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 Kent Ridge . 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.
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A key determinant for setting up a business in Kent Ridge 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 Audit Firm 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%.
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The Inland Revenue Authority of Singapore (IRAS) has imposed a new scheme known as the Production and Innovation Credit (PIC) to benefit logistics companies in Singapore. For several years IRAS was designing strategies for logistics department to be at par with international companies of Japan and China so they came up with PIC.
The several ways PIC Grant can benefit the logistics companies are listed below:
Funds for automated machines
The PIC scheme has been very beneficial for the logistics companies as they can purchase automated machines and devices. The entire funding is covered by IRAS PIC Grant. As a result, the companies can reach higher levels with increased production and returns. The automated machines also reduce the cost of extra labour and the job can be finished in less time. The productivity becomes higher resulting in greater profits thus competing in the international market.
The experts of IRAS also help these companies to come up with efficient strategies to enhance their productivity. The highly educated panel of IRAS has a lot of experience when it comes to managing financial growth of a company. In most of the cases, the managers of these logistics company are not well accustomed with the strategies to match the international standards. A proper analysis by the IRAS experts will ultimately lead to higher sales and improve the quality of their service.
Logistics companies are a huge blunder when it comes to paying taxes. The tax keeps on mounting and at the end, the companies have to pay a large sum compromising their profit. So the IRAS comes into the scenario and helps these companies set up various plans to solve problems regarding taxation. There can be tax deductions up to 400% in several cases. This will help the companies to provide their services at a cheaper rate to beat their competitors.
The cash pay-out option
The small and growing businesses are the ones who can be hugely benefitted by this cash pay-out option. To aid these companies the Singapore government has come up with many strategies so that they can reach the heights of big companies. With the cash pay-out option, the financially distressed companies can invest in modern equipment and improve their standards.
Productivity along with improvement of Logistics Companies
The PIC Grant, 2014 offers productivity with improvement of the companies all at the same time. There are certain regulations and to be eligible, these companies need to invest in several areas of Singapore economy. This will ultimately benefit the logistics companies but at the same time, the government is doing its part.
Financial Reporting & Auditing in Singapore
A lot of companies today fail to succeed primarily because they have done a poor job of keeping their financial records. Keep in mind this is one of the most important aspects of any business, big or small, that should never be neglected. Fortunately, there are a lot of bookkeeping companies which offer quality book keeping and accounting services. By hiring efficient, reliable and honest bookkeepers from these companies, you would be able to feel secure as to where every dollar goes in your business. You would also be able to keep track of all your assets and payables, without having to do a lot of work.
However, the process of choosing a top company who would be able to provide bookkeepers who are organized and experienced could be a bit hard as it would require a careful selection since they would be handling the financial documents and reports of your company. You can hire just one bookkeeper, which would be sufficient if you only require small business accounting or a team of bookkeepers. To check whether they would be competent enough, you can ask for their credentials and experience as well as if they have had any extensive training. You can ask about how long they have been providing bookkeeping services Singapore.
You could check their website for information on what type of services they can provide and you could read any reviews or testimonials that former clients have posted. If there are no reviews on their website, you could ask for the contact information of their current or previous clients to have good idea of what they are capable to do and how they are as a service provider.
You could also check whether or not they are aware of the newest software which are used for bookkeeping and accounting. This is necessary since a lot of the individuals and the companies who are offering these types of services make sure that they are technologically updated in order to stay competitive in the industry.