Intending to set up an investment vehicle or holding company in Singapore?
Do not fret. ForBis Accounting is here to assist you every step of the way as your compliance partner.
What is classified as a holding company or investment vehicle in Singapore? What types of investment companies are there?
Investment Holding Company
As defined by the In-land Revenue Authority of Singapore (IRAS), an investment holding company refers to a company that owns investments such as properties and shares for long term investment and derives investment income (“non-trade income”) such as dividend, interest or rental income. The company’s principal activity is that of investment holding.
Read more at IRAS
Investment Broking or dealing
As defined by the In-land Revenue Authority of Singapore (IRAS), An investment dealing company refers to a company that owns investments such as properties and shares as a form of trading stock to derive trade income from the purchase and sale of these investments, e.g. gain on sale of real properties and shares. Unlike an investment holding company, the company’s principal activity is that of investment dealing.
Read more at IRAS
How do I set up and run an investment company in Singapore? What types of business structures are available?
Setting up an investment company in Singapore is fast and simple. There are 3 main types of structures that you can consider for an investment firm and you will be required to comply with the different filing and statutory requirements prescribed by the authorities in Singapore. Forbis Accounting can assist you to set up your company and ensure that you comply with the standards in Singapore with our digital compliance plans. Ensuring fuss-free operations in Singapore for your investment vehicle.
Private Limited Company
Flexible, allows multiple directors (executive officers) and shareholders in the company with different shareholdings. Liability is limited to the company, distinguishing individuals from the company.
Highly Recommended for Investment companies.
Limited Liability Partnership
Allows for multiple partners and managers with equal parts shareholding. Lower filing requirements. Liability is limited to the partnership, distinguishing individuals from the company.
Recommended for small investment vehicles.
Good for individuals. Lower filing requirements. Tied to the individual, no distinction between the individual and the business.
Not recommended for investment firms.
Why digital compliance for your investment company? (You might ask)
Digital compliance brings about many benefits. With digital compliance, you can rest assured that your audit trail is always clear and transparent and that your company complies to the standards prescribed by the Singapore government.
Digital compliance and administration allows you to significantly lower your costs of administration and compliance, leaving additional resources (time & funds) for your other business activities.
Using specialised softwares allow you to easily account for and track payroll, expenditure, payments and other administrative and compliance aspects of your business, ensuring that you’re always on the pulse.
With easy accountability, it allows your senior management to access and analyse the data for decision making processes and planning for future business moves.