Growing numbers of international business people are incorporating a Singapore entity to take advantage of the jurisdiction's tax advantages and excellent global reputation. Important points for entrepreneurs to note when incorporating a Singapore entity include:

Foreign investors incorporating a Singapore entity can benefit from Singapore's low corporate tax rate. Corporate tax is levied at a flat rate of 20%. Furthermore, international profits not remitted into Singapore are legally tax-exempt. Furthermore, and the first S$200,000 (US$146,000) of chargeable income is legally tax-exempt for the first three years following incorporation.

Incorporating a Singapore entity is simple. According to the World Bank's Doing Business 2010 Survey, Singapore is the world's easiest place to do business across a range of factors including company start up procedures, time, cost and minimum capital required.

When incorporating a Singapore entity, a minimum of one shareholder is required. Both individual and corporate shareholders are permitted, although a private limited company (most popular with international entrepreneurs) must have no more than 50 shareholders. Furthermore, every Singapore company requires a local resident director.

Because of the above, international business people incorporating a Singapore entity but who are not based in Singapore usually appoint a professional corporate services Firm to i) incorporate the company and ii) provide Singapore resident director services for an annual fee.

The process of incorporating a Singapore entity is governed by the Singapore Companies Act 1963. Applications for incorporating a Singapore entity are lodged with the Accounting and Corporate Regulatory Authority of Singapore (ACRA).

Following incorporation, company details, including shareholder and director information, are available for public viewing on BizFile, the ACRA online public register. Consequently, Singapore is not a 'private' offshore jurisdiction like traditional offshore 'tax havens', even though corporate shareholders are permitted.