The Value of Singapore & Hong Kong Company Incorporation
by: Mark Lazell

The global recession has created financial market turmoil, which has
led to severely depreciated real estate and financial assets, with
huge values being wiped off stock markets on a consistent basis since
2008. According to the Asian Development Bank (ADB), the financial
crisis wiped $50 trillion off the value of financial assets during
2008. Approximately 20% of those losses were in developing Asia, which
is equivalent to one year's GDP.

The success and rapid expansion of Asian nations over recent years has
meant Asian developing economies have been impacted more than other
parts of the developing world by the global nature of the recession.
However, the strength of many Asian economies and the lessons learnt
from the 1997 financial crisis position Asia as a region that could
emerge from the recession before western nations.

Financial and economic industry experts agree that Asia's stronger
economies, banking confidentiality laws and pro-business incentives
are driving capital flows eastward. The combination of severe economic
downturn and the increased scrutiny being placed on the traditional
'tax havens' of the world are providing an advantage to the strong
markets within Asia. Two key, distinct factors are evident in this
shift.

Emerging markets

Some of the biggest economic growth rates lie in Asia. China, which
has recently become the world's 3rd largest economy, has had annual
economic growth averaging 9% for many years. Of the G-20 nations,
India has the second highest GDP growth rate (following China).

Aidan Healy, managing director of Singapore-based Healy Consultants,
agrees that incorporating a company in Asian markets including China,
India, Singapore and Hong Kong provide immense opportunity for
entrepreneurs, but while regulations and bureaucracy are easing, much
still needs to be addressed.

"The business cultures and legal frameworks are hugely different in
emerging markets. In some cases company incorporation is still a
cumbersome procedure which requires expert knowledge," he explains.

These factors clearly work to the advantage of Singapore incorporation
and Hong Kong incorporation. Hong Kong is a natural gateway into
China, while Singapore is busy promoting itself as the regional hub of
choice.

Both economies consistently rank as the world's freest. In its 2009
Index of Economic Freedom, US-based The Heritage Foundation places
Hong Kong and Singapore as first and second in terms of economic
freedom. Hong Kong has a record of openness to global trade and
investment. While Singapore has a relatively small economy, it's
openness to international business and investment means undertaking
Singapore incorporation gives access to one of the world's most
competitive economies.

The report praises the two city-states' policies on inward foreign
investment. "Singapore is a world leader in most facets of economic
freedom. Regulations are straightforward, virtually all commercial
operations are performed with transparency and speed, and corruption
is almost nonexistent," it explains.

According to Singapore's Economic Development Board, the government
agency tasked with attracting overseas businesses to incorporate in
Singapore, the country ranks highly in miscellaneous global surveys.

The World Economic Forums' Global Competitiveness Report 2008-2009
ranked Singapore as the fifth-most competitive economy in the world
and the most competitive in Asia.

In another global report, the World Bank's Doing Business 2008 Survey,
Singapore is listed as the world's easiest place to do business.
Factors considered in the survey include company incorporation
procedures, time, cost and the minimum capital required for Singapore
company formation.

Illustrating the benefits of Hong Kong company incorporation, the
Heritage report says, " The small island is one of the world's leading
financial centers, and regulation of banking and financial services is
transparent and efficient."

Both Hong Kong and Singapore have extremely competitive tax systems.
Whether considering personal or corporate implications, the tax burden
is low in both markets.

Singapore company incorporation and Hong Kong company incorporation
appeal to investors and entrepreneurs looking for a reputable
tax-efficient corporate vehicle to conduct international business.

"Everyone wants to be in Asia at the moment. It's fashionable, and
profitable," Healy says.

'Tax haven' stigma

Another key factor in the capital shift has been the increased
attention from Governments directed at the practice of using tax
havens to evade tax obligations. Not long ago, Switzerland was the
world's quintessential private banking center. And although in some
eyes it still is - after all, its banks still hold an estimated 30% of
global offshore assets - its mantle is rapidly being taken over by the
likes of Singapore and Hong Kong.

What caused this eastward transition? A major factor is this clampdown
on tax evasion and money laundering by the European Union and
Organization for Economic Cooperation and Development, which have been
applying ever more pressure on traditional tax havens, to disclose
information about their account holders. The importance of this issue
is illustrated by the fact it was part of the agenda during the G-20
summit in April.

The OECD has praised Singapore and Hong Kong for recent concessions on
tax evasion. Singapore will endorse the OECD standard to assist with
effective exchange of information. Hong Kong will also make amendments
to its tax laws.

Following the OECD standards for exchange of financial information
should not be the end of banking privacy nor should it have a negative
impact on Singapore or Hong Kong's reputation as an efficient
jurisdiction for company incorporation. Avoiding the tax-haven stigma
is critical to maintain the appeal of Singapore and Hong Kong to both
multinational corporations (MNCs), and small to medium enterprise
(SMEs).

"I'm not surprised by the increased capital flows to Asia from
Europe," Healy says. "The proof is that Asia has been booming - we've
noticed a huge increase in demand for Singapore and Hong Kong company
incorporation, corporate and personal bank accounts in Singapore and
Hong Kong, and China is also on the increase."

Banking officials clearly agree with the positive sentiment. A
chairman of one Swiss bank has said a Singapore office for the bank
represented "a platform of growth in Asia". Another banking executive
believes "Singapore will be the fastest-growing offshore banking
center over the next five years".

Healy also believes that international investors and entrepreneurs
prefer the positive image presented by Singapore and Hong Kong to the
tax-haven image of some western offshore jurisdictions.

"The bottom line is this: Singapore and Hong Kong are built on
internationally respected economic models and legal frameworks," says
Healy. "The image they present is unrivaled in tax-free
jurisdictions," he adds. "A Singapore company can be tax-free, looks
good to customers and suppliers, and has absolutely no stigma attached
to it."

"Both countries have also signed [double-taxation] treaties with more
than 50 countries, have laid down investment guarantees, and [their]
banks offer highly competitive corporate financing, generally without
seeking equity," he says.

As well as the business benefits of Singapore and Hong Kong company
incorporation, there's a human angle to the tale. The 2008 Quality of
Living Survey, produced by Mercer Human Resource Consulting in April,
ranked Singapore as the most livable city in Asia, and 32nd out of the
215 international cities covered in the survey. Hong Kong comes in at
70th in the world, while China's Beijing comes in at 116th in the
world. Singapore is the region leader in personal safety.

"Singapore really is the focal point of corporate and financial
activity in Asia, and should remain so for the foreseeable future,"
Healy concludes.

Healy Consultants is an experienced corporate services consultancy.
Headquartered in Singapore, the firm provides advice to a broad range
of the international clients on all aspects of Asia business setup.
Currently, popular engagement requests are for services related to:

- Tax efficient financial structures
- Singapore company incorporation
- Hong Kong company incorporation
- International tax planning
- International banking
- Business turnaround services
- Global recession opportunities

http://www.healyconsultants.com

About The Author

Mark Lazell is a PR and marketing specialist and freelance journalist
with working knowledge and experience of the offshore financial
industry in the Middle East and Asia-Pacific regions.

Offshore Business: A Brief Overview

by: Peter Cant

Advantages of Offshore Businesses

There are varying definitions for an offshore company, or offshore
business. Definitions commonly refer to offshore business as involving
the movement of an aspect of a company overseas. Regardless of the
official definition, offshore companies are set up in jurisdictions,
which offer advantages – which include no, or low, taxes on income and
capital gains, no restrictions on employment policies and high
confidentiality from minimal reporting requirements.

Generally, an offshore company is incorporated from outside the
particular jurisdiction in question. It is also restricted from
conducting business within that jurisdiction, although this can be
dependent on the jurisdiction in question. The ultimate purpose of
offshoring is the tremendous savings companies stand to gain by
incorporating in certain offshore jurisdictions.

Offshore company formation can be an excellent way to legitimately
minimize international taxation. For example, incorporation in
Singapore, which is not seen as a traditional tax haven, allows
international profits to be legally tax-exempt provided funds are not
remitted to a Singapore corporate bank account.

Apart from being a legitimate way by which to protect global assets,
international entrepreneurs choosing to form an offshore company in a
reputable jurisdictions such as Singapore or Hong Kong, portray a
positive, reputable image to customers, suppliers, investors and
banks.

To summarise, advantages of using an offshore company can include:
- Minimising tax obligations
- Effective protection of global assets
- Efficient execution of international business
- Procedures for incorporation are usually less complex
- Limited reporting requirements, hence higher confidentiality
- Portrays international image, provided it is a reputable jurisdiction
- Protection against volatility in economic and political elements

'Tax Haven' Stigma

Whilst the benefits of taking a company offshore can be valuable,
consideration should be given to the potential risks. Traditional
offshore jurisdictions are becoming increasingly insecure. Many
offshore jurisdictions have come under pressure from the Organisation
for Economic Cooperation and Development (OECD) to exchange company
and bank account details of foreign clients as a way to assist in
combating tax evasion, money laundering and terrorist financing.

After the recent G20 summit, many traditional 'tax havens' have made
commitments to following the transparency guidelines set out by the
OECD. This increased attention is not only on rich individuals but is
on corporations – large and small. For this reason, it is crucial to
develop the most appropriate corporate structure when undertaking
offshore incorporation so as to avoid the 'tax haven' stigma that can
negatively impact a company's success.

The term 'tax haven' has recently received negative publicity due
largely to the increased efforts of G20 nations, especially the US and
UK, to clamp down on tax evasion. The case between Swiss bank UBS and
the United States government is an example of this.

But is the cause of this attention due to the policies of these common
offshore jurisdictions or the determined efforts of other countries to
maintain, or maximize, their own tax revenues? Hopefully the objective
is focused on reducing tax evasion. Differences between countries in
terms of personal income and company taxes, incorporation
requirements, trade and employee policy restrictions, foreign
investment policies, confidentiality requirements etc. should help
maintain a competitive international business environment. This helps
to avoid larger governments trying to enforce restrictive tax and
trade policies.

Asia provides efficient options for international entrepreneurs
considering offshore jurisdictions. Singapore and Hong Kong are two
jurisdictions that boast excellent international reputations, have
investor-friendly business environments and are economically and
politically stable.

Cooperation and transparency between authorities will increase but it
is not the end of low tax jurisdictions or banking privacy. Offshore
incorporation, when properly structured, is an excellent,
tax-efficient strategy for entrepreneurs to conduct their
international business.

Healy Consultants is an experienced corporate services consultancy
firm. Headquartered in Singapore, the firm assists a broad range of
international clients with all aspects of offshore company formation.
Healy Consultants is able to assist clients in offshore incorporation
along with other valuable support services including opening corporate
bank accounts globally, tax planning, visa requirements, internet
marketing strategies and more.

About The Author

Peter Cant is the Marketing Manager for Healy Consultants. Peter has
over 11 years work experience within media, advertising and marketing
and has worked on a range of business categories locally and
internationally.

Successful Entrepreneur Employs Leadership Traits to Start and Grow Business

Successful Entrepreneur Employs Leadership Traits to Start and Grow
Business - A Virtual Assistant Success Story

by: Randall Goruk



One of the great things about being an executive and leadership coach
is the opportunity to work with a variety of people who work in a
variety of different industries. I have been doing some work recently
with Kara Rosner, owner of Key Virtual Office Solutions – a Virtual
Assistant (VA) business based in Scottsdale, Arizona.

I asked Kara if she would mind sharing her experiences of starting up
her small business through an interview – she was in full agreement. I
thought sharing her experience will benefit many of my other clients
as well as those who intend to start up their own small business one
day.

Kara epitomizes the American entrepreneurial spirit and has
demonstrated the leadership traits to be successful in any new
enterprise … I hope that you find some benefit into her thoughts about
her business.

RG - What is your vision for your business?

Kara -My long-term goal is to build a small team of professional
virtual assistants and continue to provide top-notch business support
services to small business owners.

RG - Did you have a business plan before you started your business?

Kara -Yes. Writing my business plan helped me think about all aspects
of my business–from marketing tactics, to understanding my
competition, to assessing my financials. It is a valuable tool and
helped me formulate my overall business strategy.

RG - If you had to start over, what would you do differently?
Kara - I would use different marketing tactics now that I know what
works best for me. In the beginning I tried various forms of print
advertising such as direct mailers and newspaper ads, which did not
produce results. My best and most cost-effective forms of marketing
have come from personal networking, referrals and my internet
presence.
Additionally, I would have begun networking earlier in the process of
starting my business. Networking is extremely important in the launch
of any business and a great way to let people know what you do. I
found it to be very powerful in helping me establish my client base.
RG - What do you think it takes to be successful in your business?
Kara - I think there are several factors for success as a virtual
assistant. First and foremost is having a dynamic skill set that is
attractive to your target market, which in my case is the small
business owner/home-based business. Understand your talents and market
them accordingly.
Additionally, a keen sense of client service is vital for success.
Knowing your client's needs and consistently delivering timely and
accurate service is crucial. Since most VA-client relationships are
not face-to-face it is important to build trust and respect.
It is also very important to be knowledgeable about the marketplace
and open to continually learning new skills. Technological advancement
is rapid and it is essential to know what skills and services are in
demand by prospective clients. A willingness to learn and add to your
skill set is important for long-term success.
RG - What are the characteristics you possess that you feel will help
you be successful as a VA?
Kara -The traits that contribute to my success as a VA are my
creativity, resourcefulness, dedication, strong organizational skills,
and proactive nature. Honesty, integrity and a positive attitude are
also key characteristics that help me be successful.
RG - What challenges are you faced with today?
Kara -One of my biggest challenges is maintaining a good work/life
balance. Starting a new business can be an around-the-clock job. It's
important to take time to rest, recognize accomplishments, and
re-energize for the next day!
RG - What is your competition like?
Kara -Since virtual assistance is not bound by physical location my
competition is local, national, and international. However, I consider
my main competition to be US-based virtual assistants providing
right-hand business support services to small business owners. I think
what sets me apart is my strong technological skill set, previous
corporate management experience, top-quality work and superior client
service. There are many talented VA's all across the country, and
that's a good thing for the industry as a whole.
RG - What are your concerns for the future?
Kara -The VA industry is rapidly growing and the number of people
leaving traditional corporate jobs to become virtual assistants is
increasing. As the industry grows and competition increases I want to
continue to be able to distinguish myself as a top-notch, experienced,
and dedicated VA.
RG - Without naming names, can you provide a couple of client success stories?
Kara -I love providing solutions for my clients. One of my clients, an
extremely busy entrepreneur with a rapidly growing practice, has
little to no time to handle the day-to-day administrative tasks for
her business. I started working with her earlier this year, helping
organize her client database, managing vendors, developing
presentations and organizing financial data. Since then, she has been
able to focus more time on expanding her practice, and is now able to
spend more time with her clients. We continue to have a strong and
productive working relationship.
Another client of mine, also a busy entrepreneur, needed help with
various projects including updating his website on a monthly basis.
After getting to know his business I've been able to take on the
website updates each month, along with many other projects. This has
allowed him more time to focus on developing his business.
I hope this article has provided you with some insight into the
experience of starting a small business. For more information on
executive and leadership coaching, or to learn how a virtual assistant
could benefit your business please contact Randy Goruk or Kara Rosner.


About The Author

Randy Goruk is the President of The Randall Wade Group - a leadership
development company with a North American client base.

Mr. Goruk is a leadership coach, trainer, consultant, author and key
note speaker on leadership related topics. More can be learned at his
website: http://www.randallwade.com.

Rich Vs. Wealthy - An Explanation of the Difference Between Rich Vs. Wealthy

by: F Micheal Bridges

Over the last several months I've noticed quite a lot of chatter on
the internet regarding the "differences" between being RICH vs.
WEALTHY so I thought I'd weigh in with a few thoughts of my own
especially since I promote wealth building not building riches.

For the purposes of this article we will not be talking about
emotional or spiritual wealth, though they are certainly important.
Those are entirely different topics and warrant their own discussion.

So do you want to be rich or wealthy and is there really a difference?
I must preference this discussion by stating that it is certainly
better to be either of them than neither of them. With that said, we
will first want to get a rough idea of what the two definitions mean
so let's pull out the old dictionary. "The Lexicon Webster Dictionary"
defines "rich" as having abundant material possessions; well supplied;
abounding; producing abundantly; productive; wealthy.

Well that didn't really clarify the definition for me so let's look up
"wealthy". The same dictionary defines "wealthy" as having wealth;
affluent; opulent; ample; material possessions in all their variety;
"a collective term for riches." It appears that Mr. Webster didn't
have a firm grasp on the differences either.

OK, I guess the differences are in the "eye of the beholder" so to
speak. So let's try to define them ourselves. First think about being
rich. Imagine that you wake up tomorrow, your wish was granted and you
are now among the "newly rich". What images immediately come to mind?
Next take just a moment to jot down what being rich would mean to you.
Would it mean a new car, bigger house, a boat, long vacations?

Now repeat these two steps but this time your genie was very good to
you and "poof" now you wake up "wealthy". Did you upgrade your list of
material things? This time instead of thinking about a new car were
you imaging a Ferrari, Bentley or Lamborghini? And the bigger house is
now a mansion and the vacations are now on your yacht aren't they?

Sustaining your riches makes you wealthy.

Now comes the most important question, the one that I believe really
distinguishes the rich from wealthy. Was your wealth sustainable? Did
you still see yourself on that yacht in your "golden" years? Wealth is
sustainable. Wealth can endure for generations. Rather than working
for their money wealthy people know how to make their money work for
them.

Being Rich is a very good thing but when you stop working for the
money you will eventually run out of it unless you have studied the
"science" of making your money work for you. With the right
investments your money can work for you 24 hours a day, 7 days per
week. When you learn to make your money work harder for you than you
work for it, you will be well on your way to becoming wealthy.

The Invest To Retire website promotes your wealth building education
rather than an education in building riches. Riches can often be
fleeting. As a familiar example, it is widely reported that 7 out of
10 lottery winners are bankrupt within a few short years after they
win. Remember that all 10 were "rich" but 70% didn't know how to stay
that way. They didn't understand or perhaps even care to learn how to
turn their riches into long term wealth.

Let's assume that the day before you woke up "rich" you were within
the average of American households earning a salary of around $43,000
annually. Chances are that you may consider a $1,000,000 lottery
jackpot as being rich. Would you quit your job?

In order to maintain your current average income of $43,000 per year,
your $1 million jackpot would be depleted in 23 years. Remember, a
majority of lottery winners are flat broke within a few years after
winning. Assuming you did not change your lifestyle or spending
habits, you'd have 23 years of "income" at the same level you're used
to.

Twenty three years may seem like a long time, but if you hit the
jackpot in your early twenties, you'll be out of money by age 50.
Still thinking of quitting your job? Probably not.

So, what does it take to maintain the same $43,000 per year, allow you
to quit your job, and still be able to keep $1 million for posterity?
The simple answer is investing your windfall and earning compound
interest on your investments. A modest 4.3% will keep you at your
current income level (before taxes), allow you to quit your job and be
able to maintain $1 million. The most important thing to remember is
that the $1 million drives your interest earnings and you'll never
want to tap into that principal.

But, who wins the lottery and just wants to maintain their current
lifestyle? I'm willing to bet its not you.

If you want to double your current income, quit your job and maintain
that $1 million, you'll have to earn a consistent 9% on your
principal. Again, the difference between being rich and wealthy is
sustainability. Without sustaining your principal, you'll be rich but
not wealthy and your riches will surely deplete to nothing.

Odds are that you won't win the lottery or even inherit a large sum of
money. No worries, though, you can still amass wealth starting with
what you currently have.

Just like when you were a baby you had to crawl before you could walk,
the same is true with investing. You will need to educate yourself
about the basics of making investments that produce safe, secure,
consistent returns, making your investments work for you. Remember the
proverb: "Give a man a fish and you feed him for a day. Teach a man to
fish and you feed him for a lifetime". Nowhere does this hold truer
than with building your wealth.

Even if you are not currently a high income earner you can become rich
in a relatively short time if you actually implement investing
strategies that produce high and consistent returns on your
investments. And if you learn to mange your investments to make them
work for you, you will be on your way to becoming wealthy.

Being rich is a function of how much you earn. Don't confuse being
rich with earning a high income but at the same time drowning in debt.
Becoming rich requires the knowledge to make money or in some cases
luck. Becoming wealthy requires the knowledge to use that money to
make even more.

Recently I heard a straight forward definition of rich vs. wealthy
that I like. It was defined as "a pro athlete is rich and the guy that
signs his check (team owner) is wealthy". I sort of think of Wealthy
as Rich on steroids.

About The Author

There is definitely a difference in the two meanings and I get into
more details of create wealth at my website, Invest To Retire.

Please visit the site http://www.investtoretire.net for instant access
to additional wealth building tips, techniques and secrets.

Mike Bridges
Invest To Retire