Maximise Company Formation with a Knowledgeable Company Secretary
Starting a new business in Singapore can be tricky, especially for foreign business owners. You can overcome the difficulties by appointing a company secretary. These professionals help you maximise company formation benefits to their fullest extent.
A company secretary deeply familiar with Singapore taxation can help you choose the optimum legal or business structure to fulfil your business goals. They will also ensure that it complies with the regulatory requirements in force and minimises risks right from the day one.
Let us know more about the role of the company secretary in Singapore. We will also see the gains you receive by appointing a company secretary who can apply deep taxation-related insights to form your business.
Choosing the Best Company Secretary
Be careful when selecting your company secretary. You need the right amount of support and advice to achieve your short and long-term goals. Make sure that the appointee is qualified, experienced and has the right track record.
It is best to work with company secretaries who have worked for companies in your industry and business niche. It will ensure they understand the nuances in regulatory compliance applicable to your business. Appoint such a company secretarial services firm if you want to expand to Singapore successfully.
Make sure that they,
- Have a reliable track record of assisting business growth
- Provides under-the-one-roof corporate services, including taxation
- Can render prompt, customised services/ support to fulfil your business needs
How a Corporate Secretary can Help Maximise Company Formation
As the chief compliance officer of your company, corporate secretaries coordinate activities of various departments to ensure your business’ compliance with deadlines. They are responsible for three such core activities.
These are as follows:
1 Hassle-free Company Incorporation Process
To start a company in Singapore, you must fulfil a set of pre-incorporation requirements. Post-incorporation, you must meet a few obligations before starting your business activities.
Your experienced corporate secretary proves to be of valuable assistance in doing so. They advise and guide you at each stage of the incorporation process.
They start with the legal or business structures available to you to form your business and advice on the impact of your choice on,
- Business taxation
- Your liability
- Business credibility and branding
Income Tax
They explain how you can maximise company formation benefits by incorporating a private limited company.
Singapore private limited companies pay corporate income tax in the range of 0% to 17% on their chargeable income. The owners of sole proprietorships and partnerships have to pay 0% to 22% personal income tax on the income from their business firms.
Liability
They explain that a private limited company limits your liability to the amount you have invested in its share capital. The owners of sole proprietorships, general partnerships, and limited partnerships have unlimited liability. In the case of a limited liability partnership, it rests with the member responsible for the loss or mistake.
Credibility
Private limited companies are legal persons with existence separate from their shareholders. They are considered more credible than Sole proprietorships and partnerships.
2 Tax concessions through RHA and IHA Schemes
They also advise you on the tax benefit you can draw by taking their global or regional HQ activities to Singapore through the Global Trader Programme (GTP), Regional Headquarters Award (RHA) and International Headquarters Award (IHA) schemes.
3 Set Appropriate Financial Year-End (FYE)
They also help you choose the appropriate FYE for your company. Doing so tells you that you have:
- Three months from FYE to submit an Estimated Chargeable Income (ECI) to the IRAS
- Six months from your FYE to convey and hold your AGM
- Seven months from your FYE for the company’s annual returns filing with ACRA
Setting FYE of Your Startup for SUTE Tax Exemption
If you are forming a startup, choose the last day of the 11th month from its incorporation date, as its FYE is important. It may enable you to maximise your tax benefits under the Startup Tax Exemption scheme.
Complying with Local Regulations
Company secretaries know the Singapore Companies Act and ACRA’s regulations thoroughly. They also update their knowledge when the laws, rules, and regulations change, which is handy in ensuring compliance.
These professionals also ensure to submit regulatory reports within the deadlines. They also give sound advice to company directors and managers on compliance issues.
They keep in touch with regulatory agencies and authorities to know about the changes in regulations. They also participate in public consultation to get deep understanding of changes to ensure your compliance.
Effective Stakeholder Relationship
Experienced company secretaries understand the importance of close relationships with company directors, managers and regulators. It helps in information exchange, resolve queries, and render of advice. For this reason, you need a company secretary skilled in interpersonal interaction and relationship management.
Corporate Taxation in Singapore
Singapore tax rates are affordable. In addition, Singaporean authorities provide various tax benefits, exemptions, and rebates to companies. These help you in maximise company formation benefits and lower the overhead costs.
Startup Tax Exemption (SUTE) Scheme
You can use SUTE scheme to claim tax exemptions for your eligible company. For its first three consecutive tax years, you can claim:
- 75% of tax exemption on your startup first $100,000 of normal chargeable income and
- 50% of tax exemption on the next $100,000 of normal chargeable income
Partial Tax Exemption
Under this scheme, you can claim:
- 75% tax exemption on your company’s first $10,000 of normal chargeable income; and
- 50% exemption on the next $190,000 of normal chargeable income
Regional Headquarters Award (RHA)
You can claim, if your company qualifies, a concessionary tax rate of 15% instead of 17% for five years on its incremental qualifying foreign income.
International Headquarters Award (IHA)
If your company exceeds the minimum requirements of the RHA then you can ask for a tax rate between 5%-15% on incremental income from qualifying business activities.
Global Trader Programme (GTP)
If your company’s regional trading base is located in Singapore, you can claim tax rate between 0%-5%.
SBS Consulting is an experienced provider of company secretarial services in Singapore. We help you maximise company formation benefits. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg for customised solutions to start a new company or secure your business’ regulatory and legal compliance.
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