represents the investment capital
received from individuals or corporations, which have as an intention to obtain equity ownership
in various companies. The Asian market
offers positive prospects for investing in private equity
; if you are interested in the private equity transactions in Singapore
, our team of lawyers
can provide you with information on the most profitable business in this field
Incentives for private equity in Singapore
According to the Singaporean legislation, there are no specific laws created especially for the financial development of private equity investments, but there are several taxation laws that encourage investment in this field.
The Inland Revenue Authority of Singapore
has changed in March 2015 the legislation on the goods and services tax (GST)
, extending the applicable GST
on managers in the fund management industry
. There is no capital gains tax
and the company
is exempt from the income tax
as long as the company has had 20% of the ordinary shares
in target for two years before the disposal of shares
Singaporean government h
as extended the Financial Sector Incentive Fund Management (FSI FM)
until the end of 2018. Companies receiving the FSI FM award
will receive a 10% rate deduction on the income tax
; you can request a consultation on the tax system
applicable to fund companies
from our lawyers in Singapore
Offshore fund in Singapore
According to the Singaporean law
, an investment fund set up as an offshore fund
can be exempt from the taxes on income
arising from investments.
In this case, the fund’s income must be
produced by a Singapore fund management company
with a license for capital markets services.
The same exemption applies to funds
not entirely owned by Singaporean citizens
An offshore fund can be represented by an individual, a company or a trustee.
Qualifying investor in Singapore
If you are interested in the private equity business and you want to invest in a fund in Singapore, you should know that you must meet one of the following stipulations to be considered a qualifying investor:
• a person who can have a business in Singapore, but does not use the capital of his or her business to invest in an investment fund in Singapore;
• a person who doesn’t own more than 30% of the value of a fund.