[Corporate Legal Affairs / M&A]Review and advisory services for the establishment of a Singaporean holding company for cryptocurrency platform E Company.

Law firm So & So's attorneys Choi Ji-hyun and Lee Sang-ho conducted a task to review the legality of E Company's subsidiary structure and subsequently establish a holding company in Singapore to stabilize and enhance the efficiency of E Company's management and governance structure.

Singapore offers various advantages for establishing a holding company, including: 

1) No capital gains tax on the disposal of shares or real estate held for long-term ownership,

2) Maintaining a low fixed corporate tax rate of 17%, and

3) Exemption from tax on dividend income.

Additionally, Singapore maintains a very favorable policy stance towards the cryptocurrency industry, often touting itself as a safe hub for cryptocurrency trading. While Singaporean law prohibits money laundering and the circulation of terrorist funds through cryptocurrencies, it generally does not intervene when cryptocurrencies are traded for investment purposes.

Many cryptocurrency-related companies have chosen to establish their headquarters or holding companies in Singapore in recent years, recognizing its favorable business environment. Recently, countries like Vietnam, Malta, and the British Virgin Islands have also garnered attention as alternative options to Singapore.

If you are considering establishing a holding company overseas or exploring options to stabilize and streamline your corporate governance structure, it is recommended to seek the assistance of experienced professionals to review and devise legal and secure solutions.