News & Updates
October 18, 2023
Ensuring efficient and streamlined processes is vital to driving growth and prosperity for commerce businesses. Among the crucial processes is the Goods and Services Tax (GST) registration, which plays a pivotal role in Singapore’s business landscape. GST registration services offer significant advantages to businesses, enabling them to thrive and flourish in a competitive market.
In this blog, we will delve into the benefits of GST registration services and how they empower businesses. But first, let us get to know what GST registration in Singapore is and why businesses should register. Read more below!
The Core of GST Registration in Singapore
GST registration holds importance for companies in Singapore as it is a mandatory requirement for businesses engaged in the supply of goods and services. Once a company’s annual taxable turnover exceeds or is expected to exceed SGD 1 million, it becomes obligated to register for GST. By becoming a GST-registered entity, the company is required to charge GST on its taxable supplies to customers and pay GST on its purchases from other GST-registered businesses.
One of the key benefits of GST registration is the ability to claim Input Tax Credit (ITC), which allows companies to offset the GST paid on their purchases against the GST collected on their sales, thereby minimising the tax burden. A GST-registered company in SG has enhanced credibility, signalling its compliance with tax laws and professional standing. This credibility can attract more customers and business partners, providing a competitive advantage, especially when pursuing government contracts and tenders, as many require GST registration.
For companies involved in international trade, having a GST registration in Singapore can facilitate cross-border transactions and open up global business opportunities. Proper GST compliance and timely remittance are essential to avoid penalties and legal consequences, making it vital for companies to understand and adhere to GST regulations.
GST registration significantly impacts a company’s tax obligations, financial management, credibility, and competitiveness in the market as a whole.
GST Registration Check: GST Registration Services Objectives
The objectives and goals of GST registration services revolve around assisting businesses in Singapore with registering for Goods and Services Tax (GST) and ensuring their compliance with GST regulations. These services are designed to help businesses achieve the following:
Facilitating GST Registration
The primary objective of GST registration services is to promote the smooth and efficient registration of businesses for GST. Professional service providers guide businesses through registration, ensuring that all necessary documents and information are properly submitted to the tax authorities.
GST registration services aim to ensure that businesses comply with Singapore’s tax laws. They assist companies in understanding the eligibility criteria for GST registration and help them determine the appropriate time to register based on their turnover. By complying with GST regulations, businesses avoid potential penalties and legal consequences for non-compliance.
Maximising Input Tax Credit (ITC)
One of the goals of GST registration services is to help businesses maximise their Input Tax Credit (ITC) claims. Service providers assist in proper record-keeping and documentation to ensure businesses can claim ITC on their eligible business expenses, thereby reducing their overall GST liability.
Simplifying GST Returns Filing
GST registration services aid businesses understand their GST reporting requirements and deadlines. They help streamline the process of filing GST returns, making it easier for companies to comply with the reporting obligations and submit accurate and timely returns.
Providing Expert Advice
GST registration services are staffed by professionals well-versed in GST regulations and updates. These experts provide businesses with valuable advice and insights, helping them navigate complex GST rules, exemptions, and any changes in the tax framework.
Supporting Audit Preparation
In the event of a GST audit, registration services can assist businesses in preparing the necessary documentation and evidence to support their GST filings and claims. This support helps companies handle audits smoothly and ensures compliance with tax authorities’ requirements.
Minimising Errors and Discrepancies
A GST-registered company in SG can minimise errors and discrepancies in GST filings by providing expert guidance and assistance. This ensures that businesses avoid overpaying or underpaying GST, which could lead to financial implications and administrative challenges.
Promoting GST Awareness
GST registration services aim to promote GST awareness among businesses. They educate businesses about the benefits of GST registration, how it impacts their operations, and how they can efficiently manage their tax obligations.
Advantages and Benefits of GST Registration Services in Singapore
Compliance with Singapore’s Tax Laws
The most fundamental advantage of GST registration services is the ability to comply with Singapore’s tax laws. Under the GST Act, businesses with a turnover exceeding SGD 1 million are required to register for GST. Failing to do so can result in penalties, fines, and legal repercussions. Availing of professional GST registration services ensures businesses full compliant with tax regulations, thus avoiding any potential risks associated with non-compliance.
Access to Input Tax Credits
GST registration allows businesses to claim Input Tax Credit (ITC) on purchases. ITC enables businesses to offset the GST they have paid on their purchases against the GST they have collected on their sales. This system eliminates the cascading effect of taxes, ensuring that businesses are not burdened with double taxation. By availing of GST registration services, businesses can efficiently track their input and output tax and maximise their potential tax savings.
Improved Credibility and Trust
GST registration adds credibility and trustworthiness to a business in the eyes of customers and suppliers. It signals that the business is established, reputable, and committed to statutory obligations. Customers may perceive GST-registered businesses as more reliable and professional, leading to increased confidence in their products or services. Furthermore, suppliers may be more inclined to offer competitive prices and favourable credit terms to GST-registered businesses, enhancing their overall competitiveness.
Global Expansion Opportunities
GST registration can be a strategic advantage for businesses expanding beyond Singapore’s borders. In many countries, GST registration is mandatory for businesses to engage in international trade. By already having a GST registration in Singapore, businesses can expedite the process of entering foreign markets and reduce administrative hurdles associated with cross- border transactions. This advantage opens up new growth prospects and international business opportunities.
Facilitating Government Tenders and Contracts
GST registration is often a prerequisite for participating in government tenders and contracts in Singapore. Government contracts can be lucrative and provide a stable source of revenue for businesses. GST-registered companies are more likely to qualify for government tenders, giving them a competitive edge over non-registered competitors. Moreover, GST registration can enhance a business’s eligibility for government grants and incentives, further promoting growth and development.
GST Compliance Made Easy
GST registration services not only help businesses register for GST but also aid in maintaining GST compliance on an ongoing basis. These services ensure businesses file their GST returns accurately and on time, avoiding penalties and interest charges for late or incorrect submissions. Professionals well-versed in GST regulations can navigate complex tax rules and exemptions, reducing the administrative burden for businesses and enabling them to focus on core operations.
Cash Flow Management
GST registration can significantly impact a business’s cash flow management. When a business is GST-registered, it collects GST from customers and holds it in trust for the government. This collected GST can offset the GST paid on business expenses before remitting the net amount to the tax authorities. Proper cash flow management can help businesses allocate resources more effectively, improve financial stability, and plan for future investments.
Become a GST-Registered Company in SG Today!
GST registration services offer an array of advantages that empower businesses in Singapore to thrive and succeed. The benefits of GST registration are numerous, from ensuring compliance with tax laws to facilitating global expansion. By availing of professional GST registration services from a reliable service provider like ContactOne, businesses can easily harness these advantages and navigate the complex world of taxation. GST registration enhances a business’s credibility and fosters long-term growth and sustainability, positioning them for success in Singapore’s dynamic business landscape.
For more GST registration services-related information, do not hesitate to contact us at ContactOne. We dedicate our company to making business processes easy for enterprises in Singapore. Call us on +65 6333 0633 and +65 8666 3633. You may also head to our website at www.contactone.com.sg.
January 27, 2022
A legitimate company is a successful company. As an aspiring business owner, how can you secure your reputation as a legitimate business and establish trust among your customers and employees? Simple, register your company.
In this guide, let us walk through the process of company registration in Singapore if you are planning to build one in this developed country.
Everything You Need to Know Before Registering Your Company in Singapore
- You need to have your company name approved before the registration of your company with ACRA or the Accounting and Corporate Regulatory Authority.
- Appoint at least one resident director for your company. You have the choice to appoint an unlimited number of both resident and non-resident directors, provided that they are at least 18 years old, not bankrupt, and don’t have any charges for malpractice.
- Within six months of your company’s registration in Singapore, you must appoint a qualified resident company secretary. Take note that sole directors and/or shareholders are not authorized to act as the company secretary.
- The company can have a minimum of one shareholder and a maximum of fifty. Shareholders can either be directors or non-directors, which may consist of both local and non-local entities.
- You must at least have S$1 (or its equivalent in any currencies) worth of share capital.
- Your company must have a local and physical address within Singapore, regardless of whether it is residential or commercial.
How to Register Your Company in Singapore
Step #1: Start with Your Company Name
You begin your business registration process by having ACRA approve your company name.
Bear in mind that your company name plays a crucial role in your brand’s growth and the customer’s recognition. Good company names remain on the minds of the consumers, while bad ones just go with the wind. That is why it is important to choose your company name strategically.
How to Get ACRA’s Approval
You have to consider several factors and follow the guidelines when choosing a company name. Refer to the list below to increase your chances of getting ACRA’s immediate approval.
- Your chosen company name should not be identical to any business name in Singapore.
- Make sure that another company has not reserved the same name.
- It must be free from copyright issues and trademark infringement.
- Remember to choose a decent name, vulgar or obscene ones don’t get approval.
For the name approval process, here are other fundamental things you need to take note of:
- If you follow ACRA’s guidelines, you will get your company name approval in less than an hour.
- The approval process of company names with regulated business words may take longer than a week. Such terms include finance, bank, media, broker, or legal.The ACRA needs to refer such names to another government entity to seek further approval.
- After a successful approval process, you can reserve your company name for 120 days. Failure to incorporate that name within the specified period would mean that ACRA will release the name, and another person can reserve it.
Step #2: Prepare the Necessary Documents for Company Registration
Now that ACRA has approved your company name, the next step is to prepare the documents required by ACRA.
Other than compliance, having the necessary documents protects your business from possible lawsuits and gives assurance to potential investors or business partners. That is why you need to compile every required paperwork before opening your business.
What Are the Documents You Should Submit to ACRA?
- Copy of passport
- Proof of overseas residential address
- Know-Your-Client (KYC) information (e.g., bank reference letters, personal profiles, and business profiles)
- Copy of the Certificate of Incorporation
- Copy of the Constitution
- A resolution approved by directors of corporate shareholders to set up the said company
1. A company constitution that details how your company operates.
You have the option to adopt Singapore’s standard company constitution, which suits most companies. The terms incorporated in this legal document are also considered to be fair for the parties involved.
2. Signed Consent to Act for both the Directors and Company Secretary.
3. Important information about the shareholders and officers of the company, specifically their identification and residential address
For residents engaging the services of a professional service firm:
Copy of Singapore identity card
For non-residents engaging the services of a professional service firm:
For shareholders of corporate entities:
Documents that are not written in English should include an officially endorsed translated version.
Step #3: Register Your Company with ACRA
Once you already have the documents necessary for company incorporation in Singapore, you can officially register your company with ACRA. The process for the company registration in Singapore can be online, which will take you less than an hour.
However, there are some cases wherein the company registration has to be forwarded to other relevant statutory boards for them to vet or screen the business further. If this happens, the process may take a few weeks. That is why some aspiring business owners seek assistance from company registration consultants to understand the entire company registration procedure.
Can Non-Residents Incorporate a Singapore Company?
Yes, you can still incorporate a company in Singapore even if you are not a resident of the country. However, you need to follow several additional guidelines and remember some points, such as the following:
- The law in Singapore states that non-residents are prohibited from self-registering their company. Hence, non-residents must engage with a professional agency to complete their company registration in Singapore. It would also help to have company registration consultants.
- Should you wish to operate your company physically from within Singapore, you must obtain an Employment Pass or Entrepreneur Pass. These documents allow you to act as your company’s local resident director.
- You can register the company in Singapore and process the work permits without coming to Singapore physically. The only time your physical presence is needed is when you intend to open a bank account at a bank based in Singapore.
Register Your Company Today!
If you are about to start a business or own a Singapore company, but you haven’t registered the enterprise yet, now is the right time for company registration in Singapore. ContactOne makes the registration process hassle-free for you so that you can focus on other important matters for your business. Our corporate services are immediate and cost-efficient! Contact us on 8666 3633 for company registration and secretarial matters.