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10 FEB 2019

Fintech in Singapore - Where Money has a Rich Future

Fintech is all about applying innovative technology for provision, enabling and enhancing financial services like payment, money transfer, insurance, fund raising and so on.

Accenture's analysis of CB Insights data says that fintech investments in Singapore have risen twofold from $180m in 2017, to $365m in 2018. Fueled by the previous year’s funding, this rating places the nation amidst the premium five fintech markets in the Asia Pacific, after China, India, Australia and Japan for doing business in Singapore.

Fintech Products

Fintech products that are high on productivity are the ones that offer solutions for making payments and transferring funds.

Products such as PayPal, GrabPay and PayNow that fall in this category, aim to make the experience of exchanging money and paying for goods at a point-of-sale store, a pleasurable one.

PayNow is a peer-to-peer fund transfer service that works as an integral part of the digital banking platforms of the banks that have it. The number of users that it has signed up has crossed 1.4 million and it has done business of more than $900 million as of in the June of 2018 (considering the fact that it was rolled out in the July of 2017). Using PayNow, customers also have the facility to pay bills and receive salaries from their employers.

Fintech apps with provisions for moneylending services are making inroads into the domains that were since ancient times ruled only by big banks. These apps are likely to blend big data and Artificial Intelligence (AI) to come up with a more intricate layout of someone's credit profile, or their capacity to repay loans. Consequently, these apps cater to the needs of prospective debtors who are normally overlooked by larger financial institutions.

Also, there are some select fintech investment apps that customers find more engaging since they make the most complicated tasks like investments seem unbelievably simple, through innovative interlinks.

A good example to consider is the app from the Singapore fintech start-up, Stashaway. This makes encourages customers to achieve their financial targets – like reaching a savings of $10,000 in five years even by way of incorporation in Singapore. A graph plotted by AI, or robo-advisers, indicates the amount of money that must be deposited into their accounts every month. Other fintech applications comprise insurance services, cryptocurrency trading and crowd funding platforms.

Why Fintech Matters!

If money is power, then fintech can change the way the world works and the way of doing business in Singapore.

Fintech can step up any activity that is governed by monetary trade, bet it ordering food, shopping for new clothes or getting a loan. Since geographies do not govern fintech solutions, businesses into fintech services can have a global customer base.

Nations with the capacity to rein in the growth of fintech-enabled businesses can also channelize it into economic wealth. KPMG's quarterly Pulse of Fintech report released in February says that Singapore achieved an all-time high figure of US$229.1 million (S$312 million) in the form of fintech funding in 2017- the highest in ASEAN (Association of Southeast Asian Nations).

Since Singapore is well known as the regional finance hub, with its technically proficient and highly qualified personnel and fintech-friendly laws, it has everything it takes to lead the region in fintech.

An ASEAN fintech lead vouches for Singapore's fintech sector delivering a great growth story through more than 400 fintech firms throughout the nation, a number that is consistently on the rise. Forecasts place the island city-state as one of the world's fintech capitals in the coming five years, thanks to its geographic setting and attractive benefits of incorporation in Singapore.

The Path Ahead for Fintech in Singapore

Beginning 2016, the Singapore Government has been pushing measures to put Singapore's financial services industry at the top of the curve. By doing this, they have boosted innovation so that well-placed banks and fintech start-ups can safely try out new technologies.

For local and overseas fintech companies to do business here, the Fintech Office, a virtual entity containing different government ensembles, including the Monetary Authority of Singapore (MAS), Economic Development Board, Infocomm Media Development Authority and Spring Singapore (now Enterprise Singapore), was set up in the May of 2016. The single-window office functions as an advisor to emerging fintech companies, guiding them on different fintech-based grants and schemes launched by the government. It also supports them in navigating through the regulatory requirements in the finance industry.

According to industry watchdogs, Singapore is likely to experience an upswing in fintech adoption in the coming couple of years as the systems are already in the get-set mode.

Mr. Liew Nam Soon, EY's managing partner for financial services in ASEAN, expressed at a press conference in the July of 2017 that Singapore is going to be 56 per cent more adoptive towards fintech, with the levels of awareness gaining more ground, the users tend to get more comfortable in digital financial transactions. This was expected, considering the dynamic fintech ecosystem – consumer support, easily obtainable talent, capital and governance.

Company Incorporation Singapore, Singapore Incorporation Services, Setting up a company in Singapore

Singapore Fintech Festival

The Singapore Fintech Festival (SFF) is the biggest fintech event in the world and a great way to boost the idea of doing business in Singapore.

Hosted and managed by the Monetary Authority of Singapore (MAS) together with the Association of Banks of Singapore and in collaboration with SingEx, the event is an exclusive international platform for the Fintech ecosystem in Singapore.

It also helps the global fintech community to get in touch, work together and make together.

The Singapore Fintech Festival is organized by the Monetary Authority of Singapore, in partnership with Association Banks of Singapore and in collaboration with SingEx.

The third edition of this mega event that was held from November 12 to 16, 2018, brought on one platform more than 40,000 attendees from more than 100 countries, thus making it in the biggest assemblage of the global fintech community.

Here are a few features of the festival that are worth a mention.

Where trade-offs happen

Many agreements were announced and closed on the trade-off platform, MATCH (Meet ASEAN’s Talents and Champions). This was MATCH’s first ever introduction at the festival and the Global Investor Summit.

One of the MATCH player, GTR Ventures, an investment and venture-building platform with expertise in trade and supply chain, endorsed a trio of new ventures with Lucidity, iLoan and RM-Tech.

Vanda Global Capital, another a MATCH participator, a venture capital fund management company in Singapore with a global focus, inked an agreement of association with Shenzhen Dayshine Fund Management and Raffles Capital. The collaborators agreed to roll out a pioneering $1.5 billion Asia agriculture technology fund, called Asia AgriTech Fund.

Global Kiosks

At the festival, 16 international pavilions showcased Abu Dhabi, Canada, Hong Kong, India, Ireland, Israel, Japan, Kazakhstan, Korea, Latin America, New Zealand, Philippines, Poland, Switzerland, United Kingdom and United States.

Record Accords

Another highlight was inauguration of the API Exchange (APIX), an online global fintech bazaar and sandbox platform for financial establishments. Moreover, MAS and international financial authorities signed seven agreements as a secondary effect of the Festival.

Artificial Intelligence - The New Entrant

The present of Artificial Intelligence (AI) at the finance summit gave a new flavor to the conference that had generous attendance and astute exchange of views by newsworthy technology speakers like Cassie Kozyrkov from Google, Jaan Tallinn from Metaplanet, Peter Schwartz from Salesforce, Chieko Asakawa from IBM, and Joanna Bryson from University of Bath.

SFF also witnessed MAS uncovering its select thoughts on promotion of Fairness, Ethics, Accountability and Transparency (FEAT) in employing AI and data analytics in finance.

Global and Domestic Presence

Local and international personalities that were present at the event were:

·Christine Lagarde - Managing Director of the International Monetary Fund

·Justin Trudeau – Canadian Prime Minister

·Narendra Modi - Prime Minister of India

·Ong Ye Kung - Minister for Education and Board Member of the Monetary Authority of Singapore (MAS)

·Heng Swee Keat - Minister for Finance of Singapore

·Patrick Njoroge - Governor of Central Bank of Kenya

·Sonexay Sithphaxay - Governor of Bank of the Lao PDR

Events Galore within Singapore

Events that took place between 15th and 16th November (The Innovation Lab Crawl and Industry Events), concluded with a footfall of nearly 10,000 across 32 innovation labs, 60 workshops and after effects that connected people throughout Singapore.

Making it Happen Again

The Singapore Fintech Festival will return again this year from 11 to 15 November, in conjunction with Prudential, poised to be a grand sponsor of the Festival till 2022. A large number of erstwhile sponsors and exhibitors have communicated the keenness to return in the 2019 Festival.

2018 – Rise of Fintech Investments

Fintech companies can also be understood as those that offer technology in the domains of banking and corporate finance, capital markets, financial data analytics, insurance, payments and personal financial management to encourage company incorporation in Singapore. Singapore has had 16 per cent more upcoming businesses in the year 2018 (71) as compared to the number in 2017 (61). This upsurge has positioned Singapore right behind China and India, as the market with the third-highest business traffic in the region.

Out of the 10 biggest business contracts that were signed in Singapore, 8 were signed in 2018. These comprised the $60m cloud company Deskera, set up in November 2018; the $52m Insurtech Singapore Life, established in December 2018 and the $32m crypto currency and block chain startup, Terra that came up in the August of 2018.

Of Singapore’s total funds in the year 2018, 28% were directed to fintech firms offering loans, 26% went to payment companies and 20% was taken by insurtechs.

About 28% of the total funds raised in Singapore last year went to fintech companies in lending, while those in payments took 26%, and insurtechs took 20%.

According to Accenture's MD of financial services in ASEAN, The fintech market in Singapore is scaling commendable levels of operation and diversification, which is itself evident of its consistent growth in the years gone by.

Although, it still has a long way to go to reach the likes of India and China in terms of the market size and denomination of the deals, but Singapore is already the third busiest fintech market in the region. This is the dynamism that paves the runaway for the future of new technologies to take off in a broad spectrum of financial domains.

Assessments have revealed that global investment in fintech ventures have crossed twice their number in 2018, to reach $55.3bn. This was driven by the inflow of funds from China and lucrative deals in various other markets as investors put all their stakes on more developed new ventures.

The information spread out here is within the range of years 2010 through 2018, also comprising equity and non-equity financing.

The fact that Singapore is now home to 490 fintech startups, translates to certainty that upcoming businesses are keen on tapping the opportunities offered by the city-state and want make the most of the benefits in the offing.

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Fintech Guidelines in Singapore: Regulations, Compliance and Sandbox

For fintech companies to get to work in Singapore, it important to be in line with the financial services-based rules, along with Singapore’s corporate laws. This article presents an outline of the regulations, compliance issues and sandbox guidelines, directly related to Fintech companies in Singapore. Fintech Regulations The ecosystem in Singapore provides all the support to businesses. The main controller for the majority of fintech enterprises is the MAS. Fintech businesses may come under the ruling of one or more of the following statutory provisions: ·         Commodity Trading Act ·         Moneylenders Act ·         Trust Companies Act ·         Insurance Act ·         Securities and Futures Act ·         Finance Companies Act ·         Banking Act; ·         Financial Advisers Act; ·         Companies Act; ·         Business Trusts Act; ·         Payment Services Act (PSA) substitutes the Payment Systems (Oversight) Act and the Money-Changing and Remittance Businesses Act The new PSA aims to create provisions for a better-suited atmosphere for innovation in financial settlements and also ensure the reduction of risks throughout the payments value chain. Controlled financial settlements comprise cash transfers, issue of digital money and payment tokens. Key Compliance Issues Largely, Fintech entities must think through these key regulatory compliance issues: ·         Consequences of financing (for instance, venture capital investments transformed into Fintech entities). ·         Copyright issues (for instance, administration and protection of intellectual property). ·         Financial regulatory and compliance (for instance, the kind of license required from the concerned agency or licensing reliefs that apply to a Fintech product or service). ·         Data security (for instance, the conditions enforced on Fintech enterprises, concerning personal client information that they deal with. Additionally, Singapore also has a general data protection scheme, framed by the Personal Data Protection Act 2012). ·         Consumer/technology agreements (for instance, software licensing contracts or terms of use of the Fintech product or service that cover matters of consumer protection). Also, the Cybersecurity Act 2018, is aimed at governing systems that provide basic services in Singapore. The MAS Fintech Regulatory Sandbox is a distinctive licensing system designed for Fintech entities. For a Fintech product or service to function in the Regulatory Sandbox, the MAS supplies the required regulatory support by reducing specific legal and regulatory necessities for the period of the Regulatory Sandbox. A Fintech company that applies for entry into the Regulatory Sandbox, must know about its lack of compliance with specific statutory and legal provisions while presenting the Regulatory Sandbox application. It must ensure that a plan exists for fulfilling these conditions. By and large, the Regulatory Sandbox will cease operations, if the Fintech company lacks compliance with the concerned statutory and legal standards by the close of the Regulatory Sandbox timeline.   Fintech Regulatory Sandbox Guiding Principles To convert Singapore into a smart financial center, the Monetary Authority of Singapore (MAS), lately came out with the Fintech Regulatory Sandbox Guidelines. Earlier, a consultation paper was published by MAS. This paper was to simplify the legal provisions required by Fintech companies while testing innovative financial products and services regulated by the MAS. Based on the public discussion, the MAS has issued the final legal set of rules. These rules ease governing and legal obligations due to Fintech participants wanting to test and enforce innovative financial services in Singapore. The Regulatory Sandbox As explained by Ms Jacqueline Loh, the Deputy Managing Director of MAS, “The regulatory sandbox offers a favorable atmosphere for supervisory requirements to be business-friendly, enabling them to test budding innovations within the legal provisions.” This method is advantageous because FIs and startups are not required to surrender up-and-coming innovations just because they are not aware of its compliance with the statutory and legal criteria. The MAS’s directives list the main steps right from applying for the sandbox till its operation. Easing Regulatory Criteria According to the MAS, it will ease the legal criteria for applicants who succeed to the Sandbox. The directives underline the regulatory requirements that MAS may ease. These comprise: 1.      Creditworthiness 2.      Fund credibility and capital sufficiency; 3.      Cash equilibrium. 4.      License Fee; 5.      Asset maintenance obligation; 6.      Board constitution; Main Stages of the Sandbox 1.      Application Stage The applicant presents the sandbox application to the MAS that checks the application and lets the applicant know the decision within 21 days. 2.      Evaluation Stage If the applicant is practically right for the sandbox, the MAS will evaluate the application. After assessing it, the MAS will advise in writing to the applicant, to go ahead with the sandbox, or drop the idea. 3.      Experimentation Stage After approval of the application, the sandbox is sent for the experiment, where the sandbox entity should apprise its customers about the financial service it operates sandbox and also about the corresponding risks. The entity must get a confirmation from the customers that they are clear about all risks. Evaluation Criteria The evaluation criteria in the guidelines to be filled by the applicant are: 1.      The projected financial facilities use innovative technology, a rising technology or any prevailing technology differently; 2.      The projected financial service focuses on specific matters or benefits consumers or the domain; 3.      Once an applicant leaves sandbox, the intention is to expand the proposed financial service in Singapore; 4.      The experiments and intended results of the sandbox tests must be well-defined, and the sandbox entity must update on the developments to the MAS consistently; 5.      The corresponding limitations should be precisely stated; 6.      The applicant must identify and eliminate the serious threats owing to the projected financial service 7.      A satisfactory exit and changeover plan must be clear, in case the projected financial service is to be stopped. Promising Clarity, Flexibility & Transparency As per the MAS statement, the regulatory sandbox instructions will accomplish: 1.      Better Transparency – The instructions cover examples and details specifying MAS’ expectations, like the criteria for accessing entry into the sandbox; 2.      Increased Flexibility – The instructions cover higher flexibility and making the evaluation criteria easy for businesses keen on entering the sandbox. It also facilitates modifications while experimenting. Conclusion Despite the fact that Singapore lacks fintech-focused regulations, fintech firms are required to comply with the running laws that govern the financial services industry. These comprise ensuring the appropriate licensing, keeping personal data requirements updated, according to the Personal Data Protection Act and complying with AML/CFT notices. It is important to know that fintech is always going through innovations. Singapore lawmakers are always coming up with new ways to secure firms and consumers. Aspirants must always be updated with the latest compliance regulations as this new industry is always on the move. We would love if you get in touch with us to know everything about the Fintech domain in Singapore.

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Applying for Singapore Entrepreneur Pass

Are you a foreigner looking to relocate to Singapore to start and run a business? Then the Singapore Entrepreneur Pass or EntrePass is just the thing for you. To be eligible to apply for this work visa, the entrepreneur who intends to come to Singapore to establish a company, must display a paid-up capital of at least S$50,000. This helps entrepreneurs who have a more successful professional record, as compared to documented qualifications. The EntrePass works perfectly for foreign businesspersons who fall short of academic certifications or are not eligible according to the Employment Pass scheme, but have proved their business expertise through booming professional experience. In practice, applying for an EntrePass used to be more difficult than that for an Employment Pass (EP), due to the paid-up capital requirement of S$50,000. However, this requirement has now been removed to attract more qualified applicants worldwide. What Makes You Eligible and Ineligible for the EntrePass? A foreign entrepreneur can apply for the EntrePass if the following conditions are met: 1.      The candidate has or aims to launch a private limited company, registered with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. In case the company has already been registered, it should be less than or equal to 6 months old on the date of application. 2.      The applicant must be a minimum 30% shareholder in the capital of the company.Additional Provisions The applicant is required to meet a minimum of one of the listed requirements, either in the capacity of an innovator, an entrepreneur, or an investor: Innovator ·         The enterprise should be a holder or an intellectual property asset. ·         The company should have had participated in joint research with A*STAR or a university. ·         The company must possess excellent technical or domain expertise that is connected to the intended business. Entrepreneur ·         The financial support of the company must come from a Government-recognized VC or business angel. ·         The company should have active involvement in a Government-supported incubator. ·         The candidate must have a proven track record or network and bright business history of having launched very lucrative enterprises. Investor ·         The candidate must have a good previous experience of business investments and should be keen on expanding a new company or already existent one in Singapore. You can learn more about these requirements here. Businesses Ineligible for the EntrePass Cafés, cafeterias, massage parlors, pubs, night clubs, job placement services and others, do not qualify for the EntrePass. A full account of the businesses that do not qualify for the pass is available on the MOM website. The Application Procedure How to Apply? An applicant or a representative of the applicant is eligible to submit an application for the EntrePass. The MOM lays down the steps listed below to apply for the EntrePass: 1.      An applicant must attach the EntrePass application form with necessary documents and submit the pack. 2.      Once the application has been approved, as a policy, the MOM will issue an approval letter. The applicant is required to register the company (in case not already done so) with ACRA within a month of receiving the letter. 3.      As a rule, the EntrePass should be issued within 6 months of the approval letter. 4.      Once the EntrePass has been issued, the fingerprint and photo registration of the candidate is required. 5.      MOM will send the card to the address indicated in the application. Essential Paperwork The following documents must be attached and submitted along with the application for the EntrePass: 1.      Copy of the individual information page of applicant’s passport; 2.      Previous service testimonies in English; and 3.      A plan of action that mentions the enterpriser’s business strategy, market research, market plan, products or services in the offering, etc. Bear in mind that at the time of applying, if the business is already registered with ACRA, the following must be submitted: 1.      A copy of the company’s recent profile (as can be seen on the ACRA website) How to Renew, Cancel and Replace the EntrePass? EntrePass Renewal The EntrePass that is issued for the first time has a validity of 1+1 years. This means that one year after its issue, the EntrePass must be renewed. If all eligibility requirements for renewal are fulfilled, the validity is extended for one additional year. From then on, all the EntrePass renewals that follow will have a 2-year validity. An EntrePass holder can put forward an application to get his pass renewed, 3 months before it expires. Among the renewal requirements is that the EntrePass holder must retain the initial business plan submitted to the Ministry when applying for the first time. For renewal of the pass, the holder needs to make sure that his business creates employment in Singapore. For more information on the renewal of an EntrePass click here. Cancelling the EntrePass In case an EntrePass needs to be cancelled, it can be done by the pass holder, a company agent or an employment agent. The cancellation should happen and the pass must be returned in a week’s duration after the closure of the business. Replacement of the EntrePass In case of theft, loss or damage to EntrePass, the holder of the pass, or an agent appointed by the company, or an employment agent can submit an application to have the pass replaced, not later than 7 days since the loss. Additionally, in case an EntrePass holder’s card is stolen, the incident must be reported to the police. Notification of Changes If any one or more of the following changes are to be done to an EntrePass, the pass holder must notify the MOM: 1.      Line of business; 2.      Candidate’s personal information, home address, office address; 3.      Salary; 4.      Company name and account info and 5.      Line of work To know more about notifying these changes and the related timeframes visit the MOM website. Family Onboard There are two passes that enable EntrePass holders to call their families to Singapore and be with them; the Dependant’s Pass orthe Long Term Visit Pass. The eligible family members comprise: 1.      Spouse. 2.      Common-law spouse 3.      Unmarried and lawfully adopted children, below 21 years of age 4.      Unmarried differently-abled children, above 21 years of age 5.      Unmarried step-children below 21 years of age 6.      Parents EntrePass holders can get their family members on board in Singapore, once they have successfully renewed their passes. In other words, EntrePass holders are not allowed to get their family members after they apply for the pass the first time. Also, to get a family member to Singapore the EntrePass holder must ensure that he or she meets the total business expense and employment generation conditions as ruled by the MOM. Conclusion An EntrePass is a necessity for a foreign entrepreneur who intends to set up and operate a business in Singapore. Do not forget that the MOM carefully scans all applications, as well as the business plans that are submitted along with them, to check if the submissions conform to the requirements of the Ministry. With our help, your chances of getting the Singapore EntrePass are much higher and free of troubles. Contact us today so that we can evaluate your eligibility and come up with ways that increase your hit rate. This is your chance to live and do business in Asia’s most desired city.

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Reinsurance Market in Singapore

About Reinsurance Reinsurance is a contract under which a reinsurer agrees to indemnify a ceding company against all or part of the primary insurance risks underwritten by the ceding company under one or more insurance contracts. Market Trends Singapore is not only Asia’s largest international financial center but also one of Asia’s largest international reinsurance centers. The Singapore insurance market remains very competitive. As of the end of 2016, the market had gross premiums total receipt of about over S$3.97 billion and a total asset worth of about S$11.14 billion. Statistics collected over the seven-year period between 2010 and 2016 indicate a growing market. Total gross premiums and retention ratios have increased year on year, indicating good growth prospects for the market as a whole. In particular, the Singaporean general insurance sector registered a compound annual growth rate of 23.1% from 2010 to 2016 in respect of gross written premiums. Since 2011, statistics show that the offshore insurance market has maintained its retention ratio at about 60% and increased its total assets up to S$22.2 billion. The Singapore reinsurance market remains extremely competitive. Total gross premiums for the reinsurance industry were S$4.9 billion in 2016 and retention ratio has been 69.1%.   Regulatory Framework The Insurance Act (Cap 142) governs insurance and reinsurance activities in Singapore. Regulatory Bodies Insurance and reinsurance activities are regulated by the MAS (Monetary Authority of Singapore), established by the Monetary Authority of Singapore Act (Cap 186). MAS is responsible for the licensing, authorization and supervision of insurance and reinsurance activities.   Authorized Reinsurer Overseas insurers may apply for authorization to carry on life and/or general reinsurance business in Singapore. Authorized Reinsurers: -       Do not have a physical presence in Singapore and provide insurance services from overseas to persons in Singapore. -       Are subject to limited oversight by MAS compared to licensed insurers : Not required to set up and maintain separate insurance funds for policies taken out by persons in Singapore : No need to comply with solvency margin requirements Admission Criteria MAS assesses applications for authorization of reinsurers based on these criteria: -       Domestic and international rankings of the applicant by factors such as premiums and assets -       Past and present credit ratings by international rating agencies (i.e., Standard and Poor's, A.M Best, Moody's and Fitch) -       Track record, financial soundness and reputation of the applicant MAS will consult the applicant's home supervisory authority to check the applicant’s compliance with its home regulations. -       Risk management systems and processes aligning with the size and complexity of the business -       Fitness and propriety of the applicant and all persons having control of the applicant Documents To Be Submitted Along With The Application Form 1) A certified true copy of the license issued by the insurance supervisory authority in the country in which the company is carrying on insurance business 2) A copy of the annual report and financial statements of both the applicant and its ultimate parent company for each of the last three years Processing Time It will take approximately 6 to 8 weeks after submission of complete application to process and approve an application. As each application will be evaluated on a case-by-case basis, processing time depends on the circumstances of each application and the completeness of the information submitted. Annual Fee Every authorized reinsurer shall pay an annual fee of S$10,000 to the Authority before 1st January of each year. License For Reinsurer Applicants need a license to carry on life and/or general reinsurance business in Singapore. Admission Criteria MAS assesses applications for life and/or general reinsurance licenses based on these criteria: -       Same as admission criteria for authorized reinsurer -       Well-developed business strategy and detailed plans reflecting the risk profile of the business Documents To Be Submitted Along With The Application Form 1) A certified true copy of the license issued by the insurance supervisory authority in the country in which the company is carrying on insurance business 2) A certified true copy of the letter from the insurance supervisory authority in the country granting the company to establish insurance operations in Singapore, if such approval is required. (If approval is not required, a statement to this effect should be provided.) 3) A copy of the annual report and financial statements of both the applicant and its ultimate parent company for each of the last three years 4) A copy of the feasibility study conducted in respect of the proposed Singapore operations (including financial projections for the proposed Singapore operations). Taxation Of Insurance And Reinsurance Providers Under the Income Tax Act, all companies are generally taxed at the rate of 17% on their chargeable income. However, some insurers may be subject to different tax rates depending on the type of insurance business carried on.   ∙ Life Insurance Business Insurers carrying on life insurance business are subject to a tax rate of 10% on life insurance surplus of any life insurance fund apportioned to policyholders for each year of assessment.   ∙ Marine Hull and Liability Insurance/Reinsurance Business Tax is payable at the rate of 5% on chargeable income derived by an approved marine hull and liability insurer for each year of assessment.   ∙ Offshore General Insurance/Reinsurance Business An approved insurer carrying on offshore life insurance business and insuring/reinsuring offshore risks will be taxed at the rate of 10% on chargeable income for each year of assessment.   ∙ Captive Insurers Captive insurers are exempt from tax on any underwriting income derived from insuring offshore risks.   Singapore Insurance Market Trends     Source: MAS (Monetary Authority of Singapore) Life insurance valuation results for the year ended 31st December 2018 -       Professional Reinsurer Source: MAS (Monetary Authority of Singapore) If you have any questions about Singapore company incorporation and investment in Singapore, please contact us via Contact Us page. We will provide you with a variety of solutions for efficient business operations as well as practical advice on legal requirements.

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