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How to Choose Your Singapore Business’ Shareholder Structure

The business structure you choose influences everything from day-to-day operations to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits

Singapore is a premier business hub in the region, offering robust economic and financial fundamentals bolstered by the stable socio-political environment.

Foreigners incorporating in Singapore must engage the services of a corporate service provider to register a Singapore company. Even local entrepreneurs are advised to do the same as they may not be fully familiar with the Singapore company law and compliance requirements.

Check out these important steps that will help you to find the right structure!

Back to Basics

Gathering the basic information about shares and their holders would set you on the right track. There are ordinary and preference shares, and they both offer different rights and responsibilities. Each company has total freedom in choosing the desired Singapore business shareholder structure, as long as it suits the your business’ profile.  

Splitting the Pie with Your Shareholders

The first obstacle to conquer is how to divide the shares between the company founders. Naturally, the CEO should get a bigger percentage. That will give them a larger portion of shares but this would also require them to manage the company on a daily basis.

An alternative approach is to decide based on the capital invested. The person who invested the most would receive the most shares. It’s also possible to discuss with the major investors. For example, if they do not want to participate in daily management, preference shares are a smart choice. They secure the desired profit distribution priority but not the same voting rights.

Read more on how you will be able to select the right business structure for your business at this Singapore Company Incorporation blog.

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Reasons Your Businesses Should Expand amidst Pandemic

If you’re thinking that this pandemic means it’s not a good time for businesses to expand or go global ---- well, think again. You might be missing a good opportunity to widen your reach and make your business an international.

The pandemic has led to certain constraints, especially on cross-border travel, but it has also given rise to new ways of doing business. And support for internationalisation, whether from the government or industry partners, is as present as ever.

And when going global, it’s a good move if you consider Singapore to be your first country to start a business. Singapore is an attractive place for expanding your company, with its excellent geographic location and connection to the rest of the Asian and global markets. Its strong economy makes expanding business in Singapore an excellent strategic move.

The Economy Is Thriving

Reports from the World Bank demonstrate how Singapore changed in the last 50 years, transforming from a nation with poor infrastructure into a high-income economy and a truly global hub in the last half-century. The country has a thriving economy with steady growth.

Inflation and unemployment rates are low, and there are even foreign investment programs. That means expansion need not be a significant drain on your budget and resources, as the Singapore Government provides financial and other assistance to welcome you to start your business into the Singaporean market.

Minimal Corruption and Favorable Taxes

Singapore does not have a capital gains tax, and the 17% flat corporate tax is extremely competitive globally. In addition to the low taxes, Singapore Business also benefit from other start-up incentives and tax reliefs.

It’s worth noting that the corruption is also minimal. Not only are bribes subject to harsh penalties by the local laws, but most employees have satisfactory working conditions.

Read more on why businesses should expand into Singapore during the pandemic art this Singapore Company Incorporation blog.

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Things To Look Out For When Doing a Singapore Business Search

If you are a company owner in Singapore intending to enter into an important transaction with another corporation or business entity, you may wish to conduct a check on your counterparty’s legitimacy first.

The importance of doing a Singapore business search and verifying a corporation cannot be overstated. Like how employers run background checks on potential workers, it is crucial to run a Singapore entity search to investigate the legitimacy of possible partners that you might work with.

Why Perform Background Checks on the Counterparty?

It is vital to conduct preliminary checks on your counterparty before transacting with them. This is to be safe as some businesses may be unreliable such that they do not perform their obligations, whether these are contractual or otherwise.

Or worse, the business may be fraudulent or have the intention to use the transaction as a vehicle for money laundering or other illegal activities. These may lead to serious economic and reputational losses for your business.

6 Things To Consider When Doing a Singapore Business Search

Once you have used the Singapore business name search tool and performed your Singapore entity search online, here are 6 things you should look out for:

1. Company Status

This metric indicates whether the company is fully operating or has ceased its operations. The ‘live’ status highlights if the company is actively operational and existing. All registered Singapore businesses are required to update their company status on a regular basis, and failure to do so is a warning sign you should not overlook when doing your Singapore business entity search.

2. Industry

The existence of a significant number of distinct types of business activities is an alarming sign you should look out for when doing Singapore entity search.

Check out more information on what are the things you must check when checking the background of a company at this Singapore Company Incorporation blog.

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Things You Need to Know About Singapore’s New Work Pass: Tech Pass

The Singapore Government is really serious in developing its country’s reputation as a tech hub in Asia. The country aims to compete to the Silicon Valley in the US.

The country has developed a lot of programmes and strategies that are being implemented to support Singapore’s tech ecosystem, boost the talent pool, and make the country more attractive for global tech professionals to relocate, launch their venture, and pursue their dreams.

Part of that is where the government of Singapore issued a new work permit known as Tech Pass that was designed to attract highly accomplished experts, entrepreneurs, and business leaders. This Singapore Tech.Pass is intended to recruit foreign expertise to the lion city’s rapidly growing tech industry. In this article, we take a look at this pass and how you can kickstart your career in one of the most fascinating tech hotspots in the world.

What are the benefits afforded to Singapore Tech.Pass holders?

One major advantage that is afforded to Singapore Tech.Pass holders is that they are provided with a higher degree of flexibility. The pass is valid for up to 2 years, therefore during the period, its holders are permitted to engage in a wide range of activities such as:

Running or even starting up a tech company within Singapore.

Working as a director within one or more tech companies within Singapore

Being able to invest in one or more companies based in Singapore.

Working as an employee at any time within those two years  in one or more companies based in Singapore

Conducting corporate workshops or training

Conducting lectures within institutes of higher learning in Singapore

Read more about getting a Tech.Pass in Singapore at this Singapore Company Incorporation blog.

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Corporate Tax Incentives by Industry in Singapore

Singapore Government understands their country’s business scene so they provide several incentives to promote entrepreneurship. In collaboration with the Inland Revenue Authority of Singapore (IRAS) which is the tax authority of Singapore, it has implemented tax reduction schemes targeted at businesses, especially SMEs in Singapore. 

Entrepreneurs setting up in Singapore are eligible for various tax incentives if their business is deemed beneficial to the country’s economic development.

However, tax incentive applicants must fulfil rigorous requirements, which include committing to certain levels of investments, introducing leading-edge skills, technology, as well as contributing to the growth of research and development and innovation capabilities.

Given the diverse tax incentives made available, foreign investors should consult registered local tax advisors to determine which incentives will be applicable to them and their sector.

Below is a list of the various corporate tax incentives that you as a business owner may be eligible for.

Manufacturing and Services Industry

Banks and Insurers

Research, Development, and Innovation

Trading Industry

Maritime Industry

Learn more about Singapore Corporate Tax Incentives by Industry at this Singapore Company Incorporation blog.

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Things to Accomplish After Incorporation of Your Singapore Company

Remember this: Once you have done incorporating a company in Singapore, your job is not yet doine. After incorporation, there are a number of tasks that a new company has to complete before it can start operating. Some of the tasks are linked to regulations, such as buying a company seal, setting up statutory books, and registering for taxes and licenses.

The other tasks relate to the nitty-gritty of commencing business operations, such as opening a bank account, setting up an office and sorting out insurance, etc.

However, right after forming your company, you need to take care of a set of post-incorporation tasks. They are listed as follows:

1. Decide on your company’s Financial Year End

You will be required to file various annual reports with IRAS and the Accounting and Corporate Regulatory Authority on a yearly basis. The dates and deadlines for filing these reports will be determined by your company’s financial year end (FYE).

Your FYE will have a direct impact on the following tasks:

Filing Estimated Chargeable Income (ECI),

Submitting Annual reports, and

Holding the Annual General Meeting.

You may select any date for your FYE. Some of the more popular choices for many businesses in Singapore are

31st of March,

30th of June,

30th of September,

31st of December (most common).

You will select your FYE on the same day you incorporate with us. We will advise you on the most appropriate FYE for your company taking into consideration the corporate tax exemptions and benefits your company may be eligible for.

Learn more about the things you need to do after incorporating a Singapore company at this Singapore Company Incorporation blog.

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Learn How to Scale Your Business with these 4 Steps

Now, you’ve made the decision to grow your business – that’s nice! Prepare for the next challenge then:  how to scale your business for growth. Even if you manage to sell like crazy, you’ll soon have another problem: you have to be able to deliver to all those new customers.

Scalability is about capacity and capability.  Does your business have the capacity to grow? Will your business systems, infrastructure and team be able to accommodate growth?

Too many entrepreneurs believe they just need ‘more awareness’ to ace business success, when in fact, they have nothing of value to bring to the market in the first place.

You will find that most entrepreneurs focus on maintaining, rather than growing. They want to make just enough to cover the operating costs and have a little money left to put into their personal bank account. This type of mind-set stifles growth because it makes you avoid taking risks and forgo taking on challenges that pull you out of your comfort zone. But the only way your business will grow is by you stretching yourself beyond the confines of mediocrity.

We have put together 4 steps that will help you scale your business and grow your venture beyond its current operations.

1) Make growth the goal

You would be surprised to learn how many people are just “okay” with having a business, even if that business is not considered successful. It is as if being called an “entrepreneur” is enough for them. For these individuals, there is no plan in place to build a business that works for them. If you constantly find yourself in a desperate search for new customers to make ends meet every month, your business is not set up for success. In this scenario, your business will fail sooner than later if you do not get your act together.

For some reason, a lot of entrepreneurs are afraid to grow. This is probably because growth requires you to be more aggressive in marketing and sales tactics. This means actively promoting your services to everyone you meet and raising your prices. These are two things most entrepreneurs shy away from because they don’t want to come off as pushy or greedy. But no one will know your business exists if you are not advertising it every chance you get. And you cannot pay your business expenses or living expenses if you are losing money operating your business.

You must create a plan of action that focuses on a strategy that promotes business growth. If you do not make the idea of growth an obsession, you will remain content with just getting by. This is why you must set weekly, monthly, and yearly goals. By doing this, it will help you remain persistent in taking your business to a new level. Once you make your first $100,000, you will want to make another $500,000, and then $1,000,000. You want to keep striving for the best. As such, you will never allow mediocrity to take root in your business. Because when this occurs, you are only one step away from failure.

Learn more how to scale your business at this Singapore Company Incorporation blog.

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Foreigner’s Guide to Establishing a Singapore Company

World Bank recognizes Singapore as the world's best place to do business. More than 60,000 new companies are registered every year in the country, according to statistics from the ACRA (Accounting and Corporate Regulatory Authority). 

How to register a company? Here are the easy steps:

1) Registering a Company with Employment Pass (EP)

A entrepreneur from other countries can incorporate a Singapore private limited company using our company incorporation services, which include a resident director (nominee director on a temporary-basis), locally resident company secretary, and local physical office address requirements.

After the company incorporation is completed, we can apply for your Employment Pass (EP). Once the application is approved by the Ministry of Manpower, you (the foreign entrepreneur) can relocate to Singapore and take care of your business. Then, our temporary nominee resident directorship ceases and you can take over as the company’s sole director.

How to qualify for an Employment Pass in Singapore

To be eligible for the Employment Pass in Singapore upon registering a company, you must:

Earn at least S$8,000 as fixed monthly salary

Possess acceptable qualifications from reputed and good universities, or some much-in-demand specialised skills.

Be either a CEO, CFO, Managing director etc.

In SG, an employer or authorised third party has to apply for a candidate’s Employment Pass, not the candidates themselves. Moreover, if you are an overseas employer with no registered office in Singapore:

A Singapore-registered company can act as a local sponsor and apply on your behalf.

The local sponsor must submit the application.

2) Register a Company with EntrePass

Here, a foreign entrepreneur, who wants to carry out business and form a company in Singapore, can apply for an Entrepreneur Pass (EntrePass) to the Ministry of Manpower (MOM). Foreign entrepreneurs, who are eligible, can apply for the EntrePass before incorporating a Singapore company with ACRA – Accounting and Corporate Regulatory Authority which is Singapore’s national regulator of business entities –  or within six months after incorporating a company with ACRA.

Learn more about the ways you can consider to register a company in Singapore at this Singapore Company Incorporation blog.

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Why SG is the #1 location in Asia to Start a Company

The emerging markets of India, China, and other Southeast Asian nations including Vietnam, Thailand, Malaysia, and Indonesia, mean that an ever-increasing number of companies are relocating in this region.

Here standing firm on the three pillars of a business-friendly environment and supportive government policies; a diverse talent pool with the right expertise; and access to fast-growing markets in and around; Singapore has the most conducive environment for companies looking to relocate and start a company.

It is indeed, as Singapore’s Economic Development Board calls the country – “the best home in Asia for your business”.  

Excellent global connectivity due to Singapore’s great strategic location

Singapore is home to the world’s top companies across all industries, in part, due to its location in the heart of Southeast Asia. Singapore’s strategic location – within a six-hour radius of any Southeast Asian country – means it is an ideal hub to access the region and its growing consumer market.

It is the 2nd most globally connected country, with over 7,400 flights to and from the Changi Airport weekly. Regularly ranked as the world’s best airport, it serves more than 100 airlines flying to about 100 countries and territories globally, along with hosting many leading logistics firms such as UPS and FedEx. Over 62 million passengers use the airport every year.

Additionally, Singapore’s sea-port infrastructure has been ranked the best in Asia for the past two decades. The city links to more than 600 ports globally, with 200 shipping lines passing through Singapore. Annually, more than 130,000 ships call at Singapore.

No wonder, in a worldwide survey of global freight forwarders and express carriers, the Logistics Performance Index – a benchmarking tool developed by the World Bank, rated Singapore as the top in Asia for logistics performance.

Check out more reasons why Singapore is the #1 location in Asia to Set Up Company at this Singapore Company Incorporation blog.

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Everything You Need To Know About Registering a Singapore Company

Singapore’s top financial centre, with robust IP protection, ample availability of funding, a thriving start-up ecosystem, a business-friendly regulatory environment, and a very attractive corporate taxation framework are some of the reasons why foreigners want to register a Singapore company.

Types of Business Entities in Singapore

Among the business entities available in Singapore, you can choose from these five – sole-proprietorship, partnership, limited partnership, limited liability partnership, and private limited company. Here the private limited company is the most common and flexible business entity, considered a separate legal entity, and is limited by shares.

To incorporate a company in Singapore, the minimum requirements include:

at least 1 shareholder; can be a person or a corporate entity

1 local resident director; he or she may be a Singapore citizen or a permanent resident, a holder of an employment pass or a dependant pass

1 company secretary who is resident in Singapore

initial paid-up capital of at least S$1, or its equivalent in any major international currency

a physical registered office address in Singapore; PO Boxes are not allowed

Notably, a foreign entrepreneur can register a company in Singapore by either:

relocating to Singapore with a work visa OR

without relocating, and choosing our nominee resident director service.

We discuss all the three options in detail below.

1) Incorporate a Singapore Company with Employment Pass

Here, a foreign entrepreneur can incorporate a Singapore private limited company using our company incorporation services, which include a resident director (nominee director on a temporary-basis), locally resident company secretary, and local physical office address requirements.

After the company incorporation is completed, we can apply for your Employment Pass (EP). Once the application is approved by the Ministry of Manpower, you (the foreign entrepreneur) can relocate to Singapore and take care of your business. Then, our temporary nominee resident directorship ceases and you can take over as the company’s sole director.

Learn more on how to register a Singapore Company at this Singapore Company Incorporation blog.

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The Components of Incorporating a Company in Singapore

Incorporating a business in Singapore is easy, but it’s not enough to have just a great business idea. You first need to get your company registered to bring you that much closer to your dream of running your own show.

Before you can have an incorporated company of your own, you’ll need to make sure that you have the following elements of business incorporation in Singapore sorted. Just like cooking is made easier when you have all ingredients at arm’s reach; similarly, the process of incorporating your company can be a breeze if you have thought through these 8 items.

Important Things for Easy Business Incorporation

1) Company name

What would you like to call your company? Other than being unique and memorable, you should also check your ideal company name against ACRA’s guidelines for a company name and make sure that it hasn’t been taken up yet.

2) Registered mailing address

No, a P.O. Box won’t do. You’ll need a registered office in Singapore to register your company. Under the Home Office Scheme though, certain small-scale businesses may be use their residential HDB and private properties as their home offices.

3) Business activity

You need to categorise your business according to the Singapore Standard Industry Classification (SSIC) code. For example, the SSIC manufacturing code for tuition agencies is: 85509 (Educational support services).

4) Who are the directors?

At least one of your directors must be a Singapore resident. He/she must also be at least 18 years old, not bankrupt or not convicted of fraud and dishonesty cases.

5) Who are the shareholders?

Shareholders can be local, foreign, individuals or corporate holdings. Directors can also be shareholders.

6) Paid-up capital and corporate bank account

One of the best things about incorporating in Singapore is that the paid-up capital can be as low as $1. Of course, corporate banking accounts would require more than that as initial deposits and monthly average balances. So it’s best to check up on your bank’s requirements.

7) Share issue and allocation

If you’re a company limited by shares, know the number of shares you want to issue and the value of each share.

8) Company secretary

For an incorporated business, you will have to appoint a qualified company secretary within 6 months of incorporating. The question is who will it be? Besides residing in Singapore, he/she must not be the sole director of the company. The candidate must also have basic knowledge of the Companies Act to guide you properly.

Read more about the 8 basicelements of Incorporating a Company in Singapore at Singapore Company Incorporation website.

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How to Easily Start a Subsidiary Company in Singapore

Subsidiary-parent company structure is increasingly getting very popular. The reason being, it limits the liability and legal exposure one company has if another one fails. In addition, many multinationals create subsidiaries for tax advantages.

These subsidiaries, in which the parent company owns more than 50 percent of the voting stock, have their own corporate bank accounts and operating capital. The subsidiaries can also own assets.

Notably, the shares owned by the parent company in its subsidiary are an asset in the parent company’s balance sheet.

The process of incorporating a subsidiary company is similar to that of incorporating a private limited company in Singapore. Please click here to read the detailed guide.

The key requirements are also the same, as follows:

at least one shareholder (individual or corporate entity)

one resident director

one company secretary

initial paid-up share capital of at least S$1

a physical Singapore office address

Check out more information about setting up a Singapore subsidiary company at Singapore Company Incorporation website.

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3 Ways to Start a New Business in Singapore

3 Simple Steps to Set Up a New Business in Singapore

The process can be summarized in 3 simple steps.

1. Choose your business entity

Though options exist, many new companies register with the Accounting & Corporate Regulatory Authority (ACRA) as “private limited companies” due to its scalability. On top of that, shareholders are not liable for debts and losses beyond their share capital.

Designated as such, your company is recognized as a taxable entity.

2. Set up your company

The private limited company is governed by the Singapore Companies Act, and must comply with its laws under ACRA and the Inland Revenue Authority of Singapore (IRAS). Designations include:

Company name – Must be approved by the ACRA.

Shareholders – Minimum of one.

Directors – At least one director must reside in Singapore.

Company Secretary – Also must be a Singapore resident.

Paid-up capital – At least S$1

Registered address – A physical office address is required.

As a newly-incorporated Singapore company, you may purchase a Business Profile from ACRA. This electronic report details information regarding your business, including your registration number (UEN), registration date, shareholders etc. This profile will be required to open a corporate bank account, apply for licenses and permits and check on potential business partners.

3. Open a bank account

After incorporating, you can open a bank account in Singapore. You may choose from a variety of local as well as international banks.

Business Processes That Follow Incorporation

Additional post-registration activities may include:

Licenses and permits – Some business activities require approval or a license from government authorities. Examples include: private schools, video companies, travel agencies, liquor distributors, money lenders, banks, financial advisers, childcare centers, and importers, wholesalers and retailers of liquor.

Registered office hours – You must register your office address and hours (minimum of three hours per weekday).

Registration number – The business registration number issued by ACRA must be on all your documents used for official business communications.

Customs registration – If your business involves importing or exporting, you must register your company with the Singapore customs.

Goods and services tax registration – Goods and Services Tax (GST) is a tax on the supply of goods and services in Singapore and on the import of goods into Singapore. You must register for GST if your annual taxable revenue exceeds S$1 million per year.

Registration with Singapore Central Provident Fund (CPF) – The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and Singapore citizen/permanent resident employee contribute a percentage of the monthly salary to the fund.

Read more on how to setup a business in Singapore at Singapore Company Incorporation.

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Basic Guidelines for Singapore Budget 2021

Support for workers and businesses in Singapore Budget 2021

1. $11 billion COVID-19 Resilience Package in Singapore Budget 2021

Of these measures, the Government has set aside $4.8 billion for public health and safe re-opening measures, including free and voluntary vaccinations, as well as contact tracing and testing.

Support for specific sectors:

$870 million is set aside for the aviation sector, to preserve core capabilities and extend cost relief.

The Government has also extended the Arts & Culture Resilience Package and Sports Resilience Package by $45 million to support businesses and self-employed people in these sectors.

A new $133 million COVID-19 Driver Relief Fund is put in place for eligible taxi and private hire car drivers. Under this scheme, $600 per vehicle per month from January to March 2021, and $450 per vehicle per month from April to June 2021, will be distributed.

General support for workers and businesses:

A COVID-19 Recovery Grant scheme is announced. Under this scheme, the grants will be up to $700 per month for 3 months for employees who have lost their employment or are placed on involuntary no-pay leave for at least 3 consecutive months; and up to $500 per month for 3 months for employees and self-employed persons who are facing income loss.

It has also been decided to continue credit access via Temporary Bridging Loan Programme and enhanced Enterprise Financing Scheme — Trade Loan, till September 30, 2021.

Finally, the hugely beneficial Jobs Support Scheme (JSS) will be extended. So far, the Government has committed over $25 billion to the JSS, and supported over 150,000 employers for up to 17 months. The current tranche will continue to cover wages up to March 2021 for most sectors. Under this scheme, the available support is as below:

Tier 1 sectors (i.e. aviation, aerospace, tourism): 30% support for April to June 2021 wages, followed by 10% support for July to September 2021 wages

Tier 2 sectors (e.g. retail, arts and culture, food services, built environment): 10% support for April to June 2021 wages

For firms in Tier 3A sectors, JSS will continue covering wages up to March 2021, as previously announced

2. $5.4 billion Extension and enhancement to Jobs and Skills Package in Singapore Budget 2021

The Government is allocating an additional $5.4 billion to a second tranche of the Jobs and Skills Package. This is on top of the $3 billion allocated last year. Of this, the bulk $5.2 billion will be allocated to Jobs Growth Incentive (JGI), thereby extending the hiring window by seven months, up to end-September 2021.

Companies hiring eligible Singaporeans will be given up to 12 months of wage support from the month of hire. With 25% of wage support for up to 12 months, eligible employers can continue to receive up to $15,000 per non-mature hire. Here the eligibility criteria for employers is that they must increase both their local workforce and number of local workers earning at least $1,400 a month.

Those hiring mature workers (aged 40 and above), persons with disabilities, and ex-offenders, will be granted enhanced support of up to 18 months, from the existing 12 months.

There is also an increase in supportable gross monthly wage cap to first $6,000, up from $5,000. Eligible employers that hire such workers from September 2020 to February 2021 will benefit from the increased gross monthly wage cap for wages paid from March 2021 onwards. With 50% of wage support for up to 18 months, eligible employers that hire such workers can receive up to $54,000 per hire.

For workers who require additional support before finding employment, the Government has extended several schemes including the SGUnited Mid-Career Pathways, the SGUnited Skills, and SGUnited Traineeships.

Also, as part of the next phase of the SGUnited Jobs and Skills Package, a budget has been put aside to support the hiring of 200,000 Singaporeans this year through the JGI. In addition, the Government will be providing up to 35,000 traineeship and training opportunities to jobseekers.

3. Additional measures for supporting workers in Singapore Budget 2021

There will be an enhancement in the salaries of nurses and other healthcare workers, across public hospitals, and long-term care service providers. Details of this will be announced by the Minister for Health soon.

There will further help to support wage increments for companies to retain or draw in Singaporeans by extending the Wage Credit Scheme for another year, at a co-funding level of 15%.

The Capability Transfer Programme, or CTP, under which expatriates with the right expertise to complement Singaporeans are helped to build local capabilities, will be extended to end-September 2024.

There will be a reduction in the sub-Dependency Ratio Ceiling (sub-DRC) for Manufacturing S Pass in two steps, to 18% from January 1 2022, and to 15% from January 1 2023.

Read more about Singapore Budget 2021 at Singapore Company Incorporation website.

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Basic Information on Submitting IR8A for Employee Earnings in Singapore

What is an IR8A Form?

An IR8A form is a document that must be submitted by all employers to IRAS each year. It must be completed for each employee of that company to inform IRAS of the employees’ income/earnings.

There are also supporting documents that may be submitted with Form IR8A, namely, Form IR8A and supporting Appendix 8A, Appendix 8B, or Form IR8S (if applicable).

What IR8A Forms Need to Be Submitted?

An IR8A form must be submitted for all employees.

All full-time resident employees;

All part-time resident employees;

All non-resident employees;

All resident company directors;

All non-resident company directors;

All board members receiving Board Member Fees or Committee Member Fees;

All employees who are working for the business while receiving their pension;

All employees who have left the company but are owed income from the previous year.

What Other IR8A Supporting Forms Need to Be Submitted (Appendix 8A, Appendix 8B, Form IR8S)?

There are also related forms that may need to be submitted to IRAS, depending on the individual employee’s situation.

Appendix 8A

Appendix 8A must be submitted for any employee that was given benefits-in-kind, such as fringe benefits or other non-cash perks. Examples might be free dental care, a gym membership, or a free car park.

If the benefits-in-kind are granted an administrative concession or exempted from Income Tax, they do not need to be included in Appendix 8A.

Appendix 8B

Appendix 8B must be completed if the employee obtained gains or profits from Employee Stock Option (ESOP) Plans or other forms of Employee Share Ownership (ESOW) Plans.

If an employee is registered with ESOP or ESOW plans, they can buy shares in the company they are employed by. All gains or profits from these shares will be taxed accordingly.  

Appendix 8S

Appendix 8S must be completed if the employer has made extra CPF contributions to the employee, and/or have claimed, or will claim a refund on extra CPF contributions.

Read more on the Guide to Filing IR8A for Employee Earnings in Singapore at Singapore Company Incorporation.

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Regulatory Compliance Guide for Singapore Companies

None of its shareholders are corporate entities

Compliance in Singapore

What are the annual regulatory compliance requirements in Singapore?

There are several government bodies that oversee annual regulatory compliance requirements. Generally, all companies would need to comply with the requirements governed by the Accounting and Corporate Regulatory Authority (“ACRA”) and Inland Revenue Authority of Singapore (“IRAS”).

1. Preparation of Financial Statements

A company’s financial statements should be prepared after its financial year end; and is one of the annual compliance requirements that can be anticipated well in advance.

However, the Companies’ Act acknowledges that not all companies have had sufficient activity during the financial period or financial year to warrant engaging auditors to perform a full statutory audit. These companies are known as small or dormant exempt private companies (“EPCs”) and their exemption is subject to their fulfilment of the following criteria:

-  Annual turnover of less than S$5 million

-  None of its shareholders are corporate entities

-  Has 20 or fewer individual shareholders

Check out more information on how your business will stay compliant to Singapore’s regulations by checking out Singapore Company Incorporation website.

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How to Incorporate Tech Start-ups in Singapore

Singapore is already the playground of Asia – a preferred destination of foreign investors and entrepreneurs to work, live and play. Now the government here has decided to develop Singapore into the world’s first truly “Smart Nation”.

The Infocomm Development Authority of Singapore (IDA), which is the government’s premier agency for technical/technological sector “is seeking to build an innovation driven economy where technology startups play a core role in injecting the necessary innovation and vibrancy into the tech ecosystem”.

That’s why the focus in the city-state has turned to home-grown tech start-ups, which are able to scale globally and generate valuable knowledge-based jobs.

Incorporating in Singapore is now easy. So if you’re a tech genius looking to be the next Facebook or Google from Singapore, what should be your considerations, what the processes you need to go through, and what are salient points you should always keep in mind?

Below, we present a comprehensive to-do-guide on incorporating a tech start-up in Singapore.

Why start another tech company in Singapore?

There are several factors to consider before making that call.

First is to determine if there’s a demand potential in the core technology, which you plan to develop, across markets and product opportunities. Then, identify the competition or other companies offering similar solutions. In the era of mergers and acquisition, considering the likelihood of existing companies licensing the technology is also important.

Also, look for available avenues for raising funds and grow the business. If likely investors are identified, gauge the level of their commitment and involvement.

Finally, experience, expertise, and enterprise nature of the start-up’s executive team is the core determining factor in success of a tech start-up.

Read more on how to register a tech startup company in Singapore at Singapore Company Incorporation website.