a resident company secretary. Government fees are only S$300 for initial registration. Financial statements may be prepared in any recognised currency and bank accounts may be opened with relative ease. A private exempt Singapore company need not have its accounts audited if its annual revenues are less than S$ 5 million.

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This article included in China Briefing Magazine

July / August 2005:Offshore Companies for Holding China Investments

Other articles in this issue: Offshore Companies for Holding China Investments by Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates Structuring Investments Into China via Mauritius by Uday Gujadhur & Gary Gowrea, , Multiconsult Limited, Mauritius Using Hong Kong as an Offshore Structure by Dezan Shira & Associates, Investment Intelligence Unit, Greater China Using Macao Offshore Incorporations by Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates