Which is an ideal jurisdiction for company incorporation in Asia? Singapore and Hong Kong have been dominant players in the Asian region, vying for the position of “the best place to do business.” But the crucial questions are, which of these jurisdictions have an edge over the other? Is incorporating a business easier in Singapore or in Hong Kong?
Strategic location and attractive tax benefits make Singapore the most preferred location for the overseas companies to set up their business. Various options are – opening up a Branch Office, a Representative Office or a Subsidiary in Newton . The country also has liberal immigration policies. If the company wants to set up their regional head quarters in Singapore they are also provided with Financial Assistance.
Best Small Business Tax In Central, SG
A key determinant for setting up a business in Newton is the tax regime in force. In this regard Singapore boast of being one of the lowest tax jurisdictions in the world. Detailed below is an overview of the tax system and Small Business Tax in Singapore.
Tax jurisdiction Singapore: Taxes are levied on a territorial principle i.e. companies and individuals are taxed on Singapore sourced income. In addition, the Foreign sourced income (branch profits, dividends, service income, etc.) are taxed when it is remitted or deemed remitted into Singapore unless the income was already subjected to taxes in a jurisdiction with headline tax rates of at least 15%.
Why Should Your Business Use Accounting Services?
The main purpose of any business is to make profits and not have any losses. Therefore, it is important to ensure a cost effective accounting system is in place. Handling accounts, transactions and other financial details is not an easy task but with the services of outsourced small business accounting services these can be achievable. Hence, looking for outsourced accounting services would be positive to the business.
Sometimes running a small business can become burdensome at times and this is why small business accounting services can lower costs and yet remain effective for the business owner. It also offers accounting software that eases the whole process of making records and tallying them over and over again. However, we also know that most of the small business owners or for that matter any other business owner is not a qualified accountant, and that is why they need to hire the services of a professional to handle this. And small business accounting services is the right choice as it not only reduces time but also personnel resources.
Small business accounting services have professionals who specialize in providing business accounting services support to clients. The outsourced accountant will handle the small business accounting work of your business. As the business owner, you will like to be informed about all the work that is being done with regard to accounting and bookkeeping of your business, so that you know where your business is heading and if you are making any profits or not.
Having a professional accounting or Certified Public Accountant will help to ensure that your business' financial statements or books will be properly kept for tax purposes. In Singapore, you will need to file your financial statements with the authorities. Inadvertently, these financial statements will be used to assess your company tax. Surely you do not wish to run afoul of the law. Therefore, it would be wise to ensure your company accounts are properly kept.
The whole purpose of having a professional from small business accounting services will make things easier for you, so that you pay your tax on time. Besides taxes, the outsourced accountant also keeps track of all transactions which have taken place. The information will then be provided to the business owner who can use it for making informed and strategic decisions pertaining to the business.
Corporate Taxation - Singapore Vs Hong Kong
Accounting is one of the most crucial aspects of almost any business. If you intend to outsource your company's accounting functions to a third-party, it is absolutely important to carefully assess every facet of such company's activities before reaching a conclusion.
Here are core tips for choosing a professional accounting vendor for your business:
State your expectations and find out if they can deliver them
Your search for a professional accounting vendor should start with a clear definition of what you want from the vendor and the value you expect the relationship to bring to your business. Find out if the vendor you intend to partner with can deliver what you expect in terms of value and ROI. Do not conceal your expectations.
Discuss your expectations with the vendors. Tell them exactly what you want, how you want it and how you intend to measure their performance. This approach will prevent misunderstanding in the future if they fail to meet your expectations. Also, ensure all agreements are done in writing and signed accordingly.
Growth and size of the accounting vendor
Experience is crucial in accounting. Before outsourcing your accounting functions to any company, do some research on the level of growth of the company in recent years. If the company has shown a positive level of business growth, it could be an indication of the quality of services they render clients.
Find out about the internal structure of the company and the level of experience of the experts they can boast of. Outsourcing to a startup may not be such a good idea, although some may deliver beyond expectations. But outsourcing to an established professional accounting firm will ensure your business accounting is in safe hands and you wouldn't have to bother about ROI.
Track Record of the accounting vendor
The track record of any accounting firm is a reflection of the quality of service it renders clients. Find out if the prospective accounting vendor has a track record of service commitment or if it has a recognized reputation within its own industry. Also, find out if the vendor tracks customer satisfaction level, which is a strong indication of the extent they are willing to go to ensure customer satisfaction.
Feedbacks from previous customers
Listen to what previous customers are saying about the prospective accounting vendors you are considering. One easy way to start is to go online and search for reviews. Find out if an unsatisfied client has written a piece about the vendor or if a satisfied client has recommended them. But do not stop there, ask the accounting vendors to give you a list if their previous customers. They will have no problem with providing you such list, if the quality of the services they are rendering is top-notch.
Data security is as important as your business accounting or even more. Before outsourcing to any accounting company, find out about their security and confidentiality processes. Accounting vendors must be able to show that they use modern and secure information technology systems.
Assess the level of information security management of the vendor, if you observe loopholes or have doubts about the authenticity of their data security, do not hesitate to consider other options. Also, find out if the company has invested in modern data security technology such as cloud to ensure client data are secured.
Relationship management is crucial for the success of the accounting functions you outsource. You need to understand how the accounting vendor you intend to outsource to manage relationship with clients. Consider their communication skills.
Do they often create a communication gap that leaves you searching for more information? Or will language and business culture be a barrier between you and them? You need to consider how well your company can relate with them, share ideas, discuss solutions, establish and maintain a professional relationship.
Avoid the deceit of lowest bidders
There is often the temptation to outsource your business accounting functions to the lowest bidder. Professionals in the accounting business are relatively expensive in service delivery. If you intend to outsource to a professional accounting firm, be ready to pay a competitive price. Just like in any other industry, there are charlatans in the accounting business too. One of the easiest methods these charlatans use to get victims is offering prices that falls below the normal competitive market price.
While the lowest bidder may not be the best option, the most expensive accounting firm may fail to deliver on its promises. As such, do your best to strike a balance between a successful track record, expertise and competitive pricing when selecting an accounting vendor.
Assess financial stability
It is crucial to ensure that the accounting vendor you intend to outsource to be financial secured. You need to find out if the vendor is financially strong enough to manage its business. If the vendor is financially weak or has financial problems such as inability to pay employees, such weakness will affect their quality of service delivery and ultimately affect your business.
How often will you have the opportunity to discuss your concerns with the accounting company you outsourced to? You need to consider the availability of the accounting vendor before signing any contract. In most cases, many small businesses often demand for face-to-face meetings every week or every two weeks, while some large business may demand for monthly meetings or vice versa. Depending on the nature of your business, you may have to discuss with the department or employees responsible for communicating with vendors in order to come up with a reasonable timeframe that will favor your business. It is crucial for you to outsource for the best accounting services for your business in order to ensure ROI.