Legal, Tax, and Accounting October 19, 2020

Incorporating in Singapore VS Delaware

Steven Tey @steventey

I recently found out about this new service called Sleek.com that helps entrepreneurs and makers incorporate their startups in Singapore for just $350 SGD (~$250 USD).

That's about half the price of Stripe Atlas, or the same price if you have a 50% Stripe Atlas discount. Considering the better tax regulations in Singapore, do you think it's better to incorporate in SG as opposed to the US?

Case in point is Pieter Levels, who incorporates his startups in Singapore as well.

  1. 3

    There are two steps of becoming an offshore company founder:

    1. Opening a company
    2. Opening a business bank account.
      And then comes running the company with all the associated costs.

    While taxes are very important in choosing where to incorporate, it is very important to figure out the total costs of running your offshore company. Aside from taxes, you may need to spend money for local directors, secretary, filing various reports to the state, etc. It all costs money.

    If I were at your place, I would talk to Sleek sales team and discuss the running costs for the company. Compared to your country or Delaware, the amount of money you would save on taxes could be smaller then your running costs of the SG company. You need to check it out.

    One final note: if you are just an indie hacker, starting many projects that do not require venture funding and your are a solo entrepreneur, your best and cheapest option is a Wyoming LLC. Firstbase.io may incorporate your business for $400. LLC is not good for venture funding, but if and when you reach that level, you can easily change the structure, the state, and the country of incorporation.

    1. 1

      Thanks a lot for the advice, Petar! Will definitely look into the running costs for a company in Singapore! I've been thinking of the LLC option as well, so Firstbase is definitely an option here as well. Appreciate the help! :)

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