Developed financial markets, a well-trained workforce, and a well-developed infrastructure make Singapore an outstanding place to conduct business, according to the World Economic Forum’s most recent Global Competitive Report, released in 2013-14.
Additional incentives have been put in place by the city-state to attract new business owners and start-ups. For your own safety and that of the country’s business community, it is essential that you get acquainted with the local rules and regulations before starting a business there, just as it is when establishing a business in any other foreign territory.
Keeping your company compliant with the Companies Act is a legal requirement in Singapore.
Companies and taxes in Singapore are regulated by the Inland Revenue Authority of Singapore (IRAS) and the Accounting and Corporate Regulatory Authority (ACRA). The best way to file a complaint is to work with a corporate service provider that can help you in every step of the process of forming and managing your organisation. Choosing the company compliance provider in Singapore is essential there.
Assist your organisation to stay in compliance at all times by completing the nine activities listed below (and avoid costly penalties or time in prison.
Obtain a Business License
The kind of licence your company needs will be determined by the nature of your business, as well as the activities and industries in which it will be involved. Commercial activities and transactions need the acquisition of this information. These include running a medical clinic, producing food and drinks, and engaging in wholesale trading. It’s critical to do thorough research on the many sorts of business licences needed before starting operations.
Become a GST taxpayer
An important first step is to register for the Goods and Services Tax (GST) (Goods and Services Tax). Some locally produced goods and services are subject to this tax, as well as those imported into Singapore, which is Singapore’s equivalent of the Value-Added Tax (VAT). This tax is currently being levied at a 7% rate.
A tax return must be filed with the proper authorities after signing up as a GST registered firm, and the accounting cycle used by your company will determine how often this is required. Currently, some but not all businesses are required to register for the GST, depending on their specific circumstances. In many cases, however, registering a firm for GST may lead to large financial gains.
The End of the Financial Year
When it comes to accounting periods in Singapore, companies have the option of choosing their own FYE (Financial Year End). On the 31st of December of each year, the fiscal year ends for most companies, although this is not a universal rule. If your firm is a subsidiary of a holding company, the holding company’s fiscal year end (FYE) must serve as the foundation for your company’s FYE.
Providing the Company’s Registration Number
Companies in Singapore are now required to include their registration number in all business communication (including invoices and statements) in order to comply with the regulations of the Companies Act of Singapore. Any Singaporean entity that registers receives a Unique Entity Number, or UEN. This phone number may be used to contact the Singaporean government as well as other government departments. Talk to a professional corporate advisory firm like Morrison to ensure you are not bogged down by these regulations and set everything up correctly.