News & Updates
September 25, 2023
Carrying out regular profit-generating activities requires registration with the Accounting and Corporate Regulatory or ACRA in Singapore. Unless you are exempted, registration is not necessary anymore. Company registration in Singapore is vital to obtain essential legal documents and certifications, making your business legitimate in the eyes of customers, investors, and partners.
If you are planning to do business in Singapore, register a company because it comes with various benefits that your business can take advantage of in the long run. Credibility plays an important role in business. You can start building your name and reputation after completing the company registration process.
Find out the reasons why you need and how to register a company in Singapore with ACRA in this article. Continue reading below!
Reasons for Company Registration
ACRA requires business owners to register their companies for several reasons. Find out below:
Registering a company in Singapore with ACRA is essential to ensure that your business operates legally and complies with the regulatory requirements established by the Singapore government.
ACRA serves as the authoritative body responsible for regulating and overseeing business entities in Singapore. Registering your company ensures compliance with the Singapore Companies Act, which outlines the legal framework for company incorporation, maintenance of statutory records, and filing of financial statements. Adhering to these requirements not only demonstrates your commitment to operating within the bounds of the law but also safeguards your business’s reputation and protects the interests of your stakeholders.
Moreover, you gain access to various benefits and privileges offered by the Singapore government by operating as a registered entity, such as tax incentives and grants, creating a solid foundation for long-term growth and success.
Business Entity Identification
Registration with ACRA provides businesses with a unique identification number known as the Unique Entity Number (UEN)—an official identifier for the company in all business transactions, establishing its distinct presence and facilitating seamless communication with government agencies, financial institutions, suppliers, and customers. This unique identification number is essential for various purposes, including opening bank accounts, entering contracts, filing tax returns, and participating in government procurement processes.
By obtaining a UEN through registration, businesses gain credibility, professionalism, and a solid foundation for building trust and establishing their brand identity in the marketplace. It also ensures the company is easily recognisable and traceable, enabling efficient and transparent business operations.
Business Contracts and Agreements
ACRA registration plays a pivotal role in enhancing a company’s credibility and facilitating the formation of contractual relationships with various stakeholders, including customers, suppliers, and other business partners.
A company registered with ACRA demonstrates its commitment to legal compliance and transparency, instilling confidence and trust among potential partners. Many entities, such as government agencies, financial institutions, and larger corporations, often require proof of ACRA registration as a prerequisite for engaging in business agreements.
This requirement validates the company’s legitimacy, financial stability, and adherence to regulatory standards. By fulfilling this criterion, the registered company can access a wider range of business opportunities, including lucrative contracts, partnerships, and collaborations.
Therefore, ACRA registration provides a competitive edge and facilitates smoother and more efficient business transactions by streamlining the verification process for potential partners.
Public Perception and Investor Confidence
Registering a company adds legitimacy and credibility, instilling a sense of trust and confidence in potential customers, clients, and investors. When a business is registered with ACRA, it becomes a recognised and accountable entity in the eyes of the law. This official recognition demonstrates that the company has fulfilled the legal requirements and is committed to transparency, compliance, and ethical business practices.
Prospective clients often prefer to engage with registered companies, as it assures that they deal with a legitimate and trustworthy organisation. Similarly, investors are more inclined to invest in registered companies as it reflects professionalism, accountability, and adherence to regulatory standards. ACRA registration enhances the company’s reputation, increases its credibility in the marketplace, and sets it apart from unregistered or unverified entities, establishing a strong foundation for building relationships and attracting opportunities, ultimately contributing to the long-term success and growth of the business.
Record Keeping and Corporate Governance
One of the mandates enforced by ACRA is that companies must maintain proper books of accounts, financial statements, and registers as part of their registration requirements. Maintaining proper books of accounts and financial statements serves multiple important purposes.
Firstly, it ensures transparency within the organisation. Keeping accurate and up-to-date records of financial transactions provides a clear and comprehensive view of its financial position, activities, and performance. This transparency is essential for stakeholders, such as shareholders, investors, creditors, and regulatory bodies, to assess the company’s financial health and make informed decisions.
Secondly, maintaining proper books of accounts and financial statements promotes accountability within the organisation. It helps in tracking the inflow and outflow of funds, identifying sources of revenue, and monitoring expenses. With this information readily available, the company can ensure that its financial resources are used responsibly and under applicable laws and regulations. It also enables effective internal control, as discrepancies and irregularities can be identified and addressed promptly.
In addition, the requirement to maintain proper records aligned with good corporate governance practices is crucial. Good corporate governance involves establishing a framework of rules and practices that guide the company’s management and operations, ensuring ethical behaviour, accountability, and protection of stakeholders’ interests. Keeping accurate books of accounts and financial statements is an essential element of good corporate governance because it helps establish trust and credibility with stakeholders and demonstrates the company’s commitment to transparency, integrity, and compliance.
To Sum It Up
ACRA registration in Singapore is essential for legal compliance, establishing a unique business identity, forming trustworthy relationships with stakeholders, enhancing public perception and investor confidence, and maintaining proper records for transparency and good corporate governance. It offers a range of benefits that contribute to the long-term growth, success, and reputation of the company.
Need Help Registering a Company in Singapore?
At ContactOne, we ensure that our clients receive dedicated assistance when they register a company by providing them with tailored services. Contact us at +65 6333 0633 and +65 8666 3633 to take advantage of our expertise and support.
September 19, 2023
Starting a business is a dream, if not for all, but for most of us. The idea of managing and growing a company in a business landscape like Singapore is exhilarating because, as the centre of economic growth in Southeast Asia, Singapore offers many opportunities with business-friendly policies. There is no place like the Lion City to do business in.
However, successfully setting up a business takes more than just thinking. That is why company registration consultants are essential more than ever. They will assist you throughout the entire process of company registration in Singapore and provide advice on collaborating with ideal business entities that suit you best and your business’s interests.
In this article, we will discuss the roles of a company registration consultant in setting up a business. Continue reading below for a good read!
Company Registration Consultants Roles and Responsibilities
A company registration consultant plays a crucial role in assisting individuals or organisations in setting up their businesses by providing guidance, expertise, and support throughout the process of company registration in Singapore. Here are some key roles and responsibilities of a company registration consultant:
Understanding Business Requirements
When a consultant is engaged to assist clients with company registration, they establish a close working relationship by actively collaborating and communicating with them. The first step in this process is to comprehensively understand the client’s business goals, objectives, and requirements.
To achieve this, the consultant conducts in-depth discussions and consultations with the clients. They ask pertinent questions to gather information about the client’s vision for their business, the purpose of registration, and their long-term aspirations. By actively listening and engaging in dialogue, the consultant ensures they thoroughly grasp the client’s needs and expectations.
With this understanding, the consultant proceeds to assess the nature of the business. They carefully analyse various factors that influence the choice of a legal structure for registration. This assessment may include considerations such as the type of industry the business operates in, the size and scale of operations, the number of owners or partners involved, and the desired level of personal liability protection.
Based on this evaluation, the consultant guides the clients in selecting the most appropriate legal structure. They explain different options’ characteristics, advantages, and disadvantages, such as sole proprietorship, partnership, LLC, or corporation.
Legal Compliance and Documentation
When clients have decided to register their company, a consultant can guide them through the entire registration process. They are well-versed in the legal requirements and regulations associated with company formation, ensuring that clients remain compliant throughout the process.
As soon as the required documents are identified, the consultant assists clients in preparing them. They provide templates or samples of the necessary legal forms and help clients complete them accurately and comprehensively. The consultant ensures that all essential information, such as company name, business address, shareholder or partner details, and share capital, is correctly included in the documents.
Name and Trademark Search
Company registration consultants assist clients in conducting comprehensive searches to ensure the availability of a unique and legally permissible business name. They emphasise the importance of selecting a name that aligns with branding goals and avoids legal issues or conflicts with existing businesses.
Consultants use various resources and databases to check for similar or identical names and evaluate trademark availability. Based on the search results, they provide guidance and recommendations for name selection, suggesting alternatives if conflicts arise.
Consultants also help in trademark registration, guiding clients through the application process. Through these efforts, consultants help mitigate legal risks, prevent trademark infringement, and promote a strong brand identity for clients.
Registration with Government Authorities
It is one of a consultant’s roles to help clients with company registration by collaborating with government authorities and regulatory bodies to secure the required registrations, permits, and licenses. They guarantee adherence to legal obligations and assist in preparing the necessary documentation. Acting as intermediaries, consultants communicate with authorities, handle inquiries, and offer clarifications.
Moreover, company registration consultants guide industry-specific registrations and support clients in maintaining ongoing compliance and renewals. By streamlining the registration process, consultants can prompt completion and enable clients to operate legally without penalties or interruptions.
Liaising with Authorities
Another key role of company registration consultants is to represent clients during the registration process and interact with stakeholders such as government officials, legal professionals, and other relevant parties. They act as intermediaries, ensuring compliance with requirements and addressing inquiries.
They handle correspondence as consultants, including drafting and responding to stakeholder communication. They also take the lead in resolving issues that may arise, working closely with legal professionals and advocating for clients’ interests. Through their active engagement, consultants streamline the process, maintain compliance, and ensure effective communication, resulting in a successful registration outcome for clients.
Beyond registration, company registration consultants offer extensive advisory services. They assist clients with tax registration, labour law compliance, obtaining certifications, opening bank accounts, and practical aspects of starting a business. Also, consultants guide tax obligations, help establish HR policies, facilitate certification acquisition, assist with bank account setup, and offer practical advice on location selection, leasing, equipment procurement, and operational processes.
When it all boils down to this, consultants leverage their expertise to ensure clients navigate the complexities of business setup successfully, contributing to compliance and overall business success.
Timely Compliance and Industry Knowledge
An excellent consultant keeps clients informed about the progress of their registration and provides updates on any changes in legal requirements or compliance obligations. They help clients understand their ongoing compliance responsibilities, such as filing annual returns, maintaining proper accounting records, and fulfilling tax obligations.
In addition, a company registration consultant possesses the expertise and in-depth knowledge of the legal and regulatory frameworks governing business registration. They stay updated with the latest rules and regulations, ensuring that clients benefit from accurate and reliable advice to lock in the successful setting up of businesses in Singapore.
For Company Registration in Singapore, ContactOne Is Here to Help
Learn more about our services by visiting our website at www.contactone.com.sg. You may also call us at +65 6333 0633 or +65 8666 3633. At ContactOne, we prioritise our clients’ primary needs to ensure they get the service that suits them.
September 13, 2023
A company secretary in Singapore plays an essential part in every business operation. As a professional responsible for ensuring a company’s compliance with all its legal and regulatory requirements, the role of a company secretary is vital in maintaining the integrity and transparency of any Singapore-registered enterprise. That said, reliable company secretary services are non-negotiable when it comes to starting a company in one of Southeast Asia’s biggest economic centres.
The Companies Act governs the role of a company secretary. Specific qualifications and requirements must be met by anyone or considered by a business seeking a company secretary in Singapore. In this blog, we will explore the qualifications and requirements of a company secretary in Singapore.
To become a company Secretary in Singapore, certain qualifications and requirements must be met. These include:
To qualify as a company secretary in Singapore, certain requirements must be met. Firstly, the individual must be a local resident, which includes being a Singapore resident, permanent resident, dependant, or Employment Pass holder. Additionally, they should possess a good understanding of the Singapore Companies Act.
According to the Accounting and Corporate Regulatory Authority (ACRA), the company secretary should have one of the following qualifications:
- a minimum of three years of secretarial experience within the past five years before being appointed as a public company’s secretary;
- registration as a public accountant under the Accountants Act, Cap. 2;
- recognition as a qualified person under the Legal Profession Act, Cap. 161;
- membership in the Singapore Association of the Institute of Chartered Secretaries and Administrators;
- membership in the Institute of Certified Public Accountants of Singapore;
- membership in the Institute of Company Accountants, Singapore; and
- membership in the Association of International Accountants (Singapore Branch).
These qualifications ensure that the company secretary is knowledgeable and capable of fulfilling their duties effectively.
Another recognised qualification is the Chartered Secretary (CS) qualification, awarded by the Institute of Chartered Secretaries and Administrators (ICSA). The CS qualification is recognised in Singapore and is a popular choice for those seeking to become a company secretary. The CS qualification provides candidates with a broad understanding of corporate governance, company law, and compliance. Candidates with the CS qualification may be well suited for the role of a company secretary as they have a comprehensive understanding of a company’s legal and regulatory requirements.
In addition to the qualifications mentioned earlier, other professional qualifications may be recognised by the relevant authorities in Singapore. These include the Chartered Accountant (CA) qualification awarded by the Institute of Singapore Chartered Accountants (ISCA), the Certified Public Accountant (CPA) qualification awarded by the American Institute of Certified Public Accountants (AICPA), and the Association of Chartered Certified Accountants (ACCA) qualification.
Professional qualifications are an essential requirement for a company secretary in Singapore. However, as well as a recognised professional qualification, relevant experience is also crucial. A company secretary should have broad expertise, including corporate governance, company law, and compliance.
One way to gain relevant experience is by working in a corporate secretarial role. In such a role, a company secretary would provide advice on corporate governance matters, ensure compliance with legal and regulatory requirements, and maintain accurate and up-to-date company records. This experience provides a company secretary with an in-depth understanding of a company’s day-to-day operations and the legal and regulatory framework in which it operates.
In addition to work experience, other factors such as industry knowledge and a candidate’s ability to work under pressure are also essential. A company secretary must have a deep understanding of the industry in which their company operates and the specific legal and regulatory requirements that apply to their industry. They must also be able to work under pressure, as compliance deadlines can be tight, and the consequences of non-compliance can be severe.
Knowledge of Company Law and Regulations
A company secretary must have a comprehensive knowledge of company law and regulations to perform their duties effectively. The Companies Act is one of the primary areas of knowledge required for a company secretary. The Companies Act sets out the legal framework for companies in Singapore, including requirements for company registration, share capital, director and shareholder responsibilities, and company administration. A company secretary must have an in-depth understanding of the Companies Act to accurately advise the company’s board of directors and management.
In addition to the Companies Act, a company secretary must know other relevant legislation, such as the Securities and Futures Act and the Financial Advisers Act. These acts regulate the financial services industry in Singapore, including requirements for licensing and registration, disclosure requirements, and codes of conduct. A company secretary should be aware of the requirements of these acts to ensure the company complies with all relevant regulations.
The company secretary must also understand other regulations that may apply to the company. For example, data protection regulations such as the Personal Data Protection Act (PDPA) require companies to protect personal data and obtain consent before collecting, using, or disclosing personal data. A company secretary must ensure compliance with these regulations to avoid legal or reputation risks.
Employment law is another area of knowledge required for a company secretary. This includes knowledge of the Employment Act, which sets out the minimum standards for employment in Singapore, including employment contracts, leave entitlements, and termination requirements. A company secretary should ensure that the company complies with employment law to protect the company’s and its employees’ interests.
Other Qualifications and Requirements of a Company Secretary in Singapore
Good Communication Skills
A company secretary must have excellent communication skills. This is because they must communicate with various stakeholders, including directors, shareholders, and regulators. A company secretary must be able to communicate complex legal and regulatory information clearly and concisely.
Attention to Detail
Attention to detail is essential for a company secretary. This is because they will maintain accurate and up-to-date company records, prepare board meeting agendas and minutes, and ensure that all legal and regulatory requirements are met. Any errors or omissions could seriously affect the company and its stakeholders.
September 13, 2023
Compliance with the Accounting and Corporate Regulatory or ACRA is of utmost importance for businesses operating in Singapore. ACRA is the national regulator overseeing company registration, financial reporting, and corporate governance. By adhering to ACRA’s regulations, businesses not only fulfil their legal obligations but also establish credibility, gain investor confidence, and contribute to a transparent and stable business environment in Singapore.
When it comes to ACRA’s annual return filing, there are specific requirements. To ensure compliance and adherence to Singapore’s business landscape standards, businesses must complete these requirements. Besides that, keeping in line with the requirements prevents ACRA’s annual return penalty.
Here are the requirements when a company files for an annual return in Singapore:
Singaporean companies must submit their annual returns to ACRA within one month of their Annual General Meeting (AGM). The AGM itself must be conducted within six months from the end of the company’s financial year. This ensures companies provide timely updates on their financial status and operations to ACRA.
The prompt submission of annual returns and conducting AGMs within the stipulated timeframe play a vital role in promoting transparency and accountability in the corporate landscape. By adhering to these deadlines, companies provide timely information to ACRA, allowing regulatory authorities, shareholders, and other stakeholders access to accurate and up-to-date financial data. This facilitates effective decision-making, fosters investor confidence, and enhances Singapore’s business ecosystem’s overall governance and credibility.
Companies must include their financial statements, encompassing the balance sheet, income statement, cash flow statement, and any accompanying notes. The financial statements must adhere to the Singapore Financial Reporting Standards (SFRS) or the International Financial Reporting Standards (IFRS) to ensure consistency, comparability, and accuracy in financial reporting.
When preparing financial statements for annual return filing, adhering to SFRS or IFRS is essential because it provides a standardised framework that enhances the reliability and comparability of financial information. Companies can present their financial position, performance, and cash flows consistently and transparently when they comply with the established accounting standards.
Moreover, adhering to the standards enables investors, creditors, and other stakeholders to make informed decisions, assess the company’s financial health, and facilitate meaningful comparisons across different organisations, ultimately strengthening the integrity and trustworthiness of financial reporting in Singapore.
The annual return serves as a comprehensive update on the company’s information. It should contain accurate and up-to-date details such as the registered address, shareholders’ particulars, directors’ particulars, and the company’s financial year-end date. Suppose there have been any changes to these particulars. In that case, it is important to reflect them in the annual return to ensure that ACRA and other stakeholders can access the latest and most relevant information about the company.
Accurate and up-to-date information in the annual return is crucial for maintaining transparency and facilitating effective communication with ACRA and other stakeholders. Also, this information serves as the key reference point for regulatory compliance, investor relations, and legal matters. Reflecting any changes in these particulars ensures that ACRA and stakeholders have the most current information, enabling efficient communication, decision-making, and regulatory oversight to foster trust, accountability, and a well-informed business environment in Singapore.
The annual return requires a compliance declaration, which a director or the company secretary must sign. This declaration affirms that the company has complied with the requirements stated in the Companies Act and confirms that the financial statements present an accurate and fair view of the company’s financial position. Including a compliance declaration in the annual return underscores the commitment of companies in Singapore to uphold the highest standards of transparency and accountability.
By signing the declaration, directors or the company secretary affirm that the company has fulfilled its obligations under the Companies Act and has maintained accurate financial records, instilling confidence in stakeholders, including investors, regulators, and business partners. Aside from that, it demonstrates the company’s dedication to ethical practices, sound governance, and the presentation of reliable financial information and reinforces the integrity of the company’s operations and strengthens its reputation in the business community.
The filing fee accompanying the annual return submission is a necessary contribution towards ACRA’s administrative and regulatory functions. The specific fee amount is determined based on factors such as the type and size of the company. ACRA’s electronic filing system provides a convenient and efficient platform for companies to make their payments.
When paying the filing fee, companies support ACRA’s efforts in processing and maintaining accurate company records, ensuring a well-functioning regulatory framework that benefits the business community as a whole. It also reinforces the importance of financial responsibility and compliance with regulatory requirements in Singapore’s business environment.
Get Helpful Annual Return Filing Tips from ContactOne Today
Compliance with ACRA is crucial for businesses. To ensure your company maintains good standing and meets the requirements before the annual return filing deadline in Singapore, it’s essential to adhere to ACRA’s regulations. What easier way to do this than partnering with a reliable service provider of business solutions like ContactOne?
Avoid penalties, fines, and legal consequences; prioritise timely and accurate filing. At ContactOne, we understand the importance of compliance and can help navigate the complexities of ACRA requirements. Contact us today to ensure your business stays on the right track and safeguards its operations and reputation in the dynamic Singaporean business landscape. Call +65 6333 0633 and +65 8666 3633.
September 13, 2023
Everything is ever-changing, and by everything, it means the business industry is included. Whether you like it or not, it undergoes one of the most rapid changes among different sectors. And it is only right that enterprises in Singapore find a way to keep up with the changes—from business trends to the latest technologies.
Cloud accounting services in Singapore are a few helpful innovations that help companies stay on top of their game. If you want to know when the right time is for businesses to engage in cloud-based accounting services in the Singaporean business landscape to achieve their fullest potential, continue reading this blog.
What Are Cloud Accounting Services?
Cloud accounting is a subset of cloud computing services in Singapore. Cloud computing refers to delivering computing services over the internet, enabling users to access and utilise resources and software applications remotely. It offers various benefits such as scalability, flexibility, cost savings, and ease of access.
On the other hand, cloud accounting involves using cloud computing infrastructure and services to perform accounting functions and manage financial data. Cloud accounting relies on web-based applications hosted on remote servers instead of installing accounting software on individual computers or local servers. Users can access these applications through a web browser or dedicated software, and the data is stored and processed in the cloud.
The Right Time to Consider Adopting Cloud-based Accounting Services
The right time to engage in cloud accounting services depends on your business’s specific needs and circumstances. However, here are some situations that indicate it may be the right time to consider adopting cloud-based accounting services:
When a company is experiencing growth or expansion, it is the best time to transition to cloud accounting. Cloud accounting services are highly scalable and can easily accommodate increased transaction volumes, additional users, and new business entities.
Manual or Outdated Accounting Processes
A business that relies heavily on manual bookkeeping or outdated accounting software may be a wake-up call to switch to cloud-based accounting services. Cloud accounting automates many tasks, reduces manual data entry, and streamlines financial processes, saving time and improving accuracy.
Remote Work or Multiple Locations
Cloud accounting services are treasured if your business operates remotely or has multiple locations. They enable real-time access to financial data from anywhere, allowing remote teams or branches to collaborate seamlessly and ensure consistent and up-to-date financial reporting.
Data Security Concerns
Data security concerns and inadequate security measures of your current accounting system are your go signals to switch to cloud accounting services in Singapore. To protect your financial data, cloud service providers often employ robust security protocols, including encryption, regular backups, and access controls.
Need for Real-Time Reporting and Insights
Cloud accounting services can deliver if your business requires real-time financial reporting, analytics, or insights to make timely and informed decisions. Cloud-based systems provide up-to-date dashboards, customisable reports, and integration with other business tools, enabling you to monitor key metrics and performance indicators in real time.
Cost and Efficiency Considerations
Cloud-based accounting services offer several advantages if you want to reduce costs, improve efficiency, and streamline your accounting processes. They eliminate the need for upfront investments in hardware and software, minimise IT maintenance, and provide automated updates, resulting in cost savings and improved productivity.
The right time to engage in cloud computing services in Singapore is when you identify specific pain points or growth opportunities within your accounting processes. Assess your current accounting system, evaluate your business goals, and consider the benefits of cloud accounting in terms of accessibility, security, scalability, collaboration, and cost efficiency.
What Is in It for Your Business?
Besides accessibility, convenience, cost efficiency, data security, and scalability, cloud accounting in Singapore has more benefits, such as accessibility, integration, collaboration, and real-time reporting and insights. Here are other benefits of the service that are ultimately advantageous to different businesses of various types:
Accessibility and Convenience
Cloud accounting services allow businesses to access financial data anytime and anywhere with an internet connection. This means that employees can securely log into the cloud accounting platform from their laptops, tablets, or smartphones, eliminating the need to be physically present in the office.
For companies with multiple branches or remote teams, this accessibility is particularly valuable as it allows real-time collaboration and efficient decision-making. Team members can view and update financial data simultaneously, ensuring everyone works with the most up-to-date information. This convenience enables businesses to operate more flexibly, respond quickly to financial inquiries or changes, and make informed decisions promptly.
Integration with Other Business Systems
Also, cloud accounting services offer seamless integration with various business systems, such as customer relationship management (CRM) software, payroll systems, inventory management tools, and e-commerce platforms. Integrating these systems with cloud accounting allows data to flow smoothly between different departments, eliminating the need for manual data entry and reducing the risk of errors.
For example, sales data from the CRM system can be automatically synchronised with the accounting system, streamlining the process of generating invoices and tracking revenue. Integration enhances operational efficiency, improves accuracy, and provides a holistic view of the business’s financial and operational activities.
Collaboration and Communication
Next is that cloud accounting services foster collaboration and communication among accountants, bookkeepers, and business owners. Multiple users can access the cloud accounting platform simultaneously, allowing them to work together on the same financial data. This promotes better teamwork, reduces the need for back-and-forth communication or file sharing, and enhances transparency.
For instance, accountants can input financial transactions, bookkeepers can reconcile accounts, and business owners can review financial reports—all within the cloud accounting system. Collaboration features such as comments, notifications, and task assignments further facilitate communication and ensure everyone is on the same page. This collaborative environment streamlines accounting processes, increases efficiency, and minimises errors.
Real-Time Reporting and Insights
Lastly, cloud accounting services provide real-time access to financial reports, dashboards, and analytics. Businesses in Singapore can leverage this timely information to make data-driven decisions, monitor key performance indicators (KPIs), and comply with regulatory reporting requirements.
With cloud accounting, financial reports can be generated instantly, giving businesses a comprehensive view of their financial health. Dashboards and customisable analytics provide visual representations of financial data, allowing for quick identification of trends, anomalies, or areas that require attention. Real-time reporting enables businesses to react swiftly to financial challenges or opportunities, adjust strategies, and optimise their operations.
More so, compliance with regulatory reporting obligations becomes more manageable as cloud accounting systems often offer templates and automated features that ensure accurate and timely submission of financial statements and tax reports.
Get In Touch with ContactOne Today!
For reliable cloud accounting services in Singapore, do not think twice about getting in touch with ContactOne. Our excellent customer service will welcome your concerns and questions. Call us on +65 6333 0633 and +65 8666 3633.
November 17, 2022
Singapore is a business-friendly territory that motivates many investors to venture into the country. Along with that are the laws implemented by the government to regulate the business hub. Tax is the most common subject when the Singaporean business landscape is brought as a subject in a conversation.
Discussing Singapore’s tax scheme is only fair because business owners have many things to learn. The Goods and Services Tax (GST) is one of the most common taxes imposed on supplies of goods and services in Singapore. But what is it, and can it benefit all businesses?
Continue reading below and learn more about GST and GST registration services in this article.
All About the Goods and Services Tax (GST) in Singapore
All Singapore-based businesses know about the Goods and Services Tax (GST). In other countries, it is almost equivalent to Value-Added Tax, but with a few differences in features. GST’s nature can be defined as a wide-ranging consumption tax imposed on imported goods collected by Singapore Customs. More than that, there is GST levied on all other goods and services in the country.
On the other hand, according to the Inland Revenue Authority of Singapore (IRAS), some exemptions apply to the following: most financial services, supply of digital payment tokens, sale, and lease of residential properties, and importation and local supply of investment precious metal.
A GST-registered company in Singapore is mandated to collect GST from customers of goods and services rendered. This collection will be paid to the tax authorities to support public spending that benefits Singaporean. The expenditure includes healthcare, education, and security. Currently, GST is expressed as a 7% per cent tax charged on the consumers’ end.
What’s In It for You: Registering for GST in Singapore
Boost Brand Name
The Singaporean business hub is a saturated and competitive market where everyone goes above and beyond to acquire the positions of market leaders. A GST-registered company in Singapore has the impression of an established company. It entitles the right to rally alongside other market giants.
Enable Tailor-Made Business Policies
Registering to GST means making a pool of financial information accessible. With this information, the government can develop new policies to improve the existing ones. It will be beneficial to the growth of many businesses in Singapore.
Lessen Income Tax Rates
The favourable corporate and personal income tax scheme makes Singapore so appealing to most people, especially investors. When the government can keep track of the collected corporate income taxes, it can moderately maintain the personal income tax rates.
Encourage Savings and Investment
People are only taxed when they avail of consumer goods and services in Singapore. Because of this, individual tax rates are kept in check, encouraging citizens to save and invest. Since people are taxed every time, they purchase goods and services, it only makes sense to exempt their savings and investments from taxation.
Reduce Business Costs
Singapore’s tax regime not only benefits overseas investors like it has been lauded in the world, but the government’s cost of administration and collection also benefits from it. GST registration reduces business costs by handing down a portion of the responsibility to the consumer.
GST Registration of Singaporean Businesses
Some considerations need to be looked at more closely regarding GST registration in Singapore. While there is compulsory registration, there is also voluntary registration and exemption. Understanding the conditions governing GST registration in Singapore is crucial to be guided on your next moves.
There are two bases when a company is compulsory to register for GST. First is a retrospective basis, in which the business turnover in the past 12 months is more than S$1 million. The second is prospective basis, in which the business is currently making sales and expecting to exceed S$1 million for the next 12 months. It includes various signed agreements or contracts and expected revenue.
Businesses with revenue exceeding S$1 million should apply GST to IRAS within a 30-day notice. Otherwise, penalties will be charged to non-compliant enterprises. To ensure proper declaration of turnover, anti-avoidance provisions are in place.
Some businesses are not liable to compulsorily register. In this case, they may voluntarily register for GST, depending on their business operations. Qualified businesses are those with plans to make sales or have started making sales of taxable supplies in Singapore.
For additional conditions to voluntarily register for GST, do your research. Or turn to a reliable provider of GST registration services to be guided accordingly.
Exemption for Registration
Businesses that only make zero-rated supplies can apply for exemption even if they exceed the taxable turnover limit of the registration. It excludes a business from GST registration’s administrative requirement and subsequent quarterly filing. IRAS will assess and approve the exemption with the condition that 90% of the total taxable supplies are zero-rated. Input tax and output tax are also considered.
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For more corporate business solutions, like GST registration services, reach out to ContactOne. You may call us on +65 6333 0633 or +65 8666 3633. Our website is also full of exciting things to explore. Visit now!