Viewpoints from Kaizen

Once a company is duly registered with ACRA, it is required to comply with the requirements of both the Companies Act and Tax Act, such as determination of financial year end and the appointment of auditor. It may also be required to apply for extra licenses or permits before it could carry out certain regulated business. This article will introduce the general statutory compliance requirements for Singapore private limited companies. 1. Filing Requirements According to the Singapore Companies Act, companies must comply with the annual filing requirements to the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). It is important to note that annual filings are mandatory for both active and dormant Singapore companies. In other words, it does not matter whether your Singapore company has commenced business or not, or whether it is dormant during the financial year. 2. Financial Year End Each […]

1. Procedures for Setting up an Event Management Business in Singapore (1) Incorporate a Company The first step towards conducting business as an Event Management Company in Singapore is to incorporate a company. (2) Apply for Licenses and Permits Starting an event management company in Singapore is a simple and easy affair because you don’t have to apply for any major business license. However, the special thing about event management companies is that they do need to apply for licenses, but these are licenses that are for the events, rather than the company itself.   2. Licenses and Permits for Event Management Business The licenses and permits that you need would depend on the event itself. Most licenses and permits are valid only for the duration of the event. Below are the licenses and permits we’ll be covering in this guide: Trade Fair Permit -for organizing trade fairs. Arts Entertainment […]

1. Procedures for Setting up a Trading Company in Singapore Step 1: Incorporate a Company The first step towards conducting business as a publishing business in Singapore is to incorporate a company. Step 2: Register with Singapore Custom Before you can import/export any goods in and out of the country, you’ll need to first activate your account with Singapore Customs. Your account will be activated within 1-2 business days after you submit your application. You will then be issued an approval letter from Customs, valid for as long as your company exists. Step 3: Apply for Licenses and Permits You will need to obtain a Permit through Trade Net before you can import or export goods. Using Singapore’s Trade Net, you can submit your permit applications electronically to the relevant government bodies for processing. You’ll need to apply for a permit in order to import goods, and another one for […]

1. Procedures for Setting up a Publishing Business in Singapore Step 1: Incorporate a Company The first step towards conducting business as a publishing business in Singapore is to incorporate a company. Step 2: Look for a Suitable Premise Once you’re done with incorporating your business, it’s time to head out and find suitable premises. There are a variety of office options in Singapore; just find the one that best suits your publishing business need and budget. If you are going to use your residential property as an office, you’ll need to seek approval from the URA (Urban Development Authority) or the HDB (Housing Development Board), depending on whether your residential property is private property or public housing. Step 3: Hire Staff To get your publishing business up and running, you’ll need staff. Your staff will be filling in the roles of editorial team members, sales and marketing officers, as […]

Taxes for Non-Resident in Singapore Singapore adopts a territorial basis of taxation, i.e. companies and individuals are taxed on Singapore sourced income. Foreign sourced income will in principle be taxed when it is remitted or deemed remitted into Singapore. A non-resident individual is exempt from tax on foreign sourced income received in Singapore. Director’s fees, consultation fees & all other income. The director’s fees, consultation fees and all other income that you received will be taxed at 20%. Individuals are either residents or non-residents in Singapore for tax purposes. Generally, an individual is resident if he or she resides in Singapore or is physically present or employed there for 183 days or more in the calendar year. Your employment income is taxed at 15% or resident rate, whichever gives rise to a higher tax amount. Non-residents are subject to tax only on income from sources in Singapore. The general tax […]

1. Introduction to Singapore Global Trader Scheme (1) Singapore Global Trader Programmed The Singapore Global Trader Programmed was launched in June 2001. Companies who are in the Global Trader Programmed (commonly abbreviated to GTP) enjoy a concessionary tax rate of 10% on their qualifying trade income. GTP companies get the concessionary tax rate for a 5-year renewable period. In 2003, an announcement was made by the Singapore Government: international trading companies that are of a medium size and enjoying high growth, who are planning to make Singapore their regional base can be considered for the 10% concessionary tax rate, for a starting, non-renewable 3-year period. In those 3 years, with Singapore as their base of operations, it is expected that the trading company in question establishes and builds up their regional/global trading network. After this initial 3-year period, if the company has been able to demonstrate healthy and sustainable growth […]

Singapore is a major international finance centre which provides an attractive fiscal and economic environment from which to base regional business activities and international holding companies. The Singapore tax system is territorial. Income tax is levied on the net income of companies from sources within Singapore and on foreign source income if remitted into Singapore. Non-resident Singapore companies and businesses are taxed on the same basis. Singapore has implemented a one-tier corporate tax system. Under this system, the income tax payable on the normal chargeable income of a company is a final tax and shareholders will not be taxed on such dividend income. Singapore does not levy a withholding tax on dividends. Interest, royalties or rental of equipment payments to non-residents are subject to a 15% withholding tax.   There is no capital gains tax imposed in Singapore. Corporate Tax Rates Zero tax for new Singapore companies on the first […]

Features of a Singapore Branch Office  Legal Status  A Singapore Branch Office is the same entity as the foreign company (“Head Office”) which is incorporated outside Singapore. Thereafter, a Branch is not a separate entity but only an extension of its Head Office. Any action against a Singapore Branch is equivalent to an action against the Head Office. Because of the reason stated above, most foreign companies prefer to register a separate independent limited liability company as their subsidiaries in Singapore rather than a branch office.   Name The name of a branch will have to be that of the Head Office and must be approved by Accounting and Corporate Regulatory Authority (“ACRA”)   Activities The activities of a Singapore Branch Office are governed by the MAA and/or By-laws of the Head Office.   Accounts  A Branch Office in Singapore must file with ACRA annually its Head Office accounts as […]

When a foreign company sets up a place of business or commences its business in Singapore, it must register with ACRA as a branch in Singapore. Immediately after registration, the Accounting and Corporate Regulatory Authority (“ACRA” must be kept informed of certain changes in the affairs of the parent company, the Singapore branch and the local agents. A list of such changes is appended hereunder for your reference. The article explains briefly some of the reporting requirements imposed on a foreign company having a branch office in Singapore. 1. General Changes ACRA must be notified of any change or alteration made to: (1) The charter, statutes, memorandum or articles of the parent company or other instrument lodged with the Registrar; (2) The identities or particulars of the directors of the parent company; (3) The identities or particulars of the local agent or agents (including any change of address, passport numbers, […]

A company, once after registration with ACRA, has to comply with the filing requirements set forth by the Singapore Companies Act (Singapore laws chapter 50) and Income Tax Act (Singapore laws chapter 134). These requirements include holding of Annual General Meeting, appointment of directors and company secretary, filing of annual return and filing of tax return etc. We set out below some brief notes on the continuing obligations of a Singapore company for your information. 1. First Board Resolutions The first meeting of the board of directors should preferably be held within one month from the date of incorporation. At this meeting, the appointment of the first directors and company secretary of the Company will be confirmed and the common seal, share certificates and statutory books adopted. The agent who helps you register your Singaporean company will normally prepare the minutes of first board meeting or a written resolution confirming […]