Compliance Tips for New Company Incorporation Singapore
The start-up entrepreneurs, after opting for a company incorporation Singapore, faces a certain amount of risk. Of course, it is not a life-threatening one, but still, if things didn’t work out as they expected them to, they stand to lose their money, time, and most importantly, the initiative they have shown in opening their company in Singapore.
On the other hand, we keep on hearing about so many start-ups doing well and growing in leaps and bounds. The life of the owners of these newbie enterprises suddenly gets filled with the challenges to keep their business afloat in the face of stiff competition.
Ideally, an entrepreneur should find a business niche where the competition is minimal. However, it cannot be the case with each incorporation of a company in Singapore. If their company incorporation Singapore was in a saturated market such as F&B then, they have to work double time just to make themselves stand out in the crowd. It is a time when they could lose their focus on the compliance requirements of their business.
Dealing with Regulatory Filings
Each company in Singapore has to be prompt with its regulatory filings mandated by the governing authorities. They have to appoint a company secretary to look after the task. However some of the businesses, rather than investing in a full-time employee, choose to appoint one of the Singapore corporate services like SBS Consulting as their nominee company secretary.
These services assist their clients with a wide variety of compliance issues like the Singapore company registration, holding its annual general meetings, timely submission of company’s annual returns. Their task also involves informing ACRA (Accounting and Corporate Regulatory Authority) of changes in the directors and shareholder.
Dealing with the regulatory filings of your company on a DIY basis is not an easy task even with a SingPass ID. Some tasks can only be done by the corporate services using their Professional Numbers.
Managing Your Books of Accounts
At the end of its financial year, each company in Singapore needs to prepare and file its financial statements. For it to happen accurately, they need to pay careful attention to their bookkeeping. Bookkeeping involves the recording of each and every business transaction of the business.
Bookkeeping also means safekeeping of supporting documents like receipts, invoices, investment documents and payroll. Accountants use these documents to prepare the financial statements of the business. Filing of these statements is a necessary part of the compliance of a business.
However, it is not the only reason a business should prepare them. These statements also reveal the cash flow and the financial health of the business. The current market trend is to outsource the accounting function to an experienced Singapore accounting service and let its experts worry about the business’ compliance.
Be Prompt with Your Taxes
Singapore taxation system is highly favorable to the startup companies. It is one of the reasons why entrepreneurs choose Singapore company incorporation.
A startup with earning below S$100000 do not have to pay any corporate tax for first three years. For the earning between S$100001- S$300000, it has to pay 8.5% of tax and for the earning above S$300000, the tax rate is 17%.
Singapore corporate tax is a single-tier tax. After paying its corporate tax, a company is free to disburse dividend to its shareholders. In Singapore, the dividends are considered as the capital gain and are not taxed.
Singapore authorities try to lessen the financial burden on the businesses. Even existing businesses in Singapore gets a tax rebate. For the year of assessment 2016 and 2017, the corporate income tax rebate is pegged at 50% (capped at $20,000 for each YA).
Singapore is popular as a business hub because of its simple rules for business operations and streamlined processes for complying with them. For the last 2 decades, Singapore has acted as a magnet to the business people opting for a company incorporation Singapore. And, these individuals were not disappointed as they benefited from easy access to capital, pro-business and infrastructurally advanced work environment that is conducive to their activities.
SBS Consulting Pte Ltd.
Address: High Street Centre,#17–02,
1 North Bridge Road,
179094 — Singapore
Phone: (65) 6536 0036