Start A Singapore Company: Guidelines and Benefits

Located at the junction of east and west, Singapore is an excellent business nation to live, work, study, and play. The South East Asian nation is one of the easiest places to do business and considered as a biggest financial center in the world. As a leading business nation, it facilitates a perfect business set up location for incorporation of company in Singapore. What makes it more attractive is Singapore company registration procedure for an offshore business. The process of business formation in the country is relatively quick and easy than any other nation in the world. Furthermore, few other factors like stable political system, liberal policies, protective laws, state-of the-art infrastructure make the nation more favorable for business. 

Guidelines for incorporation of company in Singapore:

·         Private Ltd. Company is the most common business entity in Singapore, others being Sole Proprietorship and Partnership. The former has a separate legal status from its directors and shareholders who have limited liabilities for the debts and losses of the company.

·         In order to start a Singapore company, you must be of 18 years age or above.

·         It is mandatory to apply for an EntrePass for those who would like to relocate to Singapore in order to engage in their business operation.

·         The company owner must not have any previous record of malpractices or bankruptcy.

·         Singapore company registration starts with name approval process and complete with the issue of company registration certificate.

·         In private ltd. company, appointment of a local resident director is necessary. Local resident defined as Singapore local resident or permanent resident of Singapore. Holder of EntrPass, Employment Pass, or Dependent Pass can also appoint as local resident director. There is no limitation on the number of directors of a company.  

·         At least one shareholder (irrespective of nationality) has to appoint before Singapore Company Registration. The maximum number of shareholder is 50. A director can also be a shareholder. A shareholder can be a person, business, or entity.

·         Appointment of a company secretary within 6 month of company incorporation is mandatory.

·         Getting a registered address for business incorporation in Singapore is also essential. The address must be physical one but not a PO Box address.

·         The minimum authorized share of capital to start a company in Singapore is S$1.

·         This is the most attractive part to open a company in Singapore as there is no prior investment required for share capital to commence business in Singapore.

Benefits of incorporating a company in Singapore:

·         Singapore’s government encouraged the foreign talent and investors to visit and set up business there and its immigration law is least restrictive in the world. It facilitates an easy access to country.

·         A Singapore company benefits from wide range of free trade agreements and double taxation agreements with over 60 countries.

·         A company registered in Singapore is effectively exempt from taxation of profits earned outside the country.

·         The country is regarded as ‘tax haven’ where tax rate is very competitive and low. Tax structure comes up with a series of tax benefits, allowance, tax incentives such as tax exemption for start-up, partial tax exemption, single tier tax system etc.

·         An annual financial audit is only requires for companies with an annual turnover of S$5 million and above or if corporate shareholder involve.

·         The country has implemented a very strong and protective law on intellectual properties (global trademark, copyright or any other trademarks) of the corporate organizations.

·         In terms of infrastructure and technological development, Singapore is in the top three countries in the world. It provides a effective business environment

·         The official language of Singapore is English and hence, reduces the chance of communication barrier in business.

Singapore company incorporation is an attractive vehicle for foreign business investors from across the globe. 

The Importance of Accounting Services

Money matters the most for every business organization. The concept of huge profit and no loss is undoubtedly the main objective for any business organization. It can be achieve only if a company maintains a cost effective and updated accounting system.  The core functions involve in an accounting services are handling accounts, cash flow management, ledger maintenance, payroll and tax planning, business transactions and other related financial details.

Since accounting includes monetary aspects, it affects the business in a tremendous way. An accounting report can disseminates the information necessary to determine the beneficial business decision.  Additionally, it can figure out the overview of financial position of your business at present and can assume its future prospective. At the end of financial year, a certified accountant of an organization is responsible to present two financial reports including balance sheet and profit and loss account.

Importance of accounting services for business is immense. It is impossible to think of a business without having proper record of accounts. As business grows and expand, calculating and managing financial task become complex. Without an effective accounting system, a company may face many difficulties in managing entire accounting jobs including bookkeeping, payroll processing and back office transactions, etc. it is wise to avoid all these hassles by appointing an efficient accounting service provider.

Reasons for why accounting services are important stated below:

• It maintains a systematic, updated, and accurate financial record of an organization.
• It allows the business owner to own a sound financial management.
• Business owner can evaluate its level of profit and loss in a timely manner. It helps the owner to determine the weak areas so that they can put more efforts in those.
•  A minute mistake can cause huge loss, an expert accounting service provider will take care of all financial need of a company.
• It provides true picture of an organization’s financial structure.
• Corporate tax return is another vital role of accounting services. It smart strategies can sometime enable the owner to pay less tax and helps in qualifying tax refund.    
• This service can help in reducing recurrent cost by identifying the areas where one can make maximum savings. As a result, add more to the revenue.
• It saves you from maintaining a poor financial record, which is a main reason for unsuccessful business.
• Accounting services enhance your ability to make sound business decision. 

Accounting services require high level of concentration, time consumption, and efforts and involve various functions such as handling accounts, business transactions and other related financial details. Spending too much time and resource in-house can hamper the growth of the business. In this case, availing outsources accounting services would be a highly profitable for the companies.

Outsourcing accounting service is becoming a trend for modern day business owners. They are doing so because hiring an outsourced accounting company is more beneficial than appointing a full time in-house accountant.

Voluntary and Mandatory Audit in Singapore

The Singapore companies act has made it mandatory for a registered company to get their financial accounts audited as and when required. Carrying out auditing for a company involves evaluating a person, system, process or product of an organization. Auditing is independently and systematically scrutinizing statements, records, data, and performance of an organization.

Singapore incorporated company owner may have the query when to appoint an auditor? If a company is not exempted from audits needs is required to appoint an auditor within 3 month of company formation in Singapore. Now, the question pops up, which companies are exempted to carry auditing of their financial transactions in Singapore? The Singapore companies Act exempts those companies from carrying out audit

·        Who have less than 20 shareholders unless the company is private limited

·         If there is no corporate shareholder

·         If the annual turnover is not exceeding S$5 million and

·         If it is a dormant company.
      Dormant companies are those who have not started any business since their inception.

Singapore is lenient enough and has exempted many private companies to undergo auditing. The Accounting and Corporate Regulatory Authority (ACRA) of Singapore and the Ministry of Finance (MOF) of Singapore have proposed changes in the companies act in June 2011. The two governing bodies have recommended practicing small company system by differentiating statutory financial reporting requirement for private companies. They have proposed three points; out of which if two are applicable a company is exempted of practicing audit:

·         Total annual revenue should not exceed S$10 million

·         Total gross assets should not exceed S$10 million

·         Total number of employees should not exceed 50

According to ACRA, around 70% of private companies are exempted of audit in Singapore. Some small companies still practice auditing for their financial transaction for the sole purpose of obtaining credit facilities externally.

Audited reports are used by potential stakeholders to determine the financial status of the company useful in providing assessment for loan or credit facilities to the company.

If a company chooses voluntary audit it positively signals about its authenticity and genuineness. A lender takes in account the trustworthiness of the company for auditing its financial transactions voluntarily. 

Companies experience an improvement in their credit ratings if they continue with voluntary auditing in consecutive years. Those companies are not affected by the changes happened within the organizations such as change in size or change in performance. Those companies who are neither imposed auditing nor opted for voluntary auditing suffer low credit ratings.

Steps to Choose Accountant in Singapore

Charles Darwin’s theory ‘Survival of the fittest’ is apt in business scenario. A business is survived when it is fittest among all. There are innumerable roles one has to perform in order to run a company starting from scheduling meetings with clients and attending them, promoting company’s name, looking into production and quality of services, and handling HR and payroll. One of the mandatory functions is to manage accounts and bookkeeping. It is necessary to keep a proper record of the financial transactions of a running business. Instead of taking the responsibility of looking into accounts as well when the hands are already full with other ‘goodies’, it is a wise decision to take help of professional accountants who are more qualified and can keep account books in good shape. This step ensures more quality time spent in making effective strategies for the growth and development of the company. There is innumerable accounting services providers in Singapore, but who to choose is a big question. There are certain qualities to be looked for when appointing a Singapore accountant.

•  Does the Singapore accountant cover the services you require?While hunting for assisting hands for Singapore accounting services, select those who are able to handle all your accounts requirements. For example, who can keep a track on income, expenses liabilities and assets. You can rely on those who can willingly involve themselves in your business planning and can honestly guide you for tax planning. Those, who prepare cash flow statements and financial plans, who review and implement accounting system, those who facilitate auditing that includes preparation and management of financial statements, looking for bank reconciliation and group consolidation and making annual reports.

• Is the Singapore accountant authentic and genuine?
  Check the authenticity before selecting a Singapore accountant than to regret later. Ask for the number, how long he or she has been in the market? How many clients served? Get the feedback from existing clients, and what is the quality of work provided? Carry the qualifications check thoroughly at your end. 

• Is the Singapore accountant accessible whenever required?Look for the accessibility and availability of your Singapore accounting services provider whenever there is a need to do so. The accounts manager should be responsible to sort you’re your queries whenever there is an issue and should work with you with equal devotion. He should promptly answer all the emails and phone calls forwarded by you.

• Is the Singapore accountant cost efficient?
  The Singapore accountant should furnish a concise and clean quote for the services he has provided. There should be transparency involved in billing. There should be no hidden cost involved for the services. 

•  Does the Singapore accountant provide sincere and honest advice?The accountant should not only look after your accounting needs but should provide you a clear picture of the financial health of your business, which in turn will give you the opportunity to plan for your business accordingly.

An Independent Company to Help You Start Your Own

Starting a business can be tough. Aside from the monetary investment you have to put into it, a pile of paper works to tackle on, things to do, things to procure, meetings with business partners and with concern agencies that has to be attended and so many more could really drain you. A good manager should be on top of all the business ventures and transactions and has to do an actual hands-on work with it. But with all the tasks that have to be done in completing a Singapore company registration, any manager would definitely need a hand just to get a business started.

 

Good thing there are companies these days that are made just to help businessmen who is just starting a business to get into their foot and run the corporation in almost no time. This company understands that it is never easy to register a Singapore company.

Applying for Singapore business registration requires any business company to have an annual audit to clear the finances in your company. This is also relevant so that your business would have a transparent transaction with the government to avoid any illegal transactions that may lead to business closures. To register a Singapore company it requires this in order to have a smooth and flawless run in the business. This prerequisite is very essential though this also adds another burden in the administrative part. However this independent company that is ready to help you out with this task.

In getting this company’s services not only that your task will be lessened but it also provides the accuracy and efficiency your company needs. In any Singapore company registration one of the most important factors is to protect the owner’s and shareholder’s investment through a well planned business plan and precise execution. With this the company relieves you from a burden of one task that leads you to focus on other things that really needs your utmost attention.

Singapore business registration requires only one business director and 1 shareholder but it can be the same person. He or she should be a Natural Person of Full capacity, aging 18 years old and above. There must also be Singaporean citizen with a Singapore Permanent residency or an Entrepreneurial pass that should be involved in the business.

One must keep in mind all these so that your Singapore business registration would be successful done.