With its stable political environment, business-friendly tax policies and open economy, Singapore has become an attractive destination for investors worldwide. Understanding the investment landscape governed by Monetary Authority of Singapore (MAS) is crucial for global investors. This article provides a comprehensive guide to Singapore investment, including an overview of MAS regulations, fund management licensing, tax incentives as well as tips for setting up investment companies in Singapore.
Overview of MAS regulations on Singapore investment
MAS is the central bank and financial regulatory authority in Singapore. It regulates various financial activities including securities, banking, insurance and fund management. Key regulations include Securities and Futures Act, Fund Management Code, Licensing and Registration Handbook etc. For investment funds, MAS introduced various schemes such as Registered Fund Management Company to provide a more flexible framework catering to global asset managers.
Licensing requirements for Singapore investment firms
Investment managers planning to operate in Singapore must obtain the Capital Markets Services License from MAS for fund management activities. Exemptions are available for managing less than 30 qualified investors or assets under S$250 million. Licensed corporations must comply with capital, manpower, risk management and audit requirements. MAS also regulates licensing for financial advisory services.
Tax incentives to promote Singapore investment
Singapore offers various tax schemes to promote fund management activities, including the Offshore Fund Tax Exemption, Onshore Fund Tax Exemption and Enhanced-Tier Fund Tax Exemption. Under certain conditions, approved investment funds and fund managers can enjoy tax exemptions and concessionary tax rates in Singapore. But funds need to meet the minimum fund size and local business spending requirements.
Steps to set up investment company in Singapore
The key steps to establish an investment fund or management firm in Singapore include preparing business plan, applying for relevant MAS license, securing office space, opening corporate bank account, hiring staff with industry experience, developing robust compliance framework, and maintaining proper bookkeeping and auditing arrangements.
Singapore provides an ideal ecosystem for global investment managers with its business-friendly regulations and tax incentives overseen by MAS. Understanding the licensing and compliance requirements is crucial for investors entering Singapore market.