Owning business in Singapore while on H1B in USA

[vaibhaviit2002]

Hi,

I am on H1B in USA. I want to start a business so can someone please let me know if any of the follwing options are legal while working in USA on H1B:

(I will keep a SG resident as Director as that is SG requirement. Let's not worry about SG requirements for now.)
1. Own a firm in Singapore on my name. I wont work for that firm but will be legal owner and majority Shareholder (e.g. 70%).
2. Open a firm on the name of Singapore resident and just become a passive investor. I believe I can do this but in this case, can the SG resident owner have just 1-2% share and I hold let say 70% (rest share will be owned by my other partner who is in USA on H1B).

Questions
a. In either of above two options, do I have to pay taxes on profit in USA, given that I would pay tax in SG.
b. In India, it is now illegal for an Indian resident to register a firm in SG when living in India(to avoid high Indian taxes). I believe I dont have to worry as I am NRI in USA. Does this sounds correct?

I appreciate all help.
Thanks

[raghvi]

Hi,

I am on H1B in USA. I want to start a business so can someone please let me know if any of the follwing options are legal while working in USA on H1B:

(I will keep a SG resident as Director as that is SG requirement. Let's not worry about SG requirements for now.)
1. Own a firm in Singapore on my name. I wont work for that firm but will be legal owner and majority Shareholder (e.g. 70%).
2. Open a firm on the name of Singapore resident and just become a passive investor. I believe I can do this but in this case, can the SG resident owner have just 1-2% share and I hold let say 70% (rest share will be owned by my other partner who is in USA on H1B).

Questions
a. In either of above two options, do I have to pay taxes on profit in USA, given that I would pay tax in SG.
b. In India, it is now illegal for an Indian resident to register a firm in SG when living in India(to avoid high Indian taxes). I believe I dont have to worry as I am NRI in USA. Does this sounds correct?

I appreciate all help.
Thanks

I dont think there is double tax avoidance treaty between Singapore and USA. When you are resident of USA (for taxable purposes) your global income is generally declared and taxed in US. I would advise you seek expert help from a international tax expert who can also advise you on being a passive investor while on H1.

This is my opinion not legal advice.