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Why set up offshore company in Singapore - Case 1

The following study is about a qualified professional in Australia who is interested in restructuring his international real estate investments. Ian Brown is a mining engineer in a high demanding career. His family is familiar with real estate investment, and he knows that going offshore can enhance his portfolio. What are the best options for him when it comes to international real estate holding?About the clientLife Stage: Late 30’s ProfessionalEmployment Status: Employed in the Mining industryHousehold Income Range: $100K‐ $200KAsset Summary: 5 properties approx $2mil

Lives in Perth, Australia

Married

2 Children

Ian Brown, a high-net-worth individual in his late 30s living in Perth, has decided to invest a significant amount of his wealth in real estate. Mr Brown has worked his way up the corporate ladder in Australia. His wife is a teacher at a private school in Perth while his 2 children attend the same school. The family has made smart investing choices, purchasing many local properties that produced enough income to allow Mr Brown and his family to live comfortably.At an early age, Mr Brown grew fond of helping others. When entering college, he believed he was going to move into med school to become a doctor, as his mother has been pushing him to do so, but soon realized that he wanted to help others on a larger scale. He realised that if he goes into the engineering field, he could help creating a livelihood for others through operating of processing plants. He was near the top of his class and landed a great job right out of college.The job he landed was in Perth, a place that he always dreamed about living in because of the weather and the friendly people. Mining was a boom at that time and is an industry in demand for talents, so when he landed a high paying job right out of college, he wanted to ensure that he used his income in a way that would protect him for the future. He knew that investing in real estate early is the key to unlock a comfortable future.As a reward for Mr Brown landing his dream career and getting engaged to his childhood sweetheart, his parents lent him the money to purchase his first property, a small home he rented to a local family in Perth. Since then, he has invested in many more properties, creating a healthy portfolio.Now, Mr Brown is beginning to think about his long-term future. He has always wanted to have something substantial for his children, and he wants to be able to put them through college the same way his parents did for him and his sister. He understands that these investments will play an essential role in achieving that goal and will even play a massive part in a retirement plan. He has not thought about what he wants to do precisely but has considered moving back to Melbourne to be close to his parents.His family achieved local success and only invested in domestic properties, but Mr Brown wanted to branch out and invest in other assets internationally. He is thinking of investing in options and futures on the Nasdaq, as well as shares in technology companies in South East Asian countries.Mr Brown wants to arrange his return on investment in a tax-efficient manner. He is also considering tax efficiency when it comes to selling his non real-estate assets. While his family has been a great help in the investment process, they are not familiar with other asset classes, and also not familiar with the best ways to stay tax efficient while investing offshore.Mr Brown is not engaged in developing real estate, the current nature of his income is rental income or, in the case of a sale, a capital gain. In many countries, this is considered “passive income” for tax purposes.He is interested in forming an offshore company to receive profits gained from investing in options and futures and sales of shares in technology companies, but does not know in which country to create the entity or what the preferred structure.His needsGiven Mr Brown's current situation, there are many services of which he can take advantage to alleviate some of his pressures. With the proper guidance, he can grow his range in which he purchases securities, as well as benefit from holding shares of technology companies in an investment holding company, and remain compliant.Mr Brown has surplus funds to invest in securities and potential high-returns of technology companies, and has created an excellent base for his success, but with skilled advisors, he can create a one-of-a-kind plan to take his wealth to the next level.Offshore investments in shares and securitiesWith his investments in offshore securities, Mr Brown is taking advantage of thriving markets from all around the world.The biggest draw to international real estate is probably the diversification that comes with investing in foreign markets. Diversification is a pillar to any healthy portfolio. Modern Portfolio Theory, an investment technique used by individuals around the world, emphasises that investing in more than one class of investments will ensure that your portfolio is not too concentrated, protecting you from market failure.When Mr Brown decides to not just invest in Australian properties and find offshore assets, he is protecting himself from the possibility that the real estate market in a single country may begin to perform poorly. This would mean his hard work could be for nothing.Further, many individuals that choose to invest in international securities often move onto other international opportunities. Foreign ownership in securities on the Nasdaq is a “gateway investment” of sorts.Some investments in shares of technology companies can lead to residency in a new country which is advantageous for reasons ranging from a new retirement location to tax optimisation. This is attractive for those looking to expatriate or those who want to qualify for a long-term visa in order to live in a different country. If retiring abroad is on your retirement plan, this can play a significant role in meeting this goal.It is interesting to note that Mr Brown’s potential investment in a technology company in Singapore, may qualified him for an Employment Pass or even a Permanent Resident, via the Singapore Global Investor Programme.There are many tax benefits that Mr Brown can take advantage of, as well, especially when he finds the right structure in which to hold his investments.Further, for those worried about holding the entirety of their wealth in a single place, offshore holding companies allows them to place fractions of their assets in a new country, which can protect them in some circumstances, such as a lawsuit. Again, all of this is enhanced when an individual chooses to form an offshore company.Offshore company formationThere are countless benefits to keeping investments in offshore accounts or holding company. Let us take a look at what Eleanor can be taken advantage of when holding her assets in an offshore company.Tax BenefitsThere are a plethora of tax benefits for going offshore, whether it’s expatriating and living entirely in a new country, working, investing, or banking. In many cases, you can lower your tax responsibilities while staying legally compliant. I must emphasise here that an individual still must file earnings with the country that they are a resident of. An offshore company does not allow you to hide income.Asset ProtectionAlthough you can’t completely dodge the tax burdens of your home country with an offshore entity, you can enjoy an amount of asset protection. Because the funds are held offshore in a bank, they are not as easily accessible during a frivolous lawsuit. An offshore company can protect you from creditors with certainty.Also, to sue an offshore business, many courts require a separate lawsuit in the foreign jurisdiction. This means that if someone is trying to get your money, they must also sue your offshore company. The new suit will not consider the original lawsuit. With this, many avoid the suit entirely.Minimize ProbateWhen an individual passes away, their living heirs can be taken care of with your offshore investment, but they will have to deal with probate, a tax that occurs when an investment is passed on after a person dies. The probate can be eliminated when the offshore company is used to make the investment.Tax complianceMany are feeling confined because of local tax structures. Others have wealth but no form of asset protection. By creating an offshore company, an individual can do both and more. Companies allow you to hold funds, make investments, and so much more. The best part is that it is entirely legal.Many tax questions arise when creating an offshore company. The average investor, even the most financially savvy, is not entirely knowledgeable of tax laws in every single country. Eleanor is one of these individuals. She is a smart individual but needs additional assistance to not only ensure she is saving the most she can on taxes through smart investing but also that her tax efficiency is legal.If any of these apply to you, consider taking part in a tax compliance check-up. It would never hurt to make sure you are in the clear when it comes to your taxes. If you live in Australia, you have to consider government hurdles like the Foreign Account Tax Compliance Act (FATCA). Other countries have their policies concerning foreign earned or held income. It’s a lot to remember.kimbocorp offers the opportunity for individuals to review, together with a tax attorney, the compliance of their past year’s individual or corporate tax returns. The review is conducted on a no-name basis and in complete confidentiality. Should there be a need to amend any previously filed tax returns, we will guide you through the various voluntary disclosure programs that are available to investors in most developed countries.About kimbocorpkimbocorp is registered corporate services provider with the Accounting Corporate Regulatory Authority (ACRA). Together with our partner

Singapore banks,

our company can now offer the full investment holding company set up to Australian clients, both residents, and non-residents.Building on many years of experience in corporate advisory in Singapore, kimbocorp provides corporate advisory services to Australian individuals and corporates. The Singapore corporate system is highly regarded around the world, well known for being transparent, secure, non-biased and sophisticated. Choosing Singapore as a holding company destination is selecting years and years of financial stability and growth.The advantages of having an offshore holding company in Singapore include currency and investment diversification, asset protection, and the possibility to deposit assets in some of the most innovative, secure, highly-recognised, best-capitalised banks in the world.

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Expanding overseas remotely doesn't have to be transactional

Rob Brown lights up when he talks about remote company expansion. Rob is a small business owner of a manpower contracting company supplying healthcare professionals to hospitals in the states. Rob is a New Zealand national living away for more than 10 years. He qualifies for the transactional tax resident program offered by the IRD that allows him temporarily exemption from paying tax from overseas income.He runs his business from his company incorporated in the States, which has one of the highest statutory corporate tax rates among nations in the OECD. He supplies professionals from the Philippines, and as such, views Singapore as a favourable corporate jurisdiction to be closer to healthcare professionals in Philippines and South East Asia.Mulling through various incorporation options on the internet, he chanced upon kimbocorp.com, which is a service provider and marketplace for Entrepreneurs and Professionals to connect to complete corporate projects, providing the project and communication tools to do so.An "I see" moment for Robert to confirm with kimbocorp is because they provide guaranteed bank account opening services, either digital account or physical account, through licensed financial institutions in Singapore. kimbocorp setup transferwise, which is a payment services company regulated under the MAS, to allow Robert to receive revenues via a dedicated account number in his company name and to pay his suppliers and himself."Healthscope", Rob's company, is now based in Singapore and transferring 6-figure revenues into the bank account, enjoyable favourable taxation rates and a stable and secured business environment.For anyone with a "buy and sell" business, they can do so too. As Singapore offers the most items to be regarded as "tax-deductible business expenses" in the world, along with the "Tax Exemption Scheme for new Start-Up companies", further reducing taxable income for the next 2-3 years.Rob now sits at home (he's still recovering from COVID), and communicates with kimbocorp's PMETs (professionals, managers, engineers and technicians) for any other corporate-related requirements concerning his Singapore.

Instead of being transactional, kimbocorp is relationship-based. They use the power of group-chats, and the "profound need of people to gather" to create an environment where ideas and solutions can be thrashed out in a friendly relaxed manner.Another feature of kimbocorp is the ability for financing. Yes, kimbocorp provides "amortised billing", which is a a monthly instalment plan for any "intangible asset" product (i.e license, permit, trademark, patent, process, human capital), thereby allowing the user to enjoy NO high upfront fees. This allows users to create as many projects as possible for a monthly budget, which improves cashflows significantly, turning projects completed into "cost of goods sold" instead of "CAPEX", but still recognising such amortisation on the balance sheet of the company.How does the kimbocorp project dashboard benefit me?At kimbocorp, every single one of the chatrooms will have a professional (lawyer, accountant, qualified individual, banker, engineer) in attendance as an activist. The user sits down with them, and they'll change the way that the user thinks about the problem (i.e how to reduce tax exposure, or how to protect corporate assets) and situation (i.e current corporate structure).The goal is to have people see that a chat function is so much more than just WhatsApp, because it is a place where you can interact with PMETs (professionals, managers, engineers and technicians) in Singapore.With kimbocorp being multi-discipline, the "Post a project" can be used to determine objectives, and when a project is created, new conversations, connections, businesses and initiatives are going to happen. There are all these beautiful doors that people are going to open, and it's exciting to see that happen.kimbocorp also offers a lateral partner program. See how it works.1. Understand our commitment to non-circumvent partners;2. Receive an email notification to be added to a group chat;3. Speak to our PMETs about a problem/deal;4. Confirm the remuneration to you;5. Add stakeholders to the group chat to progress the problem/deal;6. Continue to get notified when there are responses;7. When deposits happen, get the remuneration as promised;8. Create other projects and repeat.Got Questions?Talk to us​​