Foreign Investment

Reverse investment structure is a more complex strategy in running an offshore company.

This model means that an individual or institution, in the form of a sole proprietorship or joint venture, establishes an offshore company in a third country (e.g. BVI, Cayman Islands, Samoa, etc.), then sets up a wholly-owned or joint venture company in Singapore, and finally invests in another country.

Characteristics:

• Both the company and the asset structure are offshore holdings
• May enjoy preferential policies for foreign investment in the country which has been invested in
• Financing companies with Singapore’s financial platform
• Limited liability system, shareholders only bear limited liability for their own investment
• The company is an independent legal entity
• Accounts can be opened and operated offshore
• Easy to manage the company
• Enjoy Singapore’s tax policy
• Shareholder dividends are not taxed twice
• Exemption from audit if at least two of the following conditions are met:
  • The annual turnover of the company is less than S$10 million
  • The total assets of the company are less than S$10 million
  • The number of employees in the company is less than 50

For:

• Cross-border investment
• Overseas listing
• Operating Trusts
• Real estate trusts, etc.
• Restructuring of the company
• Internationalization of the enterprise

Please consult FOZL for more information.