You are ready to expand your business to Asian markets. But, you are unsure about setting up a foreign subsidiary or foreign branch. Yes, it is a complex decision. However, liability-wise, setting up a foreign subsidiary in Singapore is a wise option. Let us know more about why and when you should do so.

What is a Foreign Subsidiary in Singapore?

A foreign subsidiary in Singapore is a company registered in Singapore. Here, it is known as a Subsidiary Company. Its shares are, partly or wholly, owned by a parent company registered in another country.

Singapore treats your Subsidiary Company as a local company. As it has a separate identity from your parent company, it must comply with the Companies Act. The authorities, here, expect you to comply with the local statutory, tax, employment, and disclosure requirements.

Advantages & Disadvantages of a Singapore Foreign Subsidiary

Foreign companies wanting to expand in Southeast Asia favours setting up a company in Singapore. It gives them easy access to established and emerging markets in Asia. They also benefit from low corporate tax rates, pro-entrepreneur policies, and an effective legal system.

Your foreign subsidiary company in Singapore gives you a base of operation to spread from into Asia. Do not have any doubt about its potential. Because as a type of limited liability private limited company in Singapore, it is a great business or legal structure to incorporate.

Do not proceed further without knowing the advantages and disadvantages of setting up a foreign subsidiary.

Advantages

Access to New Opportunities and Talent

Your subsidiary company first opens the Singaporean market for you and creates opportunities for you to go places. It gives you a chance to increase your revenue by selling your products and services. You also get to hire local professionals to augment your combined skill sets.

Local Tax Benefits and Exemptions

As a local company, your subsidiary company is liable to pay its taxes. Your parent company is not responsible for it. You get to pay low tax rates on your income instead of those charged at home. It enables you to save money.

Limited Liability for Parent Company

By setting up a foreign subsidiary, you get to limit the liability of your parent company. If a drastic financial and legal incident happens, your subsidiary is liable for it. Your parent company remains unaffected. At its worst, your parent company loses the amount it has invested in subsidiary’s share capital.

Division of Workload

The staff working for your Singapore subsidiary shoulder their part of the workload. It means your parent company does not have to do all the tasks as it would happen if you start a Singapore Branch Office.

Your domestic teams and foreign teams get to focus on their specialised tasks. Diversification divides the work and allows you to achieve your goals faster.

Disadvantages

Expanding your business through your Singapore foreign subsidiary also poses challenges to you. You have to master differences in culture, new regulatory rules, and operational challenges.

Cost and Time Required

Setting up a foreign subsidiary can be costly and time-intensive. However, it is not so in Singapore.

Generally, you can start your Singapore subsidiary company in 1-3 days. It may take up to 2 months if you are getting into sectors like finance, education, casino, Etc.

However, your parent company may have to keep on investing time, workforce, and other resources in the subsidiary. It may cause it to lose focus on other profitable activities.

Winding Up a Company

Winding up or dissolving a company is not an easy process. If you want to exit the Singapore market, it may take months to dissolve or wind up your subsidiary. The process is lengthy and costly.

Cultural Differences?

Cultures are nuanced, and not everyone can adopt a foreign culture easily. However, Singapore is known as a melting pot.

English is the business language of Singapore. Singaporean workforce, including immigrant professionals, also speaks it. It is one of the reasons why MNCs prefer Singapore. Still, your parent company must be open to local culture and accommodate it to ensure smooth workflow.

Compliance Risks

Yes, you must comply with the pre-incorporation rules and regulations while setting up a foreign subsidiary. However, these requirements are easy to fulfil. You can also hire a registered filing agent. These professionals are well-versed in the process of setting up a company in Singapore.

These firms are authorised to communicate with government agencies and pay official fees. These firms apply to ACRA on your behalf to form your company. Accounting and Corporate Regulatory Authority (ACRA) is the Company Registrar of Singapore.

These agents advise you on each stage of the company incorporation process. They obviously know it inside out.

Singapore Subsidiary Company – Legal and Financial Aspects

As has been stated, your subsidiary company in Singapore has a separate identity from its parent company. As a locally registered company, it must follow all the Singaporean tax and employment regulations.

Your subsidiary is responsible for its actions, such as non-compliance or defending itself in a court of law in a lawsuit filed against it or for paying a fine or penalty.

When Should You Register Your Singapore Subsidiary Company?

Your long-term business goals play an influencial role in when to set up your Singapore subsidiary company. You should consider it if you plan to:

• Be in Singapore market for the long-term
• Employ a number of employees in Singapore
• Minimise company taxes on global profits
• Own physical assets in Singapore

Before you go and form your subsidiary in Singapore, you must conduct market research and surveys to determine its potential.

Alternatives to a Foreign Subsidiary in Singapore

What if you want to expand your business without forming a Singapore subsidiary company? Yes, it is possible.

To avoid starting a subsidiary company in Singapore, you can hire indipendent contractors or freelancers or strike a relationship with an Employer Of Record (EOR).

Hire Contractors or Freelancers

An experienced contractor or a freelance will help you establish a toe-hold in Singaporean market. Hire these on a service fee or per project basis to save money. It also gives you flexibility in staffing and access to international talent. It also reduces your legal exposure.

Employer Of Record (EOR)

Another reliable option for entering a foreign market like Singapore is to strike a partnership with an EOR.

An EOR is a company that acts as the legal employer of employees. In reality, these professionals work for you. EOR takes the legal and administrative responsibilities of employment in Singapore.

An EOR, here, is necessary because you have chosen not to start your subsidiary. So, you cannot hire employees in Singapore.

Setting up a foreign subsidiary company in Singapore will help you expand your business to new horizons. This a most favoured business structure as it limits the liability of your parent company. Contact us at +65-6536 0036 or at info@sbsgroup.com.sg know how we can start a tax efficient business for you.

Also Read: Foreign Company Registration Options in Singapore

As a company director, you must know all the facets of corporate tax filing in Singapore. Because authorities, here, hold company directors responsible and liable for fulfilling corporate tax obligations of their charge within the deadlines.

However, Singapore is a pro-business environment. However, there are specific corporate tax regulations in place. If you are a newbie, this corporate tax filing guide will assist you in mastering the process and filing your dues on time and accurately.

What is Corporate Tax Filing in Singapore?

Corporate tax filing is a compulsory yearly process. You use it to declare the company’s income to the IRAS. You also pay unpaid taxes to IRAS which the government uses for the development.

Is Corporate Tax Filing Important?

Yes, timely and accurate corporate tax filing is important. Let us see a few of its key reasons:

Compliance

On-time corporate tax filing makes your company compliant with the tax regulations in force. It enables you to avoid penalties for late filing and legal issues arising from it. It protects your brand name and image and boosts investor’s confidence. You also stay on the right side of the regulating agencies like IRAS and ACRA.

Maintaining Records

Preparation for corporate tax filing updates your financial records. You can analyse these records from various angles to know the true financial status of your business. You get a clear-cut idea of your earnings, expenses, and tax dues. It also simplifies tracking the performance of your business and locates weaknesses in your business.

Claiming Deductions and Incentives

Error-free corporate tax filing in Singapore enables you to claim a number of tax exemptions and deductions that are provided by IRAS. They help to minimise your tax amounts and ultimately, improve your company’s financial standing.

Singapore Corporate Tax Filing is a Must for

As per IRAS, you must file corporate tax for your business if it is a,

• Business incorporated or registered in Singapore under the Companies Act. Typically, the names of these businesses contain terms like ‘Pte Ltd’ or ‘Ltd’
• Branch Office of a foreign-based company
• Foreign company registered or incorporated abroad

The owners of sole proprietorships must pay personal income tax on their income from their business firms. The partnerships must file their partnership tax returns to comply with the regulations.

Singapore Corporate Tax System

If you want to master corporate tax filing in Singapore, you must understand the concept of the Year of Assessment (YA). It denotes the calendar year, such as YA 2024 or Year of Assessment 2024, for which a company is filing its taxes.

In Singapore, you pay corporate tax on earnings of the preceding year. So, in YA2024, your corporate tax return filing will consider the income earned in 2023.

Both foreign and local companies must pay their corporate income tax at the flat rate of 17% on their chargeable income. You can easily calculate your company’s chargeable income (taxable income) by deducting claimable expenditures from its gross income.

Corporate Tax Filing Requirements

Take note that you must complete two corporate tax returns every year to comply with the requirements. It means you have to manage the filing of your business’ A) Estimated Chargeable Income (ECI) and B) Form C-S/ Form C-S (Lite)/ Form C on time.

Estimated Chargeable Income (ECI)

ECI is an estimate or a forecast of your business’ taxable profits (after deducting claimable expenses) for a YA. You file this estimate with IRAS within 3 months of the end of your financial year. It means if the end of a company’s financial year falls on March 31, 2024, its deadline for ECI filing will be June 31, 2024.

Determine If Your Company Must File ECI

You must self-assess if your company qualifies for the ECI filing waiver or is exempted from filing it. There is no need for you to file ECI for a financial year if you fulfil both criteria listed below:

• Annual revenue is $5 million or less, and
• ECI is nil for that YA

If mytax.iras.gov.sg web portal shows your ECI filing status as ‘Ready to File’ you should do so. However, if you qualify for an ECI filing waiver, ignore the status. There is also a need to contact IRAS for confirmation.

Who is Not Required to File ECI

The following entities are not required to file ECI:

• Foreign ship owners or charterers because their local shipping agent has already submitted or will submit their Shipping Return
• Foreign universities
• Designated unit trusts and approved CPF unit trusts
• Real estate investment trusts that enjoy tax treatment under Section 43(2) of the Income Tax Act 1947
• Cases where IRAS has granted the ECI filing waiver

Form C-S/Form C-S(Lite)/Form C

Each year, you must fill out and file one of the Forms C-S/C-S(Lite)/C with IRAS. The form you must use depends on your business’ revenue and other circumstances.

Form C-S/Form C-S(Lite)

You should use one of these forms if your taxable income is charged at 17% of the corporate income tax rate and you are not claiming certain deductions or credits in YA. These deductions may include Carry-back of Current Year Capital Allowances/Losses, Group Relief, Investment Allowance, Foreign Tax Credit, and Tax Deducted at Source.

• Use Form C-S (Lite) if your business’ annual revenue is $200,000 or less
• Use Form C-S if your business’ annual revenue is $5 million or less

Form C

Use Form C if your company don’t belong to the above two groups.

Note that you must fill and submit your form to IRAS on time. The deadline is November 30 of the YA.

Corporate Tax Filing Penalties

IRAS expects you to adhered to corporate tax filing requirements. Your filing must be accurate and on time. It may penalise you for late or inaccurate corporate tax filing. The penalties may include:

Penalty for Late Filing

If you miss the deadline for corporate tax filing, IRAS may send you an estimated Notice of Assessment (NOA). It uses your past information to calculate the estimated tax.

It may not reflect your current circumstances, and you have the right to object to it. However, you must pay it within 1 month from the issue date of NOA. Or you may have to pay 5% of the due tax amount as a penalty.

Penalty for Late Payment

After the 5% penalty, you have 60 days to pay your taxes in full. If you miss the deadline, IRAS may charge you a 1% monthly penalty which can go up to 12% of the due tax amount.

Penalty for Inaccurate Filing

If your corporate tax filing turns out to be inaccurate and there is evidence of intention of tax evasion, IRAS may ask you to pay 200% – 400% of the extra tax. In the worst-case scenario, IRAS may prosecute you, leading to a fine of $50,000 and/or 5 years in imprisonment.

Corporate tax filing in Singapore can be complicated. Any mistake in it, even unintentional, can have consequences. And, as a company director, you are responsible and liable for each of them. It is a thankless job as it generates no revenue for you and can be too demanding and resource-heavy. Hiring us, an expert corporate tax services Singapore, will enable you to delegate this task to our experienced tax consultants.

Focusing your entire attention on achieving business goals will help you grow your business. We will expertly manage your corporate tax filing in Singapore. Contact us at +65-6536 0036 or info@sbsgroup.com.sg for customised tax solutions.

Also Read: Singapore Income Tax Filing Services: Personal & Corporate Taxation

For new and small businesses, outsourcing is a game changer. If you own such a business, you should know how to form a successful outsourcing relationship with your services provider.

Outsourcing opens up many opportunities for you. It gives you access to global talent to maximise your competitive edge. To succeed, you must strive to form a harmonised outsourcing relationship. It also means investing in strategy, quality of communication, and effective management.

Outsourcing Puts the Global Talent Within Your Reach

Outsourcing means delegating a time-consuming business administrative activity or process, partly or wholly, to a third-party firm. The non-core activities, such as payroll processing, produce no revenue for you. In addition, they mess up your workflow.

When they become unmanageable, it is wise to get rid of them. If your payroll is giving you headack, you can save yourself a lot of anxiety and stress by hiring an experienced provider for payroll outsourcing Singapore.

Outsourcing saves you time and effort. On the other hand, a team of experts from your outsourcing partner ensures the successful conclusion of your delegated task. These experts put their deep experience and industry-wide knowledge at your beck and call. You pay for the services you receive, which leads to cost savings.

8 Keys to a Successful Outsourcing Relationship with Your Outsourcing Partner

1 Interpersonal Relationship Matters

Even though you are delegating your task to a service provider, it eventually comes down to relations between persons at both ends. And, you know, human relations are multilayered and complex.

As outsourcing relationship is important to you both, choose someone with knowledge and experience. When dealing with such an authority, it is easy to admire and respect them for their skills and professionalism. A professional attitude from both ends helps click the partnership.

2 Establishing Clear Expectations Help

You cannot strike a successful outsourcing relationship just like that. You have to create a foundation for it. Start by establishing clear expectations. Establish what you and your outsourcing partner expect from this relationship.

Invest some time in clarifying deliverables, deadlines, quality, and communication schedules. Doing so will simplify your interactions and will make them fruitful. It will also enable you to analyse the partnership’s performance.

3 Avoid Hiring a ‘YES Man’

Remember that you are outsourcing your business function to reduce your workload. You want to divest yourself of the task as much as possible to get the chunk of your mental capacity back. It means you need to hire someone proactive and not an ‘YES’ man.

You don’t want to engage an outsourcing partner to confirm what you already know and believe in. You want to come at you with the latest info, updates and changes in laws, and suggestions to replace or improve your existing processes and procedures with the new ones.

You need someone who is capable of coming up with suggestions to increase your business efficiency and spotless compliance within the deadlines.

4 Ask for References

There is a vital step that you must perform before you make your relationship legal.

You can also ask your business associates for references to locate the right partner. Ask them about the quality of work and what made their relationship successful.

After you have shortlisted a few candidates, ask them whether they can provide you with a list of their past or existing clients. Check them out.

This will enable you in determining whether or not you are getting the right skillset.

5 Ask Your Team for an Opinion

There is no need for you to act alone. Involve your staff members in the decision-making chain. It will give them a clear idea about who they will be working with and what they can expect from the outsourcing partner.

Listen to their opinion; if it is valid or has the grain of truth in it, do not shy away from using it to make outsourcing-related decisions.

6 Take Your Outsourcing Partner’s Advice Seriously

After you have hired an outsourcing partner, pay heed to their advice. Execute it to improve your business processes and outcomes.

After all, they are in constant execution-plane of the services they are offering. They know the theory and also know how to practice it. It is a very valuable combination. Leverage it.

7 Maintain Transparency

Every business day comes with challenges. It is not a news. If you are experiencing problems in your business that could affect the rendering of services from your partner’s end, inform them.

Don’t keep your outsourcing partners in the dark. Forewarned, they will be better prepared to upscale their services whenever you have solved your issues.

8 Invest in Your Outsourcing Relationship

The success of a relationship depends on various factors. The purpose and timeliness of the communication play a major role in it.

So, stick to the communication schedule, submit the documents asked by your partner to expedite compliance, ask pertinent questions, and execute their advice to the best of your ability.

It will help if you see this outsourcing relationship as a bond between two teams. It will greatly enhance your chances of managing its important aspects, such as working at effective communication, overcoming cultural differences, striving towards strategic goals, and ensuring the quality of output and high levels of performance.

You will need to work on all these elements to establish a successful, trusting, and long-lasting outsourcing relationship that enables you to achieve your operational needs, business goals and objectives. The longer the relationship, the more beneficial it is for both of you, leading to a Win-Win situation.

We are a reliable firm that provides quality and timely corporate services to small and medium businesses. We take up the workload and help them save time, effort, and resources, which they use to achieve their business goals.

You can trust us to handle your bookkeeping accounting, taxation, payroll processing, GST filing, and XBRL filing work. Contact us at +65-6536 0036 or info@sbsgroup.com.sg to talk to our experts and learn about the customised solutions they can offer you.

Also Read: What Are the Key Benefits of Outsourcing Accounting Services?

It is mandatory for companies to comply with the XBRL filing requirement in Singapore. It is part of their financial reporting. Knowing more about the requirements, preparation, and XBRL filing process will make the task easier for you.

What is XBRL Filing in Singapore?

XBRL is acronym or short name for Extensible Business Reporting Language. If you manage an incorporated company in Singapore, you must use XBRL format to file its Financial Statements (FS) online to ACRA. ACRA, or Accounting and Corporate Regulatory Authority is the Company Registrar of Singapore.

Why XBRL Filing is Mandatory in Singapore?

Filing your FS in XBRL format is compulsory for you as it promotes data transparency, analysis, and data mining for government agencies and companies. Filing paper-based FS or in an online format of your choosing complicates the analysis and comparison of data.

This standard, XML-tag-based XBRL format helps authorities build a structured database of financial information. Financial experts analyse this digitised and uniform data to identify economic trends in the economy.

Deadlines for XBRL Filing

• Listed Companies: Listed companies must execute their XBRL filing within 5 months from their financial year-end.
• Non-Listed Companies: Non-listed companies must execute their XBRL filing within 7 months from their financial year-end.

You can apply to ACRA online to extend the time to file if the need arises. However, filing within deadlines helps you avoid fines.

Penalties for Failing in XBRL Filing

ACRA may penalise you for non-compliance with the XBRL filing requirement in Singapore.

Fees for Late XBRL Filing

You may have to pay a fee of S$300 for late XBRL filing within 3 months after the expiry of your deadline.

You may have to pay up to S$600 for XBRL filing due for more than a year after the expiry of your deadline.

Disqualification of Directors

Your company directors are responsible for promptly filing FS and annual returns. The directors will be disqualified if convicted of three XBRL filing-related offences within five years.

Striking Off

If a company fails to comply with XBRL filing requirement in Singapore consistently, it may be struck off from the register and cease to exist.

Compliance notices

You may get compliance notices from ACRA requiring corrective actions. Failing to do so is an offence, and you may be penalised.

Who Gets XBRl Filing Exemption

Singaporean authorities exempt certain companies from XBRL filing.

• Solvent Exempt Private Companies (EPCs) are exempted from XBRL filing. They can file their FS in PDF format
• Branch offices of foreign corporations are exempt from XBRL filing. They can file their FS in PDF format following the reporting practices of their parent company.

Filing Requirements as Per the Type of XBRL Formats

Depending on your requirements, you must choose a suitable type of XBRL format to file your FS. These formats are as follows:

• Full XBRL
• simplified XBRL
• XBRL FSH
• XBRL FSH (for Insurers)

Preparing XBRL Data

Whatever the form of your XBRL filing you are trying to accomplish, prepare for it in advance. Follow these steps to do it efficiently:

XBRL Taxonomy: Your XBRL filing relies on the tags in the XBRL taxonomy. You must use these to represent data elements in your FS. Know and master the use of these tags, their parent-child relationship, and especially, the industry-specific tags.

Map Data in Your FS to XBRL Tags: Map data in your FS statement to related XBRL tags accurately.

Tools for XBRL Filing: ACRA provides a BizFinx Preparation Tool for you to use for your XBRL filing. Using this tool, you can map the data in line items in your financial statements, validate the prepared XBRL file, and generate your XBRL report.

Process for XBRL Filing

After you have prepared XBRL files, follow the steps given below:

1. Log into BizFile+ portal by ACRA
2. Choose your profile
3. Click on ‘File eServices’, ‘Local Company’, ‘Annual Filing’
4. Click on ‘Filing of Annual Returns by Local Company as per your filing needs
5. Input your Company’ Unique Entity Number’
6. Click on ‘Next’
7. The system will display an E-Form. Check the information, choose the right fields, submit supporting documents, review and submit

Don’t forget to backup your XBRL file. You may need it for future reference.

Common XBRL Filing Errors

• Wrongly Tagged Data Elements: Associating wrong XBRL tags with your data from financial statements.
• Partial Information: When your data is wrongly tagged or does not include all the info, you face filing rejection.
• Technical Problems: A technical glitch can disrupt your upload process. It may arise due to a shaky internet connection, incompatible XRRL software, Etc.

If you are facing any problems in submitting or backing up your XBRL file, refer to ACRA’s user guide to troubleshoot them.

Knowing the XBRL filing requirement in Singapore enables you to prepare and submit your FS appropriately. It also helps you do it within deadlines and avoid penalties.

However, XBRL filing is a knowledge-based and time-consuming task. Many companies hire XBRL filing services to comply with XBRL filing requirement in Singapore.

Benefits of Hiring XBRL filing Services

There are benefits to doing so. They are as follows:

• Efficiency: XBRL filing services employ expert bookkeepers and accountants who are familiar with the XBRL filing process, taxonomies, etc. They execute the task expertly and within a short time.
• XBRL Software: These professional firms use the latest version of XBRL software. It help them reduce errors.
• Cost: Hiring these professionals saves you money, resources, and effort. You pay only for what you get.
• Local Expertise: These experts knows how to comply with the XBRL filing requirement in Singapore. They effectively overcome the XBRL filing challenges.
• Less Stress: When you know that experts are working for you, it automatically brings your stress down.

If you want to focus on growing your business instead of on a non-core task like XBRL filing requirement in Singapore, contact us at +65-6536 0036 or info@sbsgroup.com.sg for customised solutions.

Also Read: Common Challenges in XBRL Filing and How Services Address Them

Accounting and bookkeeping are the foundations of your business’ finance. This is why businesses invest in in-house accounting departments. However, modern businesses prefer to outsource to virtual bookkeeping services. This trend is not a whim but a well-established trend.

If you plan to engage a third-party bookkeeping services provider, you must be careful when selecting one. The reason is that the success of your business relies on accounting continuity.

Regular updating of books gives you access to the latest transaction data. Your virtual virtual bookkeeping services firm analyses these to render financial insights. These reveal your business’s current financial state and enable you to make effective business decisions.

You must focus on the providers that employ a team of experienced and professionally adapted accountants. These professionals update their accounting knowledge regularly by attending seminars, webinars, and training sessions run by authorities in their field.

A firm that has worked for businesses in your industry and niche will already know the related problems and be able to provide customised bookkeeping services to you. In addition, they know the latest changes in the rules and execute your books accurately.

What is Virtual Bookkeeping?

Virtual bookkeeping is the same as traditional bookkeeping. Similar to a traditional bookkeeper, a virtual bookkeeper handles your financial activities, such as data entry of your transaction info, bank and credit card reconciliation, and payroll processing.

Whereas traditional bookkeepers do their tasks in your office, virtual bookkeepers do it remotely using cloud-based accounting software. This is also called online or remote bookkeeping.

Job Description of a Virtual Bookkeeper

Virtual bookkeepers execute your organisation’s daily financial tasks. However, they do not visit your office physically and work remotely using an online platform like a cloud-based bookkeeping and accounting software.

Here is a list of tasks that you can expect from a virtual bookkeeping services firm:

• Accounts payable and receivables
• payroll processing
• Reconciliation of bank accounts and credit cards
• Management of expenses
• Management of bank and credit account

In addition to the software, they may also use a communication tool to remain in contact with you.

How Does Your Virtual Bookkeeping Services Provider Work?

It is crucial for you to know how a virtual bookkeeping services firm works. Let us start by understanding how they access your business’ financial data securely.

How virtual Bookkeepers Access Your Business’ Financials

As has been mentioned, these bookkeepers use cloud-based accounting software to work on your data. These tools are secure and make it easy for them to monitor and manage your business data.

These bookkeepers have real-time access to data. Your data is transmitted in encrypted form securely. These tools also use multi-factor authentication to protect your data.

Tools of Virtual Bookkeepers

Virtual bookkeepers use cloud-based accounting systems and various other tools. These platforms enable this bookkeeper to work remotely and update your books promptly.

Process Followed by Virtual Bookkeeping Services

Your virtual bookkeeping services provider starts by setting up your company using the selected cloud-based bookkeeping software. Their experts then connect your accounts and start recording your financial transactions. These are automatically or manually classified for accuracy.

At the end of month, quarter, or financial year, their bookkeepers reconcile your bank accounts and generate financial reports. They do all these tasks within the Singapore Financial Reporting Standards (SFRS) framework.

They keep in touch and update you using regular video calls and emails. They ensure that your books are updated on time and accurately so that you can access the latest financial information for decision-making.

Benefits of Virtual Bookkeeping Services

Small business owners prefer bookkeeping services over in-house bookkeeping because of the advantages they get. The most important of these are reduced costs, streamlined financial operations and real-time insights into business’ performance.

Saving Costs

Your virtual bookkeeping services provider can help you save money. You must have noticed that traditional bookkeeping firms require support from your side. I mean in-house staff and related expenses. It is not the case with virtual bookkeepers services.

Their bookkeepers work remotely and don’t need any of your premium office space, employee benefits or salary. They have their own infrastructure and software systems. You only pay for services you signed them for, saving you money.

Scalable and Flexible Bookkeeping Solutions

Your online bookkeeping services firm can provide you with scalable and flexible bookkeeping solutions to meet the needs of your growing business.

They can easily absorb the increased transaction volume and complex financial processes at affordable prices. Check out their pricing plans and packages.

Monitoring Your Financials Real-Time

Traditional bookkeeping may not give you a real-time view of your data. It means you don’t have the exact status of your financials, which can lead to difficulties in decision-making.

Your virtual bookkeeping services enable you to access your financial info, records, and reports from anywhere. It gives a competitive edge to your business decisions.

Selecting a Virtual Bookkeeping Service for Your Business

The best bookkeeping services firm can assist you streamlining your accounting, HR, and payroll processing. You need to invest time in choosing the right one.

Selecting a Provider

First of all, you must analyse your business needs and objectives. Brainstorm with your team and consider factors like:

• Business size
• The volume of financial transaction
• Financial activities

Ask questions to know the provider’s overall experience, qualifications and whether they have expertise in your industry and niche. Choosing someone familiar with your industry and business niche will ensure they know industry-specific nuances and can handle them by providing customised solutions.

Know the Systems and Tools They Use

Virtual bookkeeping service providers use cloud-based bookkeeping and accounting software and other tools. You must ask questions to know more about these to know how a firm will leverage these systems and integrate them with your existing tools.

Focus on knowing about real-time updates, data security, and whether it allows or automated reconciliation.

Must I Hire a Virtual Bookkeeper?

If you maintain an in-house team but need a certain skill set and speciality services, then you need to hire a virtual bookkeeper services provider. Their bookkeepers can help you take care of bookkeeping and complex task like outsourced CFO.

Not Before Reading Customer Reviews and Testimonials

Before you choose a provider for you, don’t forget to read customer reviews and testimonials written by their past customers. This will give a peek into their reliability and effectiveness. Invest some time in exploring.

Hiring a virtual bookkeeping services provider is a trend. We are a professional bookkeeping and accounting service provider that can save you time, effort, and money. We can also use your niche-specific bookkeeping knowledge to update your books. Contact us at +65-6536 0036 or info@sbsgroup.com.sg to know our affordable customised bookkeeping solutions.

Also Read: 9 Pro Tips for Hiring Bookkeeping Services Singapore for Small Businesses

When IRAS notifies you to file your business’ tax return, you must file it even if it is a ‘NIL’ return. Many owners pay their tax dues with their returns. However, the problem arises when you can’t pay taxes right away.

Should you immediately apply for an extension period? Or, take the complete stock of your cash flow situation and then decide? You should take the first option if your situation is very temporary and you have an assured source of money which you can use to pay off your tax liability.

However, if your financial situation is critical and a few extra days are not going to improve your ability to pay the tax amount, then you must think of something else to resolve the issue. You have to be proactive in doing this.

Your staying idle will not cause the problem to go away. In fact, your inaction may aggravate it, as IRAS will levy a 5% late payment penalty on your overdue tax amount.

If you are having serious cash flow issues, asking for an extension of time to pay is not going to help you much. Rather, you should ask IRAS for an instalment plan or a suitable payment arrangement. Most importantly, you must reach out to the agency before your tax payment deadline expires.

Read on to learn what IRAS may be able to offer you when you can’t pay taxes right away.

Having Financial Difficulties and Can’t Pay Taxes Right Away

Coping with the ups and downs in finances is a part of running a business. However, a situation where you can’t pay your taxes is a serious situation. If you can’t deal with it on your own due to the severity of unexpected or extenuating circumstances, IRAS may be able to put together a viable payment arrangement for you.

Businesses Having Financial Difficulties

IRAS may offer you a longer-term instalment plan to take immediate financial pressure off you. It will give you a breathing and mental space to try and reconfigure your cash flow, operations, and plan.

Your financial issues may be due to:

• Slow collections
• Drastic reduction in income
• Increase in overheads
• Financial difficulty due to an ongoing lawsuit
• Business closure

Whatever the case, IRAS may ask you for supporting documents before approving a longer-term instalment plan for you.

Getting an Easy GIRO Payment Plan

IRAS grants you an instalment plan only if you agree to pay via GIRO. General Interbank Recurring Order (GIRO) is an electronic payment method that enables you to pay other entities or billing organisations through your corporate bank account.

To apply for a longer payment plan, you must log in to the mytax.iras.gov.sg web portal and go to Apply/Manage GIRO Plan.

At myTax portal, you can apply to IRAS for a new GIRO arrangement, provided you agree to pay your company or corporate tax, Goods and Services Tax (GST), Property Tax and Withholding Tax via eGIRO.

GIRO Plan and Arrangement

New eGIRO Arrangement

Apply for a new eGIRO arrangement to streamline your tax filing. It is readily available to you if you bank with DBS/POSB, OCBC, UOB, Bank of China and Maybank.

Re-activate Your GIRO Arrangement

You can re-activate your GIRO arrangement to get an easy payment plan. You will need to do it separately for your business’ corporate tax/GST/property tax.

You will must also choose the right GIRO Plan Option to simplify payment of Property Tax. Choose between ‘Monthly’ and ‘One-time Yearly’.

You can also hire an experienced tax agent or a corporate tax services Singapore and take their advice on your tax situation. They employ qualified accountants who can take care of these tasks easily. They can also help you in tax planning and streamlining your cash flow.

However, you should not forget that IRAS holds you, as a company director, responsible and liable for paying your company’s tax dues.

Using a GIRO Plan

If you are already paying using a GIRO plan, you may have to edit or update it or your bank account. To do so, in myTax portal, click on:

‘Account’ => ‘View GIRO Plan’ => ‘Proceed (For Property Tax Accounts)’ => ‘View’ => ‘GIRO Plan Option’ => ‘Edit’

To view the revised GRO plan, click on:
‘Account’ => ‘View GIRO Plan’

Do You Operate an Account With Other Bank?

If you have an account with a bank that is not mentioned above, you can still get a suitable payment plan. The steps are as follows.

• Fill and submit the hard copy of Corporate Tax GIRO or GST GIRO form to IRAS; and
• Send your proposal for payment online to IRAS on the same day

The agency will process your request, and you will get their decision within 15 working days. It may demand more information to grasp your situation fully.

To know whether the updating of your GIRO plan has gone smoothly or not, check the ‘Acknowledgement page’. This page should show you details of your new payment plan and application status as ‘Approved’.

Defaulting on GIRO Plan

You must be careful with this arrangement and keep enough balance in your bank account. If any of your GIRO deduction fails due to insufficient balance, IRAS may cancel this arrangement, and then you must pay unpaid taxes immediately.

If you fail to do so promptly, it may also penalise you for non-payment of unpaid taxes. In addition, the agency may not allow you such a payment arrangement if you repeatedly default on your plan.

Businesses face financial difficulties all the time. However, if it happens during tax season, they can’t pay taxes right away and need a payment plan that will ease their burden.

If you are facing such a short-term inability and can’t pay taxes right away, we can talk to IRAS on your behalf to see if the agency can provide you with a viable payment plan. We, as a reliable corporate service provider and a registered filing agent, can help you with this issue. Contact us at +65-6536 0036 or info@sbsgroup.com.sg for customized tax services.

Also Read: Why You Should Outsource Your Accounting Functions

Accounting for e-commerce businesses, due to their heavy reliance on digital transactions, poses various accounting and bookkeeping challenges. As these transactions span multiple geographical areas, multiple currencies used and tax rates applicable make your accounting challenging.

In addition to attracting the right kind of customer, fulfilling their expectations to create a loyal customer base, and ensuring financial and data security, you have to do some extra work to streamline the accounting for your e-commerce business.

Implementing a robust and reliable accounting system early, probably right in the beginning, enables you to eliminate, neutralise, or limit the severity of a few of these challenges.

Accounting and Bookkeeping Challenges for E-Commerce Businesses

Bookkeeping and accounting challenges faced by traditional and e-commerce businesses differ. It is a lot tougher for the e-commerce businesses. You should be prepared to deal with the following challenges while executing the accounting tasks for your business. You will be better off by hiring an experienced accounting and bookkeeping services firm.

Outsourcing your e-commerce accounting will free up your time and enable you to focus on developing new strategies and evaluating new product lines to incorporate into your business.

Selecting the Right Accounting Software

E-commerce accounting is complicated. However, you can automate it using the right accounting software. Look for one that can handle traditional and e-commerce accounting.

There are various e-commerce accounting software available for you to choose from. Investing in a system specially designed to handle the accounting of your e-commerce business will be the right choice.

Trusting an accounting software made for the accounting of traditional businesses may not work for you. Remember that your choice can adversely affect your workflow and overburden your staff.

Tracking of Merchant Fee

Your e-commerce platform provides you with space to sell products and services online. You have to pay a flat monthly merchant fee for the privilege. You may also have to pay additional charges if there are any.

These fees complicate the accounting for your e-commerce business. Accommodating these into your calculations is one of the accounting and bookkeeping challenges. As fees charged vary from platform to platform, it becomes difficult to calculate your profits.

Inventory Management for Multiple Channels

Tracking and reconciling the inventory of your e-commerce business is a matter of life and death. You need the latest inventory status to know the trending items and if there is a need to restock them. Inventory management for one e-commerce platform is relatively easy.

The problem arises when selling on multiple platforms. These platforms share the latest sales info with you. However, they do not share it, leading to inaccurate inventory. If you are using multiple warehouses, it adds complexity to the problem.

This is one of the back-breaking accounting and bookkeeping challenges. To master it, you must use an accounting system that provides integrated inventory tracking functionality. It gives you accurate inventory status and enables you to make purchase decisions.

Reconciling Balance for Multiple Sales Channels

Every time someone purchases from you, you must update your books to reflect the new inventory and receivable status. If you have multiple sales channels, reconciliation is complicated.

A single error can cause a big problem for you. You will need a lot of time to track it and update the books to reflect your true status.

Tracking & Applying Correct GST Rates to Sales Transactions

If you are a Singaporean GST-registered e-commerce business, you must collect 9% of GST from your local customers. You must use the appropriate GST rates corresponding to the sales transactions for outside purchases. You must also register each of your warehouses abroad with the local tax authorities and track its GST separately.

Ensuring GST and Company Income Tax Compliance

Whether you run a small or big e-commerce business, its tax compliance will strain your resources. It is one of the accounting and bookkeeping challenges that you must take extra care to deal with, and failing to do so can expose you to scrutiny by the local tax authorities.

Your accounting services provider can help you with it. Their experts have updated tax knowledge, deductions, reliefs, incentives and schemes. They also know how to apply it to minimise your GST and income tax amounts.

Avoid Manual Accounting

You must regularly account for your e-commerce business to avoid serious issues. Otherwise, you will end up with misleading or inaccurate financial information. Most importantly, if there is any fraud, you cannot detect it.

Manual accounting can delay your tax and annual filing and increase stress levels. Accounting software will help accurately digitise and store your financial transactions safely.

Suppose there are any time or resource-related constraints. In that case, you will be better off outsourcing a part or whole task to a reliable accounting and bookkeeping services firm.

Analyse Sales Data to Find Insights for Decision-Making

Provided that your latest sales data is accurate, you can analyse it to understand the customer trends. It will help you isolate products that are in demand or out of favour with your customers.

These valuable insights help you make data-driven purchase decisions and avoid locking your cash in non-moving stock. You can also use this data to reveal the preferred mode of payment on a particular e-commerce platform and take appropriate steps.

Running an e-commerce business means overcoming accounting and bookkeeping challenges before they drag you down. However, accounting and bookkeeping are your business’ non-core activities. They generate no revenue for you.

Every small or big e-commerce or traditional business faces accounting challenges. The key to overcoming these problems lies in finding answers to questions about your key responsibilities as a business owner. It helps you understand what you are doing and what you should do to grow your business.

The questions you must answer are, “How much time do you want, can, or ought to spend on these?” and “Should you minimise your involvement and use the saved time to grow your business?” Contact us at info@sbsgroup.com.sg for customised solutions to your e-commerce accounting and bookkeeping challenges.

Also Read: Why Outsourcing Your Bookkeeping Services in Singapore is a Game Changer

You must be disciplined in managing the financials of your business. Financial stability or assuredness gives you the confidence to make decisions, grab opportunities, and grow your business. Hiring an experienced bookkeeper or a firm rendering bookkeeping services for small business can help you achieve it.

Bookkeeping is manual and a time-consuming task. It means painstaking filing of financial documents and recording of transactions using accounting software. However, it is a crucial activity that ensures your compliance with the local rules.

Bookkeeping assists you in updating your books and building a reliable database of financial records. You or your accountant can access and analyse this digitised data anytime.

In the hands of expert accountants from bookkeeping services for small businesses, this data can yield deep financial insights that you can use to improve the effectiveness of your business decisions. You can actually use them to grow your business.

Steps to Improve Your Bookkeeping Process

There is a huge demand for bookkeeping services for small business. Many business owners believe that outsourcing bookkeeping services trumps in-house bookkeeping. It gives them more mental space to grow their business. It also saves them time enough to give their best to achieve their business goals and objectives.

These bookkeeping services follow the best practices. Their bookkeepers improve or optimise their client’s dated processes and procedures. They assist you in updating your bookkeeping process and make it more effective.

Regular bookkeeping enables the smooth running of a business by helping you manage your finances efficiently. Here are key steps to streamline the small business bookkeeping process itself.

1 Become Familiar with the Bookkeeping Basics

If you intend to bookkeeping for your business, you will be better off by knowing basic bookkeeping concepts and terms. You should also know the various bookkeeping systems that are in use.

It will put you in a commanding position and enable you to streamline your business’ bookkeeping process. One of the latest accounting software will also allow you to automate your bookkeeping tasks.

Alternatively, you can hire an experienced firm providing bookkeeping services for small business. Many owners take this option instead of doing their bookkeeping in-house. It not only reduces your workload drastically and sets you free, but it will also move this administrative task out of your workplace.

2 Install a Reliable Accounting System

Your provider can install a dependable accounting system for you. It helps you classify and record your transactions as per the Singapore Financial Reporting Standards (SFRS). It makes tracking and accessing your financial records easy in the future.

You can use a traditional paper filing system, Excel sheets, or accounting software to record your business’s financial transactions. The following is a list of items that you will need to monitor your business records:

• Income through sales, interest, rent, etc
• Expenses including, operating cost, cost of goods sold, etc
• Corporate bank account statements
• Credit card statements
• Business loans and debts

3 Use Accounting Software to Automate Bookkeeping

The experts working at your bookkeeping services firm can help you automate bookkeeping tasks by implementing accounting software correctly. Then, they will use your financial information, such as income, assets, expenses, and liabilities, to set up the software.

They ensure that it is working correctly for your daily use. Today, many providers grant you access to their software or provide you with a mobile app. Either way, you get to access your financial data.

4 Bill and Invoice Management

Efficient bills and invoice management help you stay on top of your cash flow. However, it means having a reliable system to track and pay your suppliers and prepare and send invoices to your customers for the services or goods rendered.

A dependable system will help you avoid getting fined or penalised. It may even allow you to leverage discounts and save you small percentage of money on your payments.

Sending invoices to your customers does not mean they all pay you on time. Some will need reminding about their dues or fines for late payments.

Your accounting software can be of great help in taking care of your account payables and receivables. The software can generate account payables and receivables ageing reports for your consumption and in taking proper steps.

5 Monitoring Income/Expenses to Track Cash Flow

Bookkeepers, employed by bookkeeping services for small businesses, regularly update your books of accounts with the business’ earnings and expenses.

You can use the digitised data using accounting software to compare your earnings or expenses over a period and understand your financial health. To monitor your income/expenses, you need to focus on:

• Transaction date
• Transaction amount
• Transaction type: income or expense
• Transaction category
• Method of payment: cash, check, credit card, etc
• Business angle behind the transaction

Tracking of cash flow reveals how the money is moving in and out of your business. If your business expenses are more than your income, you must take drastic steps to remedy the situation. You must stop overspending money and eliminate your unproductive expenses.

6 Know Your Profit and Losses

All the time you must know whether or not you are in profit. Keep an eye on the financial metrics such as Gross Profit Margin, Operating Profit Margin, and Net Profit Margin.

• Gross Profit Margin = Revenue – Cost of Goods Sold/Total Revenue; a higher value of gross margin indicates profit and vice-versa
• Operating Profit Margin = Operating Income/Revenue; a higher value of operating margin shows profit and vice-versa
• Net Profit Margin = Revenue – Cost/Revenue, a higher value of net profit margin shows profit and vice-versa

7 Additional Financial Reports

Well prepared financial reports give you a snapshot of your company’s financial performance, status, and cash flow. This is why traditional financial statements like balance sheets, cash flow statements, and income statements are still used for understanding profitability, liquidity, and solvency.

You may also need to refer to other reports, such as budget variance reports, sales and revenue analysis, KPI reports, and debt coverage ratios, to truly understand your company’s financial health. All the insights you get from these reports help you in improving your financial management.

You have to be on your toes to execute business bookkeeping efficiently. It gives the basis to your business accounting. If you mess with it, it is going to affect your profits.

Many owners trust this crucial task to professionals like us offering bookkeeping services for small businesses. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to get answers to your bookkeeping-related questions.

Also Read: How to Streamline Bookkeeping Processes for Efficiency in Singapore

Rows upon rows of numbers are not easy to digest. However, you must understand them intimately to know your business’ financial status and taxes. You also need them to forecast financial needs, prepare policies, and budget allocations. Yes! You need someone reliable for these types of accounting services.

Many small businesses have to work within their budget. It is one of the reasons they outsource their accounting tasks. If you are a small business owner, choosing this option will enable you to enjoy the expertise of accounting services in Singapore at a fractional cost.

Doing so gives you access to 3 types of accounting services: bookkeeping, strategic finance, and tax accounting. These will take care of the majority of your business’ accounting needs.

Types of Accounting Services for Small Business

1 Bookkeeping

During bookkeeping, expert bookkeepers hired by services your provider will classify and reconcile your business’ financial transactions. They will also consider credit/debit card transactions, invoices, bills, and other accounts payables and receivables. They focus on updating your books of accounts regularly and accurately.

2 Strategic Finance

Strategic finance services include controller-ship and CFO services.

Through controller-ship services, your services provider supervises and manages the accounting process in a compliant manner.

If necessary, they discard or improve old processes and procedures, prepare forecasts, and prepare financial statements and management reports. They also participate in financial review meetings and provide advice.

Through CFO services, they provide feedback to you and enable you to make far-reaching decisions about hiring, recruiting a financial team, getting finance, product development, management of tech stack, and changes in or development of the financial model.

3 Tax Accounting

Under tax accounting services, they take care of business compliance and strategic advice. They ensure that your business complies with the laws covered under the Singaporean taxation system.

They also provide strategic advice to minimise your tax amounts. They help you do so by bringing the qualifying deductions to your notice. They help you save money.

3 Important Elements of Accounting

As an owner, you must focus on 3 main types of accounting: financial accounting, tax accounting, and cost accounting.

While delivering financial accounting services, your provider takes care of the bookkeeping and strategic finance of your business. They use records of business and financial transactions, analysis, and real-time metrics to provide you with deep financial insights. You can use these to make effective business decisions.

They also take charge of your business’ tax accounting. They go through your financial records painstakingly and calculate and file your taxes accurately within the due dates. They work within the legal parameters and judiciously employ tax breaks and laws to help your business save a few dollars.

These professionals also help you calculate the costs per product and the profit earned after selling it. Also called managerial accounting, cost accounting is highly useful for inventory or production-based companies.

Accounting Services You Need for Your Small Business

As a small business owner, you should focus on accounting services that help you regularly update your books and calculate tax liability. It means investing in tax accounting and bookkeeping services. These accounting services help you create a database of your business and financial records and stay compliant.

You should also hire strategic accounting services. Accurate financial reports, forecasts and financial advice give you a competitive edge. In short, a small business owner should do well by hiring 3 types of accounting services: bookkeeping, tax accounting, and strategic accounting.

Common Types of Accounting Services for Small Businesses

Your business’ accounting starts by recording its financial transactions. Experts advise you to invest in the accounting services provider and software and start recording your income and expenses from day one.

Your provider of accounting services employs expert bookkeepers who classify each of your financial transactions appropriately. They also file invoices, receipts, and other financial documents carefully to be produced during auditing. As you can see, this is the basic and essential accounting service for all businesses.

Today, it is easy to find an affordable accounting services provider you can outsource to. They use cloud-based accounting software to do your work.

Your provider’s time zones can also make things easier for you. Let us say they are ahead of you by 12 hours. So, before you close your business for the day, you send them your day’s transactions.

Their accountants work during their daytime and update your books. This way, when you arrive at your office the next day, you can access your latest numbers and financial insights to make effective business decisions.

Cost of Accounting Services

Affordability is one of the reasons why owners opt for these types of accounting services for their small businesses. In-house accounting is costly.

The money they have to invest in setting up an accounting department is huge. Paying for employee salary, benefits, infrastructure, limited office space, and hiring and firing of accountants is costly. In addition, it also adds to their HR department workload.

Compared to an in-house accounting department, hiring one of the experienced accounting services in Singapore is their best option. You get access to a team of expert accountants for an affordable fee. You pay for what you get. The cost of these types of accounting services depends on their scope.

Accounting Services by SBS Consulting

We assist small business owners in taking care of their business’ accounting needs. Here is a list of our accounting services:

• Account system set up
• Recording accounting transactions (including journal entries)
• Accounts payable
• Accounts receivables
• Bank reconciliation
• Monthly/quarterly/half-yearly/yearly accounting & reporting
  • Profit/loss account statement (comprehensive income & other comprehensive income)
  • Balance Sheet
  • Statement of Changes in Equity
  • Cash Flow Statement
  • Directors Report
  • Management reports
  • Accounts payable ageing
  • Accounts receivable ageing
  • Journal
  • General ledger
• Variance analysis for Monthly/Quarterly Clients
• GST accounting
• GST returns (monthly & quarterly)
• Multi-currency accounting
• Income tax computation and filing
• XBRL preparation and filing

We are experts in providing different types of accounting services for small businesses. Contact us at +65-6536 0036 or info@sbsgroup.com.sg to learn how we can provide customized accounting solutions for your business needs.

Also Read: 12 Proven Tips to Improve Your Business Cash Flow

What if someone steals your trade mark or uses it without your permission? Can you stop these copycats? Yes! If you haven’t done so, initiate the trade mark registration process with the Intellectual Property Office of Singapore (IPOS). The best way is to register your trade mark and then reveal it to the world.

What is a Trademark?

A trademark is a word, logo, text, or combination of all these that help your customers identify your goods and services from your competitors. Trade mark registration in Singapore gives you exclusive rights to use it for ten years. You can renew the registration and keep on using it.

Your trade mark must be unique and not similar to the existing ones. A deceptive trade mark will confuse customers, including your own. Such a trademark will never get approved. And somehow, if it gets approved and others complain about it, it may cause legal issues.

The Trade Marks Act in Singapore governs trade mark registrations, rights, and enforcement. The act helps protect and manage your trade mark in Singapore.

Is your trade mark valid outside of Singapore?

Yes!

Singapore is a party to the Madrid Protocol. Your application for the Singapore trademark registration gives you a trademark mark valid in up to 130 countries.

Process for Trade Mark Registration in Singapore

The process to register a trademark in Singapore is straightforward and simple to execute. The steps are as follows:

Step 1: Design Your Trade Mark

You can try your hand at designing your trade mark at its simplest in an image editing software. However, it can get complicated if you want a detailed and unique trade mark. Most business owners find it helpful to hire a designer. Ask them for a few variations.

Check your trademark against the prescribed registration requirements so as to avoid being rejected by the authorities.

In the application, include all the important details of your trade mark. Include specific colours, shapes (in 3D), text, and position that make your trade mark unique.

If your trade mark is in audio format, include an audio file and musical notations describing it.

Step 2: Choose the Products & Services You Want Trademark for

You have designed a graphical trade mark to associate it with specific goods and services. In your application, provide the classification numbers and specify specific goods and services in that classification.

You can refer to 45 different classes of goods and services and choose multiple classes. These are listed in the Nice Classification of Goods and Services.

If you are in doubt about where your trade mark fits in, refer to IPOS Class Headings. However, use them as a reference and not as commandments.

Step 3: Research Existing Trade Marks

The registration fee for the trade mark is non-refundable. So before applying to register yours, visit the IP²SG website and research the existing trademarks.

Check if any mark similar to your trade mark exists. IPOS has the last word when it comes to trade mark approval.

Step 4: File the Trade Mark Registration Application

Many business owners hire a company secretarial services to handle the registration application. These professionals know the legalities involved and are experts in handling them.

You can apply for your trade mark online on the website IP²SG or send a paper application via post, or, submit it at the Intellectual Property Office in Singapore.

Submit the following details with your trademark registration application:

• Personal details: if want to register a trademark as an individual
• Company details
• Trade mark graphics
• Device, product or service used with the trade mark
• Describe your trade mark (such as sound or a hologram)
• Declaration to use your registration mark judiciously

You can submit one application for many classes or separate one for each class. The fee is charged per class, so it remains the same. However, if your multi-class application gets stuck for some reason, it will delay the registration of the trade mark for all of the classes you have chosen.

Check your application before submitting it, as you can only effect minor changes afterwards.

Step 5: Pay the Trademark Registration Fee

After submitting the application, you will receive instructions regarding the fee in 3 days. The fee is charged per class of goods and services. You can pay it online via IP²SG.

They are as follows:

• The fee for manual filing is $374
• The fee for online filing is $240 (for goods and services from a pre-approved database) or $341 (if you use your specifications not in a pre-approved database)
• The fee for amending your application is $40 (as directed by the examiner)

Step 6: IPOS Tags Application with a Trade Mark Number

After receiving your application and fee, the IPOS tags it with a unique trade mark number for tracking purposes. Its submission date is used to establish trademark’s priority.

IPOS then checks if your trademark fails to comply with any legal requirements. If it does, they inform you and put in a time-frame for resolving the problem.

If you fail to answer them within the deadline, the application is rejected. To avoid this, see if you can get an extension.

Step 7: IPOS Publishes Your Trade Mark

If there are no objections, IPOS publishes your application in the Trade Marks Journal. The interested parties have the next two months to file a notice of opposition.

If there is an objection, you must provide the counter-statements. You have to pay $360 per class to make an online counter-statement.

Step 8: IPOS Registers Your Trade Mark

If all goes well, IPOS will register your trade mark and issue you a certificate. It is registered from the submission date of your application.

You must apply to renew your trade mark 6 months before its expiry date by paying $380. Later, you must pay $610 per class for online filing.

Priority Claim

If two entities apply to register the same trade mark, the entity that applied first has the priority claim. However, both countries must be members of the Paris Convention or the World Trade Organization (WTO). In addition, you must indicate in your application that you want to claim priority.

Protecting Your Trademark All Over the World

To register your trade mark outside Singapore, you can file an additional application with the IPOS. It is better than applying separately in every country. The consolidated international protection is valid in countries that are members of the Madrid Protocol.

As per this protocol, you must:

• The fee for manual filing is $374
• First, register a trade mark or apply for it for the same goods and services in Singapore
• Be a Singapore national or a resident or own a business here

You have to pay two fees to apply for international trade mark registration. You must pay a fee of $250 to IPOS. The World Intellectual Property Organisation (WIPO) fee varies depending on the trademark and the number of classes.

Once approved, your trademark will be added to the international register. It will be valid worldwide for 10 years. You can renew it. However, if your Singapore trademark registration is cancelled or revoked, you will also lose your international registration.

We can assist you in trade mark registration. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to discuss your trademark registrations with our experts.

Also Read: How company secretary streamlining your business

UEN number in Singapore is not an unsolvable mystery. A UEN is convenient for interacting with government agencies to ensure your company’s compliance. It streamlines your online statutory filings like tax filing, annual filing, Etc.

10 Facts About UEN Number in Singapore

1 What is a Unique Entity Number (UEN)?

Singapore UEN numbers are unique identifiers that ACRA assigns to companies. It helps avoid any confusion in the minds of investors. You can also apply for a Special Unique Entity Number (SUN) that will be easy to remember and identify at a glance.

UEN tells them the type of business you are running:

• A private limited company or
• A limited liability partnership or
• A sole proprietorship

When you register a business with ACRA, you will get a 9-digit UEN. And for a local company, you will get a 10-digit UEN. As a newbie business owner, you must know how it enables you to move through the corporate environment in Singapore.

Using it, you can communicate with regulatory and private agencies in Singapore.

2 Applying for a UEN

Commonly, business owners hire a provider of accounting services in Singapore to incorporate their companies. The process includes the application for a UEN. So you do not have to apply for it separately.

However, if you need a Special Unique Entity Number (SUN), you must ask your provider to apply for it to fulfil your operational needs. The process differs for local and foreign business owners.

3 How To Use Your UEN

Singapore UEN is more than just an identifier. It provides you with various benefits, especially when it comes to executing processes. UEN simplifies your interactions with government authorities by reducing the administrative efforts that go into identifying you with them.

Interact with Government Agencies Using UEN

UEN gives your company an identity. It is the most essential identifier for communicating with various government departments and agencies.

With it, you do not have to maintain and produce multiple numbers or codes to identify your company to the agencies. The use of the UEN number emphasises your company’s Singaporean origin to these entities. This identifier reduces your extra administrative work.

Using the UEN, you can easily access and register for various web portals (Ex. BizFile+) the Singapore government runs. You can even sit in your office and complete the company’s statutory compliance online.

Once the portal verifies your UEN, you can execute various compliance-related tasks such as filing corporate tax, applying for import and export permits, Etc.

On the other hand, UEN enables government officials and agencies to communicate with companies with similar names without making any mistakes. The unique entity numbers negate the drawbacks of dealing with similar company names.

Using UEN with PayNow Corporate System

UEN simplifies your online financial transactions. All you have to do is register your UEN for the PayNow Corporate system. Doing so links all your Singaporean bank accounts and makes instant payments possible.

Depending on your needs, you can use the system for solitary or bulk transfers. You do not have to share any of your bank details. It saves time and effort.

4 Searching for a Particular Company Using its UEN

If you want to know more about a particular company for investment or collaboration purposes, log in to the Singapore Online Search Directory. Enter its name and relevant details.

Doing so gets you information like:

• Company’s name
• Company’s UEN status
• Issuance agency
• Type of entity you are searching
• Partial office address

You get all this information online without having to talk to anyone. UEN truly helps you navigate the Singaporean business marketplace effortlessly.

5 Verifying Entity Status of a UEN Number

If you have a UEN, you can easily know the type of business hiding behind it. Go to the Singapore Online Search Directory and enter the UEN.

Upon successful verification, this directory search spits out the entity status of the UEN number you entered into the system. You get the business’ current status, business entity type, name and registration details.

The system may even provide you with the agency that issued that particular UEN. You can contact the agency for further insights into the entity’s registration history.

6 Are You Required to Display UEN?

Yes! You must display your company’s UEN number in Singapore on official documents. You must include UEN on your:

• Company letterheads
• Invoices
• Receipts
• Company envelops
• Bills of exchange
• Official letters to regulatory agencies

Make sure to add it to order forms, publicaly visible business signs, brochures, leaflets, and published notices or adverts. If you manage a digital platform, publish your UEN on websites and include it in company emails.

7 Updating UEN Details

Companies need to move and change their address or business activities. In such cases, you are responsible for updating company’s UEN information with the agency that issued UEN to you.

Before you change company’s business activities, it will be a good idea to provide the relevant documents to the agency. It may take up to 2 weeks to process them. Update your UEN info whenever there is any change.

8 Is it Possible to Change My UEN?

No! It is not possible to change your company’s UEN. It is a permanent identifier allocated to your company. However, you can change your business name without affecting UEN.

9 UEN Exemptions

Do all the business entities need a UEN number in Singapore? No! Though most of them need it. The UEN exemption depends on the nature of their business activities.

There are a few special cases in which non-commercial or the unique nature of business activities gets you the exemption.

Entities that Get UEN Exemption

Singapore grants UEN exemption to certain entities that have:

• Minimal or rare transactions and interactions with Singaporean agencies
• Offshore companies that do not interact with Singaporean agencies
• Engaged government agencies only once
• Branches of Singaporean companies

10 Benefits of UEN Number

Your UEN provides you with many benefits. They are as follows:

• Simplifies communications with government regulating agencies
• Simplifies corporate tax return filing
• Streamlines process for the import and export permit applications
• Special Unique Entity Number (SUN) is easy to remember

Who Issues UEN Numbers?

Accounting and Corporate Regulatory Authority (ACRA) is Company Registrar of Singapore. Commonly, ACRA issues the UEN number after registering a company. However, many other Singaporean agencies issue UEN numbers. These are as follows:

• Accounting & Corporate Regulatory Authority
• Ministry of Communications & Information
• Ministry of Culture, Community & Youth
• Ministry of Defense
• Ministry of Education
• Ministry of Finance
• Ministry of Foreign Affairs
• Ministry of Health
• Ministry of Law
• Ministry of Manpower (MoM)
• Ministry of National Development
• Monetary Authority
• People’s Association
• Registry of Societies
• Singapore Land Authority
• Smart Nation & Digital Government Office
• International Enterprise Singapore
• Islamic Religious Council of Singapore

UEN number in Singapore streamlines communication between government agencies and the business community. It enables these agencies to address and covey compliance-related info to the intended entities without any confusion about their identities.

Using UEN, companies also get access to government web portals to fulfil their needs and execute essential tasks without any hassle. If you are starting a new company, our company secretary can proficiently help you with it.

We are a reliable accounting services in Singapore and also provide services for company incorporation. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to talk to our experts.

Also Read: Common Mistakes to Avoid in Outsourcing Accounting Services

To correctly calculate Singapore income tax for foreigners you must know a few things. The duration of your stay in Singapore determines whether you are a tax resident or a non-resident.

Your residency status affects the tax rate applicable to you. Let us dive in and know what tax residency is and how to file your Singapore income tax without any hassles.

You, as a foreigner, are a tax resident if your work stay or physical presence in Singapore in the preceding calendar year is at least 183 days long. What happens if your employment spans across two consecutive years?

The authorities check if your continuous employment stay spans across two calendar years. If you are a non-resident with such a record and have stayed in Singapore for at least 183 days, they upgrade your status to that of a tax resident for both years. Incidentlly, Singaporeans and permanent residents are tax residents.

Here is why your tax residency matters:

• You, as a tax resident of Singapore, benefits from the lower tax rates
• You also qualify for tax reliefs provided by the government
• If you submit the Certificate of Residence, you do not have to pay taxes twice because of the Double Taxation Agreements (DTA) Singapore has signed with other countries.

Progressive Personal Income Tax Rates for Tax Resident Foreigners

Singapore charges progressive personal income tax rates to its tax residents. It means your tax increases by your income. This system enables authorities to distribute the tax burden fairly among the taxpayers.

From YA 2024 onwards, for tax residents of Singapore, the personal income tax rates start from 0% and go up to 24%. In the first bracket, there is you pay 0% tax on your first $20,000, but your next $10,000 is charged at 2%,

In the last tax bracket, your first $1,000,000 is taxed at 23% and income above $1,000,000 is taxed at 24%.

Note that for YA 2017 to YA 2023, the personal income tax rate ranged from 0% to 22%.

Personal Income Tax Rates for Non-Resident Foreigners

You are non-resident for tax purposes if you do not fulfil the requirements for a tax resident. Here, you will have to pay different tax rates from residents. The rate applicable to you will depend on your tax classification.

Here, you will use a flat rate of 15% or a progressive resident tax rate on your chargeable employment income to yield a higher tax amount.

The rates of Singapore income tax for foreigners varies based on the type of the income earned by the non-residents. They also do not get to claim any personal tax reliefs. However, the good news is that only your income earned within Singapore is taxed.

In Singapore, from January 1 2023, when a payee pays you, a non-resident individual, they must deduct 24% tax from your payment before depositing the rest in your bank account. It is called as Withholding tax in Singapore.

Here is a table for non-resident foreigners to know the withholding tax rate that applies to their income type.

Which of Your Employment Income can be Taxed?

In Singapore, tax residents and foreigners must pay tax on their chargeable income. The system covers your basic salary, bonuses, commissions, and job-related remunerations. It also covers housing provided by your employer, which is a non-monetary benefit.

Those who earn income remotely from Singapore and those who are earning from overseas employment must also pay their income tax.

Deduct any unreimbersed employment expenses and donations to eligible charities from your taxable employment income. If your company is a part of the Auto-Inclusion Scheme, it will ease filing of your Singapore income tax for foreigners.

Steps for Filing Your Income Tax Return

Each year, you must file your income tax return in Singapore by April 15 (paper and e-filing). The process is pretty simple and easy to follow. You must collect a few documents to submit an income tax declaration.

These documents are as follows:

• Singpass Foreign User Account
• Form IR8A, if you are not in the Auto-Inclusion Scheme
• Details of dependents for claiming new reliefs
• Income through rental and other means
• Business registration or partnership tax reference number

Check if IRAS Asked You to File an Income Tax Return

You can log into the myTax web portal run by IRAS and e-file your income tax return from March 1 to April 18. The deadline for paper filing is April 15.

If you need an extra period to execute this task, you can request for an up to 14-day extension on the myTax portal.

No-Filing Service

If you have received a letter or SMS to tell you that you have chosen the No-Filing Service, then there is no need to file your return.

If IRAS has sent a letter, SMS, or form instructing you to file your return, then do it, whatever your circumstances are.

E-Filing

To e-file, log into the myTax web portal using your Singpass Foreign User account. Verify the auto-included info on the screen. To make any changes, click on Individuals =>File Income Tax Return.

After e-filing, if you need to change income or relief details, do so within 7 days and within the e-filing due date. Log into myTax portal and go to the Amend Tax Bill option to do so.

Paper Filing

If you want to paper file your return, wait till you get the relevant form. They will arrive between February and March. After March 15, contact IRAS and ask for one. Fill and sign it and send its first page to IRAS by April 15.

Personal Income Tax on Business Income

If you own a Sole Proprietorship or a Partnership, the business income you receive from it is considered your own. You have to pay personal income tax on it. It means you, too, must file individual income tax returns within the due date.

From YA 2021, these owners must prepare a 2-line statement for revenue up to$200,000 and a 4-line statement for that above $200,000.

You can claim business expenses and reduce the taxable income.

You will get your Notice of Assessment or tax bill by the end of April onwards.

GST

The current Goods and Services Tax (GST) rate is 9%. Check if you need to register your business for it. Do so if its taxable turnover is above $1 million to avoid penalties and fines.

Also Read: How Can a Foreigner Start a Business in Singapore

Tax Reliefs for Foreigners in Singapore

Authorities provide many incentives on Singapore income tax for foreigners and permanent residents. These rebates help in reducing their tax amounts:

• Individual income tax rebate up to S$200
• From YA 2023 onwards, family members of each taxpayer can qualify for a maximum of $8,000 of CPF cash top-up relief
• Relief in CPF cash top-up
• Voluntary CPF Medisave contributions
• Parenthood tax rebate (Singaporean children)
• Educational Course Fees Relief, capped at S$5,500/year
• Supplementary Retirement Scheme (SRS) to build private retirement funds

Overseas Income and Double Taxation

The income earned abroad and received in Singapore by a tax resident is tax-free. The exception is that received through partnerships. However, under certain circumstances, Singapore authorities may tax foreign employment income.

Singapore has signed several Double Taxation Agreements (DTAs) with other countries. Because of these agreements, you do not have to pay taxes twice on the same income, once in a foreign country and again in Singapore. The type of your income determines what you get in tax credits, exemptions, and reduced tax rates.

Tax on Capital Gains

Singapore does not charge tax on capital gains from the sale of property. However, if there are a high number of such transactions, their gains may be taxed.

Authorities consider the property holding period and your financial ability to hold it for a long duration to determine whether or not to tax the gains from the sale of the property.

If you must pay tax on such gains, declare them under ‘Other income’ in the income tax declaration form. The profits from the sale of shares and other financial instruments are treated in a similar way.

We have a team of expert accountants to assist you with the Singapore income tax for foreigners. They will claim all the reliefs that apply to you and keep your tax amount minimum. They will also assist with filing your tax return.

Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to get answers to your questions about income tax and XBRL filing.

What are Unaudited Financial Statements?

Unaudited financial statements are unverified documents used internally by the management to judge current financial health and performance of a company.

Though these are unverified by an external auditor, their data and financial insights are useful for making business decisions. This data helps you prepare or modify plans and make strategic decisions to grow your business.

Who Benefits from Unaudited Statements?

Are your small businesses or dormant companies exempt from statutory audits? If it so, where do you get the financial insights to grow your business?

The latest financial statements provide financial insights and enable you to compute and file corporate tax returns. In the absence of verified statements, you must prepare unaudited financial statements. These also provide you with actionable financial insights for business decision-making.

These statements are just perfect for management’s use. They even simplify your work by providing access to data pertaining to a speicific reporting period under your consideration.

You can use these statements strategically for internal analysis. You can also use them to ensure compliance with regulations such as income tax filing or annual returns filing. Their accuracy determines your success and compliance.

It is why you need an expert to prepare these statements. They give you a chance to understand the business’ financial position. You get to use the insights to adjust operational strategies.

Critical Elements of Annual Unaudited Financial Statements

These statements may include:

• Director’s statement: Details the company’s statutory requirements related to compliance and responsibility
• Profit and Loss statement: Shows cash flow over the company’s financial year
• Balance Sheet statement: Depicts changes in the total assets of your company based on other comprehensive income and expense
• Notes to the financial statements: Includes information on financial status and results of operations absent from financial statements themselves
• Equity Statement: Shows changes in shareholders’ equity and investment

Who Must Prepare an Unaudited Financial Statement?

In Singapore, qualified small companies, small groups, and dormant companies can get audit exemptions. The exempted ones must submit their unaudited financial records when filing annual returns.

Requirements of an Unaudited Financial Statement

Small Company

A private company is tagged as a Small Company if it fulfils at least two criteria presented below for two consecutive years. A small company gets an audit exemption and can file unaudited statements if it has,

• Less than 50 full-time employees
• Less than $10 million in total annual revenue
• Less than $10 million in total assets

Unaudited profit and loss statements enable you to track company’s profits and losses. It also gives you an opportunity to update your plans to improve company finances.

Small Group

The small company criterion mentioned above also applies to the small groups. Each company in a group must fulfil at least 2 of the 3 criteria for 2 consecutive years. Their combined total revenue, employees, and assets must conform to the criteria.

Dormant Company

As per IRAS, a dormant company is a business entity without any income over a specific time or financial year. And also that it may have expenses.

As per ACRA, a company with no accounting transactions during its financial year is a dormant company. However, some of its transactions are not classed as accounting transactions. These are as follows:

• Hiring of an auditor
• Hiring of a company secretary
• Maintenance of a registered address
• Fees or penalties paid to ACRA
• Maintenance of company books and bookkeeping of registries
• Share-related transactions under certain conditions

The Benefits of Statutory Audit Exemptions

The auditing process is a complex and highly manual process. During the process, your financial records are verified against the documentary evidence. These audits cost money and are stressful.

The major beneficiaries of audit exemptions are Exempt private limited companies that earn $5 million or less in annual revenue. If your small company or dormant company enjoys audit exemption, you do not have to hire an auditor within 3 months of the date of company formation in Singapore. It also helps reduce your financial burden.

However, you have to maintain all of its accounting records as per Singapore Financial Reporting Standards or International Financial Reporting Standards. You also must prepare and file its financial statements every year.

How to Prepare an Unaudited Financial Statement

You must follow the steps listed below to prepare unaudited statements for your company:

1. Collect and record your financial information regularly
2. Collect necessary documents like receipts, invoices, and bills
3. Prepare annual financial reports
4. Present these documents to the Annual General Meeting
5. File annual returns to ACRA

Let us see this process in brief.

Step 1: Collect and Record Your Financial Information Regularly

In this step, you must collect documents and information that show the financial activities of your company.

• It means collecting documents related to cash flow, unaudited profit, expenses, government grants, and changes in shares
• You also must collect and store bank statements and all receipts

Step 2: Prepare Annual Financial Statements

Now, you can use the financial data in your hand to prepare necessary statements. Use it judiciously to prepare a detailed profit and loss statement showing all your unaudited profits, balance sheet statements, and equity statements.

Step 3: Compliance with the Companies Act

In Singapore, you must prepare financial statements that are compliant with the Companies Act, Accounting Standards Council regulations, and IFRS. Please review all the statements to ensure they are okay. Now, go ahead and draft the Director’s statement and clarify compliance of your company.

Differences Between an Audited and Unaudited Financial Statement

Audited statements are prepared by CPA accountants. They scrutinise and verify each of your financial data. These statements are considered reliable and reflect the true financial state of the company. The creditors, lenders, and investors use these reports to make investment-related decisions.

Unaudited financial statements provide a less formal financial status of the company to management who have intimate knowledge of its working. They are not thoroughly verified, but they are good enough to support compliance-related activities. These reports are of great use to your managerial staff when making business decisions.

If you are not that familiar with the accounting concepts and principles, you must hire an expert accountant to prepare unaudited financial statements for your company. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to talk to our experts and to know how they will fulfil your business needs.

Also Read: How to Choose the Right Business Entity for Company Formation in Singapore

Can you, as an Indian, quickly enter Singapore to join a business meeting, participate in a project or attend a business conference? Yes! Apply for a Singapore business visa for Indians. Here is a detailed guide that covers this particular visa, its requirements, the application process, and fees.

What is a Singapore Business Visa?

Singapore business visa for Indians is your ticket to this island state, provided you have a valid business reason and enough financial funds. It is an entry-level visa designed for a specific purpose. It enables you to enter Singapore for business purposes.

You may be tempted to apply for a social visa to enter Singapore. However, you should use it only if you are on a social or family visit.

Even if you are visiting Singapore to attend a one-time conference, business meeting, or event, you can get a business visa. It is the best solution for your business visit.

Do not confuse a social or business visa with a general visa allotted to tourists to enter Singapore on a holiday. Each of them serves a specific purpose.

What if you are executing multiple projects at different locations and must dance in and out of Singapore multiple times? Do you need to reapply for a new business visa each time? No!

Business visas, like other visas, are valid for an approved period. At the time of applying for it, choose a multiple-entry visa. It will enable you to leave and enter Singapore on multiple occasions.

It allows you, as a business owner or professional, to prioritise your business activities in and out of Singapore on the basis of their importance, urgency, and the need for your physical presence.

Are You Eligible for a Singaporean Business Visa?

Yes! As an Indian, you are eligible for acquire this visa to conduct business in Singapore. Citizens of certain other countries, too, can do so.

However, whether you get it or not depends on the genuineness of your business reasons and not on your nationality. Business visa is good for participating in business negotiations, meetings and conferences. You will also need a passport valid for at least 6 months from your entry onwards.

You need other visas like an Employment Pass to work or a long-term stay in Singapore.

Documents to Submit with Singapore Business Visa Application

Depending on your case, you need to submit the following documents to apply for a business visa:

• A completed Form 14A
• A passport valid for at least 6 months from your entry into Singapore
• 2 passport-size colour photos (plain white background, not older than 3 months)
• Copy of the biodata page of your passport
• A letter of invitation by a business registered in Singapore
• Completed Form V39A
• Bank statement and salary slips as proof of your financial status
• Your employer’s letter bearing its official seal
• A cover letter

Submit these documents in English. If they are not, get them translated into English to speed up the approval.

Applying for a Singapore Business Visa

You can submit your application for a Singapore business visa online. Or, submit it to a Singapore Overseas Mission after an appointment and during their standard working hours.

You can quickly submit your online application through an authorised visa agent. You can find a list of these agents on the Ministry of Foreign Affairs Singapore website. The steps and requirements to get your business visa are as follows:

• Collect the necessary documents
• Fill and file the application
• Pay fees for visa
• Wait for the outcome of processing
• Get your visa
• Confirm validity of visa

Process for Online Application

It is easy to get a Singapore business visa online. Select an authorised visa agent. Depending on your case, they will advise you on the necessary documents to submit with the application.

Include correctly filled Form 14A and the latest photographs. They will go online and submit your application. To improve the chances of visa approval in time, initiate the process at least 2 weeks before you need to travel to Singapore.

On approval, you receive an email notification. Visit the ICA web portal to print it and use it as your travel document to Singapore.

Business Pass Process for Applying in Person

You can visit a Singapore Overseas Mission nearest to you and submit your application and documents in person. Check out the weekdays they accept applications, make an appointment and visit the mission during official hours.

They will tell you the status of the authorised visa.

On approval of the application, visit the mission to collect your business visa or authorise someone to collect it through the e-Service.

Processing Time for Singapore Business Visa for Indians

It is essential that you know how much time it takes to process your business visa. It enables you to plan your business trip accordingly.

Normally, it takes 3-5 working days to review a visa application. However, depending on your case, the approval may take more time. In addition, you may be asked to submit additional documents. So, apply well before your trip to Singapore.

Singapore Business Visa Processing Fee

The processing fee for Singapore business visa for Indians is $30. It is a non-refundable fee whether you get the visa approval or not. You can pay it online it using your debit/credit card.

The fee is charged per application. You must pay it again if you need to reapply. To avoid delays and waste of money, double-check your information and documents before submission.

Also Read: Role of Accounting and Bookkeeping

Collecting Your Visa after Approval

Collection of your approved business e-visa is the easiest part of this process. Your authorised visa agent, local contact, or partner can visit the ICA web portal to print it. It will serve as your entry visa and will allow you to enter Singapore.

Business Visa Notices and Conditions

The validity of Singapore visas differs based on applications. At present, it is 3 months and comes with 30-day allowance per visit. However, be mindful that it can change.

ICA decides about your entry into Singapore. Keep your printed e-visa and passport handy at the entry point for the presentation. You get to enter Singapore only if you fulfil all the entry requirements, including owning a return ticket.

Note that your business visa does not allow you to engage in direct paid work. You must follow all visa requirements and depart before or on the last day of your visa to avoid any legal issues.

Do You Need a Local Contact?

Having a local contact is an important part of fulfilling the Singapore business visa conditions. A Singapore citizen or a Permanent Resident can act in this capacity. They must be at least 21 and have a Singpass or a CorpPass account.

In absense of a local contact, you can also provide a LOI from Indian Embassy or High Commission. However, having a local contact streamlines the visa process.

Visa Free Transit Facility

What if you received very little notice to attend a meeting? In this case, you can use a visit pass to manage your tight schedule. It is also called the Visa Free Transit Facility (VFTF).

A visit visa is valid only for 96 hours. It enables you to transit through Singapore if you are in transit from or to a third country. You must be eligible for it and have a visa or travel documents provided by Indian authorities.

You also need a valid sea or air ticket to depart Singapore before the allotted time ends. VFTF is non-extensible.

Knowing the eligibility criteria for applying to and acquiring a Singapore business visa simplifies your task. Submit your passport, invitation letter, local contacts and any other documents with your application.

Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg if you have any queries about Singapore business visa for Indians, employment passes, Etc. We can also assist you with the process for company incorporation in Singapore and starting a new business.

If you are opting for GST deregistration in Singapore, you need to understand all the aspects of this move to ensure cancellation of your GST registration. You will need a complete guide giving details on the main requirements, steps, and post-deregistration tasks that you must execute to be compliant.

What is GST Deregistration?

There are situations when you may choose GST deregistration to cope with the changes. You may do so because you;

• Ceased operations
• Changed business structure or model
• Took a strategic decision
• Stopped selling taxable supplies
• Decided to enhance cash flow

Whatever the case, it is necessary to cancel your (GST) Goods and Services Tax deregistration. Doing so may make your company more agile financially. Well, it is easier said than done.

Cancelling your GST registration can adversely affect your competitiveness and financials. An experienced accountant can assist you in doing it correctly without harming your input tax credits.

Let us see the conditions that may drive you to this decision, understand the benefits, and judge whether or not voluntary deregistering will help your GST group.

Compulsory GST Deregistration in Singapore

There are certain cases where you must apply to cancel your GST registration within 30 days:

• When your company stops operating or producing taxable supplies
• When your turnover goes below $1 million, and you expect it to stay there
• When the structure of your business changes (like from a sole proprietorship to a private limited company)
• When you start dealing in exempt supplies

Voluntary GST Deregistration

If you expect your taxable turnover to fall below $1 million, you can voluntarily cancel GST registration in Singapore. If you registered for GST voluntarily, you have to stay registered for at least two years.

Before taking the decision, you must ensure that the fall in revenue is not temporary. Because, you do not want to rush to re-register for GST if your turnover rises.

If you find the decision too taxing, hire a provider that offers services for GST filing Singapore.

GST Deregistration Simplifies Your Business

Your provider will help you put together the necessary documents you must submit with your voluntary deregistration application. There must be an expected decline in revenue over the next 12 months.

Advantages of GST Deregistration

• It saves your time, effort, and resources by reducing the complexity of bookkeeping and tax filing
• It saves your time, effort, and resources by reducing the complexity of bookkeeping and tax filing
• You can keep all your sales revenue as you do not have to remit GST to IRAS

Disadvantages of Voluntary GST Deregistration

• You cannot deregister for at least two years after voluntary GST registration
• It is difficult to estimate future turnover precisely, which adds uncertainty to your decision to deregister
• After deregistration, you cannot claim input tax credits on your business purchases
• Your clients may go to your GST-registered competitors to claim input tax credits on their purchases

GST Deregistration Process in Singapore

To initiate the GST deregistration process in Singapore, log into the myTax web portal. IRAS may take up to 10 days to process your application.

Preparing GST Deregistration Application

Your application to cancel GST registration must abide by specific conditions: stopping business activities or ceasing taxable supplies within 30 days. To initiate the application process:

• Your provider logs into myTax Portal and completes the online forms
• After approval, a notification gives you the GST cancellation date
• From that date onwards, stop charging and collecting GST, mark all current tax invoices as GST cancelled

But, go on charging and collecting GST till the last authorised date. File your final GST return and store the records for at least five years.

Finalising GST Obligations: Filing Last GST Return

After GST deregistration in Singapore, you must complete the company’s final GST. Include details like:

• Output tax on your business assets (property and stock) if their combined value is more than $10,000
• Also, consider goods imported under special schemes
• Output tax for supplies received before deregistration
• Post-deregistration, under certain conditions, you can claim input tax for goods or services you purchased before deregistration
• If you cannot produce documents of foreign sales or payment of international services tax, include them as local supplies and include the current GST rate in the final GST return
• Check if the GST rate changed and correct the value of standard-rated supplies and impacted output tax

Post-Deregistration Considerations

Post-deregistration, stop collecting GST from your customers. You must adjust business practices to avoid incidences like issuing GST invoices. Failing to do so might attract fines.

Adjusting Business Practices

1. Stop including GST in your displayed or advertised prices
2. Check if you have any contracts signed before GST deregistration that need price adjustments
3. Post-deregistration for returned goods and rebates on them, adjust the GST amount as per the GST rate at the time of sale
4. For goods exchange, apply GST only on additional items received

Record Keeping is Mandatory

Even after GST deregistration in Singapore, you must keep financial records to be compliant. It is mandatory. Doing so enables you to negotiate any potential future audits, issues or inquiries.

Retention of Accounting Records

As per the law, you must maintain your accounts and transaction information for at least five years from the date of transactions. You have to do it even after your business has ceased operations or deregistered for GST. It helps avoid any penalties or legal issues.

Dealing with Audits

You can store accounts and transaction records in electronic format in compliance with the requirements advised by the GST Comptroller. These records will provide info on your past tax positions and help you survive an audit.

Changing Business Structure and GST Registration

If you want to convert your sole proprietorship to a private limited company, there may be a change in GST registration. You may have to start by GST deregistering it with IRAS.

Selling Your Business and GST Implications

The sale of a business and its property has GST implications. If the buyer is a GST-registered new business, you may not have to account for output tax in your final GST. The condition is that the buyer must ensure the continuity of your business and use its assets to achieve the same business purposes. Both you and the new owner must store records of the assets transferred.

GST deregistration in Singapore is a tough cookie to crack. An expert accountant can help you understand when to deregister compulsorily or voluntarily, face the application process and submit the final GST. Contact us at +65-6536 0036 or info@sbsgroup.com.sg to discuss your issues with our accountants.

Also Read: Ultimate Guide to GST Filing Singapore