The Complete Guide to Managing Tax Risks in Singapore

 

Looking for help in managing your tax risks? Learn from this infographic on how you can manage your tax risks.  

Seek help from reliable accounting firms in Singapore like Corporate Services Singapore to identify opportunities and spot flaws within your company’s internal practices. The firm also offers services that includes Singapore company incorporation, company secretary services Singapore, payroll, accounting services, auditing & assurance and taxation.

Source:  https://www.corporateservicessingapore.com/the-complete-guide-to-managing-tax-risks-in-singapore/

Guide to Transfer Pricing for Businesses in Singapore

 

Transfer pricing is important because it affects the amount of tax paid to tax authorities.  Here’s a quick guide to transfer pricing for businesses in Singapore.  

Save valuable time and keep your business on track by engaging with a professional accounting firms in Singapore like Corporate  Services Singapore.  The firm can help you to process such transfer pricing requirements. Its expertise includes scompany incorporation and corporate secretary services Singapore and other business-related services.

Source:  https://www.corporateservicessingapore.com/guide-transfer-pricing-businesses-singapore/

10 Things Investors Want to See in Financial Statements Before Making an Investment

 

Before looking for investors, it's important to prepare your financial statements. Here are the things investors want to see in a company’s financial statements.

Finding ways to improve your business’ financial ratios will lead to better profitability. Thus, you may consider outsourcing accounting to a professional services firm such as Corporate Services Singapore to access financial expertise and enjoy swift and seamless accounting functions as your business grows. The firm also provides corporate secretarial services to help you manage your business and operational duties.

 

Source:  https://www.corporateservicessingapore.com/10-things-investors-want-to-see-in-financial-statements-before-making-an-investment/

5 Key Tips to Help You Create a Successful E-commerce Business in Singapore

 

The pandemic forced many establishments to close, leaving many young professionals in Singapore to look for a more lucrative careers. They have faced uncertainties in the corporate setting and found a more significant market shift to e-commerce. 

Analysts have projected a 16.2% to US$10.7 billion e-commerce growth rate by 2025. The research was done during the pandemic when most people stayed at home. 

Surge of E-Commerce

Consumers have spent most of their time online to find almost everything through online shopping. Online payment systems also showed an increase in purchases in the year 2021. With that said, most young professionals left their job and engaged in starting their e-commerce businesses. 

But, while starting an e-commerce business is advantageous on so many levels, it is also quite challenging. Take a look at the tips below to help you jumpstart your career on the right path.

1. Brainstorm Great Product Ideas

Brainstorming helps identify the best ideas for your product based on your market. When you brainstorm, you should also consider all possible solutions should a problem arise. 

Some entrepreneurs underestimate the advantages of brainstorming, thinking they already have everything they need. However, it is essential to think of all the possibilities before facing problems once the business has started.

2. Source Your Product

There are many different ways of sourcing products for your e-commerce business. You can source from local markets, trade shows, wholesale suppliers, etc.

Some people have had success with sourcing products from other major online shops, but this isn't always the case. Therefore, it's still essential to research how to source the right products and who you should be working on with.

3. Drive Targeted Traffic to Your Store

There are a few ways that you can go about driving targeted traffic to your store. One of the most common strategies is SEO. SEO is the process by which you can increase the visibility of your website on search engine results pages (SERPs) by optimizing content, backlinks, and titles. 

You can also use other marketing strategies such as paid advertising, social media, and email marketing. 

4. Raise Your Average Order Value

It is essential to raise your average order value (AOV). AOV is the average amount of money a customer spends on an order. You can get its value by dividing the total revenue generated by the total number of orders. This metric allows you to understand how much money you make on each order.

Many e-commerce businesses start with low AOVs, which means they are not making enough money from each sale. They need to increase their average order value to make a living and grow their business.

5. Incorporate Your E-commerce Business

E-commerce business owners should be aware of the regulations in Singapore. They should also consider the legal implications of their business and how they can stay compliant with these regulations.

Here are the paperwork requirements when incorporating e-commerce:

• Company name: Do not settle for one term. Ensure you have a list in case your first choice is rejected.

• At least one director: This person must be a Singapore local or permanent resident of at least 18 years of age with no disqualification record

• Company secretary: This person will be responsible for all communication with the government and will take care of needed documents.

• Singapore address: You may be starting an e-commerce store; however, you must have a physical office to start a business.

• Proof of identity: Every declared member of the management must submit a valid ID.

It's a common misconception that starting an e-commerce business is easy. However, it takes a lot of hard work and dedication to create a successful online store. To be successful, one needs to have the right mindset and be committed to the cause. 

One must also understand the market they are entering and have enough capital for marketing purposes.

 

Why is a Corporate Secretary Essential for Small Businesses?

 

Before registering your company in Singapore, you need to ensure that it abides by the current legal requirements stated in the Singapore Companies Act. Among these is the need to appoint a company secretary within the first six months of your incorporation.

 

Legal Requirements of Having a Corporate Secretary

According to the act, the guidelines for hiring a corporate secretary vary depending on the nature of the business. For public companies, corporate secretaries must have 3 to 5 years of prior experience before being officially appointed in the organisation. In addition, they should meet the specific criteria that involve knowledge and practice in legal aspects as the position often involves constant government involvement. Because of their nature of work, corporate secretaries for public companies generally work full-time and in-house.

 

On the other hand, corporate secretaries for private companies don’t follow such strict guidelines. To offer corporate secretary services for private companies, prospective applicants need to meet the minimum requirements. That is, they need to be a permanent resident of the country and be of legal age.

 

Responsibilities of the Corporate Secretary

Besides being a legal requirement, corporate secretaries are necessary for every company because they handle financial, administrative, and operational matters.

●       Financial responsibilities

Corporate secretaries manage the company's insurance covers and prepare account statements. They are also responsible for ensuring that the company remains tax compliant by paying and filing on time to prevent unnecessary penalties.

 

●       Administrative responsibilities

Some of their core administrative functions include scheduling and organising board meetings, arranging annual general meetings as mandated by the Companies Act, and coordinating with the shareholders regarding share allotments, transfers, and other issues. What’s more, corporate secretaries are also responsible for maintaining corporate governance practices and protecting company identity.

 

●       Operational responsibilities

In terms of their operational responsibilities, they must supervise daily activities and ensure that everything complies with ACRA's statutory guidelines. Likewise, corporate secretaries are required to update company information should there be any rebranding initiative that requires modification in the name, nature of work, address, and list of shareholders.

 

With this and more, it's clear how a corporate secretary plays an integral role in several business aspects. For this reason, company secretarial services are not only necessary but also beneficial.

 

Different Ways Companies Fill the Corporate Secretarial Position

There are three ways to obtain corporate secretarial services in Singapore. This includes:

●       Hiring full-time in-house secretary

The most traditional approach is hiring a full-time secretary who will work for your company exclusively. However, while it has its own advantages, hiring an in-house secretary may be more costly in the long run. That's why some companies prefer to look for other alternatives.

 

●       DIY corporate secretary

Another option is to do it yourself. This means you appoint a qualified member of your company to take on the role of a corporate secretary. Some of the benefits of following this method include saving on annual fees and keeping all transactions internally.

 

When you choose to DIY your corporate secretary, you don't have to worry about being charged extra for getting secretarial services. Moreover, it helps keep all files and documents within the company as there is no need to share confidential information with external firms.

 

However, because an individual is expected to hold two positions simultaneously, there is a higher probability of making costly errors. If not for lack of concentration and focus, DIY secretaries can make mistakes if they have limited field experience.

 

●       Outsourcing corporate secretarial services Singapore

The last option is to outsource services from corporate firms on a renewable short-term basis. This gives companies access to experts at affordable prices. Moreover, outsourcing is the most flexible and customisable option to ensure all companies get the services they need.

 

Among these three options, most established and emerging corporations prefer outsourcing company secretary services Singapore because of its distinct advantages. However, before you outsource, be sure to check the credibility and experience of the firm to get the best results.

5 Essential Characteristics that Make a Successful Corporate Secretary

 When running a business in Singapore, one of the mandatory requirements is to have a corporate secretary on board.

Whether in-house or outsourced, corporate secretaries play a crucial role in handling corporate tasks. They hold the responsibilities of managing day-to-day administration, scheduling meetings, and ensuring the company's smooth operation. That said, corporate secretaries require impeccable organizational and communication skills, initiative, drive, and professionalism. 

More specifically, a great corporate secretary should possess the following qualities:

Multi-tasker

Because of the demanding nature of the job, corporate secretaries should be able to multi-task with ease. Preparing meetings, complying with corporate governance, bridging communications, and filing documents are just a few of their required tasks. However, there will come a time when these tasks overlap one another. In such cases, a good corporate secretary should know how to cope with it and overcome the challenge with finesse.

Proper time management

Since most of their tasks must be delivered within a specific deadline, corporate secretaries need to have proper time management skills.

But aside from managing their tasks, directors also rely heavily on them to plan and schedule meetings, such as board meetings and annual general meetings. So, knowing how to balance their obligations within the set time frame is essential for office secretaries.

Detail-oriented

One of the significant roles of the corporate secretary is to manage company records.

Company records are usually confidential documents that contain vital information about the company's finances and strategies. Ensuring that all documents are accounted for is important to keeping the business on track. For this reason, corporate secretaries must be detail-oriented.

Not only do they have to collect documents, but they also have to assess the information presented. Is the information complete? Is there any error? Is it aligned with the business plans? As the first point of contact between shareholders and the rest of the company, corporate secretaries are responsible for circulating announcements and tracking business progress. As such, they must detect incomplete or inaccurate information and notify the directors immediately before sharing data.

Transparency

In relation to the previous point, corporate secretaries need to be honest and transparent, especially with regard to the information they hold. In other words, they need to share their insights on specific business matters. 

As educated and trained professionals, corporate secretaries can offer a different yet substantial perspective on many corporate concerns. As such, many leaders consider them as reliable advisers. So, when they have an opinion to share, they should take the initiative to be transparent. 

However, having an idea and communicating it clearly are two different skills. That’s why every corporate secretary must be clear communicators.

Clear communication

Corporate secretaries work closely with executives and senior stakeholders. Because of this, they need to learn how to be diplomatic, tactful, concise, and persuasive. Moreover, they must be good listeners as well as good negotiators. 

As advisors in the company, they need to build strong relationships with clients and decision-makers. Once the relationship is forged, they can become a voice of reason to offer assistance in navigating the company in the right direction. 

In addition, having excellent communication skills not only gives them the power to express their ideas but, more importantly, propose sound strategies to execute the plans to ensure the success of the company.

That said, there’s no doubt that being a corporate secretary is demanding. But they hold a pivotal role in the company. 

Finding individuals with these qualities can be challenging and time-consuming. Fortunately, companies have the option to hire company secretarial services from experienced firms. Corporate secretarial services Singapore offers expertise and convenience that every business can benefit from. So, rather than hiring in-house corporate secretaries, try outsourcing from reputable firms in Singapore.

8 Biggest Business Trends For 2021

 All industries have been affected by the COVID-19 crisis, with varying degrees of severity. Community quarantine and lockdown have resulted in the temporary closure of many hospitality businesses. 

Other companies adjusted their operating procedures to ensure survival. These adjustments reflect what companies should do this year to improve their service in the midst of the COVID-19 pandemic.

Read the full article: https://bit.ly/36k7SFE

Hire a company secretarial services in Singapore to assist you in understanding the current trends and technologies relevant to your business.

6 Signs Of Good Corporate Governance

Good corporate governance is the effective management of a company - ensuring long-term corporate success and economic growth.

Every company in Singapore must comply with the country's business regulations. Engage with a reliable company secretarial services provider in Singapore to ensure compliance with legal responsibilities.

Read the full article: https://www.corporateservicessingapore.com/6-signs-your-company-has-good-corporate-governance/

10 Signs Your Business Needs to Engage Accounting Services

Accounting services in Singapore make a large impact in the success of your business. They maintain your business records in proper shape and help you get a better idea on how to manage the finances of your business. It is advised that you outsource your accounting services for small business in Singapore. They help you understand well the performance of your business, how to improve the cash flow of your business,and help you determine the steps for productivity. This video will show you the signs if your business needs to engage accounting services.

Source: https://www.corporateservicessingapore.com/10-signs-business-needs-engage-accounting-services/

Pros And Cons Of Starting A Sole Proprietorship Business In Singapore

Singapore isn’t recognised as one of the top places in the world to do business for nothing. No matter the size of business entrepreneurs have in mind, whether starting a small venture or setting up an offshore or multinational firm, the Lion City has just the right combination of strong government support, infrastructure, and talented pool of local and international talent that makes any business for Singapore company formation a worthwhile investment.

What’s more, Singapore offers a variety of business entities to cater to a wide range of business models. If you’re thinking of taking baby steps to launch your entrepreneurial career in the Lion City, you can do so by having your business registered as a sole proprietorship.

What is a sole proprietorship

Most neophyte entrepreneurs who want to start off small prefer to register their business as a sole proprietorship. Under this model, the business is owned by one person, who is called a sole proprietor. Being the sole owner, the sole proprietor has absolute control over the business.  

The sole proprietorship business entity is a popular choice amongst new entrepreneurs and it’s easy to understand why. It’s the simplest, most basic form of business registration, which means it is the easiest and cheapest to set up amongst other legal entities in the Lion City.   

Small and medium enterprises (SMEs), independent professionals who offer freelance, consultancy, or contractual services, and service providers like designers and copywriters prefer to register their venture as a sole proprietorship as it offers convenience in terms of registration, paperwork, and management.  

How to register as a sole proprietor

Being a simple and basic legal entity, it is easy to register as a sole proprietorship for Singapore company formation. You can even do the procedure yourself or you can engage a company formation service if you want to be thorough in following all the various steps in the formation of a company under sole proprietorship.

In a nutshell, all you need to meet are a few requirements to start a sole proprietorship business in the Lion City. You must be at least 18 years old or older and a citizen, permanent resident, or EntrePass holder of Singapore.

If you are not Singapore citizen, resident, or EntrePass holder, you should appoint a Singapore resident to be your authorised representative. If you are self-employed, you are also required to top up your Medisave account with the CPF Board before you proceed to register your sole proprietorship business.  

Advantages and disadvantages of starting a sole proprietorship

All business entities in Singapore carry with them certain characteristics that may or may not be ideal for specific business models. Before you opt for a sole proprietorship, it is important that you understand the unique features of this legal entity and compare them to the needs of your business. 

It is recommended that you hire a company formation services in Singapore to help you understand better how you can benefit from a sole proprietorship or not, should you decide to register your business as one.

Pros

● Easy to set up: If you want to start a business in Singapore right away, choosing to register as a sole proprietorship is your best bet. Local entrepreneurs prefer this legal entity when they’re looking to start off small before registering as a private or public company should they decide to expand. 

    

● Low registration cost: Compared to setting up as a private or public company for Singapore company formation, registration for sole proprietorship is more affordable. 

● Less compliance requirements: Compared to running a private or public company, you won’t need to meet a lot of compliance requirements to run a sole proprietorship business. You don’t have to file tax returns annually and just need to renew your membership every year.

● You have absolute say on running the business: Since you are the sole owner, you have full control of the business. You don’t have to consult anyone when making a business decision or on any matters related to managing the business. 

● Business profits are all yours: Being the sole owner, you don’t have to share the profits of the business.

● Easy to dissolve: Should you decide to terminate business operations, you can do so easily as you are the sole owner and decision maker.

Cons

● There is no separate legal entity: You, as the sole owner, don’t have an entity or personality that is separate from the business. You and the business are considered as one. This means that you can be held personally liable for any debts or losses incurred by the business. 

● The sole proprietor has unlimited liability: Since you don’t have a legal entity that is separate from the business, your liability is infinite. Legal actions that are taken against the company are also taken against your own name. Since you are liable for the debts and losses, you don’t have control over your personal assets.

● Not eligible for corporate tax benefits and incentives: Calculation of your taxes is based on your personal income, since you and the business are considered one and the same. You are not eligible for any tax benefit or incentive that most companies enjoy.  

Raising capital and securing loan are a challenge: It may depend on your credibility should you need to increase your capital or secure a loan. Most banks prefer to grant loans to companies as they are more credible.

Refer to these pros and cons to come up with a sound decision when thinking of setting up a sole proprietorship in Singapore. Should you opt to register as one, you can make the process of business registration easier by hiring a company formation service. 

Fuss-free sole proprietorship registration with a company formation services in Singapore

Apart from giving you expert insights when deciding to sign up as a sole proprietor, a company formation services in Singapore can make the process of registering a sole proprietorship business easier and hassle-free.

These professional services providers are adept in all aspects of business registration and company incorporation of all kinds of businesses. A company formation service can provide you with specialists to handle all your registration requirements as well as filing of essential documents, ensuring that they are filed timely and in an efficient manner.

Should you decide to expand your business, you can also count on company formation services in Singapore to guide you on which type of company suits your business best. You can ask them for tips and advice on the cheapest offshore company formation or how you can go about the steps of company formation with bank account.     

  

Whether or not you decide to sign up for sole proprietorship, know that arming yourself with essential information before registration is key to successfully set up this kind of business. With the help of an expert company formation firm, you can weigh the pros and cons easily and simplify as well the procedures you need to complete to start a sole proprietorship business in the Lion City.  

Do These 4 Things Before Hiring Corporate Secretarial Services

It takes more than just guts or the perfect business plan to successfully do business in Singapore. Know that in such a bustling business hub, you can expect a number of challenges to sidetrack your success. It is thus important that you explore all available avenues that could be instrumental in helping you manage your business better. One of the routes you can take is to consider partnering with a corporate secretary services firm in Singapore. 

Navigating the complicated business environment of Singapore can be a daunting task if you don’t have the expertise of a local firm to guide you. From strict regulatory requirements to the challenges you could face when hiring new people, it can be tough to keep pace with all that’s needed to be met and completed. A company secretarial service firm provides you with an extra hand to help you handle your administrative activities with ease and efficiency.

A corporate secretarial company in Singapore has the expertise and experience to handle your administrative function that is otherwise can be challenging if you’re relying solely on an in-house secretary. If you’re a start-up keen on immediately creating stability for your company, a local business looking to streamline your operations, or an offshore firm eyeing to position your business strategically in Singapore, a corporate secretarial services company can help achieve your desired outcome with its knowledge in expertly handling administrative requirements.

Just like a hand to a glove, your company and the corporate secretary services firm you will choose should be a perfect fit. Not all professional service providers are created equal, that’s why you should take note of these four factors when selecting a local firm that suits your business requirements.  

  

1. Ensure that the local firm boasts of staff with proper qualifications

This is basically a standard procedure whether you’re hiring new employees or engaging a professional service provider. When scouting for a corporate secretarial services firm in Singapore, it is a must that the individual who will be appointed to you is:

• a resident of the country (must be a citizen, a permanent resident, or an EntrePass holder) has secretarial experience of at least three of the five years prior to appointment
• a qualified individual as per the Legal Profession Act
• a public accountant registered under the Accountants Act
• and a member of Singapore’s Institute of Certified Public Accountants, Institute of Chartered Secretaries and Administrators Association of Singapore, the International AccountantsAssociation Singapore, and the Singapore Institute of Company Accountants

All these requirements are mandated by the Accounting and Corporate Regulatory Authority (ACRA).  

2. Check if the corporate secretary services firm knows the rules and regulations

This is one factor that can never be compromised. When hiring a corporate secretary services company in Singapore, make sure that it strictly observes all the rules and regulations promulgated by ACRA, particularly those that have been extended or modified. The local firm you will hire should know everything – from filing requirements and schedules to meeting other compliance requirements.

3. Verify that your professional service provider offers a comprehensive portfolio of secretarial services 

On top of ensuring that all regulatory requirements are met, the company secretary services firm in Singapore that you will partner with should also be extremely knowledgeable in all administrative activities such as corporate governance, incorporation, dissolution, restructuring, and liquidation, amongst others, and must be able to handle these with efficiency.  

It pays to have a local firm that can provide everything that you will ever need. There are corporate secretarial services companies in Singapore like Corporate Services Singapore that acts as a one-stop shop for all your corporate secretarial requirements – from formation of local and offshore entities to maintenance of statutory records, minutes, and registers.

4. Make sure that you get more value for your money

Hiring a company secretary services firm in Singapore becomes more cost-effective when the local firm you engage in can provide you with more than just the basic secretarial services. There are firms that offer company secretarial services package that involves additional services to help run your business more efficiently. Professional services providers like Corporate Services Singapore, for example, offer personalised services to provide tailored solutions unique to your business needs.   

Keep in mind these four factors when considering to outsource your administrative function to a corporate secretary services company in Singapore. At the end of the day, you need a corporate secretary that you can rely on to be your dependable partner in ensuring your business success.